Wetouch Technology Inc. (WETH) AI Stock Analysis
WETH AI stock analysis summary
AI ResearchWetouch Technology Inc. (WETH) develops and manufactures medium to large-sized projected capacitive touchscreens for automotive, industrial, and financial applications. In FY2025, the company grew revenue 6.8% to $45.1M with a net income of $7.2M, while trailing twelve month revenue reached $47.7M. The company maintains $127.5M in cash and short-term investments against a market cap of $13.4M.
- Market cap
- $13.4M
- Revenue (TTM)
- $47.7M
- P/E
- 1.4x
- 1Y return
- -41.7% S&P 500 16.8%
- Avg. target
- —
Bull case
- The company holds $127.3M in net cash with total debt of just $215,718 as of June 30, 2026.
- Wetouch trades at a trailing P/E of 1.4x and a price-to-sales of 0.3x, well below the median of its US-listed Technology peers at 28.1x and 2.8x respectively.
- Revenue expanded by 12.7% year-over-year in the quarter ended June 30, 2026, while FY2025 free cash flow reached $7.1M.
Bear case
- The company's share count increased 513.4% over a 5-year period, representing substantial equity dilution.
- WETH stock has declined 41.7% over the past year, trailing the S&P 500 benchmark return of 16.8%.
- Gross margin compressed from 45.2% in FY2021 to 31.8% in FY2025, reflecting long-term margin erosion.
What Wetouch Technology does
Wetouch Technology Inc. specializes in the research, development, manufacturing, sales, and servicing of medium to large-sized projected capacitive touchscreens. Operating primarily in China, Taiwan, South Korea, and globally, the company serves industries such as automotive, industrial automation, financial services, and gaming. Its product portfolio features glass-glass panels utilized in vehicle GPS and car entertainment systems, industrial human-machine interfaces, financial terminals, point of sale systems, and lottery machines. It also offers glass-film-film products and plastic-glass panels used in motor vehicle GPS, smart home devices, robotics, and charging stations.
Growth and profitability
Wetouch Technology generated a 5-year revenue compound annual growth rate of 7.6% from FY2020 to FY2025. Annual revenue grew from $40.8M in FY2021 to $45.1M in FY2025, despite declining 7.0% in FY2022. Gross margin moderated from 45.2% in FY2021 to 31.8% in FY2025, while net margin contracted from 42.6% to 15.9%, yielding net income of $7.2M in FY2025. Over the trailing twelve months ending June 30, 2026, revenue stood at $47.7M with an operating margin of 22.6% and a profit margin of 17.6%. In the latest quarter, quarterly revenue grew 12.7% year-over-year, while quarterly earnings declined 6.1%.
Balance sheet and cash flow
As of June 30, 2026, Wetouch Technology held $127.5M in cash and short-term investments and $215,718 in total debt, resulting in net cash of $127.3M. Total assets stood at $152.6M against shareholders' equity of $148.8M. The company reported a current ratio of 35.99 and a debt-to-equity ratio of 0.00. In FY2025, operating cash flow reached $7.4M and capital expenditures were $322,300, producing free cash flow of $7.1M. Over five years, the company's share count increased by 513.4%.
Valuation and performance
At its last close of $1.00 on October 16, 2026, Wetouch Technology had a market cap of $13.4M and an enterprise value of -$113.5M. The stock traded at a trailing P/E of 1.4x, a price-to-sales of 0.3x, and an EV/EBITDA of 0.8x. These multiples sit below the median of its US-listed Technology peers, which reported a trailing P/E of 28.1x, price-to-sales of 2.8x, and EV/EBITDA of 16.6x. Over the past year, WETH fell 41.7%, compared to a 16.8% return for the S&P 500 benchmark SPY.
What analysts expect
Wetouch Technology has a current fiscal year revenue estimate of $0 for the period ending December 31, 2026. The company has surpassed EPS estimates in 4 of its last 4 quarters. The next earnings date is scheduled for November 11, 2026. No analyst price targets, recommendations, or buy/hold/sell counts are provided in the available data.
Key risks and what to watch
- Quarterly earnings declined 6.1% year-over-year in the quarter ended June 30, 2026, despite a 12.7% rise in revenue.
- Research and development spending dropped to $0 in FY2024 from $84,551 in FY2023, which may impact product competitiveness.
- With a market cap of $13.4M and a share price of $1.00 as of October 16, 2026, the micro-cap stock faces potential liquidity constraints and price volatility.
- The stock trades 27.1% below its 200-day moving average and sits near its 52-week low of $0.91.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this WETH AI stock analysis
This page is an AI-written research summary of Wetouch Technology Inc. (WETH). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: WETH income statement, WETH balance sheet, WETH key metrics, WETH analyst forecast, WETH chart. See the WETH stock overview for the latest quote and news.
WETH AI stock analysis FAQ
What does Wetouch Technology Inc. do?
Wetouch Technology Inc. researches, develops, manufactures, sells, and services medium to large-sized projected capacitive touchscreens. Its products serve automotive GPS and entertainment, industrial automation, financial terminals, point of sale systems, and gaming markets.
What is Wetouch Technology's cash position?
As of June 30, 2026, the company held $127.5M in cash and short-term investments against $215,718 in total debt, yielding a net cash balance of $127.3M. Its current ratio was 35.99.
How has WETH stock performed recently?
As of October 16, 2026, WETH closed at $1.00, marking a year-to-date decline of 22.9% and a one-year decline of 41.7%. During the same one-year span, the S&P 500 (SPY) gained 16.8%.
What was Wetouch Technology's revenue and profit in FY2025?
In FY2025, Wetouch generated revenue of $45.1M, representing 6.8% annual growth, and net income of $7.2M with a net margin of 15.9%. Free cash flow for the year was $7.1M.
When does Wetouch Technology report its next quarterly earnings?
Wetouch Technology is scheduled to report its next earnings on November 11, 2026. The company has beaten EPS expectations in 4 of its last 4 quarters.