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

Comparison

Company

Score

Quality

Valuation

Financial

Technical

IMI Plc

Diploma Plc

Rotork Plc

Bodycote Plc

The Weir Group Plc

Renishaw Plc

Babcock International Group Plc

Morgan Advanced Materials Plc

Vesuvius Plc

Judges Scientific Plc

Somero Enterprises, Inc.

Why is The Weir Group Plc ?

Poor Management Efficiency with a low ROCE of 15.18%

The company has been able to generate a Return on Capital Employed (avg) of 15.18% signifying low profitability per unit of total capital (equity and debt)

Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.79 times

Poor long term growth as Operating profit has grown by an annual rate 13.59% of over the last 5 years
Low ability to service debt as the company has a high Debt to EBITDA ratio of 2.79 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 13.59% of over the last 5 years

Negative results in Jun 26

INTEREST(HY) At GBP 50.3 MM has Grown at 45.38%
INTEREST COVERAGE RATIO(Q) Lowest at 556.06
DIVIDEND PAYOUT RATIO(Y) Lowest at 0%

Underperformed the market in the last 1 year

The stock has generated a return of 8.19% in the last 1 year, much lower than market (FTSE 100) returns of 18.59%

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

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

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is The Weir Group Plc for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

The Weir Group Plc

8.19%

1.69

31.26%

FTSE 100

18.59%

1.58

11.75%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.47%

EBIT Growth (5y)

13.59%

EBIT to Interest (avg)

6.02

Debt to EBITDA (avg)

1.80

Net Debt to Equity (avg)

0.23

Sales to Capital Employed (avg)

0.79

Tax Ratio

29.87%

Dividend Payout Ratio

43.57%

Pledged Shares

Institutional Holding

0.03%

ROCE (avg)

15.26%

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

3.21

EV to EBIT

14.93

EV to EBITDA

12.04

EV to Capital Employed

2.38

EV to Sales

2.83

PEG Ratio

Dividend Yield

176.99%

ROCE (Latest)

15.96%

ROE (Latest)

15.66%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bearish

Bullish

RSI

Bullish

No Signal

Bollinger Bands

Bearish

Mildly Bullish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Dow Theory

Mildly Bearish

Bullish

OBV

Mildly Bearish

Mildly Bullish

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

1What is working for the Company

RAW MATERIAL COST(Y)

Fallen by -0.62% (YoY

-9What is not working for the Company

INTEREST(HY)

At GBP 50.3 MM has Grown at 45.38%

INTEREST COVERAGE RATIO(Q)

Lowest at 556.06

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

CASH AND EQV(HY)

Lowest at GBP 386.6 MM

DEBT-EQUITY RATIO (HY)

Highest at 72.26 %

DIVIDEND PER SHARE(HY)

Lowest at GBP 4.27

PRE-TAX PROFIT(Q)

Lowest at GBP 176.8 MM

Here's what is working for The Weir Group Plc

Raw Material Cost

Fallen by -0.62% (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

Interest Coverage Ratio

Lowest at 556.06

in the last five periods

MOJO Watch

The company's ability to manage interest payments is deteriorating

Operating Profit to Interest

Interest

At GBP 50.3 MM has Grown at 45.38%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (GBP MM)

Pre-Tax Profit

Lowest at GBP 176.8 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is negative

Pre-Tax Profit (GBP MM)

Cash and Eqv

Lowest at GBP 386.6 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debt-Equity Ratio

Highest at 72.26 %

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

Dividend per share

Lowest at GBP 4.27

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (GBP)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)