LSE:WEIR

Stock Analysis Report

Executive Summary

The Weir Group PLC designs, manufactures, and sells highly-engineered products and services worldwide.

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


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


Market Performance


7 Day Return

-2.5%

WEIR

-2.7%

GB Machinery

-0.3%

GB Market


1 Year Return

-11.7%

WEIR

-2.2%

GB Machinery

3.0%

GB Market

Return vs Industry: WEIR underperformed the UK Machinery industry which returned -2.2% over the past year.

Return vs Market: WEIR underperformed the UK Market which returned 3% over the past year.


Shareholder returns

WEIRIndustryMarket
7 Day-2.5%-2.7%-0.3%
30 Day-9.5%-7.5%-0.9%
90 Day-6.3%-9.3%-2.0%
1 Year-9.0%-11.7%0.6%-2.2%8.0%3.0%
3 Year-16.5%-22.6%17.8%9.1%18.0%3.6%
5 Year-30.4%-39.4%22.8%6.2%35.8%6.4%

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?

2.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: WEIR (£13.64) is trading below our estimate of fair value (£13.97)

Significantly Undervalued: WEIR is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: WEIR is poor value based on its PE Ratio (53x) compared to the Machinery industry average (17.7x).

PE vs Market: WEIR is poor value based on its PE Ratio (53x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: WEIR is poor value based on its PEG Ratio (2.7x)


Price to Book Ratio

PB vs Industry: WEIR is good value based on its PB Ratio (1.7x) compared to the GB Machinery industry average (1.8x).


Next Steps

Future Growth

How is Weir Group forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

19.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: WEIR's forecast earnings growth (19.4% per year) is above the savings rate (1.2%).

Earnings vs Market: WEIR's earnings (19.4% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: WEIR's revenue (4.8% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: WEIR's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: WEIR's Return on Equity is forecast to be low in 3 years time (12.2%).


Next Steps

Past Performance

How has Weir Group performed over the past 5 years?

8.7%

Historical annual earnings growth


Earnings and Revenue History


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 has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: WEIR had negative earnings growth (-64.6%) over the past year, making it difficult to compare to the Machinery industry average (8%).


Return on Equity

High ROE: WEIR's Return on Equity (3.2%) is considered low.


Return on Assets

ROA vs Industry: WEIR's Return on Assets is below or equal to the Machinery industry average last year.


Return on Capital Employed

ROCE Improving: WEIR's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Weir Group's financial position?


Financial Position Analysis

Short Term Liabilities: WEIR's short term assets (£1.9B) exceeds its short term liabilities (£957.6M)

Long Term Liabilities: WEIR's short term assets (1.9B) exceeds its long term liabilities (1.8B)


Debt to Equity History and Analysis

Debt Level: WEIR's debt to equity ratio (86.2%) is considered high

Reducing Debt: WEIR's debt to equity ratio has increased from 56.6% to 86.2% over the past 5 years.

Debt Coverage: WEIR's debt is not well covered by operating cash flow (6%).

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


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 1.057870x debt).


Next Steps

Dividend

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

3.39%

Current Dividend Yield


Dividend Yield vs Market

company3.4%marketbottom25%2.0%markettop25%5.4%industryaverage3.0%forecastin3Years3.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: WEIR's dividend (3.39%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: WEIR's dividend (3.39%) is low compared to the top 25% of dividend payers in the UK market (5.36%).

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: With its high payout ratio (182.5%), WEIR's dividend payments are not 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 (43.6% payout ratio).


Next Steps

Management

What is the CEO of Weir Group's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Jon Stanton (52yo)

3yrs

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 2010 to October 3, 2016. He ser ...


CEO Compensation Analysis

Compensation vs. Market: Jon's total compensation ($USD2.92M) is about average for companies of similar size in the UK market ($USD2.31M).

Compensation vs Earnings: Jon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

3.0yrs

Average Tenure

52yo

Average Age

Experienced Management: WEIR's management team is considered experienced (3 years average tenure).


Board Age and Tenure

4.8yrs

Average Tenure

62.5yo

Average Age

Experienced Board: WEIR's board of directors are considered experienced (4.8 years average tenure).


Insider Trading

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


Ownership Breakdown


Management Team

  • Paul Coppinger (57yo)

    President of Oil & Gas Division

    • Tenure: 4.8yrs
  • Jon Owens

    President of the ESCO Division

    • Tenure: 1.3yrs
  • Graham Vanhegan

    Company Secretary & Chief Legal Officer

    • Tenure: 1.5yrs
  • Jon Stanton (52yo)

    CEO & Director

    • Tenure: 3yrs
    • Compensation: UK£2.27m
  • John Heasley (44yo)

    CFO & Director

    • Tenure: 3yrs
    • Compensation: UK£1.33m
  • David Kyles

    Head of Internal Audit

    • Tenure: 3.8yrs
  • Geetha Dabir

    Chief Technology Officer

    • Tenure: 2.6yrs
  • Stephen Christie

    Head of Investor Relations

    • Tenure: 5.2yrs
  • Raymond Buchanan

    Head of Communications & Public Affairs

    • Tenure: 6.1yrs
  • Rosemary McGinness

    Chief People Officer

    • Tenure: 2.3yrs

Board Members

  • Charles Berry (67yo)

    Independent Chairman

    • Tenure: 5.8yrs
    • Compensation: UK£306.58k
  • Jim McDonald (62yo)

    Non-Executive Director & Member of Technology Advisory Board

    • Tenure: 4.8yrs
    • Compensation: UK£60.78k
  • Mary Jacobi (67yo)

    Non-Executive Director

    • Tenure: 5.8yrs
    • Compensation: UK£62.11k
  • Rick Menell (64yo)

    Senior Independent Director

    • Tenure: 4.7yrs
    • Compensation: UK£73.50k
  • Clare Chapman (59yo)

    Non-Executive Director

    • Tenure: 2.2yrs
    • Compensation: UK£76.58k
  • Stephen Young (63yo)

    Non-Executive Director

    • Tenure: 1.8yrs
    • Compensation: UK£71.41k
  • Tony Hooley

    Member of Technology Advisory Board

    • Tenure: 4.8yrs
  • Jon Stanton (52yo)

    CEO & Director

    • Tenure: 3yrs
    • Compensation: UK£2.27m
  • John Heasley (44yo)

    CFO & Director

    • Tenure: 3yrs
    • Compensation: UK£1.33m
  • Jackie Mutschler

    Member of Technology Advisory Board

    • Tenure: 4.8yrs

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£3.533b
  • Shares outstanding: 258.98m
  • Website: https://www.global.weir

Number of Employees


Location

  • The Weir Group PLC
  • 1 West Regent Street
  • Glasgow
  • 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 designs, manufactures, and sells highly-engineered products and services worldwide. It operates through three segments: Minerals, ESCO, and Oil & Gas. The Minerals segment offers slurry  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 20:35
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.