Wetouch Technology Inc. (WETH) stock analysis
Close on Nov 11, 2026Market cap $11.51MP/E 1.2Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Solid18 of 30 checks passed
Wetouch Technology passes 18 of the 30 checks behind our score; 5 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 5/6
- Growth
- 2/6
- Past performance
- 2/6
- Financial health
- 6/6
- Dividend
- 3/6
What stands out
Margin of safety over 20%
The price is 94.7% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $0.86 is below our fair value estimate of $16.24.
Return on capital over 10%
Return on invested capital was 38.9%, above the 10% that usually covers the cost of capital.
No debt
Wetouch Technology has no borrowings on its latest balance sheet.
What to watch
Return on equity under 15%
Return on equity was 6.0% over the last twelve months and averaged 13.0% over five years; we look for 15% on both.
Earnings shrank over 5 years
Net income shrank 4.3% a year on average over the last five fiscal years.
Revenue growing under 10% a year
Revenue grew 6.0% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -49.8% a year over the last three fiscal years.
Valuation5/6
P/E below its 5-year median
Wetouch Technology's P/E of 1.2 is below its own 5-year median of 1.8.
P/E below the industry
Wetouch Technology's P/E of 1.2 is below the Computer and Office Equipment median of 26.0.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B below the industry
Wetouch Technology's price-to-book of 0.08 is below the Computer and Office Equipment median of 3.71.
Trading below fair value
The share price of $0.86 is below our fair value estimate of $16.24.
Margin of safety over 20%
The price is 94.7% below fair value, more than the 20% cushion we look for.
Growth2/6
Revenue growing under 10% a year
Revenue grew 6.0% a year over the last three fiscal years, short of the 10% we look for.
EPS growing under 10% a year
Diluted EPS grew -49.8% a year over the last three fiscal years.
Earnings growth accelerating
Net income grew 10.7% over the last twelve months, against a 5-year average of -4.3% a year.
Growing faster than the industry
Revenue grew 11.3% over the last twelve months; the Computer and Office Equipment median is 11.2%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin slipping
Gross margin was 32.1% over the last twelve months, against 35.4% a year earlier.
Past performance2/6
Return on equity under 15%
Return on equity was 6.0% over the last twelve months and averaged 13.0% over five years; we look for 15% on both.
Return on capital over 10%
Return on invested capital was 38.9%, above the 10% that usually covers the cost of capital.
Return on equity below the industry
Wetouch Technology's return on equity of 6.0% is below the Computer and Office Equipment median of 7.5%.
Earnings shrank over 5 years
Net income shrank 4.3% a year on average over the last five fiscal years.
Net margin below its 5-year average
Net margin was 17.6% over the last twelve months, against a 5-year average of 23.3%.
Net margin above the industry
Wetouch Technology's net margin of 17.6% is above the Computer and Office Equipment median of 3.8%.
Financial health6/6
No debt
Wetouch Technology has no borrowings on its latest balance sheet.
Debt not rising
With no debt today, leverage cannot have risen.
Debt covered by cash flow
There is no debt to cover.
Interest well covered
No meaningful interest expense to cover.
Short-term assets cover short-term debts
Current assets are 35.99 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 4.22; above 3 is the safe zone and below 1.8 the distress zone.
Dividend3/6
Pays a dividend
Wetouch Technology paid dividends worth 4.7% of the share price over the last twelve months.
Yield above Treasuries
The 4.7% yield is above the 4.4% on a 1-year Treasury.
Yield in the top quarter
The top quarter of US dividend payers yield 3.8% or more; Wetouch Technology yields 4.7%.
Dividend stability
Fewer than five years of dividend history.
Earnings cover
Needs dividends paid and net income.
Cash-flow cover
Needs dividends paid and free cash flow.
Fair value
How we estimate itOur estimate per share
$16.24
The share price is 95% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 13.8× | 1.8× | 26.0× | $9.67 | 40% |
| EV/EBITDA | 19.9× | – | 19.9× | $26.22 | 35% |
| P/B | 1.9× | 0.1× | 3.7× | $21.22 | 10% |
| Earnings power | 7.4% cost of equity | – | – | $7.14 | 15% |
| Fair value | $16.24 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Own 5-year median 1.8
- Computer and Office Equipment median 26.0
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $69.04K
- Value traded per 1% price move
- $18.95K
Downside
High risk
- Typical loss in a bad month
- 32.4%
- Volatility (annualized)
- 77%
- Sharpe ratio, 1 year
- -0.92
- Beta to the S&P 500 (5Y)
- 0.49
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2018 to 2025
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2025
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +6.8% | +6.0% | +7.6% | – | |
| Gross profit | +5.6% | +0.8% | -1.6% | – | |
| Operating income | +7.0% | -4.4% | -3.5% | – | |
| Net income | +18.7% | -6.4% | -4.3% | – | |
| EPS, diluted | +15.4% | -49.8% | -37.1% | – | |
| Free cash flow | +786.7% | – | – | – |
Returns and balance sheet
8 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2018 | FY2020 | FY2025 | Trend |
|---|---|---|---|---|
| Return on equity | – | 23.5% | 5.5% | |
| Return on assets | – | 20.1% | 5.3% | |
| Current ratio | – | 16.07 | 38.88 | |
| Interest coverage | – | 6.9× | – | |
| Inventory turnover | – | 51.9× | 390.6× | |
| Capex to revenue | – | – | 0.7% | |
| Diluted shares | – | 1M | 12M |
Cash use needs five years of cash flow figures
Wetouch Technology does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2025 | 15.9% | 0.34× | 1.03× | 5.5% |
| FY2024 | 14.3% | 0.34× | 1.04× | 5.1% |
| FY2023 | 20.8% | 0.41× | 1.06× | 9.1% |
| FY2022 | 23.0% | 0.53× | 1.06× | 13.1% |
| FY2021 | 42.6% | 0.70× | 1.07× | 32.0% |
| FY2020 | 28.5% | 0.71× | 1.17× | 23.5% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2025 against fiscal 2024
- ProfitableNet income above zero$7.16M
- Cash generatingOperating cash flow above zero$7.39M
- Return on assets improvedROA up on the prior year5.0% → 5.6%
- Earnings backed by cashOperating cash flow above net income$7.39M vs $7.16M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose38.68 → 38.88
- No dilutionShare count did not rise12M → 12M
- Gross margin improvedGross margin up on the prior year32.18% → 31.84%
- More efficientAsset turnover rose0.35 → 0.35
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