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Weir Group

LSE:WEIR
Snowflake Description

Reasonable growth potential average dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
WEIR
LSE
£4B
Market Cap
  1. Home
  2. GB
  3. Capital Goods
Company description

The Weir Group PLC designs, manufactures, and sells highly-engineered products and services worldwide. The last earnings update was 98 days ago. More info.


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WEIR Share Price and Events
7 Day Returns
0.4%
LSE:WEIR
2.7%
GB Machinery
-0.1%
GB Market
1 Year Returns
-24.6%
LSE:WEIR
-2.3%
GB Machinery
-2.6%
GB Market
WEIR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Weir Group (WEIR) 0.4% -2.2% -1.4% -24.6% 7% -43%
GB Machinery 2.7% 4.1% 11.8% -2.3% 48.7% 6.8%
GB Market -0.1% 1.3% 2.5% -2.6% 16.5% 3.8%
1 Year Return vs Industry and Market
  • WEIR underperformed the Machinery industry which returned -2.3% over the past year.
  • WEIR underperformed the Market in United Kingdom of Great Britain and Northern Ireland which returned -2.6% over the past year.
Price Volatility
WEIR
Industry
5yr Volatility vs Market

WEIR Value

 Is Weir Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Weir Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Weir Group.

LSE:WEIR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 17 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
Perpetual Growth Rate 10-Year GB Government Bond Rate 1.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for LSE:WEIR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year GB Govt Bond Rate 1.2%
Equity Risk Premium S&P Global 6.7%
Machinery Unlevered Beta Simply Wall St/ S&P Global 1.07
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.067 (1 + (1- 19%) (36.16%))
1.254
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.25
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.23% + (1.254 * 6.65%)
9.57%

Discounted Cash Flow Calculation for LSE:WEIR using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Weir Group is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

LSE:WEIR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (GBP, Millions) Source Present Value
Discounted (@ 9.57%)
2019 246.58 Analyst x10 225.06
2020 264.54 Analyst x10 220.37
2021 305.73 Analyst x7 232.44
2022 337.79 Est @ 10.49% 234.40
2023 363.82 Est @ 7.71% 230.42
2024 384.80 Est @ 5.76% 222.43
2025 401.74 Est @ 4.4% 211.95
2026 415.60 Est @ 3.45% 200.12
2027 427.16 Est @ 2.78% 187.73
2028 437.06 Est @ 2.32% 175.31
Present value of next 10 years cash flows £2,140.23
LSE:WEIR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= £437.06 × (1 + 1.23%) ÷ (9.57% – 1.23%)
£5,305.93
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= £5,305.93 ÷ (1 + 9.57%)10
£2,128.30
LSE:WEIR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= £2,140.23 + £2,128.30
£4,268.54
Equity Value per Share
(GBP)
= Total value / Shares Outstanding
= £4,268.54 / 258.97
£16.48
LSE:WEIR Discount to Share Price
Calculation Result
Value per share (GBP) From above. £16.48
Current discount Discount to share price of £14.99
= -1 x (£14.99 - £16.48) / £16.48
9.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Weir Group is available for.
Intrinsic value
9%
Share price is £14.99 vs Future cash flow value of £16.48
Current Discount Checks
For Weir Group to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Weir Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Weir Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
LSE:WEIR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in GBP £0.22
LSE:WEIR Share Price ** LSE (2019-06-26) in GBP £14.99
United Kingdom of Great Britain and Northern Ireland Machinery Industry PE Ratio Median Figure of 21 Publicly-Listed Machinery Companies 17.92x
United Kingdom of Great Britain and Northern Ireland Market PE Ratio Median Figure of 787 Publicly-Listed Companies 16.32x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Weir Group.

LSE:WEIR PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= LSE:WEIR Share Price ÷ EPS (both in GBP)

= 14.99 ÷ 0.22

69.02x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Weir Group's expected growth come at a high price?
Raw Data
LSE:WEIR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 69.02x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts
27.8%per year
United Kingdom of Great Britain and Northern Ireland Machinery Industry PEG Ratio Median Figure of 15 Publicly-Listed Machinery Companies 2.5x
United Kingdom of Great Britain and Northern Ireland Market PEG Ratio Median Figure of 577 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

LSE:WEIR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 69.02x ÷ 27.8%

2.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Weir Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Weir Group's assets?
Raw Data
LSE:WEIR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in GBP £8.27
LSE:WEIR Share Price * LSE (2019-06-26) in GBP £14.99
United Kingdom of Great Britain and Northern Ireland Machinery Industry PB Ratio Median Figure of 24 Publicly-Listed Machinery Companies 1.94x
United Kingdom of Great Britain and Northern Ireland Market PB Ratio Median Figure of 1,372 Publicly-Listed Companies 1.48x
LSE:WEIR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= LSE:WEIR Share Price ÷ Book Value per Share (both in GBP)

= 14.99 ÷ 8.27

1.81x

* Primary Listing of Weir Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Weir Group is good value based on assets compared to the GB Machinery industry average.
X
Value checks
We assess Weir Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Machinery industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Machinery industry average (and greater than 0)? (1 check)
  5. Weir Group has a total score of 1/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

WEIR Future Performance

 How is Weir Group expected to perform in the next 1 to 3 years based on estimates from 17 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
27.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Weir Group expected to grow at an attractive rate?
  • Weir Group's earnings growth is expected to exceed the low risk savings rate of 1.2%.
Growth vs Market Checks
  • Weir Group's earnings growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
  • Weir Group's revenue growth is expected to exceed the United Kingdom of Great Britain and Northern Ireland market average.
Annual Growth Rates Comparison
Raw Data
LSE:WEIR Future Growth Rates Data Sources
Data Point Source Value (per year)
LSE:WEIR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 17 Analysts 27.8%
LSE:WEIR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 17 Analysts 8.1%
United Kingdom of Great Britain and Northern Ireland Machinery Industry Earnings Growth Rate Market Cap Weighted Average 6.7%
United Kingdom of Great Britain and Northern Ireland Machinery Industry Revenue Growth Rate Market Cap Weighted Average 4.7%
United Kingdom of Great Britain and Northern Ireland Market Earnings Growth Rate Market Cap Weighted Average 10.6%
United Kingdom of Great Britain and Northern Ireland Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
LSE:WEIR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
All numbers in GBP Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
LSE:WEIR Future Estimates Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 3,707 510 360 1
2022-12-31 3,458 467 318 2
2021-12-31 3,222 466 288 14
2020-12-31 2,997 401 243 17
2019-12-31 2,790 375 192 17
LSE:WEIR Past Financials Data
Date (Data in GBP Millions) Revenue Cash Flow Net Income *
2018-12-31 2,450 218 53
2018-09-30 2,287 198 119
2018-06-30 2,495 177 162
2018-03-31 2,426 153 162
2017-12-31 1,986 128 185
2017-09-30 1,943 142 133
2017-06-30 1,901 156 81
2017-03-31 1,873 186 62
2016-12-31 1,845 216 43
2016-09-30 1,805 235 -63
2016-06-30 1,765 254 -170
2016-03-31 1,822 282 -163

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Weir Group's earnings are expected to grow significantly at over 20% yearly.
  • Weir Group's revenue is expected to grow by 8.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
LSE:WEIR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below

All data from Weir Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:WEIR Future Estimates Data
Date (Data in GBP Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31 1.39 1.39 1.39 1.00
2022-12-31 1.23 1.23 1.23 1.00
2021-12-31 1.12 1.39 0.84 9.00
2020-12-31 0.95 1.12 0.73 10.00
2019-12-31 0.76 0.85 0.63 10.00
LSE:WEIR Past Financials Data
Date (Data in GBP Millions) EPS *
2018-12-31 0.22
2018-09-30 0.51
2018-06-30 0.72
2018-03-31 0.73
2017-12-31 0.84
2017-09-30 0.61
2017-06-30 0.37
2017-03-31 0.29
2016-12-31 0.20
2016-09-30 -0.30
2016-06-30 -0.79
2016-03-31 -0.76

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Weir Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Weir Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United Kingdom of Great Britain and Northern Ireland market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Weir Group has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

WEIR Past Performance

  How has Weir Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Weir Group's growth in the last year to its industry (Machinery).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Weir Group's year on year earnings growth rate was negative over the past 5 years and 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.
Earnings and Revenue History
Weir Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Weir Group Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

LSE:WEIR Past Revenue, Cash Flow and Net Income Data
Date (Data in GBP Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 2,449.90 53.00 481.70
2018-09-30 2,287.45 119.10 440.50
2018-06-30 2,495.30 162.30 472.20
2018-03-31 2,425.60 162.00 468.45
2017-12-31 1,985.60 184.60 391.80
2017-09-30 1,943.35 132.60 396.55
2017-06-30 1,901.10 80.60 401.30
2017-03-31 1,873.00 61.95 403.15
2016-12-31 1,844.90 43.30 405.00
2016-09-30 1,804.75 -63.45 495.55
2016-06-30 1,764.60 -170.20 586.10
2016-03-31 1,822.20 -163.25 490.45
2016-01-01 1,879.80 -156.30 394.80
2015-10-01 2,077.80 -80.25 425.95
2015-07-03 2,275.80 -4.20 457.10
2015-04-03 2,357.00 33.95 457.10
2015-01-02 2,438.20 72.10 457.10
2014-10-02 2,406.80 200.15 460.95
2014-07-04 2,375.40 328.20 464.80
2014-04-04 2,402.60 331.55 464.90
2014-01-03 2,429.80 334.90 465.00
2013-10-03 2,420.75 310.55 463.95
2013-06-28 2,411.70 286.20 462.90
2013-03-28 2,475.00 297.95 463.00
2012-12-28 2,538.30 309.70 463.10
2012-06-29 2,586.10 303.50 419.90

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Weir Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Weir Group used its assets less efficiently than the GB Machinery industry average last year based on Return on Assets.
  • Weir Group has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Weir Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Machinery industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Weir Group has a total score of 1/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

WEIR Health

 How is Weir Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Weir Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Weir Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 1.4x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Weir Group Company Filings, last reported 5 months ago.

LSE:WEIR Past Debt and Equity Data
Date (Data in GBP Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 2,148.90 1,400.90 263.00
2018-09-30 2,148.90 1,400.90 263.00
2018-06-30 1,872.70 1,201.00 640.60
2018-03-31 1,872.70 1,201.00 640.60
2017-12-31 1,468.70 1,126.80 284.60
2017-09-30 1,468.70 1,126.80 284.60
2017-06-30 1,329.80 1,135.00 266.00
2017-03-31 1,329.80 1,135.00 266.00
2016-12-31 1,383.60 1,092.30 258.60
2016-09-30 1,383.60 1,092.30 258.60
2016-06-30 1,315.60 1,064.40 211.00
2016-03-31 1,315.60 1,064.40 211.00
2016-01-01 1,197.80 1,008.70 184.00
2015-10-01 1,197.80 1,008.70 184.00
2015-07-03 1,400.20 1,050.20 233.50
2015-04-03 1,400.20 1,050.20 233.50
2015-01-02 1,482.20 1,039.10 178.70
2014-10-02 1,482.20 1,039.10 178.70
2014-07-04 1,472.80 833.80 82.60
2014-04-04 1,472.80 833.80 82.60
2014-01-03 1,486.70 825.60 79.10
2013-10-03 1,486.70 825.60 79.10
2013-06-28 1,418.00 1,028.50 78.50
2013-03-28 1,418.00 1,028.50 78.50
2012-12-28 1,310.30 1,079.30 391.10
2012-06-29 1,174.40 964.80 120.80
  • Weir Group's level of debt (65.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (55.6% vs 65.3% today).
  • Debt is not well covered by operating cash flow (15.5%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8.6x coverage).
X
Financial health checks
We assess Weir Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Weir Group has a total score of 3/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

WEIR Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.08%
Current annual income from Weir Group dividends. Estimated to be 3.35% next year.
If you bought £2,000 of Weir Group shares you are expected to receive £62 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Weir Group's pays a higher dividend yield than the bottom 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (1.95%).
  • Weir Group's dividend is below the markets top 25% of dividend payers in United Kingdom of Great Britain and Northern Ireland (5.45%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
LSE:WEIR Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 17 Analyst Estimates (S&P Global) See Below
United Kingdom of Great Britain and Northern Ireland Machinery Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 2.6%
United Kingdom of Great Britain and Northern Ireland Market Average Dividend Yield Market Cap Weighted Average of 706 Stocks 4.3%
United Kingdom of Great Britain and Northern Ireland Minimum Threshold Dividend Yield 10th Percentile 1%
United Kingdom of Great Britain and Northern Ireland Bottom 25% Dividend Yield 25th Percentile 1.9%
United Kingdom of Great Britain and Northern Ireland Top 25% Dividend Yield 75th Percentile 5.4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

LSE:WEIR Future Dividends Estimate Data
Date (Data in £) Dividend per Share (annual) Avg. No. Analysts
2023-12-31 0.56 1.00
2022-12-31 0.54 2.00
2021-12-31 0.54 12.00
2020-12-31 0.50 18.00
2019-12-31 0.47 18.00
LSE:WEIR Past Annualized Dividends Data
Date (Data in £) Dividend per share (annual) Avg. Yield (%)
2019-02-27 0.462 2.896
2018-05-03 0.440 2.614
2017-03-13 0.440 2.257
2017-02-22 0.440 2.352
2016-07-28 0.440 2.531
2016-04-05 0.440 3.509
2016-02-24 0.440 4.256
2015-03-20 0.440 3.456
2015-02-25 0.440 2.487
2014-03-21 0.420 1.853
2014-02-26 0.420 1.679
2013-03-25 0.380 1.719
2013-02-27 0.380 1.600
2012-07-31 0.338 1.847
2012-02-29 0.330 2.022
2011-04-01 0.270 1.416
2010-04-07 0.210 1.579
2010-03-09 0.210 2.229
2009-08-04 0.187 2.621
2009-03-10 0.185 3.900
2008-08-12 0.170 4.166

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Weir Group's earnings are paid to the shareholders as a dividend.
  • 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 (2.5x coverage).
X
Income/ dividend checks
We assess Weir Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Weir Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Weir Group has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

WEIR Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Jon Stanton
COMPENSATION £2,270,494
AGE 51
TENURE AS CEO 2.7 years
CEO Bio

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 serves as Non-Executive Director at Imperial Brands PLC since May 08, 2019. Mr. Stanton served as a Partner in the London office since 2001 with lead responsibility for the audit of a number of FTSE 100 multinational clients, including Invensys, Hanson and InterContinental Hotels Group. He joined The Weir Group PLC from Ernst & Young, where he joined as a graduate trainee in their Birmingham office in 1988. He has significant corporate finance experience, including mergers and acquisitions and has been involved in a number of restructuring and business process improvement projects. He has extensive international experience including two years based in Ernst &Young's Detroit office. Mr. Stanton has been a Director of The Weir Group PLC since April 19, 2010. He is a Chartered Accountant and a Member of the Institute of Chartered Accountants in England and Wales.

CEO Compensation
  • Jon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Jon's remuneration is about average for companies of similar size in United Kingdom of Great Britain and Northern Ireland.
Management Team Tenure

Average tenure and age of the Weir Group management team in years:

2.7
Average Tenure
51
Average Age
  • The tenure for the Weir Group management team is about average.
Management Team

Jon Stanton

TITLE
CEO & Director
COMPENSATION
£2M
AGE
51
TENURE
2.7 yrs

John Heasley

TITLE
CFO & Director
COMPENSATION
£1M
AGE
43
TENURE
2.7 yrs

Geetha Dabir

TITLE
Chief Technology Officer
TENURE
2.3 yrs

Stephen Christie

TITLE
Head of Investor Relations
TENURE
4.8 yrs

Graham Vanhegan

TITLE
Company Secretary & Chief Legal Officer
TENURE
1.2 yrs

Raymond Buchanan

TITLE
Head of Communications & Public Affairs
TENURE
5.8 yrs

Rosemary McGinness

TITLE
Chief People Officer
TENURE
1.9 yrs

David Kyles

TITLE
Head of Internal Audit
TENURE
3.5 yrs

Jon Owens

TITLE
President of the ESCO Division
TENURE
0.9 yrs

Paul Coppinger

TITLE
President of Oil & Gas Division
AGE
56
TENURE
4.4 yrs
Board of Directors Tenure

Average tenure and age of the Weir Group board of directors in years:

4.4
Average Tenure
61.5
Average Age
  • The tenure for the Weir Group board of directors is about average.
Board of Directors

Charles Berry

TITLE
Chairman
COMPENSATION
£307K
AGE
66
TENURE
5.4 yrs

Jon Stanton

TITLE
CEO & Director
COMPENSATION
£2M
AGE
51
TENURE
9.2 yrs

John Heasley

TITLE
CFO & Director
COMPENSATION
£1M
AGE
43
TENURE
2.7 yrs

Clare Chapman

TITLE
Non-Executive Director
COMPENSATION
£77K
AGE
58
TENURE
1.8 yrs

Stephen Young

TITLE
Non-Executive Director
COMPENSATION
£71K
AGE
62
TENURE
1.4 yrs

Rick Menell

TITLE
Senior Independent Director
COMPENSATION
£74K
AGE
63
TENURE
4.3 yrs

Mary Jacobi

TITLE
Non-Executive Director
COMPENSATION
£62K
AGE
66
TENURE
5.4 yrs

Jim McDonald

TITLE
Non-Executive Director & Member of Technology Advisory Board
COMPENSATION
£61K
AGE
61
TENURE
4.4 yrs

Jackie Mutschler

TITLE
Member of Technology Advisory Board
TENURE
4.4 yrs

Tony Hooley

TITLE
Member of Technology Advisory Board
TENURE
4.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (£) Value (£)
X
Management checks
We assess Weir Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Weir Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

WEIR News

Simply Wall St News

Volatility 101: Should Weir Group (LON:WEIR) Shares Have Dropped 45%?

We also note that the stock has performed poorly over the last year, with the share price down 27%. … During five years of share price growth, Weir Group moved from a loss to profitability. … As it happens, Weir Group's TSR for the last 5 years was -38%, which exceeds the share price return mentioned earlier.

Simply Wall St -

What Investors Should Know About The Weir Group PLC's (LON:WEIR) Financial Strength

Does WEIR Produce Much Cash Relative To Its Debt? … Additionally, WEIR has produced UK£218m in operating cash flow during the same period of time, leading to an operating cash to total debt ratio of 16%, indicating that WEIR’s debt is not covered by operating cash. … I suggest you continue to research Weir Group to get a more holistic view of the small-cap by looking at: Future Outlook: What are well-informed industry analysts predicting for WEIR’s future growth?

Simply Wall St -

Should The Weir Group PLC (LON:WEIR) Focus On Improving This Fundamental Metric?

View our latest analysis for Weir Group How Do I Calculate Return On Equity? … The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Weir Group: 2.5% = UK£53m ÷ UK£2.1b (Based on the trailing twelve months to December 2018.) Most know that net profit is the total earnings after all expenses, but the concept of shareholders' equity is a little more complicated. … Combining Weir Group's Debt And Its 2.5% Return On Equity Although Weir Group does use debt, its debt to equity ratio of 0.65 is still low.

Simply Wall St -

Are The Weir Group PLC's (LON:WEIR) Interest Costs Too High?

View our latest analysis for Weir Group WEIR’s Debt (And Cash Flows) Over the past year, WEIR has ramped up its debt from UK£1.1b to UK£1.4b , which includes long-term debt. … Moreover, WEIR has produced UK£218m in operating cash flow over the same time period, leading to an operating cash to total debt ratio of 16%, signalling that WEIR’s debt is not covered by operating cash. … I suggest you continue to research Weir Group to get a more holistic view of the mid-cap by looking at: Future Outlook: What are well-informed industry analysts predicting for WEIR’s future growth?

Simply Wall St -

Why You Should Care About The Weir Group PLC’s (LON:WEIR) Low Return On Capital

Specifically, we'll consider its Return On Capital Employed (ROCE), since that will give us an insight into how efficiently the business can generate profits from the capital it requires. … Understanding Return On Capital Employed (ROCE). … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

The Weir Group PLC (LON:WEIR) Has Attractive Fundamentals

I've been keeping an eye on The Weir Group PLC (LON:WEIR) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe WEIR has a lot to offer.

Simply Wall St -

What Is The Weir Group PLC's (LON:WEIR) Share Price Doing?

The Weir Group PLC (LON:WEIR), which is in the machinery business, and is based in United Kingdom,. … As a mid-cap stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock? … Today I will analyse the most recent data on Weir Group’s outlook and valuation to see if the opportunity still exists

Simply Wall St -

Is The Weir Group PLC's (LON:WEIR) CEO Overpaid Relative To Its Peers?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … According to our data, The Weir Group PLC has a market capitalization of UK£4.2b, and pays its CEO total annual compensation worth UK£1.4m. … We looked at a group of companies with market capitalizations from UK£3.1b to UK£9.2b, and the median CEO total compensation was UK£2.5m.

Simply Wall St -

What Does The Weir Group PLC's (LON:WEIR) P/E Ratio Tell You?

We'll show how you can use The Weir Group PLC's (LON:WEIR) P/E ratio to inform your assessment of the investment opportunity. … Weir Group has a price to earnings ratio of 75.73, based on the last twelve months. … Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS)

Simply Wall St -

If You Had Bought Weir Group Stock Three Years Ago, You Could Pocket A 53% Gain Today

For example, the The Weir Group PLC (LON:WEIR) share price is up 53% in the last three years, clearly besting than the market return of around 15% (not including dividends). … One flawed but reasonable way to assess how sentiment around a company has changed is to compare the earnings per share (EPS) with the share price. … This free interactive report on Weir Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further.

Simply Wall St -

WEIR Company Info

Description

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 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 company offers its products under the Allen Steam Turbines, Aspir, Atwood & Morrill, AutoTork, Batley Valve, BDK, Begemann, Blakeborough, Cavex, Delta Industrial, Enduron, Floway, FusionCast, Gabbioneta, GEHO, Gemex, Hazleton, Hopkinsons, Hydrau-Flo, Isogate, Lewis, Linatex, Mathena, Multiflo, Novatech, Roto-Jet, Sarasin-RSBD, Seaboard, SEBIM, SPM, Stampede, Synertrex, Tricentric, Trio, Vulco, Warman, WEMCO, and WSP brand names. The Weir Group PLC was founded in 1871 and is headquartered in Glasgow, the United Kingdom.

Details
Name: The Weir Group PLC
WEIR
Exchange: LSE
Founded: 1871
£3,880,731,863
258,974,432
Website: http://www.global.weir
Address: The Weir Group PLC
1 West Regent Street,
Glasgow,
G2 1RW,
United Kingdom
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
LSE WEIR Ordinary Shares London Stock Exchange GB GBP 29. Jun 1993
OTCPK WEIG.F Ordinary Shares Pink Sheets LLC US USD 29. Jun 1993
DB 42W Ordinary Shares Deutsche Boerse AG DE EUR 29. Jun 1993
BMV WEIR N Ordinary Shares Bolsa Mexicana de Valores MX MXN 29. Jun 1993
BATS-CHIXE WEIRL Ordinary Shares BATS 'Chi-X Europe' GB GBP 29. Jun 1993
OTCPK WEGR.Y SPONSORED ADR Pink Sheets LLC US USD 30. Jan 2012
Number of employees
Current staff
Staff numbers
17,515
Weir Group employees.
Industry
Industrial Machinery
Capital Goods
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/26 20:34
End of day share price update: 2019/06/26 00:00
Last estimates confirmation: 2019/06/25
Last earnings filing: 2019/03/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.