Want to see WEGZY full AI Analyst Report?
Top Page
WEG
(OTC:WEGZY)
Select Model
Select Model
Rating:73Outperform
Price Target:
$11.50
▲(19.29% Upside)
Action:Reiterated
Date:07/24/26
The score is led by strong financial performance (fast TTM growth and durable margins with reasonable leverage), partially offset by weaker cash-flow conversion. The earnings call adds moderate support due to confident H2 growth expectations and high ROIC, but near-term headwinds (tariffs, FX, ramp-up costs) remain. Technicals are neutral and valuation is constrained by a high P/E despite a solid dividend yield.
Positive Factors
Revenue Growth and Margins
TTM revenue growth of about 41% alongside healthy gross, EBIT and net margins indicates broad scale and strong earnings quality. Even with some compression, this profitability provides resources to fund expansion and defend the business through the next several quarters.
Negative Factors
Weak Cash Conversion
Positive cash generation is not converting to earnings at the stronger levels seen in earlier years, with free cash flow at about 59% of net income. Continued working-capital or investment pressure could reduce internally funded growth and weaken capital-allocation flexibility.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth and Margins
TTM revenue growth of about 41% alongside healthy gross, EBIT and net margins indicates broad scale and strong earnings quality. Even with some compression, this profitability provides resources to fund expansion and defend the business through the next several quarters.
Read all positive factors
WEG (WEGZY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$42.35B
Dividend Yield3.92%
Average Volume (3M)197.37K
Price to Earnings (P/E)34.7
Beta (1Y)0.57
Revenue Growth6.11%
EPS Growth5.58%
CountryUS
Employees49,258
SectorIndustrials
Sector Strength72
IndustryElectrical Equipment & Parts
Share Statistics
EPS (TTM)1.49
Shares Outstanding4,197,318,000
10 Day Avg. Volume353,934
30 Day Avg. Volume197,370
Financial Highlights & Ratios
PEG Ratio12.04
Price to Book (P/B)11.93
Price to Sales (P/S)5.19
P/FCF Ratio54.51
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 ope...
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 indust...
WEG Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 21, 2026
Earnings Call Sentiment Neutral
The call presented a balanced picture: operational and strategic strengths (healthy margins, rising ROIC, strong international/local-currency growth, active CapEx program and footprint diversification) are offset by near-term headwinds (small revenue decline, EBITDA reduction in absolute terms, tariff uncertainty, FX effects, rising input and ramp-up costs). Management expressed confidence in returning to revenue growth in the remainder of the year and emphasized mitigation actions and long-term capacity build-out.Positive Updates
Stable Profitability Despite Revenue Pressure
EBITDA margin remained healthy at 21.8% in Q2. EBITDA was BRL 2.2 billion (only down 2.1% YoY) while management highlighted margin resilience supported by favorable product mix and cost pass-throughs.
Negative Updates
Slight Decline in Net Operating Revenue
Net operating revenue decreased 0.6% versus Q2 2025, driven mainly by the absence of centralized solar generation deliveries in Brazil and FX conversion effects reducing BRL-reported growth.
Read all updates
Q2-2026 Updates
Positive
Negative
Stable Profitability Despite Revenue Pressure
EBITDA margin remained healthy at 21.8% in Q2. EBITDA was BRL 2.2 billion (only down 2.1% YoY) while management highlighted margin resilience supported by favorable product mix and cost pass-throughs.
Read all positive updates
Company Guidance
WEG reiterated a constructive outlook: demand is “positive abroad” and the company expects revenue growth to resume in H2‑2026 as the 2025 comparison base normalizes, while continuing to execute its BRL 3.6 billion 2026 investment program (BRL 795 million invested in Q2; ~BRL 1.4 billion spent H1), with Q2 investments split ~45% Brazil / 55% abroad and a new Itajaí BESS line adding ~2 GW; capacity expansions have added roughly 10–15% mid‑year (bringing the announced increase to ~25%) with the remaining ~75% to be operational early 2027 and full optimization targeted for 2027–2028. Key Q2 metrics referenced alongside the guidance were: net operating revenue -0.6% YoY, EBITDA BRL 2.2 billion (-2.1% YoY) with a 21.8% EBITDA margin, ROIC 33.6% (+0.7 pp), product mix ~61% short‑cycle / 39% long‑cycle, and the manufacturing footprint to mitigate U.S. tariffs (41% produced in Mexico, 33% produced/sold in the U.S., 20% Brazil, 4% other); management noted the new Section 301 tariff at 25% (potential cumulative outcome up to ~37%) and said it will continue mitigation actions while monitoring pricing, commodity pass‑through and ramp‑up effects.WEG Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
82
Very Positive
Cash Flow
68
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 40.29B | 40.00B | 37.99B | 32.50B | 29.90B | 23.56B |
| Gross Profit | 12.88B | 12.50B | 12.81B | 10.80B | 8.70B | 6.96B |
| EBITDA | 9.74B | 8.70B | 8.89B | 7.37B | 5.76B | 4.90B |
| Net Income | 6.28B | 6.25B | 6.04B | 5.73B | 4.21B | 3.59B |
Balance Sheet | ||||||
| Total Assets | 46.59B | 42.62B | 41.49B | 31.50B | 28.13B | 23.93B |
| Cash, Cash Equivalents and Short-Term Investments | 8.79B | 7.28B | 8.00B | 7.08B | 4.98B | 3.22B |
| Total Debt | 5.83B | 5.44B | 4.42B | 3.39B | 4.01B | 2.11B |
| Total Liabilities | 26.43B | 24.08B | 18.36B | 13.64B | 12.89B | 9.92B |
| Stockholders Equity | 18.83B | 17.41B | 22.20B | 17.34B | 14.83B | 13.60B |
Cash Flow | ||||||
| Free Cash Flow | 4.15B | 3.81B | 5.40B | 5.36B | 1.81B | 92.04M |
| Operating Cash Flow | 7.00B | 6.32B | 7.25B | 7.02B | 2.98B | 939.38M |
| Investing Cash Flow | -3.04B | -2.85B | -4.09B | -1.71B | -1.35B | -683.87M |
| Financing Cash Flow | -1.01B | -4.28B | -2.76B | -2.96B | 191.91M | -1.44B |
WEG Technical Analysis
Positive
9.64
Price Trends
9.21
Positive
9.03
Positive
9.08
Positive
Market Momentum
0.23
Negative
69.34
Neutral
95.24
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 9.64 is above the 20-day moving average (MA) of 9.53, above the 50-day MA of 9.21, and above the 200-day MA of 9.08, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 69.34 is Neutral, neither overbought nor oversold. The STOCH value of 95.24 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WEGZY.
WEG Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $54.50B | 34.60 | 14.55% | 0.55% | 12.66% | 10.33% | |
78 Outperform | $24.34B | 27.18 | 23.65% | 1.23% | 10.61% | 9.52% | |
77 Outperform | $25.25B | 42.28 | 15.76% | 0.53% | 46.19% | 3.13% | |
76 Outperform | $159.57B | 41.67 | 19.56% | 1.06% | 15.53% | -1.21% | |
74 Outperform | $6.60B | 34.51 | 27.51% | 0.20% | 7.04% | 8.18% | |
73 Outperform | $42.35B | 34.72 | 32.73% | 3.92% | 6.11% | 5.58% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
WEGZY
WEG
10.12
3.43
51.26%
AME
Ametek
237.72
50.23
26.79%
ETN
Eaton
410.85
65.20
18.86%
HUBB
Hubbell B
460.72
29.36
6.81%
POWL
Powell Industries
181.17
90.56
99.95%
NVT
nVent Electric
156.03
64.07
69.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.