LSE:WEIR

Stock Analysis Report

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Market Cap

UK£4.5b

Last Updated

2021/07/31 18:22 UTC

Data Sources

Company Financials +

Executive Summary

The Weir Group PLC produces and sells highly engineered original equipment. More Details


Snowflake Analysis

Acceptable track record with mediocre balance sheet.


Similar Companies

Share Price & News

How has Weir Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: WEIR is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: WEIR's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

-9.0%

WEIR

0.3%

GB Machinery

0.3%

GB Market


1 Year Return

44.4%

WEIR

45.9%

GB Machinery

22.5%

GB Market

Return vs Industry: WEIR underperformed the UK Machinery industry which returned 46% over the past year.

Return vs Market: WEIR exceeded the UK Market which returned 22.4% over the past year.


Shareholder returns

WEIRIndustryMarket
7 Day-9.0%0.3%0.3%
30 Day-7.3%3.6%-0.7%
90 Day-9.9%11.0%1.5%
1 Year44.4%44.4%48.8%45.9%27.8%22.5%
3 Year-5.6%-9.3%29.6%22.3%13.3%0.9%
5 Year28.0%17.6%115.3%92.1%39.6%13.2%

Long-Term Price Volatility Vs. Market

How volatile is Weir Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Weir Group undervalued compared to its fair value and its price relative to the market?

29.28x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WEIR (£17.28) is trading above our estimate of fair value (£13.04)

Significantly Below Fair Value: WEIR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: WEIR is good value based on its PE Ratio (29.3x) compared to the UK Machinery industry average (32.9x).

PE vs Market: WEIR is poor value based on its PE Ratio (29.3x) compared to the UK market (23.6x).


Price to Earnings Growth Ratio

PEG Ratio: WEIR is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: WEIR is overvalued based on its PB Ratio (3.2x) compared to the GB Machinery industry average (2.2x).


Future Growth

How is Weir Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

11.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEIR's forecast earnings growth (11.6% per year) is above the savings rate (0.9%).

Earnings vs Market: WEIR's earnings (11.6% per year) are forecast to grow slower than the UK market (14.8% per year).

High Growth Earnings: WEIR's earnings are forecast to grow, but not significantly.

Revenue vs Market: WEIR's revenue (5.6% per year) is forecast to grow faster than the UK market (4.7% per year).

High Growth Revenue: WEIR's revenue (5.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: WEIR's Return on Equity is forecast to be low in 3 years time (14.3%).


Past Performance

How has Weir Group performed over the past 5 years?

26.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEIR has high quality earnings.

Growing Profit Margin: WEIR's current net profit margins (7.8%) are lower than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: WEIR has become profitable over the past 5 years, growing earnings by 26.9% per year.

Accelerating Growth: WEIR's earnings growth over the past year (19.6%) is below its 5-year average (26.9% per year).

Earnings vs Industry: WEIR earnings growth over the past year (19.6%) exceeded the Machinery industry -0.8%.


Return on Equity

High ROE: WEIR's Return on Equity (11%) is considered low.


Financial Health

How is Weir Group's financial position?


Financial Position Analysis

Short Term Liabilities: WEIR's short term assets (£1.6B) exceed its short term liabilities (£991.2M).

Long Term Liabilities: WEIR's short term assets (£1.6B) exceed its long term liabilities (£1.0B).


Debt to Equity History and Analysis

Debt Level: WEIR's debt to equity ratio (85.2%) is considered high.

Reducing Debt: WEIR's debt to equity ratio has increased from 80.8% to 85.2% over the past 5 years.

Debt Coverage: WEIR's debt is not well covered by operating cash flow (19.1%).

Interest Coverage: WEIR's interest payments on its debt are well covered by EBIT (6.7x coverage).


Balance Sheet


Dividend

What is Weir Group current dividend yield, its reliability and sustainability?

1.33%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 01 2021Ex Dividend DateOct 07 2021Dividend Pay DateNov 05 202129 days from Ex DividendBuy in the next 67 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: WEIR's dividend (1.33%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: WEIR's dividend (1.33%) is low compared to the top 25% of dividend payers in the UK market (4%).


Stability and Growth of Payments

Stable Dividend: WEIR's dividend payments have been volatile in the past 10 years.

Growing Dividend: WEIR's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (19.5%), WEIR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WEIR's dividends in 3 years are forecast to be well covered by earnings (33% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

3.6yrs

Average management tenure


CEO

Jon Stanton (54 yo)

4.75yrs

Tenure

UK£896,902

Compensation

Mr. Jonathan Stanton, also known as Jon, has been the Chief Executive Officer of The Weir Group PLC since October 1, 2016 and served as its Group Finance Director from April 19, 2010 to October 3, 2016. He...


CEO Compensation Analysis

Compensation vs Market: Jon's total compensation ($USD1.25M) is below average for companies of similar size in the UK market ($USD2.23M).

Compensation vs Earnings: Jon's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: WEIR's management team is considered experienced (3.6 years average tenure).


Board Members

Experienced Board: WEIR's board of directors are considered experienced (5.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: WEIR insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

The Weir Group PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The Weir Group PLC
  • Ticker: WEIR
  • Exchange: LSE
  • Founded: 1871
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Market Cap: UK£4.476b
  • Shares outstanding: 259.05m
  • Website: https://www.global.weir

Number of Employees


Location

  • The Weir Group PLC
  • 1 West Regent Street
  • Glasgow
  • Lanarkshire
  • G2 1RW
  • United Kingdom

Listings


Biography

The Weir Group PLC produces and sells highly engineered original equipment. It operates in two segments, Minerals and ESCO. The Minerals segment offers slurry handling equipment and associated aftermarket ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/31 18:22
End of Day Share Price2021/07/30 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.