Weir Group (WEGRY) AI Stock Analysis

• Market Cap: $8.78B
• Dividend Yield: 1.73%
• Average Volume (3M): 456.00
• Price to Earnings (P/E): 22.2
• Beta (1Y): 0.89
• Revenue Growth: -2.27%
• EPS Growth: 41.26%
• Country: US
• Employees: 11,444
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 0.49
• Shares Outstanding: 519,224,100
• 10 Day Avg. Volume: 1,368
• 30 Day Avg. Volume: 456
• PEG Ratio: 0.28
• Price to Book (P/B): 1.26
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $19.50 ▲(13.24%Upside)

Weir Group's stock is rated at 74, driven by strong financial performance and positive technical indicators. While the financial health and technical outlook are robust, the valuation reflects moderate potential for price appreciation. The absence of earnings call data and notable corporate events does not impact the score.

Weir Group Business Overview & Revenue Model

Company Description

The 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 Money

Weir 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 Financial Statement Overview

Summary

Weir Group demonstrates strong financial health with solid profitability and efficient cash flow management. The company has a robust gross profit margin and improving net profit margin, alongside stable EBIT and EBITDA margins. While the balance sheet is healthy with a manageable debt-to-equity ratio and strong ROE, monitoring debt levels remains crucial.

Income Statement

Weir Group has demonstrated a solid financial performance with a robust gross profit margin and improving net profit margin over recent years. The gross profit margin for 2023 was approximately 37.7%, indicating effective cost management. The company achieved a commendable net profit margin of about 11.8% in 2023, up from previous years, reflecting strong profitability. A notable revenue growth rate of 6.6% in 2022, although followed by a decline in 2023, suggests potential cyclical demand in the industry. EBIT and EBITDA margins have been stable, with 2023 seeing an EBIT margin of 14% and an EBITDA margin of 18.6%, indicating efficient operations.

Balance Sheet

The balance sheet of Weir Group shows a balanced financial position with a debt-to-equity ratio of 0.82 in 2023, which is manageable and shows a decrease from previous years. Return on Equity (ROE) has improved significantly to 13.5% in 2023 from 9.6% in 2022, indicating effective utilization of equity capital. The equity ratio of 43.4% in 2023 reflects a strong equity base, although there is room for improvement. Overall, the company maintains a healthy financial position, though it should monitor its debt levels closely to prevent any future risks.

Cash Flow

Weir Group's cash flow is strong, with a noteworthy free cash flow growth of 22.7% from 2022 to 2023, showing the company's ability to generate cash for operations and investments. The operating cash flow to net income ratio of 1.97 in 2023 highlights effective cash conversion from profits. Additionally, the free cash flow to net income ratio of 1.35 indicates robust cash generation capabilities. The company is efficiently managing its cash flows, which supports its financial stability and potential for reinvestment or debt reduction.

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

• Technical Analysis Sentiment: Positive
• Last Price: 17.22
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 17.22 is above the 20-day moving average (MA) of 16.88, above the 50-day MA of 16.22, and above the 200-day MA of 14.67, indicating a bullish trend. The MACD of 0.24 indicates Positive momentum. The RSI at 61.53 is Neutral, neither overbought nor oversold. The STOCH value of 67.41 is Neutral, 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
ITT	77 Outperform	$12.50B	25.27	19.27%	0.87%	6.99%	23.25%
WEGRY	74 Outperform	$8.78B	22.20	18.09%	1.73%	-2.27%	41.26%
SPXC	73 Outperform	$8.08B	40.00	15.24%	―	10.78%	30.05%
GNRC	69 Neutral	$9.00B	26.54	14.29%	―	8.07%	58.67%
FLS	67 Neutral	$7.23B	25.93	14.00%	1.52%	4.23%	20.40%
RRX	62 Neutral	$10.06B	43.22	3.69%	0.92%	-10.19%	―
Sector *	59 Neutral	AU$1.64B	9.44	11.52%	3.68%	6.78%	6.51%