Wetouch Technology (WETH) AI Stock Analysis

• Market Cap: $20.28M
• Dividend Yield: N/A
• Average Volume (3M): 243.53K
• Price to Earnings (P/E): 2.7
• Beta (1Y): 1.32
• Revenue Growth: 6.08%
• EPS Growth: 123.07%
• Country: US
• Employees: 131
• Sector: Technology
• Sector Strength: 88
• Industry: Real Estate - Services
• EPS (TTM): 0.28
• Shares Outstanding: 11,931,534
• 10 Day Avg. Volume: 495,527
• 30 Day Avg. Volume: 243,528
• PEG Ratio: -0.08
• Price to Book (P/B): 0.17
• Price to Sales (P/S): 0.49
• P/FCF Ratio: 22.08
• Enterprise Value/Market Cap: -3.17
• Enterprise Value/Revenue: -1.48
• Enterprise Value/Gross Profit: -4.37
• Enterprise Value/Ebitda: -6.08
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 66 Neutral
• Price Target: $1.50 ▲(7.91% Upside)

The score is driven primarily by solid financial stability (very low leverage) and improving free cash flow, offset by declining profitability margins and weak technical momentum (price below key moving averages with negative MACD). Valuation is supportive due to the very low P/E, while recent corporate events are broadly positive but include potential dilution risk from expanded share authorization.

Positive Factors

Financial Stability

The company's low leverage indicates a strong financial position, reducing financial risk and providing stability for future operations.

Cash Generation

Significant growth in free cash flow highlights improved cash generation capabilities, supporting reinvestment and strategic initiatives.

Governance Improvement

Enhanced governance with experienced financial oversight can strengthen market confidence and improve strategic decision-making.

Negative Factors

Profitability Decline

Declining margins indicate pressure on profitability, which could affect long-term earnings potential and operational efficiency.

Potential Dilution Risk

Expanded share authorization could lead to dilution, impacting existing shareholders' value and potentially increasing market supply.

Cash Conversion Challenges

Challenges in converting earnings into cash may affect liquidity and limit the ability to fund operations and growth initiatives.

Wetouch Technology Business Overview & Revenue Model

Company Description

Wetouch Technology Inc. engages in the research, development, manufacture, sale, and servicing of medium to large sized projected capacitive touchscreens in the Peoples Republic of China, Taiwan, South Korea, and internationally. Its product portfolio comprises medium to large sized projected capacitive touchscreens, which range from 7.0 inch to 42-inch screens. The company offers Glass-Glass, which are primarily used in GPS/car entertainment panels in mid-size and luxury cars, industrial human-machine interface (HMI), financial and banking terminals, point of sale, and lottery machines; Glass-Film-Film, which are primarily used in high-end GPS and entertainment panels, industrial HMI, financial and banking terminals, lottery, and gaming industry; Plastic-Glass, which are used in GPS/entertainment panels motor vehicle GPS, smart home, robots, and charging stations; and Glass-Film that are used in industrial HMI. Its products are also used in financial terminals, automotive, POS, gaming, lottery, medical, HMI, and other specialized industries. The company was founded in 2011 and is based in Meishan, China.

How the Company Makes Money

Wetouch Technology generates revenue primarily through the sale of its proprietary touch and interactive technologies, including touchscreens and haptic systems, directly to manufacturers and OEMs in various industries. The company also earns income through licensing agreements for its patented technologies, allowing other companies to integrate Wetouch's innovations into their products. Additionally, Wetouch offers customization and consulting services, providing tailored solutions for clients looking to enhance their products with interactive features. Strategic partnerships with key industry players further amplify its revenue streams by enabling collaborative projects and joint ventures that expand market reach.

Wetouch Technology Financial Statement Overview

Summary

Wetouch Technology demonstrates a stable financial position with low leverage and strong cash flow generation. However, the company faces challenges in maintaining profitability margins and converting earnings into cash. Continued focus on operational efficiency and revenue growth will be crucial for future performance.

Income Statement

Wetouch Technology has shown a modest revenue growth rate of 3.06% in the most recent year, indicating a stable but slow growth trajectory. The gross profit margin has decreased from 43.29% to 32.18%, and the net profit margin has also declined from 20.81% to 14.26%, suggesting pressure on profitability. The EBIT and EBITDA margins have similarly decreased, reflecting challenges in maintaining operational efficiency.

Balance Sheet

The company maintains a strong balance sheet with a low debt-to-equity ratio of 0.008, indicating minimal leverage and financial risk. The return on equity has decreased to 4.84%, reflecting reduced profitability. However, the equity ratio remains healthy, suggesting a stable financial position.

Cash Flow

Wetouch Technology has experienced a significant free cash flow growth rate of 58.38%, highlighting improved cash generation capabilities. However, the operating cash flow to net income ratio has decreased to 0.41, indicating potential challenges in converting earnings into cash. The free cash flow to net income ratio remains strong at 0.77, suggesting efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	43.52M	42.28M	39.71M	37.92M	40.79M	31.35M
Gross Profit	14.70M	13.61M	17.19M	14.05M	18.43M	15.61M
EBITDA	10.57M	9.33M	12.66M	11.42M	13.01M	12.94M
Net Income	7.44M	6.03M	8.26M	8.73M	17.39M	8.93M
Balance Sheet
Total Assets	139.91M	128.02M	119.64M	73.11M	68.68M	47.06M
Cash, Cash Equivalents and Short-Term Investments	113.19M	103.76M	98.04M	51.25M	46.16M	23.96M
Total Debt	666.00K	1.05M	1.71M	1.66M	2.03M	0.00
Total Liabilities	4.74M	3.43M	6.72M	4.27M	4.37M	2.71M
Stockholders Equity	135.17M	124.59M	112.92M	68.83M	64.31M	44.35M
Cash Flow
Free Cash Flow	10.15M	932.25K	10.46M	8.59M	2.36M	12.96M
Operating Cash Flow	10.30M	1.20M	12.72M	8.59M	14.05M	12.96M
Investing Cash Flow	-152.63K	-271.83K	-2.26M	0.00	6.16M	0.00
Financing Cash Flow	-434.58K	7.45M	39.95M	-652.63K	1.86M	-4.70M

Wetouch Technology Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.39
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 1.39 is below the 20-day moving average (MA) of 1.55, below the 50-day MA of 2.00, and above the 200-day MA of 1.34, indicating a neutral trend. The MACD of -0.10 indicates Negative momentum. The RSI at 52.67 is Neutral, neither overbought nor oversold. The STOCH value of 81.31 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for WETH.

Wetouch Technology Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WETH	66 Neutral	$20.28M	2.73	5.96%	―	6.08%	123.07%
LGPS	66 Neutral	$24.24M	4.11	28.32%	2.37%	10.31%	37.72%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
FTHM	51 Neutral	$42.11M	-1.61	-43.75%	―	32.78%	36.50%
DUO	48 Neutral	$6.19M	-1.71	-8.20%	―	48.49%	-9554.26%
GBR	44 Neutral	$4.00M	-51.93	-1.70%	―	4.08%	-102.70%
OMH	44 Neutral	$21.95M	―	―	―	―	―

Wetouch Technology Corporate Events

Wetouch Technology Shareholders Approve Expanded Share Authorization

On December 26, 2025, Wetouch Technology Inc. held its 2025 Annual Meeting of Stockholders, at which a quorum was present. Shareholders re-elected directors Guangrong Cai, Jian Feng, Jiaxing Huang, Jing Guo and Yunna Liu to the board to serve until the next annual meeting, ratified ST & Partners PLT as the company’s independent registered public accounting firm for the 2025 fiscal year, approved a substantial increase in authorized common shares from 15 million to 65 million, and gave non-binding approval to the compensation of the company’s named executive officers. The authorization of a significantly larger share base provides Wetouch with added financial flexibility for potential future capital-raising or corporate actions, while the broad support for the board slate, auditor ratification and executive pay signals continued shareholder backing of the company’s current governance and strategic direction.

The most recent analyst rating on (WETH) stock is a Buy with a $2.00 price target. To see the full list of analyst forecasts on Wetouch Technology stock, see the WETH Stock Forecast page.

Wetouch Technology Appoints Yunna Liu to Board

On November 1, 2025, Wetouch Technology Inc. appointed Ms. Yunna Liu to its Board of Directors, including roles on the Audit, Compensation, and Nominating and Corporate Governance Committees, with Ms. Liu also serving as Chairperson of the Audit Committee. Ms. Liu is recognized as an ‘audit committee financial expert’ by the SEC and brings over twenty years of experience in auditing, accounting, and financial management, including roles at Hongkong Succeed Capital Limited and Anhui Zhengxiaowan Catering Co., Ltd. This strategic appointment is expected to enhance Wetouch Technology’s financial oversight and governance capabilities, potentially strengthening its market position and stakeholder confidence.

Wetouch Technology Regains Nasdaq Compliance

Wetouch Technology announced that it has regained compliance with Nasdaq Listing Rule 5250(c)(1) after filing its overdue Form 10-Qs for the periods ending March 31, 2025, and June 30, 2025. The company received confirmation from Nasdaq on October 10, 2025, that it is now current with its periodic filing requirements, closing the matter previously disclosed in their September 16, 2025, Form 8-K.