WEG S.A.
WEG S.A. Fundamental Analysis
WEG S.A. (WEGZY) shows moderate financial fundamentals with a PE ratio of 34.34, profit margin of 15.67%, and ROE of 29.43%. The company generates $41.4B in annual revenue with strong year-over-year growth of 16.87%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 77.0/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze WEGZY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentWEGZY demonstrates superior asset utilization.
Valuation Score
WeakWEGZY trades at a premium to fair value.
Growth Score
ModerateWEGZY shows steady but slowing expansion.
Financial Health Score
ExcellentWEGZY maintains a strong and stable balance sheet.
Profitability Score
ExcellentWEGZY achieves industry-leading margins.
Key Financial Metrics
Is WEGZY Expensive or Cheap?
P/E Ratio
WEGZY trades at 34.34 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, WEGZY's PEG of 10.17 indicates potential overvaluation.
Price to Book
The market values WEG S.A. at 9.93 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 22.48 times EBITDA. This signals the market has high growth expectations.
How Well Does WEGZY Make Money?
Net Profit Margin
For every $100 in sales, WEG S.A. keeps $15.67 as profit after all expenses.
Operating Margin
Core operations generate 19.41 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $29.43 in profit for every $100 of shareholder equity.
ROA
WEG S.A. generates $15.62 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
WEG S.A. produces operating cash flow of $6.82B, showing steady but balanced cash generation.
Free Cash Flow
WEG S.A. generates strong free cash flow of $4.33B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.03 in free cash annually.
FCF Yield
WEGZY converts 1.95% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
34.34
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
10.17
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.93
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.38
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.78
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.29
vs 25 benchmark
ROA
Return on assets percentage
0.16
vs 25 benchmark
ROCE
Return on capital employed
0.30
vs 25 benchmark
How WEGZY Stacks Against Its Sector Peers
| Metric | WEGZY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 34.34 | 26.49 | Worse (Expensive) |
| ROE | 29.43% | 1307.00% | Weak |
| Net Margin | 15.67% | -5131.00% (disorted) | Strong |
| Debt/Equity | 0.21 | 0.81 | Strong (Low Leverage) |
| Current Ratio | 1.78 | 10.48 | Neutral |
| ROA | 15.62% | -1549793.00% (disorted) | Strong |
WEGZY outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews WEG S.A.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
184.56%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
274.20%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
280.08%
Industry Style: Cyclical, Value, Infrastructure
High Growth