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. While WETH has a great health rating, its profitability is only average at the moment. WETH is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year WETH was profitable.
In the past year WETH had a positive cash flow from operations.
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
The Return On Assets of WETH (2.90%) is better than 62.40% of its industry peers.
WETH has a Return On Equity of 2.98%. This is comparable to the rest of the industry: WETH outperforms 53.60% of its industry peers.
WETH's Return On Invested Capital of 4.02% is in line compared to the rest of the industry. WETH outperforms 59.20% of its industry peers.
WETH had an Average Return On Invested Capital over the past 3 years of 10.63%. This is in line with the industry average of 8.74%.
The 3 year average ROIC (10.63%) for WETH is well above the current ROIC(4.02%). The reason for the recent decline needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 2.98% | ||
| ROIC | 4.02% |
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
The Profit Margin of WETH (9.41%) is better than 82.40% of its industry peers.
WETH's Profit Margin has declined in the last couple of years.
WETH's Operating Margin of 18.24% is amongst the best of the industry. WETH outperforms 95.20% of its industry peers.
WETH's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 31.09%, WETH perfoms like the industry average, outperforming 50.40% of the companies in the same industry.
In the last couple of years the Gross Margin of WETH has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 18.24% | ||
| PM (TTM) | 9.41% | ||
| GM | 31.09% |
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.
WETH has more shares outstanding than it did 1 year ago.
The debt/assets ratio for WETH has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.63 indicates that WETH is not in any danger for bankruptcy at the moment.
The Altman-Z score of WETH (5.63) is better than 76.00% of its industry peers.
WETH has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.63 |
ROIC/WACC0.46
WACC8.72%
2.3 Liquidity
A Current Ratio of 34.75 indicates that WETH has no problem at all paying its short term obligations.
With an excellent Current ratio value of 34.75, WETH belongs to the best of the industry, outperforming 99.20% of the companies in the same industry.
A Quick Ratio of 34.69 indicates that WETH has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 34.69, WETH belongs to the top of the industry, outperforming 99.20% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 34.75 | ||
| Quick Ratio | 34.69 |
3. Growth
3.1 Past
WETH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.61%.
WETH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.80% yearly.
WETH shows a small growth in Revenue. In the last year, the Revenue has grown by 2.86%.
The Revenue has been growing by 8.20% on average over the past years. This is quite good.
EPS 1Y (TTM)-67.61%
EPS 3Y45.8%
EPS 5YN/A
EPS Q2Q%-23.93%
Revenue 1Y (TTM)2.86%
Revenue growth 3Y8.2%
Revenue growth 5YN/A
Sales Q2Q%3.73%
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 5.79, the valuation of WETH can be described as very cheap.
99.20% of the companies in the same industry are more expensive than WETH, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of WETH to the average of the S&P500 Index (27.73), we can say WETH is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.79 | ||
| Fwd PE | N/A |
4.2 Price Multiples
63.20% of the companies in the same industry are more expensive than WETH, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.83 | ||
| EV/EBITDA | -11.62 |
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 (12/20/2024, 8:00:01 PM)
1.62
-0.03 (-1.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners0.31%
Inst Owner Change35.29%
Ins Owners14.23%
Ins Owner Change0%
Market Cap19.33M
AnalystsN/A
Price TargetN/A
Short Float %1.31%
Short Ratio0.59
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.79 | ||
| Fwd PE | N/A | ||
| P/S | 0.47 | ||
| P/FCF | 32.83 | ||
| P/OCF | 6.5 | ||
| P/B | 0.15 | ||
| P/tB | 0.15 | ||
| EV/EBITDA | -11.62 |
EPS(TTM)0.28
EY17.28%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.05
FCFY3.05%
OCF(TTM)0.25
OCFY15.37%
SpS3.44
BVpS10.85
TBVpS10.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.9% | ||
| ROE | 2.98% | ||
| ROCE | 5.77% | ||
| ROIC | 4.02% | ||
| ROICexc | 22.69% | ||
| ROICexgc | 22.69% | ||
| OM | 18.24% | ||
| PM (TTM) | 9.41% | ||
| GM | 31.09% | ||
| FCFM | 1.43% |
ROA(3y)14.72%
ROA(5y)19.2%
ROE(3y)15.68%
ROE(5y)22.1%
ROIC(3y)10.63%
ROIC(5y)17.3%
ROICexc(3y)44.62%
ROICexc(5y)47.54%
ROICexgc(3y)44.62%
ROICexgc(5y)48.65%
ROCE(3y)15.66%
ROCE(5y)25.23%
ROICexcg growth 3Y7.59%
ROICexcg growth 5YN/A
ROICexc growth 3Y9.33%
ROICexc growth 5YN/A
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
F-Score4
Asset Turnover0.31
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | N/A | ||
| Cap/Sales | N/A | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 39.67% | ||
| Profit Quality | 15.25% | ||
| Current Ratio | 34.75 | ||
| Quick Ratio | 34.69 | ||
| Altman-Z | 5.63 |
F-Score4
WACC8.72%
ROIC/WACC0.46
Cap/Depr(3y)9049.54%
Cap/Depr(5y)5429.82%
Cap/Sales(3y)11.46%
Cap/Sales(5y)6.88%
Profit Quality(3y)79.49%
Profit Quality(5y)91.5%
High Growth Momentum
Growth
EPS 1Y (TTM)-67.61%
EPS 3Y45.8%
EPS 5YN/A
EPS Q2Q%-23.93%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)2.86%
Revenue growth 3Y8.2%
Revenue growth 5YN/A
Sales Q2Q%3.73%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-46.06%
EBIT growth 3Y2.11%
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y21.83%
FCF growth 3Y-6.86%
FCF growth 5YN/A
OCF growth 1Y48.2%
OCF growth 3Y-0.57%
OCF growth 5YN/A