Yahoo Finance Should The Weir Group PLC (LON:WEIR) Be Your Next Stock Pick?
The Weir Group PLC (LON:WEIR) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of WEIR, it is a financially-robust company with a an impressive history of dividend payments and a excellent growth outlook. Below, I’ve touched on some key aspects you should know on a high level. For those interested in understanding where the figures come from and want to see the analysis, read the full report on Weir Group here.
Established dividend payer with reasonable growth potential
WEIR is an attractive stock for growth-seeking investors, with an expected earnings growth of 20% in the upcoming year, supported by its outstanding capacity to churn out cash from operating activities, which is predicted to more than double over the next year. This indicates that earnings is driven by top-line activity rather than purely unsustainable cost-reduction initiatives. WEIR’s strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a key determinant of the company’s health. Debt funding requires timely payments on interest to lenders. WEIR’s earnings sufficiently covered its interest in the prior year, which indicates there’s low risk associated with the company not being able to meet these key expenses.
For those seeking income streams from their portfolio, WEIR is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.2%.
Next Steps:
For Weir Group, I’ve put together three pertinent factors you should look at:
Historical Performance: What has WEIR’s returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Valuation: What is WEIR worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether WEIR is currently mispriced by the market.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of WEIR? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
To help readers see past the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price-sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned. For errors that warrant correction please contact the editor at editorial-team@simplywallst.com.
