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Is This Already Successful Stock Poised for Even More Growth?

Are you looking for a stock with growing revenues and profit? Here’s a company worth looking at.

WSP Global Inc.  (TSX:WSP) is one of the largest professional service companies in Canada. It is an engineering consulting firm with operations around the globe and in many industries, including oil and gas, infrastructure, transportation, and the environment.

WSP Global by the numbers

WSP released second-quarter results in August with adjusted earnings per share of $0.64, in line with analyst expectations. This beat last year’s Q2 results by 14.29%. Over the last three years, revenue growth has averaged 46.81% annually, far better than the industry average of 16.36%. It boasts earnings per share of $2.25.

The company has a net profit of 3.42%. This many seem low, but WSP is a leader among it peers in profit margins. Its rate is higher than peers Aecon Group Inc. and SNC Lavalin Group Inc., and it is tied with peer Stantec Inc.

So, revenue growth looks good, but what about growth in the trading price? The stock currently trades around $52 per share, closer to its 52-week high of $55.04 than its 52-week low of $40.50. Analysts currently expect the stock to trade around the $56 mark over the next 12 months. If they are right, there is room for a little growth here.

If you have any interest in income, WSP offers a quarterly dividend of $0.375 per share. This equals an annual payout of $1.50 per share, which gives it a dividend yield of 2.85%.

Is the company poised for growth?

Earlier this year, WSP announced plans to purchase all outstanding shares of Opus International Consultants, the largest engineering firm in New Zealand. This will help improve WSP’s position in that part of the world and will shore up its expertise in the area of water-related infrastructure.

Insider buying is almost always an indication that people in the know expect their company to perform well. In August, two of WSP’s board members each added 1,000 shares of WSP to their portfolios, indicating their confidence in the company’s future results.

Bottom line

We all know there are no investment guarantees, but WSP has performed well recently and looks poised for more positive results. If you are looking for a company with growing revenues and earnings, consider WSP Global for your Foolish portfolio.

The Next Canadian Superbrand You've Never Heard of...

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Fool contributor Susan Portelance has no position in any stocks mentioned.

 

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