LSE:WEIR

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Reasonable growth potential average dividend payer.


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

5.8%

LSE:WEIR

2.9%

GB Machinery

0.4%

GB Market


1 Year Return

-28.3%

LSE:WEIR

-14.1%

GB Machinery

-6.2%

GB Market

WEIR underperformed the Machinery industry which returned -14.2% over the past year.

WEIR underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -6.2% over the past year.


Share holder returns

WEIRIndustryMarket
7 Day5.8%2.9%0.4%
30 Day-12.5%-8.0%-4.7%
90 Day-11.8%-6.4%-2.3%
1 Year-26.3%-28.3%-11.8%-14.1%-1.7%-6.2%
3 Year-7.6%-14.0%27.1%17.9%16.8%2.9%
5 Year-41.7%-48.9%12.3%-2.9%24.2%-2.3%

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 based on future cash flows and its price relative to the stock market?

6%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Weir Group's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Weir Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Weir Group is overvalued based on earnings compared to the GB Machinery industry average.

Weir Group is overvalued based on earnings compared to the United Kingdom of Great Britain and Northern Ireland market.


Price Based on Expected Growth

Weir Group is poor value based on expected growth next year.


Price Based on Value of Assets

Weir Group is good value based on assets compared to the GB Machinery industry average.


Next Steps

Future Growth

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

21.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Weir Group's revenue is expected to grow by 5.7% yearly, however this is not considered high growth (20% yearly).

Weir Group's earnings are expected to grow significantly at over 20% yearly.

Weir Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Weir Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.

Weir Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.


Earnings per Share Growth Estimates


Future Return on Equity

Weir Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Weir Group's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Weir Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Weir Group's 1-year earnings growth is negative, it can't be compared to the GB Machinery industry average.


Return on Equity

Weir Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Weir Group used its assets less efficiently than the GB Machinery industry average last year based on Return on Assets.


Return on Capital Employed

Weir Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Weir Group's financial position?


Financial Position Analysis

Weir Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Weir Group's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Weir Group's level of debt (86.2%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (56.6% vs 86.2% today).

Debt is not well covered by operating cash flow (6%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 1.1x debt.


Next Steps

Dividend

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

3.71%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Weir Group before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Weir Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (2.05%).

Weir Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.65%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.5x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be well covered by earnings (2.6x coverage).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Jon Stanton (52yo)

2.8yrs

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

Jon's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.

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

2.8yrs

Average Tenure

52yo

Average Age

The tenure for the Weir Group management team is about average.


Board Age and Tenure

4.6yrs

Average Tenure

62.5yo

Average Age

The tenure for the Weir Group board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Paul Coppinger (57yo)

    President of Oil & Gas Division

    • Tenure: 4.6yrs
  • Jon Owens

    President of the ESCO Division

    • Tenure: 1.1yrs
  • Graham Vanhegan

    Company Secretary & Chief Legal Officer

    • Tenure: 1.3yrs
  • Jon Stanton (52yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: UK£2.27m
  • John Heasley (44yo)

    CFO & Director

    • Tenure: 2.8yrs
    • Compensation: UK£1.33m
  • David Kyles

    Head of Internal Audit

    • Tenure: 3.7yrs
  • Geetha Dabir

    Chief Technology Officer

    • Tenure: 2.4yrs
  • Stephen Christie

    Head of Investor Relations

    • Tenure: 5.0yrs
  • Raymond Buchanan

    Head of Communications & Public Affairs

    • Tenure: 5.9yrs
  • Rosemary McGinness

    Chief People Officer

    • Tenure: 2.1yrs

Board Members

  • Charles Berry (67yo)

    Chairman

    • Tenure: 5.6yrs
    • Compensation: UK£306.58k
  • Jim McDonald (62yo)

    Non-Executive Director & Member of Technology Advisory Board

    • Tenure: 4.6yrs
    • Compensation: UK£60.78k
  • Mary Jacobi (67yo)

    Non-Executive Director

    • Tenure: 5.6yrs
    • Compensation: UK£62.11k
  • Rick Menell (64yo)

    Senior Independent Director

    • Tenure: 4.5yrs
    • Compensation: UK£73.50k
  • Clare Chapman (59yo)

    Non-Executive Director

    • Tenure: 2.0yrs
    • Compensation: UK£76.58k
  • Stephen Young (63yo)

    Non-Executive Director

    • Tenure: 1.6yrs
    • Compensation: UK£71.41k
  • Tony Hooley

    Member of Technology Advisory Board

    • Tenure: 4.6yrs
  • Jon Stanton (52yo)

    CEO & Director

    • Tenure: 2.8yrs
    • Compensation: UK£2.27m
  • John Heasley (44yo)

    CFO & Director

    • Tenure: 2.8yrs
    • Compensation: UK£1.33m
  • Jackie Mutschler

    Member of Technology Advisory Board

    • Tenure: 4.6yrs

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£3.499b
  • Shares outstanding: 258.97m
  • 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 Analysis2019/08/24 20:33
End of Day Share Price2019/08/23 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.