The Weir Group Plc (WEIR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

MarketsMojo — Loved in India, Now Global

The power of Mojo is now in 29 countries. Explore global equities with the same cutting-edge features you love.Unlock 29 Markets

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Diploma Plc

Babcock International Group Plc

Rotork Plc

The Weir Group Plc

Renishaw Plc

Judges Scientific Plc

Morgan Advanced Materials Plc

IMI Plc

Bodycote Plc

Vesuvius Plc

Somero Enterprises, Inc.

Why is The Weir Group Plc ?

Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.59 times

Poor long term growth as Operating profit has grown by an annual rate 16.08% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 1.59 times
The company has been able to generate a Return on Equity (avg) of 15.19% signifying low profitability per unit of shareholders funds

Poor long term growth as Operating profit has grown by an annual rate 16.08% of over the last 5 years

Flat results in Jun 25

CASH AND EQV(HY) Lowest at GBP 439.2 MM
DEBT-EQUITY RATIO (HY) Highest at 68.4 %
INVENTORY TURNOVER RATIO(HY) Lowest at 2.41%

With ROE of 21.53%, it has a fair valuation with a 4.06 Price to Book Value

Over the past year, while the stock has generated a return of 27.98%, its profits have risen by 39.7% ; the PEG ratio of the company is 0.5

Consistent Returns over the last 3 years

Along with generating 27.98% returns in the last 1 year, the stock has outperformed FTSE 100 in each of the last 3 annual periods

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to The Weir Group Plc should be less than 10%
Overall Portfolio exposure to Automobiles should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Automobiles)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is The Weir Group Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

The Weir Group Plc

27.98%

2.67

23.72%

FTSE 100

15.94%

1.23

12.99%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

0.54%

EBIT Growth (5y)

16.08%

EBIT to Interest (avg)

5.96

Debt to EBITDA (avg)

1.59

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.79

Tax Ratio

9.18%

Dividend Payout Ratio

33.03%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

15.18%

ROE (avg)

15.19%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

4.06

EV to EBIT

17.61

EV to EBITDA

14.67

EV to Capital Employed

2.89

EV to Sales

3.32

PEG Ratio

0.48

Dividend Yield

215.01%

ROCE (Latest)

16.43%

ROE (Latest)

21.53%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

No Trend

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

6What is working for the Company

OPERATING CASH FLOW(Y)

Highest at GBP 755.1 MM

DIVIDEND PAYOUT RATIO(Y)

Highest at 44.93%

RAW MATERIAL COST(Y)

Fallen by -13.07% (YoY

DIVIDEND PER SHARE(HY)

Highest at GBP 4.24

OPERATING PROFIT MARGIN(Q)

Highest at 22.8 %

-5What is not working for the Company

CASH AND EQV(HY)

Lowest at GBP 439.2 MM

DEBT-EQUITY RATIO (HY)

Highest at 68.4 %

INVENTORY TURNOVER RATIO(HY)

Lowest at 2.41%

DEBTORS TURNOVER RATIO(HY)

Lowest at 4.24%

NET SALES(Q)

Lowest at GBP 1,194.8 MM

Here's what is working for The Weir Group Plc

Operating Cash Flow

Highest at GBP 755.1 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (GBP MM)

Operating Profit Margin

Highest at 22.8 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Dividend per share

Highest at GBP 4.24

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (GBP)

Dividend Payout Ratio

Highest at 44.93%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Raw Material Cost

Fallen by -13.07% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Here's what is not working for The Weir Group Plc

Net Sales

Lowest at GBP 1,194.8 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (GBP MM)

Cash and Eqv

Lowest at GBP 439.2 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 68.4 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Inventory Turnover Ratio

Lowest at 2.41%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Debtors Turnover Ratio

Lowest at 4.24%

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio