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

Doesn't buy the short-seller report. Bit expensive here around 24x for its 15% growth rate, after a very big run. Don't buy more here, but sell calls instead. Down a couple of bucks today on weak tape is not material.

A global engineering consultant infrastructure, with 45% in the US and under 20% in Canada. They grow by aquisition while organic growth was 8% last quarter. They just bought a private US company involved its utilities. They issued equity, though. They grow its topline 10% annually over 10 years. The street likes the deal, though the price may be high. Synergies should pay off.

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.