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Wetouch Technology (WETH)
NASDAQ:WETH
US Market
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Wetouch Technology (WETH) AI Stock Analysis

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WETH

Wetouch Technology

(NASDAQ:WETH)

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Outperform 71 (OpenAI - Gpt-5.6Sol)
Rating:71Outperform
Price Target:
$1.50
▲(28.21% Upside)
Action:Upgraded
Date:08/17/26
The score is driven primarily by a conservative, low-leverage balance sheet and generally solid annual profitability/cash generation, plus attractive earnings-based valuation (very low P/E). Offsetting these positives are uncertainties in the latest TTM financial comparability/quality and only neutral-to-weak longer-term technical trend (below the 100/200-day moving averages).
Positive Factors
Conservative balance sheet
Minimal leverage lowers refinancing and solvency risk, while growing assets and equity provide financial flexibility. This supports continued investment in products and operations without relying heavily on external borrowing.
Negative Factors
Unreliable latest-period comparability
The unusual TTM revenue surge and margin mismatch make current earnings quality and operating trends difficult to assess. Until the figures normalize or are explained, forecasting durable growth and profitability remains less reliable.
Read all positive and negative factors
Positive Factors
Negative Factors
Conservative balance sheet
Minimal leverage lowers refinancing and solvency risk, while growing assets and equity provide financial flexibility. This supports continued investment in products and operations without relying heavily on external borrowing.
Read all positive factors

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

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...
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, typica...

Wetouch Technology Financial Statement Overview

Summary
Strong balance sheet with minimal leverage (Balance Sheet Score 86) supports financial resilience, and annual profitability/cash generation is generally solid (Income Statement 58; Cash Flow 62). However, confidence is capped by noted TTM comparability/quality flags (extreme revenue spike, near-zero operating margin vs strong EBITDA margin, and unusually weak operating cash flow vs net income).
Income Statement
58
Neutral
Balance Sheet
86
Very Positive
Cash Flow
62
Positive
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue47.74M45.14M42.28M39.71M37.92M40.79M
Gross Profit15.32M14.37M13.61M17.19M14.05M18.43M
EBITDA11.78M10.78M9.87M12.61M12.32M22.20M
Net Income8.39M7.16M6.03M8.26M8.73M17.39M
Balance Sheet
Total Assets152.59M140.77M128.02M119.64M73.11M68.68M
Cash, Cash Equivalents and Short-Term Investments127.52M118.36M103.76M98.04M51.25M46.16M
Total Debt215.72K521.45K1.05M1.71M1.66M2.03M
Total Liabilities3.83M3.37M3.43M6.72M4.27M4.37M
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-2.26M0.006.16M
Financing Cash Flow0.000.007.45M39.95M-652.63K1.86M

Wetouch Technology Technical Analysis

Technical Analysis Sentiment
Positive
Last Price1.17
Price Trends
50DMA
1.18
Positive
100DMA
1.36
Negative
200DMA
1.48
Negative
Market Momentum
MACD
<0.01
Negative
RSI
51.23
Neutral
STOCH
44.01
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For WETH, the sentiment is Positive. The current price of 1.17 is below the 20-day moving average (MA) of 1.18, below the 50-day MA of 1.18, and below the 200-day MA of 1.48, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 51.23 is Neutral, neither overbought nor oversold. The STOCH value of 44.01 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Wetouch Technology Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
71
Outperform
$16.06M1.735.94%11.34%9.92%
61
Neutral
$37.18B12.37-10.20%1.83%8.50%-7.62%
57
Neutral
$23.85M3.2527.68%1.96%8.69%3.11%
52
Neutral
$3.94M-45.27-1.97%3.97%-44.54%
47
Neutral
$21.37M-0.66-14.60%-31.66%67.13%
42
Neutral
$22.15M-0.85-75.90%4.33%24.93%
41
Neutral
$1.42M-0.22-82.73%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
WETH
Wetouch Technology
1.26
0.18
16.77%
GBR
New Concept Energy
0.80
-0.18
-18.09%
DUO
Fangdd Network Group
0.58
-2.86
-83.26%
FTHM
Fathom Holdings
0.68
-1.29
-65.63%
OMH
Ohmyhome Limited
2.86
-53.64
-94.94%
LGPS
LogProstyle Inc.
0.94
<0.01
1.08%

Wetouch Technology Corporate Events

Business Operations and StrategyPrivate Placements and Financing
Wetouch Technology Announces Premium Private Share Placement
Positive
Jul 31, 2026
On July 31, 2026, Wetouch Technology Inc. entered into share purchase agreements with controlling shareholders Qixun Technology Limited and Qihong Technology Limited to issue 31,037,830 common shares at $1.25 per share, raising gross proceeds of $...
Business Operations and StrategyDividends
Wetouch Declares Special Dividend Amid Strategic Transformation
Positive
Jul 28, 2026
Wetouch Technology Inc., a global touch display solutions provider, is pushing into higher&#8209;value intelligent hardware, robotics components, robotic system integration and AI&#8209;related applications while maintaining a core focus on innova...
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: Aug 17, 2026