Weir Group
Market Cap
UK£2.0b
Last Updated
2020/04/05 21:24 UTC
Data Sources
Company Financials +
Executive Summary
The Weir Group PLC produces and sells highly-engineered equipment worldwide.
Rewards
Risk Analysis
Snowflake Analysis
Average dividend payer and fair value.
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's share price has been volatile over the past 3 months.
Market Performance
7 Day Return
9.0%
WEIR
0.3%
GB Machinery
-2.2%
GB Market
1 Year Return
-55.1%
WEIR
-27.1%
GB Machinery
-25.9%
GB Market
Return vs Industry: WEIR underperformed the UK Machinery industry which returned -27.1% over the past year.
Return vs Market: WEIR underperformed the UK Market which returned -25.9% over the past year.
Shareholder returns
| WEIR | Industry | Market | |
|---|---|---|---|
| 7 Day | 9.0% | 0.3% | -2.2% |
| 30 Day | -41.6% | -22.5% | -20.3% |
| 90 Day | -49.7% | -31.8% | -29.5% |
| 1 Year | -53.8%-55.1% | -25.3%-27.1% | -22.2%-25.9% |
| 3 Year | -59.0%-62.0% | -15.3%-21.4% | -16.1%-26.6% |
| 5 Year | -51.1%-57.4% | -0.7%-13.8% | -4.6%-26.1% |
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
Read This Before Buying The Weir Group PLC (LON:WEIR) For Its Dividend1 month ago | Simply Wall St
Is Now The Time To Look At Buying The Weir Group PLC (LON:WEIR)?1 month ago | Simply Wall St
How Should Investors React To The Weir Group PLC's (LON:WEIR) CEO Pay?Valuation
Is Weir Group undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: WEIR (£7.57) is trading below our estimate of fair value (£15.99)
Significantly Below Fair Value: WEIR is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: WEIR is unprofitable, so we can't compare its PE Ratio to the Machinery industry average.
PE vs Market: WEIR is unprofitable, so we can't compare its PE Ratio to the UK market.
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate WEIR's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: WEIR is good value based on its PB Ratio (1.3x) compared to the GB Machinery industry average (1.3x).
Next Steps
Future Growth
How is Weir Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?
94.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WEIR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (0.5%).
Earnings vs Market: WEIR is forecast to become profitable over the next 3 years, which is considered above average market growth.
High Growth Earnings: WEIR's is expected to become profitable in the next 3 years.
Revenue vs Market: WEIR's revenue (1% per year) is forecast to grow slower than the UK market (2.6% per year).
High Growth Revenue: WEIR's revenue (1% 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 (12.4%).
Next Steps
Past Performance
How has Weir Group performed over the past 5 years?
4.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WEIR is currently unprofitable.
Growing Profit Margin: WEIR is currently unprofitable.
Past Earnings Growth Analysis
Earnings Trend: WEIR is unprofitable, but has reduced losses over the past 5 years at a rate of 4% per year.
Accelerating Growth: Unable to compare WEIR's earnings growth over the past year to its 5-year average as it is currently unprofitable
Earnings vs Industry: WEIR is unprofitable, making it difficult to compare its past year earnings growth to the Machinery industry (-2%).
Return on Equity
High ROE: WEIR has a negative Return on Equity (-23.35%), as it is currently unprofitable.
Next Steps
Financial Health
How is Weir Group's financial position?
Financial Position Analysis
Short Term Liabilities: WEIR's short term assets (£1.5B) exceed its short term liabilities (£1.2B).
Long Term Liabilities: WEIR's short term assets (£1.5B) exceed its long term liabilities (£1.1B).
Debt to Equity History and Analysis
Debt Level: WEIR's debt to equity ratio (81.3%) is considered high.
Reducing Debt: WEIR's debt to equity ratio has increased from 70.1% to 81.3% over the past 5 years.
Balance Sheet
Inventory Level: WEIR has a high level of physical assets or inventory.
Debt Coverage by Assets: WEIR's debt is covered by short term assets (assets are 1.2x debt).
Cash Runway Analysis
For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.
Stable Cash Runway: WEIR has been profitable on average in the past, therefore cash runway is not a concern.
Forecast Cash Runway: WEIR has been profitable on average in the past, therefore cash runway is not a concern.
Next Steps
Dividend
What is Weir Group's current dividend yield, its reliability and sustainability?
6.20%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: WEIR's dividend (6.2%) is higher than the bottom 25% of dividend payers in the UK market (2.65%).
High Dividend: WEIR's dividend (6.2%) is low compared to the top 25% of dividend payers in the UK market (7.43%).
Stability and Growth of Payments
Stable Dividend: WEIR's dividends per share have been stable in the past 10 years.
Growing Dividend: WEIR's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: WEIR is paying a dividend but the company is unprofitable.
Future Payout to Shareholders
Future Dividend Coverage: WEIR's dividends in 3 years are forecast to be covered by earnings (53.6% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.4yrs
Average management tenure
CEO
Jon Stanton (52yo)
3.5s
Tenure
UK£2,270,494
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 ($USD2.78M) is about average for companies of similar size in the UK market ($USD2.64M).
Compensation vs Earnings: Jon's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.5yrs | UK£2.27m | 0.039% £757.3k | |
| Independent Chairman (Leave of Absence) | 0.17yr | UK£306.58k | 0.00083% £16.3k | |
| CFO & Director | 3.5yrs | UK£1.33m | 0.019% £381.8k | |
| Chief Information Officer | 1yr | no data | no data | |
| Head of Investor Relations | 5.67yrs | no data | no data | |
| Company Secretary & Chief Legal Officer | 2yrs | no data | no data | |
| Head of Communications & Public Affairs | 6.58yrs | no data | no data | |
| Chief People Officer | 2.75yrs | no data | no data | |
| Senior Counsel | 1.92yrs | no data | no data | |
| President of Weir ESCO Division | 1.75yrs | no data | no data |
2.4yrs
Average Tenure
50yo
Average Age
Experienced Management: WEIR's management team is considered experienced (2.4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 3.5yrs | UK£2.27m | 0.039% £757.3k | |
| CFO & Director | 3.5yrs | UK£1.33m | 0.019% £381.8k | |
| Interim Chairman & Senior Independent Director | 0.17yr | UK£60.78k | 0.00087% £17.1k | |
| Non-Executive Director & Member of Technology Advisory Board | 4.5yrs | UK£60.78k | 0.00019% £3.7k | |
| Employee Engagement Non-Executive Director | 6.25yrs | UK£62.11k | 0.00096% £18.9k | |
| Independent Director | 11yrs | UK£73.50k | 0.00039% £7.7k | |
| Non-Executive Director | 2.67yrs | UK£76.58k | 0.00018% £3.5k | |
| Non-Executive Director | 2.25yrs | UK£71.41k | 0.0015% £29.9k | |
| Member of Technology Advisory Board | 5.25yrs | no data | no data | |
| Member of Technology Advisory Board | 5.25yrs | no data | no data |
4.9yrs
Average Tenure
62.5yo
Average Age
Experienced Board: WEIR's board of directors are considered experienced (4.9 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 been diluted in the past year, with total shares outstanding growing by 6.3%.
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£1.965b
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| WEIG.F | OTCPK (Pink Sheets LLC) | Yes | Ordinary Shares | US | USD | Jun 1993 |
| WEIR | LSE (London Stock Exchange) | Yes | Ordinary Shares | GB | GBP | Jun 1993 |
| 42W | DB (Deutsche Boerse AG) | Yes | Ordinary Shares | DE | EUR | Jun 1993 |
| WEIRL | BATS-CHIXE (BATS 'Chi-X Europe') | Yes | Ordinary Shares | GB | GBP | Jun 1993 |
| WEIR N | BMV (Bolsa Mexicana de Valores) | Yes | Ordinary Shares | MX | MXN | Jun 1993 |
| WEGR.Y | OTCPK (Pink Sheets LLC) | SPONSORED ADR | US | USD | Jan 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 associated aftermarket support services for abrasive high-wear applications used in the mining and oil sands markets. The ESCO segment provides ground engaging tools for surface mining and infrastructure. The Oil & Gas segment offers products and service solutions to upstream, production, transportation, and related industries. The Weir Group PLC was founded in 1871 and is headquartered in Glasgow, the United Kingdom.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/04/05 21:24 |
| End of Day Share Price | 2020/04/03 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.