Stephen Takacsy, B. Eng, MBA WSP Global Inc. WSP-T BUY ON WEAKNESS Jun 12, 2024

It has been a top pick and has had an outstanding run along with more growth, At this price level there are more enticing plays. They're holding but he would recommend SNC Lavalin for new money.

Big holding for him. He prefers the infrastructure builders to the owners. Lots of $$ being spent building infrastructure, and a bit more leverage in the earnings. Significant position in US power consulting with its latest acquisition; they'll be the largest in the US in this arena. 

Considered it for a Top Pick today. Technical setup is very good. Winning company, and the sector has a tailwind.

All their end markets are doing well: infrastructure, transportation, property, buildings, advisory services, design. Canada makes up less than 20% of revenue, so they are international. It grows 68% organically. Buying POWER Engineers will give them the leading access to the US power market, so WSP will participate in the energy transition as utilities face more energy demand as data centres build out. Integration is going well. 

High quality. Stock's done well on good execution. Canadian engineering firms have a strong business model in Canada, and they're continuing to expand outside Canada; lots of opportunities to do well. He holds STN instead.

Buy a bit now. If price goes up, you'll be happy you got in earlier. If price goes down, buy a bit more to average down. Nothing wrong with the name, you can own for a long time.

Canadian-based, but less than 20% of revenue from Canada. Attractive and achievable 3-year targets to grow margins, earnings, revenue base, and free cashflow. Strong demand for services. Not exposed to tariffs. Very strong balance sheet to take advantage of M&A opportunities. She'd buy here.

Really solid earnings the other day. Targets are way higher than what the street expected. Great numbers in growth and free cashflow. Sector is immune from tariffs. 24x PE for 2026, growing at 15%. Don't be a hero, wait to get it at a lower level.

Services aren't goods, so they won't be subject to border tariffs. Plus, engineering services have secular growth opportunities from things like climate change and data centres. Impressive recent results. 

Trading sideways. Fundamentals score 10/10. Upside of ~19%. Not a huge dividend.

A Canadian company exporting services around the world. Are not that effected by the tariffs directly. Shares are down because they work with companies where steel costs are rising, so these projects will be more expensive and compress their margins. If there is infrastructure spending around the world, WSP will definitely benefit. The 5-year chart is exceptional, fairly directionally up. He owns Stantec instead (more US and water exposure), but both companies are worth owning.

Attractive name. Global. Pure design, before projects are even built. Valuation's come down dramatically, around 27x PE. Not dirt cheap, but fair price for a very well run company. Highly acquisitive. Backed by 2 largest pension plans in Quebec, so lots of firepower.