The Weir Group PLC
The Weir Group PLC Fundamental Analysis
The Weir Group PLC (WEIGF) shows moderate financial fundamentals with a PE ratio of 28.93, profit margin of 12.35%, and ROE of 17.01%. The company generates $2.5B in annual revenue with weak year-over-year growth of -4.95%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.0/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze WEIGF's fundamental strength across five key dimensions:
Efficiency Score
WeakWEIGF struggles to generate sufficient returns from assets.
Valuation Score
ModerateWEIGF shows balanced valuation metrics.
Growth Score
ModerateWEIGF shows steady but slowing expansion.
Financial Health Score
ExcellentWEIGF maintains a strong and stable balance sheet.
Profitability Score
ModerateWEIGF maintains healthy but balanced margins.
Key Financial Metrics
Is WEIGF Expensive or Cheap?
P/E Ratio
WEIGF trades at 28.93 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, WEIGF's PEG of -23.62 indicates potential undervaluation.
Price to Book
The market values The Weir Group PLC at 5.02 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 14.79 times EBITDA. This signals the market has high growth expectations.
How Well Does WEIGF Make Money?
Net Profit Margin
For every $100 in sales, The Weir Group PLC keeps $12.35 as profit after all expenses.
Operating Margin
Core operations generate 15.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $17.01 in profit for every $100 of shareholder equity.
ROA
The Weir Group PLC generates $7.28 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
The Weir Group PLC produces operating cash flow of $423.88M, showing steady but balanced cash generation.
Free Cash Flow
The Weir Group PLC generates strong free cash flow of $348.07M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.35 in free cash annually.
FCF Yield
WEIGF converts 3.96% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
28.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-23.62
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.02
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.93
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.09
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How WEIGF Stacks Against Its Sector Peers
| Metric | WEIGF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 28.93 | 26.49 | Neutral |
| ROE | 17.01% | 1307.00% | Weak |
| Net Margin | 12.35% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.93 | 0.81 | Neutral |
| Current Ratio | 2.09 | 10.48 | Strong Liquidity |
| ROA | 7.28% | -1549792.00% (disorted) | Weak |
WEIGF outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews The Weir Group PLC's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
23.04%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
187.73%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
103.63%
Industry Style: Cyclical, Value, Infrastructure
High Growth