WSP Global, Inc. (WSP) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

SNC-Lavalin Group, Inc.

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Bird Construction, Inc.

WSP Global, Inc.

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Brookfield Business Corp.

Foraco International SA

SolarBank Corp.

Spark Power Group, Inc.

Why is WSP Global, Inc. ?

High Management Efficiency with a high ROCE of 12.40%

Company's ability to service its debt is strong with a healthy EBIT to Interest (avg) ratio of 6.48

Healthy long term growth as Operating profit has grown by an annual rate 25.97%

Positive results in Mar 26

OPERATING CASH FLOW(Y) Highest at CAD 1,884.8 MM
RAW MATERIAL COST(Y) Fallen by -16.99% (YoY)
CASH AND EQV(HY) Highest at CAD 2,332.3 MM

With ROE of 11.60%, it has a expensive valuation with a 2.46 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -34.88%, its profits have risen by 29.7% ; the PEG ratio of the company is 0.8

Majority shareholders : FIIs

Below par performance in long term as well as near term

Along with generating -34.88% returns in the last 1 year, the stock has also underperformed S&P/TSX 60 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to WSP Global, Inc. should be less than 10%
Overall Portfolio exposure to Construction should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is WSP Global, Inc. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

WSP Global, Inc.

-34.88%

6.72

27.30%

S&P/TSX 60

29.6%

2.31

12.81%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

16.22%

EBIT Growth (5y)

25.97%

EBIT to Interest (avg)

6.48

Debt to EBITDA (avg)

1.38

Net Debt to Equity (avg)

0.51

Sales to Capital Employed (avg)

1.32

Tax Ratio

27.58%

Dividend Payout Ratio

20.32%

Pledged Shares

Institutional Holding

0.04%

ROCE (avg)

12.40%

ROE (avg)

10.79%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

2.46

EV to EBIT

17.24

EV to EBITDA

12.26

EV to Capital Employed

1.85

EV to Sales

1.73

PEG Ratio

0.83

Dividend Yield

ROCE (Latest)

10.72%

ROE (Latest)

11.60%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at CAD 1,884.8 MM

RAW MATERIAL COST(Y)

Fallen by -16.99% (YoY

CASH AND EQV(HY)

Highest at CAD 2,332.3 MM

-2What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at 80.93 %

EPS(Q)

Lowest at CAD 1.07

Here's what is working for WSP Global, Inc.

Operating Cash Flow

Highest at CAD 1,884.8 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (CAD MM)

Cash and Eqv

Highest at CAD 2,332.3 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by -16.99% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for WSP Global, Inc.

EPS

Lowest at CAD 1.07

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (CAD)

Debt-Equity Ratio

Highest at 80.93 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio