Weir Group (WEGRY) AI Stock Analysis

• Market Cap: $8.78B
• Dividend Yield: 1.74%
• Average Volume (3M): 348.00
• Price to Earnings (P/E): 22.1
• Beta (1Y): 0.90
• Revenue Growth: -2.27%
• EPS Growth: 41.26%
• Country: US
• Employees: 11,444
• Sector: Industrials
• Sector Strength: 85
• Industry: Industrial - Machinery
• EPS (TTM): 0.49
• Shares Outstanding: 519,224,100
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 348
• 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: 75 Outperform
• Price Target: $19.00 ▲(11.24%Upside)

Weir Group's overall stock score is supported by strong financial performance and positive technical indicators. While the valuation is fair, the stock's momentum suggests potential overbought conditions. The company's financial stability and operational efficiency position it well within the industrial machinery sector, though vigilance is required to navigate cyclical challenges.

Weir Group Business Overview & Revenue Model

Company Description

The Weir Group PLC is a global engineering company headquartered in Glasgow, Scotland. The company operates in the minerals, oil and gas, and power sectors, providing highly engineered products and services that improve the efficiency of its customers' operations. Weir Group specializes in the design, manufacture, and supply of equipment for mining, mineral processing, power generation, and oil and gas extraction. Core products include pumps, valves, crushers, and other related machinery, which are critical to the infrastructure and operations of its clients worldwide.

How the Company Makes Money

Weir Group generates revenue primarily through the sale of its engineering products and services across its key sectors: minerals, oil and gas, and power. In the minerals sector, the company earns money by providing equipment and aftermarket support that enhance productivity and reduce costs for mining operations. The oil and gas sector contributes to revenue through the supply of pressure pumping and pressure control equipment, which is essential for efficient resource extraction. Additionally, Weir Group offers aftermarket services such as maintenance, repair, and parts replacement, which provide a steady stream of income. Strategic partnerships and long-term contracts with major industry players further bolster the company's earnings. The Group's focus on innovation and sustainable solutions also positions it favorably in markets seeking to improve operational efficiency and environmental compliance.

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
	EBIT
391.00M	368.40M	307.50M	256.60M	234.30M
	EBITDA
519.00M	489.50M	422.80M	361.90M	372.60M
	Net Income Common Stockholders
312.20M	227.90M	213.40M	155.10M	138.60M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
556.40M	707.20M	691.20M	564.40M	351.70M
	Total Assets
3.79B	3.89B	4.06B	3.50B	3.56B
	Total Debt
1.09B	1.40B	1.49B	1.34B	1.36B
	Net Debt
534.60M	690.10M	797.20M	771.80M	1.01B
	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: 17.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 17.08 is above the 20-day moving average (MA) of 16.37, above the 50-day MA of 15.39, and above the 200-day MA of 14.40, indicating a bullish trend. The MACD of 0.40 indicates Negative momentum. The RSI at 70.80 is Negative, neither overbought nor oversold. The STOCH value of 96.79 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
ITT	82 Outperform	$11.84B	23.94	19.27%	0.93%	6.99%	23.25%
SPXC	78 Outperform	$7.21B	35.71	15.24%	―	10.78%	30.05%
WEGRY	75 Outperform	$8.78B	22.07	18.09%	1.74%	-2.27%	41.26%
FLS	72 Outperform	$6.08B	21.79	14.00%	1.81%	4.23%	20.40%
RRX	72 Outperform	$9.13B	39.23	3.69%	1.02%	-10.19%	―
GNRC	67 Neutral	$7.37B	21.72	14.29%	―	8.07%	58.67%
Sector *	66 Neutral	$4.47B	12.21	5.40%	3.65%	4.14%	-12.00%