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WEG (WEGZY)
OTHER OTC:WEGZY
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WEG
(OTC:WEGZY)
72Outperform
WEG (WEGZY) vs. S&P 500 (SPY)
Market Cap
$33.41B
Dividend Yield0.74%
Average Volume (3M)24.15K
Price to Earnings (P/E)29.8
Beta (1Y)0.90
Revenue Growth7.96%
EPS Growth-2.52%
CountryUS
Employees47,529
SectorIndustrials
Sector Strength66
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)0.27
Shares Outstanding4,197,318,000
10 Day Avg. Volume0
30 Day Avg. Volume24,152
Financial Highlights & Ratios
PEG Ratio2.12
Price to Book (P/B)N/A
Price to Sales (P/S)5.76
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
WEG Business Overview & Revenue Model
Company DescriptionWEG S.A. (WEGZY) is a globally recognized leader in the manufacturing of electric-electronic equipment, primarily operating in the industrial sector. The company specializes in the production of electric motors, generators, transformers, and drives, offering a comprehensive range of solutions for automation and control, energy, and transportation. WEG serves various industries including oil and gas, renewable energy, pulp and paper, and infrastructure, providing high-efficiency products that enhance operational performance and sustainability.
How the Company Makes MoneyWEG S.A. generates revenue through the sale of its diverse range of electric-electronic equipment to industrial clients worldwide. The company's primary revenue streams include the manufacturing and distribution of electric motors, generators, and transformers. WEG also earns income from providing integrated solutions for automation and control systems, which are essential for improving efficiency and reducing costs in industrial operations. The company's strategic presence in key markets, combined with its focus on innovation and sustainable technologies, enhances its competitive advantage and drives sales growth. Additionally, WEG benefits from significant partnerships and collaborations that extend its market reach and enable the development of cutting-edge products tailored to customer needs.
WEG Financial Statement Overview
Summary
WEG exhibits strong financial health with impressive revenue growth, solid profitability, low leverage, and robust cash generation. The company is well-positioned for future growth and stability, supported by a consistent increase in stockholders' equity and efficient cash flow conversion.Income Statement
WEG has demonstrated strong revenue growth with a consistent upward trajectory over the years, reflected by a substantial revenue growth rate of 16.9% over the past year. The company maintains solid profitability with a gross profit margin of 33.7% and a net profit margin of 15.9%. Although EBIT margin data was missing for the latest year, historical performance indicates efficient operations. The EBITDA margin at 23.4% further underscores robust operational performance.88
Very Positive
Balance Sheet
The balance sheet reflects a strong financial position with a debt-to-equity ratio of 0.20, indicating low leverage. The equity ratio of 53.5% suggests a healthy proportion of assets funded by equity. ROE stands at a commendable 27.2%, showcasing effective utilization of equity to generate profits. The company displays financial stability with a consistent increase in stockholders' equity over time.85
Very Positive
Cash Flow
WEG's cash flow performance is solid, with a positive free cash flow growth rate of 0.7% and a robust operating cash flow to net income ratio of 1.2. The free cash flow to net income ratio of 0.89 indicates efficient conversion of profits into cash. The company maintains strong cash generation capabilities, supporting its operational and investment activities.82
Very Positive
| 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 | EBIT |
| 0.00 | 6.49B | 4.94B | 4.33B | 2.71B | EBITDA |
| 8.89B | 7.37B | 5.76B | 4.90B | 3.27B | Net Income Common Stockholders |
| 6.04B | 5.73B | 4.21B | 3.59B | 2.34B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 8.00B | 7.08B | 4.98B | 3.22B | 4.48B | Total Assets |
| 41.49B | 31.50B | 28.13B | 23.93B | 19.93B | Total Debt |
| 4.42B | 3.39B | 4.01B | 2.11B | 1.97B | Net Debt |
| -2.93B | -3.10B | -441.68M | -602.80M | -1.92B | 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
Negative
7.96
Price Trends
8.77
Negative
8.93
Negative
8.94
Negative
Market Momentum
-0.16
Negative
35.14
Neutral
0.90
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 7.96 is below the 20-day moving average (MA) of 8.21, below the 50-day MA of 8.77, and below the 200-day MA of 8.94, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 35.14 is Neutral, neither overbought nor oversold. The STOCH value of 0.90 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WEGZY.
WEG Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $136.46B | 24.16 | 33.10% | 2.10% | 5.05% | 2.73% | |
74 Outperform | $107.41B | 28.86 | 20.23% | 1.37% | 7.25% | 18.36% | |
72 Outperform | $33.41B | 29.79 | 31.26% | 0.74% | 7.96% | -2.52% | |
72 Outperform | $61.26B | 25.84 | 9.66% | 1.94% | 10.29% | 22.72% | |
71 Outperform | $214.53B | 33.45 | 27.62% | 0.56% | -32.60% | -28.55% | |
69 Neutral | $29.24B | 32.18 | 26.22% | 1.98% | -11.28% | -23.69% | |
62 Neutral | $8.06B | 13.61 | 3.91% | 3.11% | 3.80% | -14.06% |
* Industrials Sector Average
Performance Comparison
WEGZY
WEG
7.96
0.55
7.42%
ETN
Eaton
274.17
-33.89
-11.00%
EMR
Emerson Electric Company
108.64
-2.88
-2.58%
GE
GE Aerospace
199.88
61.20
44.13%
HON
Honeywell International
210.34
12.53
6.33%
ROK
Rockwell Automation
258.63
-19.54
-7.02%
WEG Earnings Call Summary
Earnings Call Date: Feb 26, 2025 | % Change Since: -11.95% | Next Earnings Date: Apr 30, 2025
Earnings Call Sentiment Positive
The earnings call reflected strong revenue growth and strategic expansion, particularly in international markets and through acquisitions, contributing to a positive outlook. However, challenges such as margin pressure from product mix and slower sales in key segments indicate areas of concern.Highlights
Strong Revenue Growth
Net operating revenue grew by 26.4% compared to 4Q '23, driven by strong performance in Brazil's transmission and distribution projects and centralized solar generation projects.
Record EBITDA Increase
EBITDA reached R$ 2.4 billion, marking a 30.5% increase compared to 4Q '23, with an EBITDA margin of 22.1%, up by 0.7 percentage points from the previous year.
International Market Expansion
Positive demand in international markets, particularly in North America and Europe, with growth in power generation, transmission, and distribution businesses.
Strategic Acquisitions
Acquisitions of REIVAX and Volt Electric Motors to expand WEG's industrial footprint in power generation control systems and electric motors.
Investment in Capacity Expansion
Announced investment of $62 million to expand production capacity in China, and construction of a new gearbox factory in Turkey with an investment of €28 million.
Lowlights
Margin Pressure from Product Mix
The quarter experienced margin pressure due to a change in product mix, particularly from the increased relevance of the solar generation business, which has lower margins.
Challenges in Commercial Motors and Appliances
Slowdown in sales in key markets like North America and Argentina impacted revenue growth despite positive contributions from operations in China.
Decreased Return on Invested Capital
Return on invested capital reduced by 5 percentage points compared to 4Q '23, due to nonrecurring effects and increased invested capital.
Company Guidance
During WEG's Fourth Quarter 2024 Earnings Conference Call, the company reported a 26.4% increase in net operating revenue compared to the same quarter in 2023. EBITDA rose by 30.5% to R$ 2.4 billion, with an EBITDA margin of 22.1%, up by 0.7 percentage points from the previous year. Return on invested capital remained high at 34.2%, although it saw a reduction of 5 percentage points due to nonrecurring effects and increased invested capital. The company's performance was bolstered by strong demand across various sectors, particularly in long-cycle equipment such as transmission and distribution projects. Additionally, recent acquisitions contributed to the revenue growth. Despite challenges and uncertainties in the global macroeconomic environment, WEG maintained a positive outlook for future growth and operational efficiency.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.