Weir Group
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.
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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
| WEIR | Industry | Market | |
|---|---|---|---|
| 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 Year | 44.4%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 Year | 28.0%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
2 weeks ago | Simply Wall St
The Weir Group PLC (LON:WEIR) On An Uptrend: Could Fundamentals Be Driving The Stock?1 month ago | Simply Wall St
These 4 Measures Indicate That Weir Group (LON:WEIR) Is Using Debt Reasonably Well2 months ago | Simply Wall St
What Kind Of Investors Own Most Of The Weir Group PLC (LON:WEIR)?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
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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/07/31 18:22 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/06/30 |
| Annual Earnings | 2020/12/31 |
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.