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WEIR:LSEWeir Group PLC Analysis

Data as of 2026-03-13 - not real-time

£2,842.00

Latest Price

6/10Risk

Risk Level: Medium

Executive Summary

The Weir Group is trading close to a critical support level, with the RSI signaling a deep oversold condition and the MACD indicating bearish momentum despite an overall bullish trend. Volatility is elevated and the stock’s beta is relatively low, suggesting price swings are more pronounced than market movements. The current PE is in line with industry averages while the forward PE points to potential earnings improvement, and the dividend payout ratio remains comfortably below the sustainability threshold. Analyst sentiment is broadly positive, with a consensus “buy” rating and price targets nudging higher in recent updates. A recent attempted ransomware incident was disclosed but has not materially affected operations or financial outlook.
Fundamentally, the company shows solid revenue growth, healthy margins, and a robust cash generation profile that supports its dividend and ongoing investment in digital and AI‑driven mining solutions. The DCF model, however, places intrinsic value below the market price, implying that the stock may be priced for optimism in the near term.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Price near key support with oversold technical indicators
  • High short‑term volatility
  • Limited upside until technical momentum shifts

Medium Term

1–3 years
Positive
Model confidence: 8/10

Key Factors

  • Improving forward earnings outlook reflected in forward PE
  • Attractive dividend yield with sustainable payout
  • Analyst consensus and upward price‑target revisions

Long Term

> 3 years
Neutral
Model confidence: 7/10

Key Factors

  • Strong cash flow and margin profile supporting long‑term dividend
  • Growth opportunities in digital and AI services for mining
  • Valuation above DCF suggests limited upside beyond earnings growth

Key Metrics & Analysis

Financial Health

Revenue Growth5.50%
Profit Margin9.63%
P/E Ratio29.9
ROE13.14%
ROA6.22%
Debt/Equity93.08
P/B Ratio385.0
Op. Cash Flow£385.4M
Free Cash Flow£238.3M
Industry P/E29.1

Technical Analysis

TrendBullish
RSI27.4
Support£2,840.00
Resistance£3,580.00
MA 20£3,286.20
MA 50£3,236.52
MA 200£2,814.18
MACDBearish
VolumeIncreasing
Fear & Greed Index72.88

Valuation

Fair Value£1,089.07
Target Price£3,419.00
Upside/Downside20.30%
GradeOvervalued
TypeBlend
Dividend Yield1.40%

Risk Assessment

Beta0.52
Volatility42.80%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskMedium
Liquidity RiskLow

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.