Wetouch Technology Inc.
Wetouch Technology Inc. Fundamental Analysis
Wetouch Technology Inc. (WETH) shows moderate financial fundamentals with a PE ratio of 2.93, profit margin of 17.10%, and ROE of 5.73%. The company generates $0.0B in annual revenue with moderate year-over-year growth of 6.48%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.3/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze WETH's fundamental strength across five key dimensions:
Efficiency Score
WeakWETH struggles to generate sufficient returns from assets.
Valuation Score
ExcellentWETH trades at attractive valuation levels.
Growth Score
ModerateWETH shows steady but slowing expansion.
Financial Health Score
ExcellentWETH maintains a strong and stable balance sheet.
Profitability Score
ModerateWETH maintains healthy but balanced margins.
Key Financial Metrics
Is WETH Expensive or Cheap?
P/E Ratio
WETH trades at 2.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, WETH's PEG of -1.84 indicates potential undervaluation.
Price to Book
The market values Wetouch Technology Inc. at 0.16 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 12.71 times EBITDA. This signals the market has high growth expectations.
How Well Does WETH Make Money?
Net Profit Margin
For every $100 in sales, Wetouch Technology Inc. keeps $17.10 as profit after all expenses.
Operating Margin
Core operations generate 22.95 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.73 in profit for every $100 of shareholder equity.
ROA
Wetouch Technology Inc. generates $5.32 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Wetouch Technology Inc. produces operating cash flow of $10.30M, showing steady but balanced cash generation.
Free Cash Flow
Wetouch Technology Inc. generates strong free cash flow of $10.15M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.85 in free cash annually.
FCF Yield
WETH converts 46.23% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
2.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-1.84
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.16
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.50
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.005
vs 25 benchmark
Current Ratio
Current assets to current liabilities
26.69
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.06
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.07
vs 25 benchmark
How WETH Stacks Against Its Sector Peers
| Metric | WETH Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 2.93 | 24.23 | Better (Cheaper) |
| ROE | 5.73% | 659.00% | Weak |
| Net Margin | 17.10% | 4497.00% | Weak |
| Debt/Equity | 0.00 | -22.14 (disorted) | Distorted |
| Current Ratio | 26.69 | 13.87 | Strong Liquidity |
| ROA | 5.32% | -1390.00% (disorted) | Weak |
WETH outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Wetouch Technology Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
-86.93%
Industry Style: Income, Inflation Hedge, REIT
DecliningEPS CAGR
-94.56%
Industry Style: Income, Inflation Hedge, REIT
DecliningFCF CAGR
-98.53%
Industry Style: Income, Inflation Hedge, REIT
Declining