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Weir Group (WEGRY)
:WEGRY
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Weir Group
(OTC:WEGRY)
Rating:71Outperform
Price Target:
$18.50
▲(11.99% Upside)
Weir Group (WEGRY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.62B
Dividend Yield1.28%
Average Volume (3M)760.00
Price to Earnings (P/E)21.6
Beta (1Y)0.92
Revenue Growth0.75%
EPS Growth44.30%
CountryUS
Employees11,444
SectorIndustrials
Sector Strength84
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.28
Shares Outstanding519,224,100
10 Day Avg. Volume912
30 Day Avg. Volume760
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.22
Enterprise Value/Revenue4.20
Enterprise Value/Gross Profit10.31
Enterprise Value/Ebitda20.27
Forecast
1Y Price Target
$18.50Price Target Upside11.99% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
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 makes money by providing high-performance engineered solutions primarily to the mining and infrastructure sectors. Its revenue model is largely based on equipment sales, aftermarket services, and spare parts. The company benefits from long-term relationships with major industry players, offering comprehensive maintenance and repair services that ensure ongoing revenue. Partnerships with mining giants and infrastructure companies often involve contracts for both the supply of equipment and the provision of ongoing technical support. The company's earnings are bolstered by its global presence and ability to deliver localized solutions, which helps mitigate risks associated with market fluctuations in any single region.
Weir Group Earnings Call Summary
Earnings Call Date:Jul 31, 2025
(Q2-2025)
| % Change Since: -5.60%|
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call reflected a positive outlook with strong revenue growth, successful strategic acquisitions, and robust performance in key divisions, despite some challenges from FX translation headwinds and a high tax rate.Q2-2025 Updates
Positive Updates
Revenue Growth and Margin Expansion
Revenues grew by 4% on a constant currency basis in the first half of 2025. Operating margins expanded by 220 basis points to 19.8%, with an upgraded full year guidance for circa 20% operating profit margins.
Strong Performance in Minerals Division
The Minerals division secured a GBP 40 million order for a sustainable tailings solution in Chile. Operating profit increased by 18% on a constant currency basis to GBP 188 million, with margins increasing by 250 basis points to 21.8%.
Successful Acquisitions and Strategic Investments
Weir completed the acquisitions of Micromine and announced strategic investments in CiDRA and Townley. These acquisitions are expected to be EPS accretive in the first full year of ownership.
Positive Order Growth
Orders in the first half totaled GBP 1.3 billion, an increase of 8%. Original equipment orders grew by 7%, and aftermarket orders grew by 8%.
Negative Updates
FX Translation Headwinds
Profit before tax of GBP 213 million was GBP 20 million ahead of last year despite an FX translation headwind of GBP 12 million.
High Tax Rate
The effective tax rate was high at 28.6%, attributed to withholding tax on dividends and a large portion of profits occurring in high-tax jurisdictions like Australia.
Company Guidance
During the call, Weir Group provided detailed guidance for the remainder of 2025, emphasizing their strong financial performance in the first half and expectations for continued growth. The company reported a 4% revenue increase on a constant currency basis, with operating profit margins reaching 19.8%, a 220 basis point improvement. Weir is on track to achieve a cumulative savings target of GBP 80 million by 2026 through its Performance Excellence program. For the full year, the company has upgraded its guidance to circa 20% operating profit margins, highlighting strong execution and contributions from recent acquisitions like Micromine. The company maintained a high free operating cash conversion of 62% and aims for 90% to 100% by year-end. Weir's order book shows robust demand with a 17% increase in constant currency operating profit, supported by strong aftermarket performance, particularly in copper and gold markets. The company also highlighted strategic growth initiatives, including acquisitions and investments, which are expected to drive future growth and margin expansion.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 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 2.51B | 2.64B | 2.47B | 1.93B | 1.96B |
| Gross Profit | 1.02B | 994.90M | 873.90M | 692.00M | 692.90M |
| EBITDA | 519.00M | 489.50M | 422.80M | 361.90M | 372.60M |
| Net Income | 312.20M | 227.90M | 213.40M | 155.10M | 138.60M |
Balance Sheet | |||||
| Total Assets | 3.79B | 3.89B | 4.06B | 3.50B | 3.56B |
| Cash, Cash Equivalents and Short-Term Investments | 556.40M | 707.20M | 691.20M | 564.40M | 351.70M |
| Total Debt | 1.09B | 1.40B | 1.49B | 1.34B | 1.36B |
| Total Liabilities | 1.93B | 2.19B | 2.32B | 2.04B | 2.24B |
| Stockholders Equity | 1.84B | 1.69B | 1.73B | 1.44B | 1.31B |
Cash Flow | |||||
| Free Cash Flow | 377.40M | 307.60M | 264.70M | 103.30M | 194.50M |
| Operating Cash Flow | 449.90M | 394.30M | 320.80M | 156.10M | 273.40M |
| Investing Cash Flow | -52.80M | -70.60M | -68.30M | 195.20M | -70.80M |
| Financing Cash Flow | -301.90M | -322.50M | -303.80M | -217.30M | -85.40M |
Weir Group Technical Analysis
Neutral
16.52
Price Trends
17.07
Negative
16.06
Positive
15.09
Positive
Market Momentum
-0.12
Positive
38.65
Neutral
8.84
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEGRY, the sentiment is Neutral. The current price of 16.52 is below the 20-day moving average (MA) of 17.43, below the 50-day MA of 17.07, and above the 200-day MA of 15.09, indicating a neutral trend. The MACD of -0.12 indicates Positive momentum. The RSI at 38.65 is Neutral, neither overbought nor oversold. The STOCH value of 8.84 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WEGRY.
Weir Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $12.96B | 26.12 | 20.17% | 0.81% | 6.69% | 21.44% | |
75 Outperform | $7.03B | 24.39 | 13.91% | 1.60% | 3.15% | 14.18% | |
74 Outperform | $9.52B | 45.66 | 15.02% | ― | 8.90% | 29.18% | |
71 Outperform | $8.62B | 21.62 | 17.35% | 1.28% | 0.75% | 44.30% | |
71 Outperform | $11.38B | 32.14 | 14.59% | ― | 9.69% | 54.29% | |
65 Neutral | $9.64B | 38.65 | 3.84% | 0.99% | -7.88% | ― | |
62 Neutral | C$7.33B | 1.80 | 10.22% | 2.39% | 10.50% | -5.58% |
* Industrials Sector Average
Performance Comparison
WEGRY
Weir Group
16.65
4.78
40.27%
FLS
Flowserve
52.36
7.53
16.80%
GNRC
Generac Holdings
193.52
49.19
34.08%
ITT
ITT
165.01
32.36
24.40%
RRX
Regal Rexnord
141.01
-10.95
-7.21%
SPXC
SPX
204.31
55.33
37.14%
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.