WETOUCH TECHNOLOGY INC (WETH)
US9618812088 - Common Stock
We assign a fundamental rating of 5 out of 10 to WETH. WETH was compared to 127 industry peers in the Electronic Equipment, Instruments & Components industry. WETH has an average financial health and profitability rating. WETH has a expensive valuation and it also scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year WETH was profitable.
WETH had a positive operating cash flow in the past year.
In the past 5 years WETH has always been profitable.
Each year in the past 5 years WETH had a positive operating cash flow.
1.2 Ratios
WETH's Return On Assets of 4.90% is fine compared to the rest of the industry. WETH outperforms 73.81% of its industry peers.
WETH has a Return On Equity (5.00%) which is in line with its industry peers.
WETH has a Return On Invested Capital of 6.11%. This is in the better half of the industry: WETH outperforms 65.87% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for WETH is in line with the industry average of 8.95%.
The last Return On Invested Capital (6.11%) for WETH is well below the 3 year average (10.63%), which needs to be investigated, but indicates that WETH had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 5% | ||
| ROIC | 6.11% |
ROA(3y)14.72%
ROA(5y)19.2%
ROE(3y)15.68%
ROE(5y)22.1%
ROIC(3y)10.63%
ROIC(5y)17.3%
1.3 Margins
WETH has a Profit Margin of 14.65%. This is amongst the best in the industry. WETH outperforms 92.86% of its industry peers.
WETH's Profit Margin has declined in the last couple of years.
WETH has a Operating Margin of 25.89%. This is amongst the best in the industry. WETH outperforms 99.21% of its industry peers.
WETH's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 35.21%, WETH is in line with its industry, outperforming 59.52% of the companies in the same industry.
WETH's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.89% | ||
| PM (TTM) | 14.65% | ||
| GM | 35.21% |
OM growth 3Y-5.62%
OM growth 5YN/A
PM growth 3Y-9.94%
PM growth 5YN/A
GM growth 3Y-4.56%
GM growth 5YN/A
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so WETH is still creating some value.
Compared to 1 year ago, WETH has more shares outstanding
WETH has a better debt/assets ratio than last year.
2.2 Solvency
WETH has an Altman-Z score of 7.35. This indicates that WETH is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.35, WETH belongs to the best of the industry, outperforming 87.30% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that WETH is not too dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.00, WETH is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 7.35 |
ROIC/WACC0.79
WACC7.76%
2.3 Liquidity
WETH has a Current Ratio of 49.18. This indicates that WETH is financially healthy and has no problem in meeting its short term obligations.
WETH has a Current ratio of 49.18. This is amongst the best in the industry. WETH outperforms 99.21% of its industry peers.
WETH has a Quick Ratio of 49.10. This indicates that WETH is financially healthy and has no problem in meeting its short term obligations.
WETH has a better Quick ratio (49.10) than 99.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 49.18 | ||
| Quick Ratio | 49.1 |
3. Growth
3.1 Past
WETH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -81.38%.
Measured over the past years, WETH shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.80% on average per year.
Looking at the last year, WETH shows a small growth in Revenue. The Revenue has grown by 4.70% in the last year.
The Revenue has been growing by 8.20% on average over the past years. This is quite good.
EPS 1Y (TTM)-81.38%
EPS 3Y45.8%
EPS 5YN/A
EPS Q2Q%-53.1%
Revenue 1Y (TTM)4.7%
Revenue growth 3Y8.2%
Revenue growth 5YN/A
Sales Q2Q%10.75%
3.2 Future
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 3.03, the valuation of WETH can be described as very cheap.
Based on the Price/Earnings ratio, WETH is valued cheaper than 100.00% of the companies in the same industry.
WETH is valuated cheaply when we compare the Price/Earnings ratio to 30.57, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.03 | ||
| Fwd PE | N/A |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | -6.93 |
4.3 Compensation for Growth
WETH has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A
5. Dividend
5.1 Amount
No dividends for WETH!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
WETOUCH TECHNOLOGY INC
NASDAQ:WETH (9/17/2024, 8:00:02 PM)
1.82
+0.07 (+4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.71M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.03 | ||
| Fwd PE | N/A | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.9% | ||
| ROE | 5% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 25.89% | ||
| PM (TTM) | 14.65% | ||
| GM | 35.21% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 49.18 | ||
| Quick Ratio | 49.1 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-81.38%
EPS 3Y45.8%
EPS 5Y
EPS Q2Q%
EPS Next YN/A
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)4.7%
Revenue growth 3Y8.2%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y