Weir Group (LSE:WEIR) - Share price, News & Analysis

WEIR fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	4/6
Financial Health	3/6
Dividends	2/6

WEIR Stock Overview

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

Rewards

Trading at 29.8% below our estimate of its fair value

Earnings are forecast to grow 16.49% per year

Earnings have grown 8.7% per year over the past 5 years

Risk Analysis

Debt is not well covered by operating cash flow

Weir Group Competitors

Spirax-Sarco Engineering

LSE:SPX

UK£7.7b

IMI

LSE:IMI

UK£3.4b

Rotork

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UK£2.3b

Bodycote

LSE:BOY

UK£1.2b

Price History & Performance

Summary of all time highs, changes and price drops for Weir Group
Historical stock prices
Current Share Price	UK£14.71
52 Week High	UK£20.10
52 Week Low	UK£13.81
Beta	1.62
1 Month Change	-3.98%
3 Month Change	-10.25%
1 Year Change	-17.59%
3 Year Change	-5.58%
5 Year Change	-22.29%
Change since IPO	349.85%

Recent News & Updates

Apr 11

What Does The Weir Group PLC's (LON:WEIR) Share Price Indicate?

The Weir Group PLC ( LON:WEIR ), is not the largest company out there, but it saw a double-digit share price rise of...

Mar 24

The Weir Group PLC Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Predictions

The Weir Group PLC ( LON:WEIR ) came out with its annual results last week, and we wanted to see how the business is...

Mar 15

Is Weir Group (LON:WEIR) A Risky Investment?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	WEIR	GB Machinery	GB Market
7D	2.2%	-0.3%	1.1%
1Y	-17.6%	-16.3%	-2.5%

Return vs Industry: WEIR underperformed the UK Machinery industry which returned -15.7% over the past year.

Return vs Market: WEIR underperformed the UK Market which returned -2.5% over the past year.

Price Volatility

Is WEIR's price volatile compared to industry and market?
WEIR volatility
WEIR Average Weekly Movement	7.5%
Machinery Industry Average Movement	6.5%
Market Average Movement	6.1%
10% most volatile stocks in GB Market	11.7%
10% least volatile stocks in GB Market	3.2%

Stable Share Price: WEIR is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 7% a week.

Volatility Over Time: WEIR's weekly volatility (7%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1871	11,994	Jon Stanton	https://www.global.weir

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?
WEIR fundamental statistics
Market Cap	UK£3.81b
Earnings (TTM)	UK£154.60m
Revenue (TTM)	UK£1.93b

24.7x

P/E Ratio

2.0x

P/S Ratio

Is WEIR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
WEIR income statement (TTM)
Revenue	UK£1.93b
Cost of Revenue	UK£1.24b
Gross Profit	UK£692.00m
Other Expenses	UK£537.40m
Earnings	UK£154.60m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)	0.60
Gross Margin	35.79%
Net Profit Margin	7.99%
Debt/Equity Ratio	84.7%

How did WEIR perform over the long term?

See historical performance and comparison

Dividends

1.7%

Current Dividend Yield

40%

Payout Ratio

Valuation

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

Valuation Score

2/6

Valuation Score 2/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

29.8%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: WEIR (£14.71) is trading below our estimate of fair value (£20.96)

Significantly Below Fair Value: WEIR is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: WEIR is poor value based on its PE Ratio (24.7x) compared to the UK Machinery industry average (18.9x).

PE vs Market: WEIR is poor value based on its PE Ratio (24.7x) compared to the UK market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: WEIR is poor value based on its PEG Ratio (1.5x)

Price to Book Ratio

PB vs Industry: WEIR is overvalued based on its PB Ratio (2.6x) compared to the GB Machinery industry average (1.8x).

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

16.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEIR's forecast earnings growth (16.5% per year) is above the savings rate (0.9%).

Earnings vs Market: WEIR's earnings (16.5% per year) are forecast to grow faster than the UK market (11.1% per year).

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

Revenue vs Market: WEIR's revenue (8% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: WEIR's revenue (8% 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 (16.1%).

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

8.7%

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%) are higher than last year (6.8%).

Past Earnings Growth Analysis

Earnings Trend: WEIR's earnings have grown by 8.7% per year over the past 5 years.

Accelerating Growth: WEIR's earnings growth over the past year (16%) exceeds its 5-year average (8.7% per year).

Earnings vs Industry: WEIR earnings growth over the past year (16%) underperformed the Machinery industry 54.3%.

Return on Equity

High ROE: WEIR's Return on Equity (10.7%) is considered low.

Financial Health

How is Weir Group's financial position?

Financial Health Score

3/6

Financial Health Score 3/6

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 (£1.6B) exceed its short term liabilities (£1.1B).

Long Term Liabilities: WEIR's short term assets (£1.6B) exceed its long term liabilities (£978.8M).

Debt to Equity History and Analysis

Debt Level: WEIR's net debt to equity ratio (45.9%) is considered high.

Reducing Debt: WEIR's debt to equity ratio has increased from 79% to 84.7% over the past 5 years.

Debt Coverage: WEIR's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: WEIR's interest payments on its debt are well covered by EBIT (7x coverage).

Balance Sheet

Dividend

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

Dividend Score

2/6

Dividend Score 2/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

1.67%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: WEIR's dividend (1.67%) isn’t notable compared to the bottom 25% of dividend payers in the UK market (1.79%).

High Dividend: WEIR's dividend (1.67%) is low compared to the top 25% of dividend payers in the UK market (4.82%).

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 (39.9%), WEIR's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61.8%), WEIR's dividend payments are covered by cash flows.

Discover strong dividend paying companies

Management

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

5.2yrs

Average management tenure

CEO

Jon Stanton (54 yo)

5.58yrs

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 ($USD2.19M) is about average for companies of similar size in the UK market ($USD2.99M).

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 (5.2 years average tenure).

Board Members

Experienced Board: WEIR's board of directors are considered experienced (5.2 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.

Data	Last Updated (UTC time)
Company Analysis	2022/05/18 00:00
End of Day Share Price	2022/05/18 00:00
Earnings	2021/12/31
Annual Earnings	2021/12/31