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Weir Group (WEGRY)
OTHER OTC:WEGRY
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Weir Group
(OTC:WEGRY)
Select Model
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Rating:74Outperform
Price Target:
$18.50
▼(-3.55% Downside)
The Weir Group's strong earnings call performance and solid financial health are the most significant factors driving the score. Technical indicators suggest a neutral trend, while valuation metrics indicate moderate pricing. The absence of notable corporate events does not impact the score.
Weir Group (WEGRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.60B
Dividend Yield1.21%
Average Volume (3M)301.00
Price to Earnings (P/E)24.4
Beta (1Y)0.90
Revenue Growth0.75%
EPS Growth44.30%
CountryUS
Employees11,444
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.28
Shares Outstanding519,224,100
10 Day Avg. Volume905
30 Day Avg. Volume301
Financial Highlights & Ratios
PEG Ratio0.47
Price to Book (P/B)3.09
Price to Sales (P/S)2.28
P/FCF Ratio15.12
Enterprise Value/Market Cap1.10
Enterprise Value/Revenue4.22
Enterprise Value/Gross Profit10.19
Enterprise Value/Ebitda20.37
Forecast
1Y Price Target
$18.50Price Target Upside-3.55% Downside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Weir Group Business Overview & Revenue Model
Company DescriptionThe 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. The ESCO segment provides ground engaging tools for mining machines. This segment also produces smart and rugged cameras that monitor and provide valuable and timely data on equipment performance, faults, payloads, and rock fragmentation. The company offers its products under the Accumin, Aspir, Cavex, Delta Industrial, Enduron, Envirotech, Floway, GEHO, Gemex, Hazleton, Hydrau-Flo, R. Wales, Isodry, Isogate, Lewis, Linatex, Multiflo, Synertrex, Stampede, Trio, Vulco, FusionCast, ESCO, Motion Metrics, and Warman brands. The company was founded in 1871 and is headquartered in Glasgow, the United Kingdom.
How the Company Makes MoneyWeir Group generates revenue primarily through the sale of its engineered products and services across its core sectors. Key revenue streams include the production and sale of pumps and valves used in oil and gas extraction, mining operations, and power generation. The company also offers maintenance, repair, and aftermarket services, which provide a steady income stream. Additionally, strategic partnerships with major players in the energy and mining sectors enhance its market reach and contribute to revenue growth. Factors such as increased demand for efficient resource extraction technologies and the global push towards sustainable practices further drive Weir Group's earnings.
Weir Group Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong overall performance with significant growth in revenue, margins, and successful strategic acquisitions, despite some challenges in original equipment revenue and FX translation impacts. The company's strategic initiatives and market conditions are positioned positively for future growth.Q2-2025 Updates
Positive Updates
Growth in Revenue and Orders
Revenues grew by 4% on a constant currency basis, driven by high levels of mining activity. Orders in the first half totaled GBP 1.3 billion, an increase of 8%.
Significant Margin Expansion
Operating margins expanded by 220 basis points to 19.8%, with an upgraded full year guidance of circa 20% operating profit margins.
Successful Acquisition Strategy
Completed acquisitions of Micromine, Townley, and a strategic investment in CiDRA, enhancing digital, product extension, and geographic expansion strategies.
Performance Excellence Program Success
On track to deliver GBP 80 million in cumulative savings by 2026, with GBP 40 million savings achieved to date.
Strong Cash Flow and Dividend Growth
Maintained a high level of free operating cash conversion at 62% and supported another year of dividend growth.
Negative Updates
Decline in Original Equipment Revenue
Original equipment (OE) revenue declined as expected due to the phasing of the order book, though offset by strong aftermarket growth.
Impact of FX Translation
Profit before tax was impacted by a GBP 12 million FX translation headwind, with a full year expected headwind of GBP 22 million.
Increase in Net Debt
Net debt to EBITDA increased to 2x following the acquisition of Micromine, though expected to delever by half a turn per year.
Challenges in Dredge Orders
Phasing issues in dredge orders in the Middle East due to ongoing conflicts affected ESCO's order stability.
Company Guidance
In the call discussing Weir's 2025 Half Year Results, the company provided detailed guidance on their financial and strategic performance. Weir is on track to achieve its cumulative savings target of GBP 80 million by 2026, with operating margins expected to sustainably exceed 20%. The first half of 2025 saw a 4% revenue growth on a constant currency basis, driven by strong aftermarket growth, particularly in copper and gold, and a robust book-to-bill ratio. Operating profit increased by 17% to GBP 237 million, with margins expanding by 220 basis points to 19.8%. The company maintained a high free operating cash conversion rate of 62% and expects to achieve 90%-100% for the full year. Orders totaled GBP 1.3 billion, up 8%, with original equipment orders increasing by 7%. Weir's strategic acquisitions, including Micromine, are projected to contribute 30 basis points to margin growth, with net debt to EBITDA expected to fall below 2x by the end of 2025. The company is confident in delivering revenue growth and a circa 20% operating profit margin for the full year, supported by ongoing strategic initiatives and favorable market conditions.Weir Group Financial Statement Overview
Summary
The Weir Group demonstrates strong financial health with consistent revenue and profit growth, efficient operational performance, and solid cash flow generation. The company maintains a stable balance sheet with manageable leverage, though debt levels warrant careful monitoring.Income Statement
The Weir Group has shown consistent revenue growth over the years, with a notable increase from 2021 to 2023. The gross profit margin is strong, reflecting efficient cost management. Net profit margin has improved significantly, indicating enhanced profitability. EBIT and EBITDA margins are healthy, showcasing operational efficiency. However, the revenue growth rate has been modest in recent years, suggesting potential challenges in expanding market share.78
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a reasonable debt-to-equity ratio, indicating manageable leverage. Return on equity has improved, highlighting effective use of shareholder funds. The equity ratio is solid, suggesting a strong asset base relative to liabilities. However, the total debt level remains significant, which could pose risks if not managed carefully.72
Positive
Cash Flow
The cash flow statement shows robust free cash flow generation, with a positive growth trend. The operating cash flow to net income ratio is strong, indicating efficient cash conversion. The free cash flow to net income ratio is healthy, reflecting good cash management. However, fluctuations in capital expenditures and financing cash flows suggest potential volatility in cash flow management.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 2.49B | 2.51B | 2.64B | 2.47B | 1.93B | 1.96B |
| Gross Profit | 1.03B | 1.02B | 994.90M | 873.90M | 692.00M | 692.90M |
| EBITDA | 516.30M | 519.00M | 489.50M | 422.80M | 361.90M | 310.40M |
| Net Income | 307.80M | 312.20M | 227.90M | 213.40M | 258.50M | -154.70M |
Balance Sheet | ||||||
| Total Assets | 4.23B | 3.79B | 3.89B | 4.06B | 3.50B | 3.56B |
| Cash, Cash Equivalents and Short-Term Investments | 439.20M | 556.40M | 707.20M | 691.20M | 564.40M | 351.70M |
| Total Debt | 1.65B | 1.09B | 1.40B | 1.49B | 1.34B | 1.36B |
| Total Liabilities | 2.45B | 1.93B | 2.19B | 2.32B | 2.04B | 2.24B |
| Stockholders Equity | 1.77B | 1.84B | 1.69B | 1.73B | 1.44B | 1.30B |
Cash Flow | ||||||
| Free Cash Flow | 350.30M | 377.40M | 307.60M | 264.70M | 103.30M | 194.50M |
| Operating Cash Flow | 426.60M | 449.90M | 394.30M | 320.80M | 156.10M | 273.40M |
| Investing Cash Flow | -690.80M | -52.80M | -70.60M | -68.30M | 195.20M | -70.80M |
| Financing Cash Flow | 378.40M | -301.90M | -322.50M | -303.80M | -217.30M | -85.40M |
Weir Group Technical Analysis
Positive
19.18
Price Trends
17.18
Positive
16.97
Positive
15.70
Positive
Market Momentum
0.45
Negative
73.34
Negative
93.86
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEGRY, the sentiment is Positive. The current price of 19.18 is above the 20-day moving average (MA) of 17.86, above the 50-day MA of 17.18, and above the 200-day MA of 15.70, indicating a bullish trend. The MACD of 0.45 indicates Negative momentum. The RSI at 73.34 is Negative, neither overbought nor oversold. The STOCH value of 93.86 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEGRY.
Weir Group Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $9.59B | 27.14 | 25.25% | 1.38% | 2.92% | -9.78% | |
78 Outperform | $9.28B | 42.42 | 13.74% | ― | 8.90% | 29.18% | |
74 Outperform | $9.60B | 24.36 | 17.35% | 1.21% | 0.75% | 44.30% | |
72 Outperform | $6.92B | 23.99 | 13.12% | 1.59% | 3.15% | 14.18% | |
69 Neutral | $9.97B | 27.52 | 14.02% | ― | 9.69% | 54.29% | |
66 Neutral | $7.00B | 17.63 | 11.73% | ― | -1.70% | 10.24% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
WEGRY
Weir Group
19.18
5.29
38.08%
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FLS
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52.77
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165.67
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SPXC
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189.83
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17.70%
MIDD
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138.60
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4.63%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.