Opinions Larry Berman CFA, CMT, CTA
WSP Global Inc.WSP.TOHOLDSep 28, 2026
Stock price when the opinion was issued
As of Sep 29, 2026. Market Open.
You might be interested:
The worry is that AI is making engineers more efficient, so hourly billings--and revenues--will decrease. No, firms won't pass all construction work to AI, so there remains a need for WSP, and they will use AI to become more efficient. WSP is short of engineers, too. WSP is positioning themselves in attractive markets like data centre builds.
Still a place to go. You want to buy the great areas when they're down and people are forgetting about them. Doing everything right. Benefits from Canada's nation-building.
Growing 16%, trading at 13x PE. Last quarter was a really nice beat, organic growth reaccelerated. Raised full-year guidance. Pick away, buy more, be patient. Sell some puts and be paid a nice premium.
Another AI baby thrown out with the bathwater. Nonsense that vibe-coding will replace professionals with an iron ring. In a diversity of areas. Robust backlog of $20B in contracts. Strong visibility and demand in core markets, which are global. We have an infrastructure deficit, ongoing buildout of AI and data centres. Catalysts from environment and sustainability.
Leading and active consolidator of globally fragmented engineering services. Hunting big game. Trading at a mid-teens multiple. Pullback is very buyable. Yield is 0.82%.
Brian MaddenChart shows how prudent it is to take $$ off the table when you've made some profit. Then try to find the next really good opportunity to build wealth. If you don't trim along the way, the outsized weight will swing your portfolio around every time the stock moves.
Sees upside and would buy it here. Is global with only 20% of operations in Canada. AI has been an overhand with a false belief that AI will replace some of WSP's services. WSP partners with Microsoft to do some of their AI tools. WSP is using AI to increase productivity. They are disciplined in companies they buy, including two recent ones to raise their profile in the power industry in the U.S.
Christine PooleAbsurd to think ChapGPT can replace a professional engineer. Earnings grew 22% compared to last year. Segment with fastest organic growth is probably power/energy. Big acquisition in February has really bolstered growth stateside, trying to make another in Europe. High margins. At 15x PE, massive discount to 5-year average of 25x.
Brian MaddenStill one of the highest-quality infrastructure companies in Canada. Long-term themes of power, electrification, transportation, and AI-driven data centre construction. They do the design and engineering, not the building. Strong, diversified business. Record backlog.
Upside will come, though may take a while. It's going to be leading edge through AI. Ranks 10/10 on fundamentals.
Brianne Gardner(Note the shortish timeframe.) Despite AI fears, he feels that engineering might be spared and especially this company. Accountability in its core business is still important, and AI can't give you that. Lower share price makes acquisitions tougher. Organic growth profile has slumped a bit, and he'll be watching to see if it's turned the corner. Overnight, announced an increased bid for a European company, and stock's down 8-9% on that.
On his watchlist. Reports August 5.
Andrew PinkIt's been beaten down from the software threat by AI. He disagrees with this--you still need architects to design, not AI. WSP (and Stantec which he owns) still have a future. Demand for infrastructure remains and revenue is growing, though we won't know what the margins are for 12-18 months.
Is solid, mature company that will make it through the long term. It is partially cyclical, because it's leveraged to infrastructure and government spending. The market is starting to discount that fiscal restraint coming from the government as opposed to the last few years when the government was spending to keep the economy going. There are challenges to WSP. It's under its moving averages, and he likes to buy low and sell high. Holding market weight is okay with this. Not sure if there's more downside before upside. The price is certainly better than 6-8 months ago.