WEG S.A. (WEGE3.SA) stock analysis

In our weekly check, WEG S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 22 pass, warnings: 1, red flags: 2.

About WEG S.A.

WEG S.A. is an Industrials company (Electrical Equipment & Parts) based in Brazil, listed on SAO as WEGE3.SA.

What our checks show for WEGE3.SA

Red flags

• The stock has fallen as much as 65% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.9 years.

Warning signs

• Free cash flow covers the dividend only 0.8 times.

Strengths

• Debt is low: 0.23x equity.
• The gross margin is 31.9% and has risen by 2.4 points: pricing power is holding.
• Analysts expect earnings per share to grow about 16.6% a year over the next years.
• Analysts expect revenue to grow about 15.8% a year over the next years.
• Earnings per share grew 14.5% a year over the last 3 years.
• Net profit grew 14.2% a year over the last 3 years.

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Questions

What grade does WEG S.A. (WEGE3.SA) have?

In our weekly check, WEG S.A. is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 22 pass, warnings: 1, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of WEGE3.SA stock?

This week's biggest flags for WEG S.A.: Deep past fall, Slow recovery after falls, Dividend stretched. In total 3 of 25 checks show a warning or a red flag.

What does WEG S.A. do?

WEG S.A. is an Industrials company (Electrical Equipment & Parts) based in Brazil, listed on SAO as WEGE3.SA.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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