WSP Global Inc reports 150% EBITDA growth and 109% Revenue growth
15.03.2016 • About WSP Global Inc (
$WSP) • By InTwits
WSP Global Inc reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 7.1% in 2015, 5.9% in 2014, 7.9% in 2013, 8.3% in 2012, 13.7% in 2011
- WSP Global Inc has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.3%. At the same time it's in pair with industry average of 28.2%.
- CAPEX is quite volatile: 88.1 in 2015, 39.6 in 2014, 22.3 in 2013, 16.6 in 2012, 8.7 in 2011
- The company has business model with low profitability: ROIC is at 8.3%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
WSP Global Inc ($WSP) key annual financial indicators
| mln. CAD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 652 | 1,258 | 2,016 | 2,902 | 6,064 | 108.9% |
| Gross Profit | 529 | 1,020 | 1,677 | 2,350 | 4,487 | 90.9% |
| EBITDA | 90 | 104 | 159 | 172 | 430 | 150.1% |
| Net Income | 50 | 46 | 72 | 63 | 189 | 200.6% |
Balance Sheet
|
|---|
| Cash | 144 | 128 | 132 | 202 | 204 | 1.3% |
| Short Term Debt | 5 | 10 | 6 | 11 | 143 | 1,196.4% |
| Long Term Debt | 0 | 221 | 188 | 788 | 847 | 7.4% |
Cash flow
|
|---|
| Capex | 9 | 17 | 22 | 40 | 88 | 122.5% |
Ratios
|
|---|
| Revenue growth | 12.3% | 92.9% | 60.3% | 44.0% | 108.9% | |
| EBITDA growth | 5.6% | 16.4% | 52.8% | 7.8% | 150.1% | |
| Gross Margin | 81.1% | 81.1% | 83.2% | 81.0% | 74.0% | -7.0% |
| EBITDA Margin | 13.7% | 8.3% | 7.9% | 5.9% | 7.1% | 1.2% |
| Net Income Margin | 7.7% | 3.7% | 3.6% | 2.2% | 3.1% | 0.9% |
| CAPEX, % of revenue | 1.3% | 1.3% | 1.1% | 1.4% | 1.5% | 0.1% |
| ROIC | 13.6% | 7.5% | 8.5% | 4.5% | 8.3% | 3.8% |
| ROE | 12.8% | 6.5% | 7.6% | 4.0% | 7.5% | 3.4% |
| Net Debt/EBITDA | -1.5x | 1.0x | 0.4x | 3.5x | 1.8x | -1.7x |
Revenue and profitability
WSP Global Inc's Revenue surged on 109% in 2015. Revenue growth happened at the same time with EBITDA margin expansion. EBITDA Margin increased slightly on 1.2 pp from 5.9% to 7.1% in 2015.
Gross Margin decreased on 7.0 pp from 81.0% to 74.0% in 2015.
Net Income marign increased slightly on 0.95 pp from 2.2% to 3.1% in 2015.
Capital expenditures (CAPEX) and working capital investments
The company's CAPEX/Revenue was 1.5% in 2015. The company showed almost no change in CAPEX/Revenue from 2012 to 2015. It's average level of CAPEX/Revenue for the last three years was 1.3%.
Return on investment
The company operates at low ROIC (8.26%) and ROE (7.45%). ROIC increased on 3.8 pp from 4.5% to 8.3% in 2015. ROE increased on 3.4 pp from 4.0% to 7.5% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.8x and Debt / EBITDA is 2.3x. Net Debt / EBITDA dropped on 1.7x from 3.5x to 1.8x in 2015. Debt surged on 23.8% in 2015 while cash increased slightly on 1.3% in 2015.
Appendix 1: Peers in Industrial
Below we provide WSP Global Inc benchmarking against other companies in Industrial industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Electrovaya Inc ($EFL) | | -4.0% | -71.2% | 160.5% | 123.8% |
| Enterprise Group Inc ($E) | 14.5% | 3.5% | 88.3% | 128.5% | |
| Carmanah Technologies Corp ($CMH) | 5.8% | -26.4% | -2.0% | 68.8% | |
| Exco Technologies Ltd ($XTC) | | 19.7% | 0.9% | 50.5% | 35.3% |
| Lumenpulse Inc ($LMP) | | 56.7% | 33.9% | 47.0% | 61.8% |
| |
|---|
| Median (92 companies) | 5.3% | 10.4% | 4.9% | 9.1% | 8.3% |
|---|
| WSP Global Inc ($WSP) | | 92.9% | 60.3% | 44.0% | 108.9% |
Top companies by Gross margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Pure Technologies Ltd ($PUR) | 75.7% | 77.9% | 78.0% | 77.5% | 75.6% |
| Alarmforce Industries Inc ($AF) | 76.4% | 75.0% | 76.5% | 72.2% | 69.2% |
| Epicore BioNetworks Inc ($EBN) | 59.0% | 60.8% | 63.2% | 64.1% | 58.1% |
| FLYHT Aerospace Solutions Ltd ($FLY) | 54.0% | 57.2% | 59.2% | 62.9% | |
| Evertz Technologies Ltd ($ET) | 57.7% | 56.6% | 57.5% | 57.2% | 56.7% |
| |
|---|
| Median (88 companies) | 23.2% | 23.0% | 23.3% | 22.6% | 24.3% |
|---|
| WSP Global Inc ($WSP) | 81.1% | 81.1% | 83.2% | 81.0% | 74.0% |
Top companies by EBITDA margin, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Canadian National Railway Co ($CNR) | 46.3% | 46.5% | 45.9% | 46.8% | 50.9% |
| Canadian Pacific Railway Ltd ($CP) | 28.1% | 26.1% | 32.4% | 43.7% | 48.9% |
| Vitreous Glass Inc ($VCI) | 29.0% | 31.4% | 32.2% | 37.8% | 39.0% |
| Questor Technology Inc ($QST) | 25.1% | 25.7% | 34.9% | 34.1% | |
| Progressive Waste Solutions Ltd ($BIN) | 32.2% | 30.7% | 33.1% | 34.0% | 9.8% |
| |
|---|
| Median (85 companies) | 8.1% | 9.4% | 8.3% | 7.7% | 9.5% |
|---|
| WSP Global Inc ($WSP) | 13.7% | 8.3% | 7.9% | 5.9% | 7.1% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Cargojet Inc ($CJT.A) | 6.8% | 7.0% | 6.3% | 54.1% | 41.3% |
| Newalta Corp ($NAL) | 17.2% | 21.7% | 34.5% | 35.1% | 42.0% |
| Enterprise Group Inc ($E) | 3.6% | 17.4% | 27.2% | 32.7% | |
| ENTREC Corp ($ENT) | | 35.0% | 26.7% | 29.5% | 18.0% |
| Horizon North Logistics Inc ($HNL) | 25.1% | 26.5% | 16.3% | 24.1% | 14.7% |
| |
|---|
| Median (92 companies) | 3.0% | 3.1% | 3.7% | 3.2% | 4.0% |
|---|
| WSP Global Inc ($WSP) | 1.3% | 1.3% | 1.1% | 1.4% | 1.5% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Vitreous Glass Inc ($VCI) | 26.1% | 30.5% | 32.3% | 48.3% | 51.0% |
| Photon Control Inc ($PHO) | 10.1% | 21.0% | 44.4% | 38.0% | |
| SNC-Lavalin Group Inc ($SNC) | 14.6% | 10.7% | 4.0% | 35.2% | 11.4% |
| Alarmforce Industries Inc ($AF) | 18.3% | 5.3% | 24.0% | 33.9% | 19.0% |
| Epicore BioNetworks Inc ($EBN) | 24.8% | 28.1% | 16.1% | 32.5% | 26.3% |
| |
|---|
| Median (93 companies) | 8.9% | 10.0% | 8.5% | 9.1% | 9.7% |
|---|
| WSP Global Inc ($WSP) | 13.6% | 7.5% | 8.5% | 4.5% | 8.3% |
Top companies by Net Debt / EBITDA
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Sigma Industries Inc ($SSG) | | 4.4x | 11.3x | 225.9x | 2.9x |
| H2O Innovation Inc ($HEO) | | | 4.2x | 73.2x | 1.6x |
| Grand Power Logistics Group Inc ($GPW) | | 47.8x | | 53.1x | |
| Cargojet Inc ($CJT.A) | 1.8x | 1.5x | 1.5x | 31.5x | 12.9x |
| IBI Group Inc ($IBG) | 4.2x | 6.5x | | 8.3x | |
| |
|---|
| Median (72 companies) | 1.1x | 1.5x | 1.5x | 1.2x | 1.2x |
|---|
| WSP Global Inc ($WSP) | -1.5x | 1.0x | 0.4x | 3.5x | 1.8x |
