WEG (WEGZY) AI Stock Analysis

• Market Cap: $27.53B
• Dividend Yield: 0.06%
• Average Volume (3M): 15.39K
• Price to Earnings (P/E): 25.7
• Beta (1Y): 0.84
• Revenue Growth: 5.50%
• EPS Growth: -3.89%
• Country: US
• Employees: 47,529
• Sector: Industrials
• Sector Strength: 93
• Industry: Industrial - Machinery
• EPS (TTM): 0.07
• Shares Outstanding: 4,197,318,000
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 15,388
• PEG Ratio: 7.61
• Price to Book (P/B): 7.77
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.41
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 74 Outperform
• Price Target: $8.50 ▲(29.57%Upside)

WEG's strong financial performance, highlighted by robust profitability and efficient operations, is a major strength. Positive earnings call sentiment further supports the stock, despite technical analysis indicating bearish momentum. Valuation metrics suggest the stock is fairly valued with limited income potential.

WEG Business Overview & Revenue Model

Company Description

WEG S.A. engages in the production and sale of capital goods in Brazil and internationally. The company offers electric motors, generators, and transformers; gear units and geared motors; hydraulic and steam turbines; frequency converters; motor starters and maneuver devices; control and protection of electric circuits for industrial automation; power sockets and switches; and electric traction solutions for heavy vehicles, SUV vehicles, locomotives, and sea transportation capital goods. It also provides solutions for the generation of renewable and distributed energy through hydro, thermal biomass, wind, and solar energy power plants; solutions for various industry; UPSs and alternators for groups of generators; conventional and movable electric substations; industrial electro electronic equipment systems; industrial paint and varnish; and paints for automotive repainting. WEG S.A. was founded in 1961 and is headquartered in Jaragua do Sul, Brazil.

How the Company Makes Money

WEG generates revenue primarily through the sale of its industrial electrical equipment and solutions. Key revenue streams include the production and sale of electric motors and generators, which are used in various industries including oil and gas, mining, and renewable energy. The company also earns income from its automation solutions and services, providing integrated systems that enhance operational efficiency for industrial clients. Significant factors contributing to WEG's earnings include its strong global distribution network, strategic partnerships with industrial giants, and continuous investment in research and development to innovate and expand its product offerings. Additionally, WEG benefits from economies of scale and a diversified product portfolio, which help mitigate risks associated with market fluctuations in specific sectors.

WEG Financial Statement Overview

Summary

WEG's financial performance is commendable, with robust profitability and efficient operations. The income statement shows consistent growth and high margins, the balance sheet reflects low-risk leverage and a strong equity position, and cash flows are well-managed despite minor fluctuations.

Income Statement

WEG's TTM (Trailing-Twelve-Months) income statement reveals robust financial health with a Gross Profit Margin of 33.1% and a Net Profit Margin of 15.6%. The company has demonstrated consistent revenue growth, with a notable 5.4% increase from the previous year. EBIT and EBITDA margins stand at impressive levels of 19.8% and 25.3% respectively, indicating strong operational efficiency. Overall, the income statement reflects both growth and profitability, positioning WEG well within its industry.

Balance Sheet

WEG's balance sheet showcases a solid financial foundation with a Debt-to-Equity Ratio of 0.19, indicating low leverage and financial risk. The Return on Equity (ROE) is strong at 29.4%, reflecting efficient utilization of shareholder funds to generate profit. An Equity Ratio of 54.1% further underscores the company's stable financial position. The balance sheet's strengths are complemented by a healthy asset base and equity standing, with minimal weaknesses observed.

Cash Flow

The cash flow statement highlights WEG's effective cash management with a Free Cash Flow to Net Income Ratio of 0.65, suggesting strong cash generation relative to net earnings. The Operating Cash Flow to Net Income Ratio is 0.99, indicating that operating activities effectively support net income. While the Free Cash Flow Growth Rate shows a slight decline, the overall cash flow position remains robust, supported by prudent capital expenditures, ensuring liquidity and investment capability.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	37.99B	32.50B	29.90B	23.56B	17.47B
Gross Profit	12.81B	10.80B	8.70B	6.96B	5.44B
EBITDA	8.89B	7.37B	5.76B	4.90B	3.27B
Net Income	6.04B	5.73B	4.21B	3.59B	2.34B
Balance Sheet
Total Assets	41.49B	31.50B	28.13B	23.93B	19.93B
Cash, Cash Equivalents and Short-Term Investments	8.00B	7.08B	4.98B	3.22B	4.48B
Total Debt	4.42B	3.39B	4.01B	2.11B	1.97B
Total Liabilities	18.36B	13.64B	12.89B	9.92B	8.00B
Stockholders Equity	22.20B	17.34B	14.83B	13.60B	11.56B
Cash Flow
Free Cash Flow	5.40B	5.36B	1.81B	92.04M	3.37B
Operating Cash Flow	7.25B	7.02B	2.98B	939.38M	3.93B
Investing Cash Flow	-4.09B	-1.71B	-1.35B	-683.87M	207.38M
Financing Cash Flow	-2.76B	-2.96B	191.91M	-1.44B	-2.36B

WEG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.56
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEGZY, the sentiment is Negative. The current price of 6.56 is below the 20-day moving average (MA) of 7.39, below the 50-day MA of 7.55, and below the 200-day MA of 8.48, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 27.38 is Positive, neither overbought nor oversold. The STOCH value of -0.14 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEGZY.

WEG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AME	75 Outperform	$41.49B	29.43	14.96%	0.66%	2.98%	7.29%
DOV	75 Outperform	$25.59B	11.50	16.72%	1.10%	-8.23%	54.92%
WEGZY	74 Outperform	$27.53B	25.75	29.69%	0.06%	5.50%	-3.89%
CMI	70 Outperform	$50.32B	18.01	27.78%	1.99%	-0.39%	47.31%
ROK	69 Neutral	$40.24B	45.07	25.86%	1.45%	-11.19%	-22.50%
Sector *	65 Neutral	$11.05B	15.76	5.13%	1.92%	3.11%	-24.90%
OTIS	62 Neutral	$35.21B	23.58	-33.93%	1.77%	-0.09%	5.47%