WEG (WEGZY) AI Stock Analysis

• Market Cap: $35.39B
• Dividend Yield: 1.67%
• Average Volume (3M): 608.00
• Price to Earnings (P/E): 31.2
• Beta (1Y): 0.70
• Revenue Growth: 5.17%
• EPS Growth: -3.66%
• Country: US
• Employees: 47,529
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.07
• Shares Outstanding: 4,197,318,000
• 10 Day Avg. Volume: 1,826
• 30 Day Avg. Volume: 608
• PEG Ratio: 7.83
• Price to Book (P/B): 10.89
• Price to Sales (P/S): 6.37
• P/FCF Ratio: 44.77
• Enterprise Value/Market Cap: 0.80
• Enterprise Value/Revenue: 0.69
• Enterprise Value/Gross Profit: 2.09
• Enterprise Value/Ebitda: 2.85
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: $8.50 ▲(2.41% Upside)

WEGZY's overall score is driven by strong financial performance and positive technical indicators. While the stock is trading at a premium valuation, strategic investments and a balanced earnings call sentiment support future growth prospects. Challenges in specific segments and tariff impacts are notable risks.

Positive Factors

Strong Financial Health

WEG's solid financial foundation, characterized by low debt and high return on equity, supports sustainable growth and resilience against economic fluctuations.

Strategic Investments

Strategic investments in new facilities and acquisitions enhance WEG's production capacity and market reach, positioning it for long-term growth in key sectors.

Revenue Growth

Consistent revenue growth driven by strong industrial activity and international performance indicates robust demand for WEG's products and services.

Negative Factors

Decline in Renewable Revenues

Decreasing revenues from wind and solar sectors could impact WEG's growth, as these are critical areas for future energy solutions and sustainability.

Impact of Tariffs

Tariff-induced cost pressures in the U.S. market may affect WEG's margins and competitiveness, challenging its profitability in a key region.

Geopolitical Uncertainties

Ongoing geopolitical and macroeconomic uncertainties could hinder WEG's strategic planning and investment decisions, affecting long-term growth prospects.

WEG Business Overview & Revenue Model

Company Description

WEG (WEGZY) is a global leader in the manufacturing of electric motors, automation solutions, transformers, and renewable energy solutions. Founded in Brazil, the company operates in various sectors, including industrial automation, energy generation, and transportation. WEG offers a diverse range of products that cater to multiple industries, including mining, oil and gas, water treatment, and electric vehicles, making it a pivotal player in the transition to sustainable energy solutions.

How the Company Makes Money

WEG generates revenue through the sale of its core products, which include electric motors, variable speed drives, transformers, and automation equipment. The company also earns income from providing maintenance services and technical support for its products. Key revenue streams come from both domestic and international markets, with significant exports contributing to overall sales. WEG has established partnerships with various industries and governments, enhancing its market presence and allowing it to tap into emerging sectors, particularly in renewable energy, which further bolsters its earnings.

WEG Financial Statement Overview

Summary

WEG demonstrates strong financial health with consistent revenue and profit growth, efficient operational management, and a solid balance sheet. The company effectively manages its leverage and generates healthy cash flows, positioning it well for future growth. However, there is potential to enhance cash flow efficiency further.

Income Statement

WEG has demonstrated strong revenue growth with a TTM revenue increase of 1.2% and a consistent upward trajectory over the past years. The company maintains healthy profitability margins, with a TTM gross profit margin of 32.8% and a net profit margin of 15.7%. The EBIT and EBITDA margins are also robust at 21.8% and 24.2% respectively, indicating efficient operational management.

Balance Sheet

The balance sheet reflects a solid financial position with a low debt-to-equity ratio of 0.21, suggesting prudent leverage management. The return on equity is impressive at 29.4%, indicating strong shareholder returns. However, the equity ratio is not explicitly provided, which limits a complete assessment of asset financing.

Cash Flow

WEG's cash flow performance is commendable, with a TTM free cash flow growth of 13.1% and a free cash flow to net income ratio of 63.5%, highlighting effective cash generation relative to earnings. The operating cash flow to net income ratio is moderate at 45.3%, suggesting room for improvement in cash flow efficiency.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	41.38B	37.99B	32.50B	29.90B	23.56B	17.47B
Gross Profit	13.58B	12.81B	10.80B	8.70B	6.96B	5.44B
EBITDA	9.98B	8.89B	7.37B	5.76B	4.90B	3.27B
Net Income	6.48B	6.04B	5.73B	4.21B	3.59B	2.34B
Balance Sheet
Total Assets	41.49B	41.49B	31.50B	28.13B	23.93B	19.93B
Cash, Cash Equivalents and Short-Term Investments	7.34B	8.00B	7.08B	4.98B	3.22B	4.48B
Total Debt	4.62B	4.42B	3.39B	4.01B	2.11B	1.97B
Total Liabilities	18.08B	18.36B	13.64B	12.89B	9.92B	8.00B
Stockholders Equity	22.41B	22.20B	17.34B	14.83B	13.60B	11.56B
Cash Flow
Free Cash Flow	4.33B	5.40B	5.36B	1.81B	92.04M	3.37B
Operating Cash Flow	6.82B	7.25B	7.02B	2.98B	939.38M	3.93B
Investing Cash Flow	-3.07B	-4.09B	-1.71B	-1.35B	-683.87M	207.38M
Financing Cash Flow	-2.65B	-2.76B	-2.96B	191.91M	-1.44B	-2.36B

WEG Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 8.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEGZY, the sentiment is Positive. The current price of 8.3 is above the 20-day moving average (MA) of 8.25, above the 50-day MA of 7.58, and above the 200-day MA of 7.56, indicating a bullish trend. The MACD of 0.17 indicates Positive momentum. The RSI at 63.29 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEGZY.

WEG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WEGZY	76 Outperform	$35.39B	31.16	29.08%	1.67%	5.17%	-3.66%
DOV	76 Outperform	$25.36B	11.37	15.88%	1.10%	-5.24%	45.69%
PNR	75 Outperform	$17.19B	26.65	17.97%	0.95%	0.83%	-1.32%
ROK	71 Outperform	$44.44B	51.64	24.24%	1.36%	0.98%	-7.51%
OTIS	67 Neutral	$34.35B	25.97	―	1.87%	0.73%	-15.57%
IR	66 Neutral	$31.03B	58.26	5.35%	0.10%	4.20%	-34.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

WEG Corporate Events

WEG S.A. Earnings Call: Growth Amid Challenges

During the recent earnings call, WEG S.A. Sponsored ADR presented a balanced sentiment, reflecting both growth and challenges. The company reported an increase in revenue and maintained strong EBITDA margins, yet faced hurdles such as declining revenues in wind and solar sectors and the impact of U.S. tariffs. Despite these challenges, strategic investments and acquisitions are set to support future growth, painting a cautiously optimistic picture for stakeholders.

WEG S.A. Reports Steady Revenue Growth in Q3 2025

WEG S.A. Sponsored ADR is a Brazilian company operating in the industrial electro-electronic equipment sector, known for its diverse product range and global presence. In its latest earnings report for the third quarter of 2025, WEG S.A. reported a net operating revenue of R$ 10,271.5 million, marking a 4.2% increase from the same quarter last year. The company’s EBITDA reached R$ 2,275.5 million, with a margin of 22.2%, while net income rose by 4.5% to R$ 1,650.5 million.