WSP is a professional service company providing technical consulting services to the world. The company operates from more than 550 offices in 40 countries in EMEIA (35% of 2020 sales), America (34%), Canada (14%) and APAC (17%).

The company looks back on 130 years of history and covers more than 80 industries in various sectors, from transportation and infrastructure (55% of 2020 revenues) to real estate and buildings (22%) to the environment (14%), Industry and Industry. Resources, energy and energy (9%).

WSP Global is in a good position to leverage its local market understanding, global know-how and benefit from emerging futuristic trends. It is known for providing innovative solutions to future challenges in communities and environments.

DISCLOSURE: Please note that links to merchants mentioned in this post may use an affiliate link. Using an affiliate link means that, at zero cost to you, I may earn you a commission every time you buy something through that affiliate link.

Investment data

Sales growth and market presence

Over the years WSP has built an impeccable reputation and is known for its ability to adapt to customer culture and local markets. WSP offers a variety of professional services during all project implementation phases, from the initial development and planning studies to project and program management, design, construction management, commissioning and maintenance phases.

The company is represented in almost all industrial sectors, including food and beverages, pharmaceutical and biotechnology, automotive and chemicals. It is a leading provider of technical and advisory services with a track record in delivering quality buildings.

WSP grows through acquisitions. Six acquisitions were made in 2019, which contributed to expanding the company’s global presence, establishing a presence in the Dutch market and strengthening the Strategic Advisory Services segment. With the acquisition of LT Environmental last year, the company also strengthened its expertise in the environmental sector.

WSP announced its intention to acquire Golder, a leading global environmental consultancy, in late 2020. A rich history and large international presence are key to WSP’s future growth potential.

As a global leader in professional services, WSP is better positioned to serve its customers by expanding its offering, expertise and geographic reach. WSP offers local know-how as well as international benchmarks and best practice solutions based on its rich experience.

A strong focus on customers and the future will help societies thrive tomorrow sustainably, and WSP plays a strategic role in making the world sustainable. The business model focuses on maintaining a leadership position in each of its end markets and regions in which the company operates.

The company successfully launched Future Ready in Asia, Latin America and Central Europe in 2020, achieving the 2021 goal of exporting Future Ready worldwide. WSP has seen sales growth of 8% over the past three years. Last year, however, there was a decline in sales.

Dividends

WSP has a moderate dividend yield of 1.17% and a reasonable payout ratio of 60%. A dividend increase is long overdue as the company last increased its dividend payout in 2013.

The company paid dividends of $ 167 million last year. The result has increased by more than 6% over the past three years. WSP posted cash flow from operating activities of more than $ 160 million and free cash flow of $ 85 million for the last quarter.

WSP ended the year in strong financial shape with a strong backlog ($ 8.4 billion), an improved Adjusted EBITDA margin and record cash flow. The order backlog grew organically by 1.7% compared to the previous quarter. Most of WSP’s revenue comes from fixed-price and cost-plus-cap contracts. The company has no significant capital requirements as it is not involved in the project setup.

WSP has demonstrably achieved successful and successful acquisition targets. It is well positioned to deliver on its strategic ambitions for 2019-2021 despite the problems caused by the pandemic. The company experienced high overall supply activity across the company.

Consolidated organic growth in the low single digits is expected for the second quarter. WSP should benefit from the recent completion of the Golder acquisition and increased diversification of the capital structure.

competition

The company operates in highly competitive markets and is exposed to intense competition in all sectors. The company competes with both large and smaller and more specialized companies. Badger Daylighting, SNC-Lavalin, Stantec and the Aecon Group are some of the other leading companies in the engineering and construction industries.

An integrated range of services as well as technical, ecological and commercial know-how give WSP Global a competitive advantage. The company benefits from regional offices with a full-service offer.

Bottom line

WSP offers investors a low-risk offer as there is no project risk. The addition of Golder should contribute to both strategic growth and value creation in the years to come. A strong balance sheet, a healthy order backlog and a high level of supply activity position the company well for the future.

My portfolio has had an annual return of over 12% since 2009. it’s from 2009 !!! That’s a constant return, which means that after the rule of 72, I double my portfolio every 6 years.

My approach is simple, but you need key data that I created using the Dividend Snapshot Screeners. No other investment service offers you easily understandable data, but also usable data. No hidden magic.

In fact, I’ve tried all of the securities services for dividend investors like a crash test dummy for securities services. Just ask me and you will see why I couldn’t use anything out there and that’s how the Dividend Snapshot Screeners were born!

LEAVE A REPLY

Please enter your comment!
Please enter your name here