WSP Global Inc. (WSP.TO)

Very global, only 18% revenues from Canada. Well-positioned long term for infrastructure spending and energy transition. Backlog growing, as are margins. Disciplined acquirers. Balance sheet good. Organic growth 6-7%.

The question was on comparing WSP Global and Waste Connections. The companies are very different. WCN is in the waste management business and WSP Global is more on the engineering side. Waste management is an important field and a consistent business. WCN traditionally has had an expensive valuation. Both are good companies. Hold or wait to buy.

Engineering services growing. Would be a good time to buy. Would diversify with other names in sector. Overall, positive trends behind the company. 

WSP has seen a declining dividend yield over the past decade, from ~5% to 6% to its current less than 1% yield. The stock has become focused on paying down debt and acquisitions, alongside continuous, steady dividend payments. WSP has been in the income model portfolio for years, coming from a high yield to a now relatively lower yield. The income model portfolio aims to target an average portfolio yield of 4% to 5% and a total return target of 6% to 8%. We feel that while WSP does not help to bring up the average yield, the model portfolio continues to hold an average portfolio yield in the 4% to 5% range, and WSP's strong price appreciation has helped to near the total return target of 6% to 8%. 
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He's traded this stock many times. It has consolidated, but is breaking out. Would re-enter at $175.

Purely engineering design and services, without construction exposure. Good track record of acquiring and integrating. Well positioned in vertical markets that she likes. Likes the engineering space, especially with the US Inflation Reduction Act. 

Likes the engineering/construction space quite a bit. Favours it in his core portfolio. High quality, better Sharpe ratio of less volatility, high returns. Consistent over time, rather than short-term price movements. Setting up to be a leader in the space on the environmental front.

Excellent company for long term shareholders.
Demand for engineering and design increasing.
Not exposed to construction side of business.
Growth through M&A going well.
Organic growth also increasing steadily.
US Federal stimulus packages good for business (infrastructure spending).
Disciplined on capital allocation and potential acquisitions.

Hold on. World leader. Will continue to grow organically or by acquisition for years. Not cheap, but good businesses. Massive infrastructure spend globally.

STN is a good investment in the sector. WSP management track record was better, so she chose it and doesn't need two names. Both are well-positioned in the right verticals.

Likes its positioning. Very nice acquisitions. Transportation infrastructure has good growth potential, especially yin US. Moving into environmental space, which should grow. Wide geographical presence, with Canada only 18% of revenue. Relatively strong balance sheet. Organic growth still attractive. Didn't raise guidance, but management feels backlog can support growth targets.

Great business. Stable. Continues to find assets to acquire and diversify its business. Likes its focus on the environment. Bottom line is expected to grow 20% this year.

One of the better, if not the best, managed in the group. If you own it for the long term, hold on. Add on any setbacks. He'd seriously consider a position if price was 10-15% less. Company's doing well.

Still likes it. Not in the construction side, but infrastructure. Very global with under 20% revenues in Canada. They grow organically + M&A. They've increased their presence in environmental and infrastructure which boast good growth ahead. Customers are half private, half public. The latter pledge infra spending. Are disciplined buyers, willing to walk away from a weak deal.

$8.8 billion in debt but shareholder equity is $6 billion, so there is not a lot of debt. He models $113.35. Hold this in a recession or bear market, but buy this below $134.