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WETOUCH TECHNOLOGY INC (WETH) Stock Fundamental Analysis

NASDAQ:WETH - Nasdaq - US9618812088 - Common Stock - Currency: USD

0.99  -0.01 (-0.5%)

Fundamental Rating

5

WETH gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 125 industry peers in the Electronic Equipment, Instruments & Components industry. WETH is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. WETH has a valuation in line with the averages, but on the other hand it scores bad on growth.


Dividend Valuation Growth Profitability Health

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6

1. Profitability

1.1 Basic Checks

In the past year WETH was profitable.
WETH had a positive operating cash flow in the past year.
WETH had positive earnings in each of the past 5 years.
In the past 5 years WETH always reported a positive cash flow from operatings.
WETH Yearly Net Income VS EBIT VS OCF VS FCFWETH Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2019 2020 2021 2022 2023 5M 10M 15M

1.2 Ratios

Looking at the Return On Assets, with a value of 2.90%, WETH is in the better half of the industry, outperforming 63.20% of the companies in the same industry.
The Return On Equity of WETH (2.98%) is comparable to the rest of the industry.
WETH has a better Return On Invested Capital (4.02%) than 60.80% of its industry peers.
The Average Return On Invested Capital over the past 3 years for WETH is in line with the industry average of 9.30%.
The last Return On Invested Capital (4.02%) 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 RankSector 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%
WETH Yearly ROA, ROE, ROICWETH Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2019 2020 2021 2022 2023 10 20 30 40

1.3 Margins

WETH has a better Profit Margin (9.41%) than 82.40% of its industry peers.
WETH's Profit Margin has declined in the last couple of years.
The Operating Margin of WETH (18.24%) is better than 94.40% 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 31.09%, WETH is in line with its industry, outperforming 51.20% of the companies in the same industry.
In the last couple of years the Gross Margin of WETH has declined.
Industry RankSector 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
WETH Yearly Profit, Operating, Gross MarginsWETH Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2019 2020 2021 2022 2023 10 20 30 40

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8

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.
WETH has a better debt/assets ratio than last year.
WETH Yearly Shares OutstandingWETH Yearly Shares OutstandingYearly Shares Outstanding 2019 2020 2021 2022 2023 10M 20M 30M
WETH Yearly Total Debt VS Total AssetsWETH Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

2.2 Solvency

WETH has an Altman-Z score of 4.34. This indicates that WETH is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 4.34, WETH is doing good in the industry, outperforming 73.60% of the companies in the same industry.
There is no outstanding debt for WETH. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 4.34
ROIC/WACC0.56
WACC7.12%
WETH Yearly LT Debt VS Equity VS FCFWETH Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

2.3 Liquidity

A Current Ratio of 34.75 indicates that WETH has no problem at all paying its short term obligations.
The Current ratio of WETH (34.75) is better than 99.20% 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.
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 RankSector Rank
Current Ratio 34.75
Quick Ratio 34.69
WETH Yearly Current Assets VS Current LiabilitesWETH Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

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3

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%.
WETH shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.80% yearly.
The Revenue has been growing slightly by 2.86% in the past year.
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.
WETH Yearly Revenue VS EstimatesWETH Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2019 2020 2021 2022 2023 10M 20M 30M 40M

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4

4. Valuation

4.1 Price/Earnings Ratio

WETH is valuated cheaply with a Price/Earnings ratio of 3.54.
Based on the Price/Earnings ratio, WETH is valued cheaper than 97.60% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.22. WETH is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 3.54
Fwd PE N/A
WETH Price Earnings VS Forward Price EarningsWETH Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

WETH's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. WETH is cheaper than 73.60% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.07
EV/EBITDA -12.67
WETH Per share dataWETH EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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

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0

5. Dividend

5.1 Amount

No dividends for WETH!.
Industry RankSector Rank
Dividend Yield N/A

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WETOUCH TECHNOLOGY INC

NASDAQ:WETH (5/2/2025, 8:28:43 PM)

0.99

-0.01 (-0.5%)

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 Change39.7%
Ins Owners0.35%
Ins Owner Change0%
Market Cap11.81M
AnalystsN/A
Price TargetN/A
Short Float %0.29%
Short Ratio0.22
Dividend
Industry RankSector 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 RankSector Rank
PE 3.54
Fwd PE N/A
P/S 0.29
P/FCF 20.07
P/OCF 3.97
P/B 0.09
P/tB 0.09
EV/EBITDA -12.67
EPS(TTM)0.28
EY28.28%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.05
FCFY4.98%
OCF(TTM)0.25
OCFY25.16%
SpS3.44
BVpS10.85
TBVpS10.85
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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 4.34
F-Score4
WACC7.12%
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