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WETOUCH TECHNOLOGY INC (WETH) Stock Fundamental Analysis

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

0.86  -0.04 (-4.44%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to WETH. WETH was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. WETH has an excellent financial health rating, but there are some minor concerns on its profitability. WETH has a valuation in line with the averages, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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6

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.
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 65.60% of the companies in the same industry.
The Return On Equity of WETH (2.98%) is comparable to the rest of the industry.
WETH's Return On Invested Capital of 4.02% is in line compared to the rest of the industry. WETH outperforms 60.00% 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 9.39%.
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

Looking at the Profit Margin, with a value of 9.41%, WETH belongs to the top of the industry, outperforming 83.20% of the companies in the same industry.
In the last couple of years the Profit Margin of WETH has declined.
With an excellent Operating Margin value of 18.24%, WETH belongs to the best of the industry, outperforming 94.40% 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.
WETH's Gross Margin has declined in the last couple of years.
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

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), WETH is creating some value.
The number of shares outstanding for WETH has been increased compared to 1 year ago.
The debt/assets ratio for WETH has been reduced compared to a year ago.
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

An Altman-Z score of 4.17 indicates that WETH is not in any danger for bankruptcy at the moment.
WETH's Altman-Z score of 4.17 is fine compared to the rest of the industry. WETH outperforms 68.80% of its industry peers.
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 4.17
ROIC/WACC0.57
WACC6.99%
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

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.
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.
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.
With an excellent Quick ratio value of 34.69, WETH belongs to the best 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

The earnings per share for WETH have decreased strongly by -67.60% in the last year.
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 2.86% in the last year.
WETH shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.20% yearly.
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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5

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 3.07, the valuation of WETH can be described as very cheap.
Based on the Price/Earnings ratio, WETH is valued cheaper than 99.20% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. WETH is valued rather cheaply when compared to this.
Industry RankSector Rank
PE 3.07
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 rather cheap when compared to the industry. WETH is cheaper than 81.60% of the companies in the same industry.
Industry RankSector Rank
P/FCF 17.43
EV/EBITDA -12.82
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

WETH does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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WETOUCH TECHNOLOGY INC

NASDAQ:WETH (6/23/2025, 12:15:29 PM)

0.86

-0.04 (-4.44%)

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 Owners3.26%
Inst Owner Change60.96%
Ins Owners0.35%
Ins Owner Change0%
Market Cap10.26M
AnalystsN/A
Price TargetN/A
Short Float %0.24%
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 3.07
Fwd PE N/A
P/S 0.25
P/FCF 17.43
P/OCF 3.45
P/B 0.08
P/tB 0.08
EV/EBITDA -12.82
EPS(TTM)0.28
EY32.56%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)0.05
FCFY5.74%
OCF(TTM)0.25
OCFY28.96%
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 4.17
F-Score4
WACC6.99%
ROIC/WACC0.57
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