Wetouch Technology AI Stock Analysis
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Wetouch Technology (WETH) AI Stock Analysis
Wetouch Technology
(NASDAQ:WETH)
WETH earns a moderate score. The strongest supports are an exceptionally low valuation (P/E of 1.22, 4.74% dividend yield) and a fortress balance sheet that is virtually debt-free with a rapidly growing equity base, further bolstered by a $38.8M premium-priced capital raise from controlling shareholders. Offsetting these positives are the primary risks: severe multi-year margin compression (net margins down from ~43% to ~15%), a weak ~5% return on equity, and volatile free cash flow. Technicals are the biggest near-term drag, with the stock trading below all major moving averages amid negative MACD momentum. The result is a cheaply valued, financially stable business that has yet to demonstrate it can restore profitability or reverse its price downtrend.
Wetouch Technology (WETH) vs. SPDR S&P 500 ETF (SPY)
- Market Cap
- $10.88M
- Dividend Yield
- 5.01%
- Average Volume (3M)
- 69.26K
- Price to Earnings (P/E)
- 1.2
- Beta (1Y)
- 1.05
- 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
A mixed picture. The balance sheet is the standout strength (score 72): essentially debt-free (debt-to-equity ~0.004 in 2025) with equity more than doubling from $64.3M (2021) to $137.4M (2025), though return on equity has fallen to just ~5.2%, pointing to inefficient capital deployment. The income statement (score 52) shows steady revenue growth (~4.7%, ~6.5%, ~6.8% over the last three years) but severe margin compression, with gross margins falling from ~45% to ~32% and net margins from ~43% to ~14-16%; net income dropped from $17.4M (2021) to $6.0M (2024) before recovering to $7.2M (2025). Cash flow (score 55) has been volatile, with free cash flow swinging from $8.6M (2022) to $0.9M (2024) and back to $7.1M (2025), though 2025 cash conversion was strong (operating cash flow at 2.28x net income). Net: a low-risk, low-return profile that must reverse multi-year profitability erosion.
Income Statement
52NeutralBalance Sheet
72PositiveCash Flow
55Neutral| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 47.74M | 45.14M | 42.28M | 39.71M | 37.92M | 40.79M |
| Gross Profit | 15.32M | 14.37M | 13.61M | 17.19M | 14.05M | 18.43M |
| EBITDA | 11.78M | 10.78M | 9.97M | 12.61M | 12.32M | 22.20M |
| Net Income | 8.39M | 7.16M | 6.03M | 8.26M | 8.73M | 17.39M |
Balance Sheet | ||||||
| Total Assets | 152.59M | 140.64M | 128.02M | 119.64M | 73.11M | 68.68M |
| Cash, Cash Equivalents and Short-Term Investments | 127.52M | 118.36M | 103.76M | 98.04M | 51.25M | 46.16M |
| Total Debt | 215.72K | 521.45K | 1.05M | 1.71M | 1.66M | 2.03M |
| Total Liabilities | 3.83M | 3.24M | 3.43M | 6.72M | 4.27M | 4.37M |
| Stockholders Equity | 148.76M | 137.39M | 124.59M | 112.92M | 68.83M | 64.31M |
Cash Flow | ||||||
| Free Cash Flow | 8.41M | 7.07M | 932.25K | 10.46M | 8.59M | 2.36M |
| Operating Cash Flow | 8.73M | 7.39M | 1.20M | 12.72M | 8.59M | 14.05M |
| Investing Cash Flow | -322.30K | -322.30K | -271.83K | -2.26M | 0 | 6.16M |
| Financing Cash Flow | 0 | 0 | 7.45M | 39.95M | -652.63K | 1.86M |
Wetouch Technology Technical Analysis
Price Trends
Market Momentum
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 0.80 is below the 20-day moving average (MA) of 0.87, below the 50-day MA of 0.98, and below the 200-day MA of 1.29, indicating a bearish trend. The MACD of -0.05 indicates Positive momentum. The RSI at 38.99 is Neutral, neither overbought nor oversold. The STOCH value of 46.48 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.
Latest Risks Added
0 New RisksWetouch Technology Peers Comparison
Overall Rating
- WETH61Neutral
LGPS48Neutral
OMH42Neutral
GBR41Neutral
DUO39Underperform
FTHM38Underperform
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| Sector * | 61Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
| WETH | 61Neutral | $10.88M | 1.16 | 5.94% | 5.01% | 11.34% | 9.92% |
| LGPS | 48Neutral | $14.41M | 2.01 | 28.25% | 7.43% | 8.69% | 3.11% |
| OMH | 42Neutral | $10.69M | -0.39 | -126.27% | ― | ― | ― |
| GBR | 41Neutral | $2.91M | -33.02 | -1.97% | ― | 1.31% | -2.00% |
| DUO | 39Underperform | $20.82M | -0.67 | -14.60% | ― | -31.66% | 67.13% |
| FTHM | 38Underperform | $4.88M | -0.07 | -184.92% | ― | -9.81% | -59.75% |
* Technology Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| WETH | Wetouch Technology Inc | 0.80 | -1.54 | -65.69% | |
| GBR | New Concept Energy | 0.57 | -0.24 | -29.79% | |
| DUO | Fangdd Network Group Ltd | 0.55 | -1.25 | -69.44% | |
| FTHM | Fathom Holdings Inc | 0.09 | -1.00 | -91.38% | |
| OMH | Ohmyhome Limited | 5.00 | -50.00 | -90.91% | |
| LGPS | LogProstyle Inc. | 0.61 | -0.29 | -32.00% |
Wetouch Technology Corporate Events
Wetouch Technology Affirms Progress on Special Cash Dividend
PositiveOn 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...
Wetouch completes $38.8 million private share placement
PositiveWetouch 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...
Wetouch Technology Stockholders Approve Share Issuance Proposal
PositiveOn 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...
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