WETOUCH TECHNOLOGY INC(NASDAQ:WETH) stock Fundamental Analysis

Fundamental Rating

Taking everything into account, WETH scores 5 out of 10 in our fundamental rating. WETH was compared to 124 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.

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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.

WETH had positive earnings in each of the past 5 years.

WETH had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

WETH's Return On Assets of 2.90% is fine compared to the rest of the industry. WETH outperforms 62.90% of its industry peers.

Looking at the Return On Equity, with a value of 2.98%, WETH is in line with its industry, outperforming 55.65% of the companies in the same industry.

The Return On Invested Capital of WETH (4.02%) is better than 61.29% 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 9.14%.

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 81.45% of its industry peers.

In the last couple of years the Profit Margin of WETH has declined.

Looking at the Operating Margin, with a value of 18.24%, WETH belongs to the top of the industry, outperforming 94.35% of the companies in the same industry.

WETH's Operating Margin has declined in the last couple of years.

WETH has a Gross Margin (31.09%) which is comparable to the rest of the 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

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WETH is creating some value.

Compared to 1 year ago, WETH has more shares outstanding

Compared to 1 year ago, WETH has an improved debt to assets ratio.

2.2 Solvency

WETH has an Altman-Z score of 4.48. This indicates that WETH is financially healthy and has little risk of bankruptcy at the moment.

WETH has a Altman-Z score of 4.48. This is in the better half of the industry: WETH outperforms 75.00% 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	4.48

ROIC/WACC0.56

WACC7.23%

2.3 Liquidity

WETH has a Current Ratio of 34.75. This indicates that WETH is financially healthy and has no problem in meeting its short term obligations.

WETH has a better Current ratio (34.75) than 99.19% of its industry peers.

WETH has a Quick Ratio of 34.69. This indicates that WETH is financially healthy and has no problem in meeting its short term obligations.

WETH's Quick ratio of 34.69 is amongst the best of the industry. WETH outperforms 99.19% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	34.75
Quick Ratio	34.69

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

WETH shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -67.60%.

The Earnings Per Share has been growing by 45.80% on average over the past years. This is a very strong growth

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)-67.6%

EPS 3Y45.8%

EPS 5YN/A

EPS Q2Q%-23.91%

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.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 3.22 indicates a rather cheap valuation of WETH.

WETH's Price/Earnings ratio is rather cheap when compared to the industry. WETH is cheaper than 98.39% of the companies in the same industry.

WETH's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.92.

		Industry Rank	Sector Rank
PE	3.22
Fwd PE	N/A

4.2 Price Multiples

Based on the Price/Free Cash Flow ratio, WETH is valued a bit cheaper than the industry average as 70.16% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	18.28
EV/EBITDA	-12.56

4.3 Compensation for Growth

The decent profitability rating of WETH may justify a higher PE ratio.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2YN/A

EPS Next 3YN/A

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5. Dividend

5.1 Amount

No dividends for WETH!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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WETOUCH TECHNOLOGY INC

NASDAQ:WETH (4/24/2025, 8:00:02 PM)

After market: 0.9085 +0.01 (+0.73%)

0.9019

-0.16 (-14.92%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupTechnology Hardware & Equipment

GICS IndustryElectronic Equipment, Instruments & Components

Earnings (Last)N/A N/A

Earnings (Next)N/A N/A

Inst Owners2.05%

Inst Owner Change0%

Ins Owners0.35%

Ins Owner Change0%

Market Cap10.76M

AnalystsN/A

Price TargetN/A

Short Float %0.4%

Short Ratio0.17

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/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	3.22
Fwd PE	N/A
P/S	0.26
P/FCF	18.28
P/OCF	3.62
P/B	0.08
P/tB	0.08
EV/EBITDA	-12.56

EPS(TTM)0.28

EY31.05%

EPS(NY)N/A

Fwd EYN/A

FCF(TTM)0.05

FCFY5.47%

OCF(TTM)0.25

OCFY27.62%

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	4.48

F-Score4

WACC7.23%

ROIC/WACC0.56

Cap/Depr(3y)9049.63%

Cap/Depr(5y)5429.88%

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)-67.6%

EPS 3Y45.8%

EPS 5YN/A

EPS Q2Q%-23.91%

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

WETOUCH TECHNOLOGY INC (WETH) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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