LSE:WEIR

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Adequate balance sheet with acceptable track record.


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

-10.9%

WEIR

-1.0%

GB Machinery

0.3%

GB Market


1 Year Return

42.3%

WEIR

25.4%

GB Machinery

0.8%

GB Market

Return vs Industry: WEIR exceeded the UK Machinery industry which returned 25.4% over the past year.

Return vs Market: WEIR exceeded the UK Market which returned 0.8% over the past year.


Shareholder returns

WEIRIndustryMarket
7 Day-10.9%-1.0%0.3%
30 Day-5.4%1.3%3.2%
90 Day4.4%6.3%4.5%
1 Year42.3%42.3%27.3%25.4%6.7%0.8%
3 Year-2.4%-7.4%32.3%23.0%11.5%-1.9%
5 Year104.4%83.0%126.6%98.5%41.8%14.5%

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?

34.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: WEIR (£18.14) is trading above our estimate of fair value (£14)

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


Price To Earnings Ratio

PE vs Industry: WEIR is poor value based on its PE Ratio (34x) compared to the GB Machinery industry average (29.8x).

PE vs Market: WEIR is poor value based on its PE Ratio (34x) compared to the UK market (24.2x).


Price to Earnings Growth Ratio

PEG Ratio: WEIR is poor value based on its PEG Ratio (2.9x)


Price to Book Ratio

PB vs Industry: WEIR is overvalued based on its PB Ratio (3.6x) compared to the GB Machinery industry average (2x).


Next Steps

Future Growth

How is Weir Group forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEIR's forecast earnings growth (11.7% per year) is above the savings rate (1%).

Earnings vs Market: WEIR's earnings (11.7% per year) are forecast to grow slower than the UK market (23% per year).

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

Revenue vs Market: WEIR's revenue (4.2% per year) is forecast to grow slower than the UK market (7.4% per year).

High Growth Revenue: WEIR's revenue (4.2% 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 (15.5%).


Next Steps

Past Performance

How has Weir Group performed over the past 5 years?

-13.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WEIR has high quality earnings.

Growing Profit Margin: WEIR became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: WEIR has become profitable over the past 5 years, growing earnings by -13.8% per year.

Accelerating Growth: WEIR has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: WEIR has become profitable in the last year, making it difficult to compare its past year earnings growth to the Machinery industry (-22.8%).


Return on Equity

High ROE: WEIR's Return on Equity (10.5%) is considered low.


Next Steps

Financial Health

How is Weir Group's financial position?


Financial Position Analysis

Short Term Liabilities: WEIR's short term assets (£1.7B) exceed its short term liabilities (£646.4M).

Long Term Liabilities: WEIR's short term assets (£1.7B) exceed its long term liabilities (£1.6B).


Debt to Equity History and Analysis

Debt Level: WEIR's debt to equity ratio (86.3%) is considered high.

Reducing Debt: WEIR's debt to equity ratio has increased from 84.2% to 86.3% over the past 5 years.

Debt Coverage: WEIR's debt is well covered by operating cash flow (24%).

Interest Coverage: WEIR's interest payments on its debt are well covered by EBIT (5x coverage).


Balance Sheet


Next Steps

Dividend

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

1.82%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate WEIR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate WEIR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if WEIR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if WEIR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: WEIR is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of WEIR's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Jon Stanton (53 yo)

4.42yrs

Tenure

UK£1,738,491

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 ($USD2.43M) is about average for companies of similar size in the UK market ($USD2.64M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jonathan Stanton
CEO & Director4.42yrsUK£1.74m0.048%
£ 2.4m
John Heasley
CFO & Director4.42yrsUK£966.00k0.024%
£ 1.2m
Garry Fingland
Chief Information Officer1.92yrsno datano data
Stephen Christie
Head of Investor Relations6.58yrsno datano data
Graham Vanhegan
Company Secretary & Chief Legal Officer2.92yrsno datano data
Raymond Buchanan
Head of Communications & Public Affairs7.5yrsno datano data
Rosemary McGinness
Chief People Officer3.67yrsno datano data
Andrew Neilson
President of ESCO division0.67yrno datano data
Christopher Morgan
Senior Counsel2.83yrsno datano data
Paula Cousins
Chief Strategy & Sustainability Officerno datano datano data
Geraldine Pamphlett
Group Head of Reward & Recognitionno datano datano data
Tayo Oyinlola
Head of Internal Audit1.5yrsno datano data

3.3yrs

Average Tenure

47yo

Average Age

Experienced Management: WEIR's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jonathan Stanton
CEO & Director4.42yrsUK£1.74m0.048%
£ 2.4m
John Heasley
CFO & Director4.42yrsUK£966.00k0.024%
£ 1.2m
Barbara Jeremiah
Senior Independent Director1.17yrsUK£62.48k0.00087%
£ 43.4k
Charles Berry
Independent Chairman7.17yrsUK£312.90k0.00083%
£ 41.4k
James McDonald
Non-Executive Independent Director & Member of Technology Advisory Board6.17yrsUK£62.48k0.00019%
£ 9.5k
Mary Jacobi
Employee Engagement Non-Executive Independent Director7.17yrsUK£83.00k0.0019%
£ 96.2k
Clare Chapman
Non-Executive Independent Director3.58yrsUK£78.75k0.00018%
£ 9.0k
Stephen Young
Non-Executive Independent Director3.17yrsUK£78.75k0.0023%
£ 113.2k
Anthony Hooley
Member of Technology Advisory Board6.17yrsno datano data
Bennetor Magara
Non-Executive Director0.17yrno datano data
Jackie Mutschler
Member of Technology Advisory Board6.17yrsno datano data
Engelbert Haan
Non-Executive Independent Director2.08yrsUK£54.39k0.00039%
£ 19.4k

5.3yrs

Average Tenure

63yo

Average Age

Experienced Board: WEIR's board of directors are considered experienced (5.3 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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£4.987b
  • Shares outstanding: 259.45m
  • Website: https://www.global.weir

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WEIG.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJun 1993
WEIRLSE (London Stock Exchange)YesOrdinary SharesGBGBPJun 1993
42WDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJun 1993
WEIRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJun 1993
WEIR NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNJun 1993
WEGR.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDJan 2012

Biography

The Weir Group PLC produces and sells highly-engineered equipment worldwide. It operates through three segments: Minerals, ESCO, and Oil & Gas. The Minerals segment offers slurry handling equipment and ass...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 19:07
End of Day Share Price2021/03/04 00:00
Earnings2020/12/31
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.