Is it a good company at a reasonable price? I do not think that this is a dividend stock any longer. They have not raised the dividends since 2009 and seem to have no intention currently of any dividend increase. They are concentrating on growth. However, even though their DPRs are good, they are not particularly low. I still think this is a good company, so I will continue to hold the shares I have. Currently, I am testing the stock price as relatively expensive. I notice that it just off an all-time high.
I own this stock of WSP Global Inc (TSX-WSP, OTC-WSPOF). This company used to be called Genivar. Genivar was in an article I read so I investigated it and decided to buy. In Sept 2011 I rationalized my portfolio. I sold stocks that did not make it into my core and bought stocks that could of the same type. In this case selling Stantec and buying Genivar now WSP Global. In October 2011 I wanted to sell Enerflex because it is not a company that had I bought but a distribution from Toromont. I bought more Genivar, now called WSP Global.
When I was updating my spreadsheet, I noticed I have had this stock for 13 years and I have made a Total Return of 23.32% with 20.62% from Capital Gains and 2.65% from dividends.
If you had invested in this company in December 2014, for $1,010.94 you would have bought 29 shares at $34.86 per share. In December 2024, after 10 years you would have received $435.00 in dividends. The stock would be worth $7,335.84. Your total return would have been $7,770.84. This would be a total return of 24.04% per year with 21.92% from capital gain and 2.12% from dividends.
| Cost | Tot. Cost | Shares | Years | Dividends | Stock Val | Tot Ret |
|---|---|---|---|---|---|---|
| $34.86 | $1,010.94 | 29 | 10 | $435.00 | $7,335.84 | $7,770.84 |
The current dividend yield is low with dividend growth non-existent. The dividend yield is low (below 2%) at 0.62%). The 5 and 10 year median dividend yields are low are 0.96% and 1.82%. The historical median dividend yield is moderate (2% to 4% ranges) at 3.76%. This stock started off as an income trust. Since becoming a corporation, the dividends have not increased. There have been no increases since 2009. They is why the dividend yield continues to drop.
The Dividend Payout Ratios (DPR) are good. The DPR for 2024 for Earnings per Share (EPS) is good at 28% with 5 year coverage at 37%. The DPR for 2024 for Adjusted Earnings per Share (AEPS) is good at 19% with 5 year coverage at 28%. The DPR for 2024 for Cash Flow per Share (CFPS) is good at 11% with 5 year coverage at 14%. The DPR for 2024 for Free Cash Flow (FCF) is good at 21% with 5 year coverage at 20%. There is some agreement on FCF.
| Item | Cur | 5 Years |
|---|---|---|
| EPS | 27.88% | 36.80% |
| AEPS | 18.63% | 27.54% |
| CFPS | 10.50% | 13.62% |
| FCF | 21.15% | 20.22% |
Debt Ratios are fine. The Long Term Debt/Market Cap Ratio for 2024 is good at 0.12 and currently at 0.12. The Liquidity Ratio for 2024 is low at 1.12 and 1.12 currently. If you added in Cash Flow after dividends, the ratios are still low at 1.30 and currently at 1.33. The Debt Ratio for 2024 is good at 1.69 and 1.69 currently. The Leverage and Debt/Equity Ratios for 2024 are fine at 2.44 and 1.44 and currently at 2.44 and 1.44.
| Type | Year End | Ratio Curr |
|---|---|---|
| Lg Term R | 0.12 | 0.12 |
| Intang/GW | 0.33 | 0.35 |
| Liquidity | 1.12 | 1.12 |
| Liq. + CF | 1.30 | 1.33 |
| Debt Ratio | 1.69 | 1.69 |
| Leverage | 2.44 | 2.44 |
| D/E Ratio | 1.44 | 1.44 |
The Total Return per year is shown below for years of 5 to 19 to the end of 2024. Under the Capital Gain column is the portion of the Total Return attributable to capital gains. Under the Dividend column is the portion of the Total Return attributable to dividends. See chart below.
| From | Years | Div. Gth | Tot Ret | Cap Gain | Div. |
|---|---|---|---|---|---|
| 2019 | 5 | 0.00% | 24.49% | 23.33% | 1.17% |
| 2014 | 10 | 0.00% | 24.04% | 21.92% | 2.12% |
| 2009 | 15 | 0.00% | 18.62% | 16.07% | 2.55% |
| 2005 | 19 | 6.10% | 23.31% | 18.53% | 4.78% |
The 5-year low, median, and high median Price/Earnings per Share Ratios are 32.60, 38.61 and 46.32. The corresponding 10 year ratios are 24.34, 32.30 and 38.99. The corresponding historical ratios are 18.17, 21.36 and 24.68. The current P/E Ratio is 35.87 based on a stock price of $246.80 and EPS estimate for 2025 of $6.88. The current ratio is between the median and high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. (Note: These P/E Ratios are quite high.)
I also have Adjusted Earnings per Share (AEPS) data. The 5-year low, median, and high median Price/Adjusted Earnings per Share Ratios are 22.69, 27.19 and 32.08. The corresponding 10 year ratios are 19.67, 24.64 and 28.81. The corresponding historical ratios are 19.67, 24.64 and 28.81. The current P/AEPS is 26.40 based on a stock price of $246.80 and AEPS estimate for 2025 of $9.35. The current ratio is between the median and high ratio of the 10 year median ratio. This stock price testing suggests that the stock price is relatively reasonable but above the median. (Note: These P/E Ratios are quite high.)
I get a Graham Price of $115.49. The 10-year low, median, and high median Price/Graham Price Ratios are 1.25, 1.66 and 2.07. The current P/GP Ratio is 2.14 based on a stock price of $246.80. The current ratio is above the high ratio of the 10 year median ratios. This stock price testing suggests that the stock price is relatively expensive. (Note: this test is a better one than the P/E Ratio and P/AEPS Ratio tests. Also, the P/GP Ratios are quite high. P/GP Ratios above 1.20 are considered high.)
I get a 10-year median Price/Book Value per Share Ratio of 2.47. The current ratio is 3.89 based on a Book Value of $8,273M, Book Value per Share of $63.40 and a stock price of $246.80. The current ratio is 57% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get a 10-year median Price/Cash Flow per Share Ratio of 15.17. The current P/CF Ratio is 20.57 based on a stock price of $246.80, Cash Flow per Share estimate for 2025 of $12.00 and Cash Flow of $1,566M. The current ratio is 36% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
I get an historical median dividend yield of 3.76%. The current dividend yield is $0.61% based on dividends of $1.50 and a stock price of $246.80. The current dividend yield is 84% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. (Note: This test is best when dividends are increasing and, on this stock, dividends have been flat for years.)
I get a 10 year median dividend yield of 1.82%. The current dividend yield is $0.61% based on dividends of $1.50 and a stock price of $246.80. The current dividend yield is 67% below the historical median dividend yield. This stock price testing suggests that the stock price is relatively expensive. (Note: This test is best when dividends are increasing and, on this stock, dividends have been flat for years.)
The 10-year median Price/Sales (Revenue) Ratio is 1.35. The current P/S Ratio is 2.31 based on Revenue estimate for 2025 of $13,939M, Revenue per Share of $106.83 and a stock price of $246.80. The current ratio is 71% above the 10 year median ratio. This stock price testing suggests that the stock price is relatively expensive.
Results of stock price testing is that the stock price is relatively expensive. The dividend yield tests are not good because of a flat dividend. The P/S Ratio test is good and says that the stock price is relatively expensive. The Graham Price tests says that the stock price is expensive as does the P/B Ratio tests. Most of the rest of the testing says the same thing. I noticed that the stock price is just off a recent high.
When I look at analysts’ recommendations, I find Strong Buy (7), Buy (6) and Hold (1). The consensus is a Strong Buy. The 12 month stock price consensus is $291.43 with a high of $310.00 and a low of $270.00. The consensus stock price of $291.43 implies a total return of $18.69% with 18.08% from capital gains and 0.61% from dividends based on a current stock price of $246.80.
Last year, when I look at analysts’ recommendations, I found Strong Buy (1), Buy (8) and Hold (1). The consensus was a Strong Buy. The 12 month stock price consensus is $238.80, with a high of $255.00 and low of $220.00. The consensus price of $238.80 implies a total return of 12.68% with 11.98% from capital gains and 0.70% from dividends based on a stock price of $213.26. What happened was a stock price of $246.80, which is an increase of 16.43% with 15.73% from capital gains and 0.70% from dividends.
Analysts on Stock Chase like this company. It makes most of its money internationally and is into services so tariffs do not affect it directly. They think it is buy, but not cheap. Robin Brown on Motley Fool thinks this is a high quality growth company. Amy Legate-Wolfe on Motley Fool thinks this is a stable company with long term growth. The company put out a press release via Global Newswire about their fourth quarter of 2024 results.
Simply Wall Street via Yahoo Finance reviews this stock. Simply Wall Street via Yahoo Finance looks at who owns this company. Simply Wall Street has one warning of has a high level of debt.
Ghazal Ahmed of Insider Monkey via Yahoo Finance talk about the teaming up of Microsoft and WSP. They said that on February 13, WSP Global Inc., a leading engineering and science-based professional services firm, announced a multi-year, global strategic partnership with Microsoft Corporation to bring digital opportunities to the Architecture, Engineering, and Construction (AEC) industry.
WSP Global Inc provides a professional services consulting firm offering technical expertise and advice to clients in the Transportation & Infrastructure, Earth & Environment, Property & Buildings, and Power & Energy sectors. The firm operates through four reportable segments namely, Canada, Americas ( United States and Latin America), EMEIA (Europe, Middle East, India and Africa), and APAC (Asia Pacific, comprising Australia, New Zealand, and Asia). Its web site is here WSP Global Inc.
The last stock I wrote about was about was Fortis Inc (TSX-FTS, OTC-FRTSF) ... learn more. The next stock I will write about will be Algoma Central Corporation (TSX-ALC, OTC-AGMJF) ... learn more on Wednesday, May 7, 2025 around 5 pm. Tomorrow on my other blog I will write about Dividend Stocks May 2025.... ... learn more on Tuesday, May 6, 2025 around 5 pm.
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