WEG AI Stock Analysis
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WEG (WEGZY) AI Stock Analysis
WEG
(Other OTC:WEGZY)
The company's excellent financial health and positive growth outlook from the earnings call are the primary strengths supporting the score. However, these are significantly offset by a bearish technical picture, with the stock in a clear downtrend and oversold, and a high P/E ratio that suggests limited valuation support. The decline in free cash flow is a key risk to monitor.
WEG (WEGZY) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $38.43B
- Dividend Yield
- 4.29%
- Average Volume (3M)
- 927.37K
- Price to Earnings (P/E)
- 34.2
- Beta (1Y)
- 0.66
- Revenue Growth
- 7.69%
- EPS Growth
- 5.79%
- Country
- US
- Employees
- 49,258
- Sector
- Industrials
- Sector Strength
- 63
- Industry
- Electrical Equipment & Parts
WEG Business Overview & Revenue Model
Company Description
WEG SA engages in the production and trade of capital goods such as electric motors, generators and transformers, gear units, and geared motors. It operates through the Brazil and Foreign segments. The Brazil segment covers industry and energy operat...
How the Company Makes Money
WEG makes money primarily by selling manufactured industrial electrical equipment and related solutions to customers in industry, energy, and infrastructure markets. Key revenue streams include: (1) Electric motors: revenue from the sale of industria...
WEG Earnings Call Summary
The call was broadly constructive, with revenue returning to growth, strong international performance, a record 62.5% international revenue mix, healthy EBITDA and ROIC, robust order intake, and substantial capacity investments tied to T&D, generators, data centers, and energy storage. However, the company faces meaningful headwinds from Brazilian industrial weakness, postponed investments, raw-material inflation, tariffs, freight costs, elevated personnel expenses, exchange-rate effects, and below-average Marathon margins. Management remained confident in continued growth, so the positive operational and strategic developments outweighed the stated challenges.
Q3-2026 Updates
Positive Updates
Negative Updates
Company Guidance
Management remains confident in a favorable environment for continued revenue growth, supported by the strong performance of traditional businesses and opportunities in new business areas, while maintaining a robust investment plan to modernize and expand production capacity, including the startup of major new facilities; the expanded battery energy storage systems plant in Itajaà will have total estimated investments of BRL 330 million and an annual production capacity of four gigawatt-hours, should be ready in the second half of the coming year, and the auction has been set for the beginning of December, while the approximately BRL 840 million investment will expand generation production capacity in North America, Mexico and Colombia greenfields will come into operation in the first quarter of 2027, and the company expects a significant contribution from energy storage in 2027 if the auction occurs.
WEG Financial Statement Overview
Summary
Financial performance is strong, driven by exceptional revenue growth and a fortress-like balance sheet with low debt and high returns on equity. However, the score is tempered by a significant decline in free cash flow due to heavy capital expenditures, which introduces a degree of risk regarding the returns on these investments.
Income Statement
82Very PositiveBalance Sheet
85Very PositiveCash Flow
65Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.88B | 40.00B | 37.99B | 32.50B | 29.90B | 23.56B |
| Gross Profit | 13.24B | 12.50B | 12.81B | 10.80B | 8.70B | 6.96B |
| EBITDA | 9.08B | 8.72B | 8.89B | 7.37B | 5.76B | 4.90B |
| Net Income | 6.29B | 6.25B | 6.04B | 5.73B | 4.21B | 3.59B |
Balance Sheet | ||||||
| Total Assets | 45.64B | 42.62B | 41.49B | 31.50B | 28.13B | 23.93B |
| Cash, Cash Equivalents and Short-Term Investments | 6.34B | 7.28B | 8.00B | 7.08B | 4.98B | 3.22B |
| Total Debt | 4.55B | 5.44B | 4.42B | 3.39B | 4.01B | 2.11B |
| Total Liabilities | 24.27B | 24.08B | 18.36B | 13.64B | 12.89B | 9.92B |
| Stockholders Equity | 19.96B | 17.41B | 22.20B | 17.34B | 14.83B | 13.60B |
Cash Flow | ||||||
| Free Cash Flow | 3.07B | 3.81B | 5.40B | 5.36B | 1.81B | 92.04M |
| Operating Cash Flow | 6.17B | 6.32B | 7.25B | 7.02B | 2.98B | 939.38M |
| Investing Cash Flow | -2.96B | -2.85B | -4.09B | -1.71B | -1.35B | -683.87M |
| Financing Cash Flow | -4.08B | -4.28B | -2.76B | -2.96B | 191.91M | -1.44B |
WEG Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WEGZY, the sentiment is Neutral. The current price of 9.13 is above the 20-day moving average (MA) of 8.99, below the 50-day MA of 9.60, and below the 200-day MA of 9.30, indicating a neutral trend. The MACD of -0.13 indicates Negative momentum. The RSI at 48.60 is Neutral, neither overbought nor oversold. The STOCH value of 88.26 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for WEGZY.
WEG Peers Comparison
Overall Rating
AME76Outperform
HUBB71Outperform
POWL71Outperform
ETN69Neutral
NVT68Neutral- WEGZY66Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| AME | 76Outperform | $55.27B | 34.00 | 14.66% | 0.55% | 14.34% | 11.86% |
| HUBB | 71Outperform | $23.14B | 25.54 | 23.21% | 1.30% | 15.96% | 5.54% |
| POWL | 71Outperform | $5.17B | 27.18 | 27.51% | 0.25% | 7.04% | 8.18% |
| ETN | 69Neutral | $139.49B | 35.19 | 19.39% | 1.25% | 20.09% | -0.01% |
| NVT | 68Neutral | $18.66B | 27.31 | 17.35% | 0.73% | 47.96% | 13.45% |
| WEGZY | 66Neutral | $38.25B | 34.21 | 33.89% | 4.29% | 7.69% | 5.79% |
| Sector * | 63Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WEGZY | WEG S.A. Sponsored ADR | 9.13 | 1.09 | 13.62% | |
| AME | Ametek Inc | 242.11 | 52.08 | 27.41% | |
| ETN | Eaton Corporation | 352.97 | 14.11 | 4.16% | |
| HUBB | Hubbell Incorporated B | 436.98 | 21.48 | 5.17% | |
| POWL | Powell Industries, Inc. | 142.72 | 37.01 | 35.01% | |
| NVT | Nvent Electric | 114.69 | 11.26 | 10.88% |
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.
Date of analysis: Oct 23, 2026