Placing The Weir Group PLC (LSE:WEIR) shares under the microscope we note that the firm has a current Return on Equity of 0.051544. Simply put, this ratio determines how well the firm uses investment funds to generate profit. This ratio is often considered “the mother of all ratios” as it often reveals how well a company is operating.
In additiona to ROE, investors might also take into consideration some other ratios. One of the most popular ratios is the “Return on Assets” (aka ROA). This score indicates how profitable a company is relative to its total assets. The Return on Assets for The Weir Group PLC (LSE:WEIR) is 0.020359. This number is calculated by dividing net income after tax by the company’s total assets. A company that manages their assets well will have a higher return, while a company that manages their assets poorly will have a lower return.
The Return on Invested Capital (aka ROIC) for The Weir Group PLC (LSE:WEIR) is 0.217521. The Return on Invested Capital is a ratio that determines whether a company is profitable or not. It tells investors how well a company is turning their capital into profits. The ROIC is calculated by dividing the net operating profit (or EBIT) by the employed capital. The employed capital is calculated by subrating current liabilities from total assets. Similarly, the Return on Invested Capital Quality ratio is a tool in evaluating the quality of a company’s ROIC over the course of five years. The ROIC Quality of The Weir Group PLC (LSE:WEIR) is 5.993658. This is calculated by dividing the five year average ROIC by the Standard Deviation of the 5 year ROIC. The ROIC 5 year average is calculated using the five year average EBIT, five year average (net working capital and net fixed assets). The ROIC 5 year average of The Weir Group PLC (LSE:WEIR) is 0.379991.
After a recent scan, we can see that The Weir Group PLC (LSE:WEIR) has a Shareholder Yield of 0.015028 and a Shareholder Yield (Mebane Faber) of -0.02503. The first value is calculated by adding the dividend yield to the percentage of repurchased shares. The second value adds in the net debt repaid yield to the calculation. Shareholder yield has the ability to show how much money the firm is giving back to shareholders via a few different avenues. Companies may issue new shares and buy back their own shares. This may occur at the same time. Investors may also use shareholder yield to gauge a baseline rate of return.
Checking in on some valuation rankings, The Weir Group PLC (LSE:WEIR) has a Value Composite score of 56. Developed by James O’Shaughnessy, the VC score uses five valuation ratios. These ratios are price to earnings, price to cash flow, EBITDA to EV, price to book value, and price to sales. The VC is displayed as a number between 1 and 100. In general, a company with a score closer to 0 would be seen as undervalued, and a score closer to 100 would indicate an overvalued company. Adding a sixth ratio, shareholder yield, we can view the Value Composite 2 score which is currently sitting at 51.
Investors may be interested in viewing the Gross Margin score on shares of The Weir Group PLC (LSE:WEIR). The name currently has a score of 31. This score is derived from the Gross Margin (Marx) stability and growth over the previous eight years. The Gross Margin score lands on a scale from 1 to 100 where a score of 1 would be considered positive, and a score of 100 would be seen as negative.
The Weir Group PLC (LSE:WEIR) has a current MF Rank of 5884. Developed by hedge fund manager Joel Greenblatt, the intention of the formula is to spot high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to find quality, undervalued stocks. In general, companies with the lowest combined rank may be the higher quality picks.
The Weir Group PLC (LSE:WEIR) has a current ERP5 Rank of 5350. The ERP5 Rank may assist investors with spotting companies that are undervalued. This ranking uses four ratios. These ratios are Earnings Yield, ROIC, Price to Book, and 5 year average ROIC. When looking at the ERP5 ranking, it is generally considered the lower the value, the better.
Price Index & Volatility
Stock volatility is a percentage that indicates whether a stock is a desirable purchase. Investors look at the Volatility 12m to determine if a company has a low volatility percentage or not over the course of a year. The Volatility 12m of The Weir Group PLC (LSE:WEIR) is 26.7871. This is calculated by taking weekly log normal returns and standard deviation of the share price over one year annualized. The lower the number, a company is thought to have low volatility. The Volatility 3m is a similar percentage determined by the daily log normal returns and standard deviation of the share price over 3 months. The Volatility 3m of The Weir Group PLC (LSE:WEIR) is 25.8516. The Volatility 6m is the same, except measured over the course of six months. The Volatility 6m is 28.2613.
We can now take a quick look at some historical stock price index data. The Weir Group PLC (LSE:WEIR) presently has a 10 month price index of 1.03704. The price index is calculated by dividing the current share price by the share price ten months ago. A ratio over one indicates an increase in share price over the period. A ratio lower than one shows that the price has decreased over that time period. Looking at some alternate time periods, the 12 month price index is 1.18856, the 24 month is 1.63429, and the 36 month is 0.7776. Narrowing in a bit closer, the 5 month price index is 0.9366, the 3 month is 1.0435, and the 1 month is currently 1.04646.