Wetouch Technology Inc.

Technology
Computer peripheral equipment
www.wetouchinc.com

Earnings Score
Moat Score

Market Cap $19.08M
PE 5
Debt $NaN
Cash $106.74M
EV $NaN
FCF $NaN

Earnings

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Sales & Net Margins

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Earnings	$3.86M
EBIT	$7.48M
ROE	3%
ROA	6%
Equity	$129.48M
Growth Stability	65%
PE	4.94
PEG	-0.18
PB	0.15
P/S	0.47
Price/Cash	5.59
Net Margins	15%
Gross Margins	31%
Op. Margins	18%
Earnings CAGR	-27%
Sales Growth YoY	4%
Sales Growth QoQ	-6%
Sales CAGR	1%
Equity CAGR	36%
Earnings Stability	-0.08
Earnings Growth YoY	-7%

Earnings Growth QoQ	-2%
Earnings CAGR 5Y	-27%
Sales CAGR 5Y	1%
Equity CAGR 5Y	36%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
Equity CAGR 3Y	35%
Market Cap	$19.08M
Revenue	$41.02M
Assets	$133.14M
Cash	$106.74M
Shares Outstanding	11.53M
Earnings Score	6%
Moat Score	64%
Working Capital	116.56M
Current Ratio	34.75
Gross Profit	$12.76M
Shares Growth 3y	20%
Equity Growth QoQ	6%
Equity Growth YoY	16%

Assets & ROA

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Stockholders Equity & ROE

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Headquartered in Meishan, Sichuan Province and started business in 2011, we are a Nevada company conduct our business in China through our wholly-owned subsidiaries. The Company are engaged in the research, development, manufacturing, sales and servicing of medium to large sized projected capacitive touchscreens. We specialize in large-format touchscreens, which are developed and designed for a wide variety of markets and used in the financial terminals, automotive, POS, gaming, lottery, medical, HMI, and other specialized industries.

SEC Filings

Direct access to Wetouch Technology Inc. (WETH) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Wetouch Technology Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Wetouch Technology Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -27%

Stability -8%

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Wetouch Technology Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Wetouch Technology Inc..

Years

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fcf	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
DCF		$0	$0	$0	$0	$0	$0	$0	$0	$0	$0	$0
Value	$0

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	34%	28%	43%	23%	21%	15%
ROA	-	25%	32%	17%	11%	6%
ROE	-	20%	27%	13%	7%	3%

Good Net Margins (15.32%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-
Debt over Equity	-	-	0.06	0.04	0.02	-
Growth Stability	-	-	-	65%	71%	65%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Bad Graham’s Stability (65%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-22%	30%	-7%	5%	1%
Earnings YoY growth	-	-35%	95%	-50%	-5%	-27%
Equity YoY growth	-	40%	45%	7%	64%	36%
FCF YoY growth	-	-	-	-	-	-