Weir Group (WEGRY) AI Stock Analysis

• Market Cap: $9.66B
• Dividend Yield: 1.27%
• Average Volume (3M): 21.57K
• Price to Earnings (P/E): 24.4
• Beta (1Y): 0.89
• Revenue Growth: 0.75%
• EPS Growth: 44.30%
• Country: US
• Employees: 11,444
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.28
• Shares Outstanding: 519,224,100
• 10 Day Avg. Volume: 1,141
• 30 Day Avg. Volume: 21,570
• PEG Ratio: 0.47
• Price to Book (P/B): 3.09
• Price to Sales (P/S): 2.28
• P/FCF Ratio: 15.12
• Enterprise Value/Market Cap: 1.09
• Enterprise Value/Revenue: 4.22
• Enterprise Value/Gross Profit: 10.19
• Enterprise Value/Ebitda: 20.37
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 77 Outperform
• Price Target: $22.00 ▲(14.52% Upside)

The Weir Group's overall stock score is driven by strong financial performance and positive earnings call insights, indicating robust operational efficiency and strategic growth. Technical analysis supports a bullish outlook, although valuation concerns slightly temper the score.

Positive Factors

Revenue Growth

Consistent revenue growth, particularly in mining, indicates strong demand for Weir's products and services, supporting long-term expansion.

Margin Expansion

Improved margins reflect operational efficiency and cost management, enhancing profitability and competitive positioning.

Strategic Acquisitions

Acquisitions enhance Weir's technological capabilities and market reach, supporting long-term growth and diversification.

Negative Factors

Rising Debt Levels

Increased debt levels could strain cash flow and financial flexibility, posing risks if not managed effectively over time.

FX Translation Impact

Currency fluctuations can affect profitability, creating uncertainty in financial performance and planning.

Decline in Original Equipment Revenue

Declining OE revenue may indicate challenges in maintaining market share and could impact future growth prospects.

Weir Group Business Overview & Revenue Model

Company Description

Weir Group PLC is a global engineering company headquartered in Glasgow, Scotland, specializing in the design and manufacture of equipment and services for the mining, oil and gas, and power sectors. The company operates through various segments, including Minerals, Oil & Gas, and Power & Industrial, offering a wide range of products such as pumps, valves, and pressure control equipment. Weir Group is committed to providing innovative solutions that enhance productivity and efficiency while ensuring safety and environmental sustainability.

How the Company Makes Money

Weir Group generates revenue primarily through the sale of its equipment and services across its core sectors. The Minerals segment contributes significantly to the company's earnings, driven by the demand for mining equipment and aftermarket services. The Oil & Gas segment provides revenue through the supply of specialized products and services to the energy sector, particularly in drilling and production operations. The Power & Industrial segment adds to the revenue stream through the provision of equipment and services for energy generation and industrial applications. Additionally, Weir Group benefits from long-term contracts and partnerships with major players in the mining and energy industries, which provide a stable revenue base. The company also focuses on aftermarket services, which include maintenance, repair, and replacement parts, creating a recurring revenue stream that enhances profitability.

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 balance sheet is stable 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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 19.21
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 19.21 is above the 20-day moving average (MA) of 18.50, above the 50-day MA of 18.80, and above the 200-day MA of 16.77, indicating a bullish trend. The MACD of 0.03 indicates Negative momentum. The RSI at 62.76 is Neutral, neither overbought nor oversold. The STOCH value of 98.49 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DCI	79 Outperform	$10.71B	28.84	24.96%	1.27%	2.37%	-6.93%
FLS	79 Outperform	$9.16B	20.96	20.97%	1.17%	3.19%	69.89%
SPXC	77 Outperform	$10.40B	44.52	12.76%	―	12.60%	24.02%
WEGRY	77 Outperform	$9.66B	24.45	17.35%	1.27%	0.75%	44.30%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
MIDD	60 Neutral	$6.36B	―	-6.20%	―	0.27%	-159.24%
GNRC	59 Neutral	$9.53B	30.90	12.38%	―	5.52%	9.03%

Weir Group Corporate Events

Weir Group’s Earnings Call Highlights Strong Growth

The recent earnings call from Weir Group painted a positive picture, showcasing strong revenue growth and successful strategic initiatives. Despite facing challenges such as FX translation headwinds and a high tax rate, the company reported robust performance across key divisions, signaling a promising outlook for the future.

Weir Group Reports Strong H1 2025 Performance

The Weir Group PLC is a global leader in mining technology, specializing in providing innovative solutions for mineral processing and mining operations. The company is known for its focus on sustainable and efficient mining practices.