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In the industrial sector, Weir Group PLC has experienced a notable drop of 11% in its share price over the past quarter. Despite this recent decline, the company has delivered strong returns over the last five years, reflecting positively on its overall performance.
Long-Term Performance and EPS Growth
Over the past five years, Weir Group (LSE:WEIR) has achieved a significant return of 43%, surpassing the market average. During this period, the company’s compound earnings per share (EPS) growth has been impressive, at 27% per year. However, this growth in EPS contrasts with a more modest 7% annual increase in share price, indicating a potential disconnect between the company’s earnings performance and market sentiment.
Total Shareholder Return (TSR) and Dividends
When evaluating the total return for shareholders, it is important to consider both share price changes and dividends. The Total Shareholder Return (TSR) provides a more comprehensive view, as it incorporates the value of dividends reinvested along with any capital raises or spin-offs. For Weir Group, the TSR over the past five years stands at 53%, which exceeds the share price return over the same period. This indicates that dividends have contributed significantly to the overall return for shareholders.
Recent Performance and Market Comparison
In the past twelve months, Weir Group’s TSR was 13%, falling short of the market average. However, this recent return is still higher than the average annual return of 9% achieved over the past five years, suggesting that while the short-term performance may be below market levels, the long-term returns remain strong.
