# Weg (WEGE3.SA)

Canonical: https://gigainvestors.com/s/WEGE3.SA

Analysis as of: 2026-10-16T07:34:03.419Z. Financial observations: FY1996–FY2025.

Listing currency: BRL. Reporting currency: BRL.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: BRL 49.09 per share; close as of 2026-10-15.

Estimated value: low BRL 12.85 per share, central BRL 16.44 per share, high BRL 17.65 per share. Buy at or below the central value BRL 16.44 per share. Valuation as of 2026-10-16T07:34:03.419Z; scenarios are not confidence intervals.

Expected annual return: 7.6% at the stated quote. About 7.6% a year at today's price (required return 17.0%). required return 17.0% a year (BR 10-year bond 13.0% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.20×

Chart: Operating margin; fiscal year observations.

- FY2016: 0.11×

- FY2017: 0.12×

- FY2018: 0.13×

- FY2019: 0.12×

- FY2020: 0.16×

- FY2021: 0.16×

- FY2022: 0.17×

- FY2023: 0.20×

- FY2024: 0.20×

- FY2025: 0.19×

### moat: pass

- ROIC, median of available years: 30.3%

- ROIC, second-lowest year: 19.6%

- Typical minus recent gross margin: -1.7 pp

- Typical gross margin (annual median): 29.6%

- Recent gross margin (lower of latest and 3-year median): 31.3%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.9%

- ROIC including acquisitions, ten-year median: 25.7%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2016: 19.6%

- FY2017: 20.1%

- FY2018: 19.4%

- FY2019: 22.5%

- FY2020: 31.9%

- FY2021: 28.6%

- FY2022: 33.4%

- FY2023: 46.5%

- FY2024: 36.4%

- FY2025: 46.2%

### economics: pass

- Owner earnings / net income, 5-yr: 0.92×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: BRL 24B

- Net income, five-year total: BRL 26B

- Return on incremental invested capital: 32.9%

- Working capital / revenue, annual change: -0.0 pp

- Working capital / revenue, change between three-year averages: -0.8 pp

- Working capital / revenue, final three-year average: 37.4%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 0.98×

- FY2022: 0.97×

- FY2023: 0.91×

- FY2024: 0.97×

- FY2025: 0.82×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 19.6% vs 46.2%

- Per-share earnings: 0.27 to 1.44 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: -0.0%

- Ordinary dilution, 5-year annual growth: -0.0%

- Market cap gain: BRL 179B

- Cumulative retained earnings: BRL 750M

- Diluted shares, 10-year annual growth: -0.0%

- Diluted shares, 5-year annual growth: -0.0%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 23.1%

- Per-share value change: BRL 1.17

- Per-share value, starting three-year median: BRL 0.27

- Per-share value, ending three-year median: BRL 1.44

- Buybacks concentrated in cheaper years (correlation): 1.00

- Average buyback yield: 0.0%

- Buyback history: 4 years

- Debt-funded buybacks: No

- Acquisition spending: BRL 2.2B

- Cumulative net income, 10 years: BRL 33B

- ROIC, first three-year median: 19.6%

- ROIC, last three-year median: 46.2%

Chart: Earnings per share; fiscal year observations.

- FY2016: BRL 0.27

- FY2017: BRL 0.27

- FY2018: BRL 0.32

- FY2019: BRL 0.38

- FY2020: BRL 0.56

- FY2021: BRL 0.85

- FY2022: BRL 1.00

- FY2023: BRL 1.37

- FY2024: BRL 1.44

- FY2025: BRL 1.52

### accounting: pass

- Sloan accruals: -0.2%

- Receivables to sales index (DSRI): 1.00×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 0.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 1.01×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.16×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -7.5%

- FY2017: -1.1%

- FY2018: 0.3%

- FY2019: -1.9%

- FY2020: -8.0%

- FY2021: 11.1%

- FY2022: 4.4%

- FY2023: -4.1%

- FY2024: -2.9%

- FY2025: -0.2%

## Holders

## Price story

Price needs cash profits to grow 24.2% a year for ten years · sales +7.4%

Story as of 2026-10-16T09:59:58.910Z; price observation 2026-10-15.

Price needs cash profits to grow 24.2% a year for ten years

### Sales · FY2024–2025

sales +7.4%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: BRL 9.4B 

- FY2017: BRL 9.5B 

- FY2018: BRL 12B 

- FY2019: BRL 13B 

- FY2020: BRL 17B 

- FY2021: BRL 24B 

- FY2022: BRL 30B 

- FY2023: BRL 33B 

- FY2024: BRL 38B 

- FY2025: BRL 41B 

### Gross margin · FY2025

gross margin 31.3%; source https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/; observed 2026-10-16.

- FY2016: 28.1% 

- FY2017: 29.0% 

- FY2018: 29.0% 

- FY2019: 29.6% 

- FY2020: 31.1% 

- FY2021: 29.5% 

- FY2022: 29.1% 

- FY2023: 33.2% 

- FY2024: 33.7% 

- FY2025: 31.3% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in electrical equipment & parts; annual sales are BRL 40.8 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2025: revenue 40804110000; grossProfit 12754228000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WEGE3.SA: WEG S.A. produces and sells capital goods in Brazil and internationally. The company offers electric motors, generators, and transformers; reducers and gearmotors; hydraulic and steam turbines; frequency converters, starters engines and switching devices; control and protection of electrical circuits for industrial automation; sockets and switches; and solutions for electric traction of heavy vehicles, utility and locomotives, and electric propulsion of naval transport. It also provides solutions for generating renewable and distributed energy, in small hydroelectric plants, biomass, wind and solar; solutions for industry; UPSs and alternators for generator sets; substations electrical, conventional and mobile; industrial electronic systems; industrial paints, varnishes, and paints for automotive repainting. WEG S.A. was founded in 1961 and is headquartered in Jaraguá do Sul, Brazil.

### Why customers stay

Margins ranged from 31.3% to 33.7% during 2023–25; it earns 30.3% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2023: grossProfit / revenue = 33.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2024: grossProfit / revenue = 33.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2025: grossProfit / revenue = 31.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); 10-year return on capital observations [[2016,0.19562145127736394],[2017,0.20146912437459472],[2018,0.19386073225523337],[2019,0.224869964479881],[2020,0.31946850770267754],[2021,0.28603547447746575],[2022,0.33367793151290875],[2023,0.46506511721894367],[2024,0.3641789678059645],[2025,0.4615920104372859]]; median 0.30275199109007167. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Spends 13.1% of cash earnings on expansion; earns 32.9% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2016: growth capex 0; upkeep 362625000; owner earnings 1098256000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2017: growth capex 0; upkeep 265777000; owner earnings 1160247000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2018: growth capex 112380000; upkeep 317023000; owner earnings 1338319000. Growth capex / owner earnings = 0.08397101139563885.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2019: growth capex 127699000; upkeep 396783000; owner earnings 1574014000. Growth capex / owner earnings = 0.08112951981367383.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2020: growth capex 107187000; upkeep 451359000; owner earnings 2283367800. Growth capex / owner earnings = 0.04694250308688771.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2021: growth capex 327166000; upkeep 520178000; owner earnings 3521444400. Growth capex / owner earnings = 0.09290676291807987.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2022: growth capex 608853000; upkeep 565557000; owner earnings 4098158000. Growth capex / owner earnings = 0.14856747836467019.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2023: growth capex 647429269.892643; upkeep 1011195730.107357; owner earnings 5237136469.892643. Growth capex / owner earnings = 0.12362276095240167.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2024: growth capex 1037837000; upkeep 812485000; owner earnings 5877969400. Growth capex / owner earnings = 0.17656386574588157.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); FY2025: growth capex 682747738.2571678; upkeep 2008573261.7428322; owner earnings 5199511138.257168. Growth capex / owner earnings = 0.1313099866704044.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); Incremental return on capital 0.32889449792705755, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); Dividend observations: [[2016,526730000],[2017,548502000],[2018,603957000],[2019,680924000],[2020,881332000],[2021,1657345000],[2022,1887512000],[2023,2308620000],[2024,2934611000],[2025,5384769000]]. Zero only counted when supported by a complete cash-flow statement.

### Are managers owners

Insiders own 65.2% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); WEGE3.SA SharesStats.PercentInsiders = 65.168 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 24.2% yearly over ten years; actual growth was 16.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16T07:34:03.419Z); Ten-year compound average after fade. Initial solved rate 0.4693137022370789. Price 49.09; FX 1; discount 0.1695; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 0.2754576199397992 → FY2025 1.2392487773797645. Closing-price date 2026-10-15.

## Monthly share-price history (BRL per share)

- 2016-11: BRL 5.99 per share

- 2016-12: BRL 5.96 per share

- 2017-01: BRL 6.12 per share

- 2017-02: BRL 6.53 per share

- 2017-03: BRL 6.69 per share

- 2017-04: BRL 6.81 per share

- 2017-05: BRL 7.31 per share

- 2017-06: BRL 6.81 per share

- 2017-07: BRL 7.28 per share

- 2017-08: BRL 7.87 per share

- 2017-09: BRL 8.23 per share

- 2017-10: BRL 8.18 per share

- 2017-11: BRL 8.80 per share

- 2017-12: BRL 9.27 per share

- 2018-01: BRL 9.12 per share

- 2018-02: BRL 9.00 per share

- 2018-03: BRL 8.70 per share

- 2018-04: BRL 8.89 per share

- 2018-05: BRL 8.59 per share

- 2018-06: BRL 8.13 per share

- 2018-07: BRL 9.26 per share

- 2018-08: BRL 9.57 per share

- 2018-09: BRL 9.88 per share

- 2018-10: BRL 9.00 per share

- 2018-11: BRL 8.91 per share

- 2018-12: BRL 8.77 per share

- 2019-01: BRL 9.42 per share

- 2019-02: BRL 9.21 per share

- 2019-03: BRL 9.00 per share

- 2019-04: BRL 9.29 per share

- 2019-05: BRL 9.52 per share

- 2019-06: BRL 10.68 per share

- 2019-07: BRL 11.91 per share

- 2019-08: BRL 11.25 per share

- 2019-09: BRL 12.11 per share

- 2019-10: BRL 12.75 per share

- 2019-11: BRL 15.21 per share

- 2019-12: BRL 17.33 per share

- 2020-01: BRL 19.70 per share

- 2020-02: BRL 21.58 per share

- 2020-03: BRL 16.78 per share

- 2020-04: BRL 19.97 per share

- 2020-05: BRL 20.92 per share

- 2020-06: BRL 25.31 per share

- 2020-07: BRL 33.67 per share

- 2020-08: BRL 32.31 per share

- 2020-09: BRL 32.85 per share

- 2020-10: BRL 37.92 per share

- 2020-11: BRL 36.78 per share

- 2020-12: BRL 37.87 per share

- 2021-01: BRL 41.90 per share

- 2021-02: BRL 39.03 per share

- 2021-03: BRL 37.28 per share

- 2021-04: BRL 35.01 per share

- 2021-05: BRL 34.15 per share

- 2021-06: BRL 33.69 per share

- 2021-07: BRL 35.71 per share

- 2021-08: BRL 35.56 per share

- 2021-09: BRL 39.63 per share

- 2021-10: BRL 37.00 per share

- 2021-11: BRL 32.23 per share

- 2021-12: BRL 33.09 per share

- 2022-01: BRL 32.16 per share

- 2022-02: BRL 29.40 per share

- 2022-03: BRL 34.87 per share

- 2022-04: BRL 30.10 per share

- 2022-05: BRL 25.37 per share

- 2022-06: BRL 26.45 per share

- 2022-07: BRL 28.04 per share

- 2022-08: BRL 28.29 per share

- 2022-09: BRL 32.14 per share

- 2022-10: BRL 40.28 per share

- 2022-11: BRL 39.00 per share

- 2022-12: BRL 38.51 per share

- 2023-01: BRL 38.24 per share

- 2023-02: BRL 39.16 per share

- 2023-03: BRL 40.55 per share

- 2023-04: BRL 41.12 per share

- 2023-05: BRL 37.61 per share

- 2023-06: BRL 37.75 per share

- 2023-07: BRL 39.92 per share

- 2023-08: BRL 35.88 per share

- 2023-09: BRL 36.27 per share

- 2023-10: BRL 33.01 per share

- 2023-11: BRL 34.19 per share

- 2023-12: BRL 36.91 per share

- 2024-01: BRL 32.34 per share

- 2024-02: BRL 36.69 per share

- 2024-03: BRL 38.20 per share

- 2024-04: BRL 39.55 per share

- 2024-05: BRL 37.55 per share

- 2024-06: BRL 42.19 per share

- 2024-07: BRL 50.66 per share

- 2024-08: BRL 54.15 per share

- 2024-09: BRL 54.39 per share

- 2024-10: BRL 54.11 per share

- 2024-11: BRL 53.94 per share

- 2024-12: BRL 52.77 per share

- 2025-01: BRL 55.04 per share

- 2025-02: BRL 48.42 per share

- 2025-03: BRL 45.28 per share

- 2025-04: BRL 44.64 per share

- 2025-05: BRL 42.35 per share

- 2025-06: BRL 42.78 per share

- 2025-07: BRL 37.11 per share

- 2025-08: BRL 37.66 per share

- 2025-09: BRL 36.59 per share

- 2025-10: BRL 42.10 per share

- 2025-11: BRL 44.25 per share

- 2025-12: BRL 48.51 per share

- 2026-01: BRL 51.72 per share

- 2026-02: BRL 49.70 per share

- 2026-03: BRL 51.01 per share

- 2026-04: BRL 44.86 per share

- 2026-05: BRL 44.10 per share

- 2026-06: BRL 46.91 per share

- 2026-07: BRL 47.20 per share

- 2026-08: BRL 50.15 per share

- 2026-09: BRL 49.46 per share

- 2026-10: BRL 50.81 per share

## Annual estimated value (BRL per share)

- FY2016: low BRL 2.82 per share, central BRL 3.12 per share, high BRL 3.28 per share

- FY2017: low BRL 3.02 per share, central BRL 3.58 per share, high BRL 3.79 per share

- FY2018: low BRL 3.22 per share, central BRL 3.95 per share, high BRL 4.21 per share

- FY2019: low BRL 3.45 per share, central BRL 4.26 per share, high BRL 4.55 per share

- FY2020: low BRL 4.53 per share, central BRL 5.58 per share, high BRL 5.96 per share

- FY2021: low BRL 5.89 per share, central BRL 7.61 per share, high BRL 8.19 per share

- FY2022: low BRL 8.18 per share, central BRL 10.52 per share, high BRL 11.31 per share

- FY2023: low BRL 9.66 per share, central BRL 12.33 per share, high BRL 13.23 per share

- FY2024: low BRL 12.08 per share, central BRL 15.48 per share, high BRL 16.63 per share

- FY2025: low BRL 12.67 per share, central BRL 16.32 per share, high BRL 17.55 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.