The Weir Group PLC produces and sells highly engineered original equipment worldwide. It operates in two segments, Minerals and ESCO. 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.
Weir Group Fundamentals Summary
How do Weir Group's earnings and revenue compare to its market cap?
Is WEIR undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
3/6
Valuation Score 3/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for WEIR?
Other financial metrics that can be useful for relative valuation.
The above table shows the n/a ratio for WEIR. This is calculated by dividing WEIR's market cap by their current
preferred multiple.
What is WEIR's n/a Ratio?
n/a Ratio
0x
n/a
n/a
Market Cap
UK£4.31b
WEIR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Price-To-Earnings vs Industry: WEIR is expensive based on its Price-To-Earnings Ratio (25x) compared to the UK Machinery industry average (17.1x)
Price to Earnings Ratio vs Fair Ratio
What is WEIR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
WEIR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio
25x
Fair PE Ratio
28.2x
Price-To-Earnings vs Fair Ratio: WEIR is good value based on its Price-To-Earnings Ratio (25x) compared to the estimated Fair Price-To-Earnings Ratio (28.2x).
Share Price vs Fair Value
What is the Fair Price of WEIR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: WEIR (£16.61) is trading below our estimate of fair value (£20.64)
Significantly Below Fair Value: WEIR is trading below fair value, but not by a significant amount.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
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Future Growth
How is Weir Group forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
Future Growth Score
3/6
Future Growth Score 3/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
13.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: WEIR's forecast earnings growth (13.7% per year) is above the savings rate (0.9%).
Earnings vs Market: WEIR's earnings (13.7% per year) are forecast to grow faster than the UK market (9.4% per year).
High Growth Earnings: WEIR's earnings are forecast to grow, but not significantly.
Revenue vs Market: WEIR's revenue (5.9% per year) is forecast to grow faster than the UK market (3.9% per year).
High Growth Revenue: WEIR's revenue (5.9% 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 (16.4%).
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Past Performance
How has Weir Group performed over the past 5 years?
Past Performance Score
4/6
Past Performance Score 4/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
4.9%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: WEIR has high quality earnings.
Growing Profit Margin: WEIR's current net profit margins (8.1%) are higher than last year (7.5%).
Past Earnings Growth Analysis
Earnings Trend: WEIR's earnings have grown by 4.9% per year over the past 5 years.
Accelerating Growth: WEIR's earnings growth over the past year (17.5%) exceeds its 5-year average (4.9% per year).
Earnings vs Industry: WEIR earnings growth over the past year (17.5%) underperformed the Machinery industry 54.3%.
Return on Equity
High ROE: WEIR's Return on Equity (10.4%) is considered low.
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Financial Health
How is Weir Group's financial position?
Financial Health Score
4/6
Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: WEIR's short term assets (£1.7B) exceed its short term liabilities (£898.9M).
Long Term Liabilities: WEIR's short term assets (£1.7B) exceed its long term liabilities (£1.2B).
Debt to Equity History and Analysis
Debt Level: WEIR's net debt to equity ratio (50.8%) is considered high.
Reducing Debt: WEIR's debt to equity ratio has reduced from 85.2% to 79% over the past 5 years.
Debt Coverage: WEIR's debt is not well covered by operating cash flow (7.5%).
Interest Coverage: WEIR's interest payments on its debt are well covered by EBIT (7.3x coverage).
Balance Sheet
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Dividend
What is Weir Group current dividend yield, its reliability and sustainability?
Dividend Score
1/6
Dividend Score 1/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
1.63%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: WEIR's dividend (1.63%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.83%).
High Dividend: WEIR's dividend (1.63%) is low compared to the top 25% of dividend payers in the UK market (5.11%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (38.8%), WEIR's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its high cash payout ratio (144.2%), WEIR's dividend payments are not well covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
5.5yrs
Average management tenure
CEO
Jon Stanton (55 yo)
5.83yrs
Tenure
UK£1,767,564
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 ($USD2.16M) is below average for companies of similar size in the UK market ($USD3.29M).
Compensation vs Earnings: Jon's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: WEIR's management team is seasoned and experienced (5.5 years average tenure).
Board Members
Experienced Board: WEIR's board of directors are considered experienced (5.4 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.
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 employee growth, exchange listings and data sources
All financial data provided by Standard & Poor's Capital IQ.
Data
Last Updated (UTC time)
Company Analysis
2022/08/11 00:00
End of Day Share Price
2022/08/11 00:00
Earnings
2022/06/30
Annual Earnings
2021/12/31
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.