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Wetouch Technology (WETH) AI Stock Analysis

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WETH

Wetouch Technology

(NASDAQ:WETH)

Select Model
Rating:67Neutral
Price Target:$0.86â–²(0.35% Upside)
Action:reiterated
Date:10/29/26

The score is driven primarily by a conservative, low-debt balance sheet and attractive valuation (very low P/E with a meaningful dividend yield). Offsetting these positives are weak technicals (price below all major moving averages with negative MACD) and reduced confidence in the latest reported run-rate due to TTM data inconsistencies and cash-flow quality flags. Recent financing and dividend-related updates are supportive but include dilution risk.

Positive Factors
Conservative Balance SheetMinimal leverage reduces financial risk and preserves flexibility for investment, dividends, or resilience during weaker demand. Steadily growing assets and equity also indicate that the company has built a stronger capital base, supporting stability over the next several quarters.
Negative Factors
Cash-Flow Quality VolatilityUneven cash conversion makes reported earnings less dependable as a measure of funds available to the business. The recent mismatch between net income and operating cash flow could constrain internally financed growth and warrants continued scrutiny of working-capital effects and earnings quality.

Wetouch Technology (WETH) vs. SPDR S&P 500 ETF (SPY)

-80%-60%-40%-20%0%20%WETH-65.70%SPY+14.28%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
Market Cap
$11.51M
Dividend Yield
4.69%
Average Volume (3M)
66.56K
Price to Earnings (P/E)
1.2
Beta (1Y)
1.06
Revenue Growth
11.34%
EPS Growth
9.92%
Country
US
Employees
152
Sector
Technology
Sector Strength
61
Industry
Hardware, Equipment & Parts

Wetouch Technology Business Overview & Revenue Model

Company Description

Wetouch Technology Inc., established in Meishan, China, in 2011, specializes in the comprehensive lifecycle of medium to large projected capacitive touchscreens, encompassing their research, development, production, sales, and support. The company se...

How the Company Makes Money

WETH makes money primarily by selling touch-related electronic components (e.g., touch sensor modules and associated parts/solutions) to downstream device makers and electronics manufacturers. Revenue is generated through B2B product sales, typically...

Wetouch Technology Financial Statement Overview

Summary

Strong balance sheet with minimal leverage (Balance Sheet Score 86) supports financial safety, while profitability is generally solid but tempered by mixed cash-flow quality and volatility (Income Statement 58, Cash Flow 62). The biggest drag is uncertainty in the TTM figures (unusual revenue spike and conflicting operating vs. EBITDA/cash signals), reducing confidence in the latest run-rate.

Income Statement

58Neutral

Balance Sheet

86Very Positive

Cash Flow

62Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue47.74M45.14M42.28M39.71M37.92M40.79M
Gross Profit15.32M14.37M13.61M17.19M14.05M18.43M
EBITDA11.78M10.78M9.97M12.61M12.32M22.20M
Net Income8.39M7.16M6.03M8.26M8.73M17.39M
Balance Sheet
Total Assets152.59M140.64M128.02M119.64M73.11M68.68M
Cash, Cash Equivalents and Short-Term Investments127.52M118.36M103.76M98.04M51.25M46.16M
Total Debt215.72K521.45K1.05M1.71M1.66M2.03M
Total Liabilities3.83M3.24M3.43M6.72M4.27M4.37M
Stockholders Equity148.76M137.39M124.59M112.92M68.83M64.31M
Cash Flow
Free Cash Flow8.41M7.07M932.25K10.46M8.59M2.36M
Operating Cash Flow8.73M7.39M1.20M12.72M8.59M14.05M
Investing Cash Flow-322.30K-322.30K-271.83K-2.26M06.16M
Financing Cash Flow007.45M39.95M-652.63K1.86M

Wetouch Technology Technical Analysis

Technical Analysis SentimentNegative
Last Price0.86

Price Trends

50DMA1.00Negative
100DMA1.09Negative
200DMA1.31Negative

Market Momentum

MACD-0.06Positive
RSI36.21Neutral
STOCH33.05Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WETH, the sentiment is Negative. The current price of 0.86 is below the 20-day moving average (MA) of 0.90, below the 50-day MA of 1.00, and below the 200-day MA of 1.31, indicating a bearish trend. The MACD of -0.06 indicates Positive momentum. The RSI at 36.21 is Neutral, neither overbought nor oversold. The STOCH value of 33.05 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for WETH.

Wetouch Technology Risk Analysis

Wetouch Technology disclosed 54 risk factors in its most recent earnings report. Wetouch Technology reported the most risks in the "Legal & Regulatory" category.

Higher RiskSector Avg.Lower RiskFinance & CorporateTech & InnovationLegal & RegulatoryProductionAbility to SellMacro & Political
Legal & Regulatory - Litigation, compliance, new legislation, and taxation risks

Latest Risks Added

0 New Risks

Wetouch Technology Peers Comparison

Overall Rating

UnderperformOutperform
Sector (61)

Financial Indicators

WETH against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
WETHWETH67Neutral$10.64M1.245.94%4.69%11.34%9.92%
Sector *61Neutral$37.18B12.37-10.20%1.83%8.50%-7.62%
GBRGBR51Neutral$2.93M-34.40-1.97%―3.97%-44.54%
OMHOMH50Neutral$35.09M-0.62-126.27%―――
DUODUO39Underperform$21.97M-0.65-14.60%―-31.66%67.13%
LGPSLGPS38Underperform$15.22M1.9828.25%7.49%8.69%3.11%
FTHMFTHM37Underperform$4.69M-0.18-75.90%―4.33%24.93%

* Technology Sector Average

Performance Comparison

-50%0%50%WETHGBRDUOFTHMOMHLGPSDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26Nov '26
WETH and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
WETHWetouch Technology Inc0.86-1.58-64.75%
GBRNew Concept Energy0.59-0.24-29.04%
DUOFangdd Network Group Ltd0.54-1.29-70.60%
FTHMFathom Holdings Inc0.14-0.95-86.70%
OMHOhmyhome Limited8.00-51.40-86.53%
LGPSLogProstyle Inc.0.61-0.34-36.04%

Wetouch Technology Corporate Events

Business Operations and StrategyDividends

Wetouch Technology Affirms Progress on Special Cash Dividend

Positive
Sep 30, 2026

On September 30, 2026, WeTouch Technology Inc. provided an update on its previously announced special cash dividend plan of up to US$0.5 million for shareholders of record as of August 17, 2026. The company said the record date and dividend plan rema...

Private Placements and FinancingShareholder Meetings

Wetouch completes $38.8 million private share placement

Positive
Sep 23, 2026

Wetouch Technology Inc. disclosed that it entered into a securities purchase agreement with Qixun Technology (Samoa) Limited and Qihong Technology (Samoa) Limited to issue and sell 31,037,830 shares of common stock at $1.25 per share, raising gross p...

Private Placements and FinancingRegulatory Filings and ComplianceShareholder Meetings

Wetouch Technology Stockholders Approve Share Issuance Proposal

Positive
Sep 4, 2026

On September 4, 2026, Wetouch Technology Inc. held its 2026 Special Meeting of Stockholders in Sichuan, China, with a quorum present. At the meeting, shareholders voted on a proposal to issue common stock to Qixun Technology (Samoa) Limited and Qihon...

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Date of analysis: Oct 29, 2026