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Wetouch Technology

WETH
42
Consumer Electronics · Technology
Price
$1.35
+0.14 (+11.57%)
Market Cap
$16.1M
Exchange
NASDAQ Capital Market
Winston Score
42
Winston is serious
Mixed quality — meaningful strengths and weaknesses.

Share count rising — dilution

+630.8% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.6M (2021) → 11.9M (2025)

Wetouch Technology Inc. is a Chinese company that makes touchscreen panels used in electronic devices. Its core products are projected capacitive touchscreens, which are the kind of screens you tap and swipe on. These panels are sold to manufacturers who build tablets, industrial equipment, and other consumer electronics products.

The company earns money by selling touchscreen components to device makers, acting as a supplier in the electronics supply chain. Wetouch operates primarily in China and sells into both domestic and international markets, though it remains a relatively small player in the global touchscreen industry. Its gross margin of around 31% suggests some pricing power, but the touchscreen component market is highly competitive, with many manufacturers competing on price and scale. The main risk the company faces is customer concentration and intense competition from larger, better-funded rivals in Asia, which could pressure margins and make it difficult to grow revenue consistently over time.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.7% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+52.4% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (15%)

Research and development spending

Insider Activity

0.1%ownership

Relatively low insider ownership

Cash Position

Cash flow positive

$121M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Wetouch Technology is growing revenue at 7% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
35.6%
Modest — 35.6% gross margin
Operating Margin
31.2%
Excellent — 31.2% operating margin
ROCE
3.6%
Weak — 3.6% return on capital

ROIC between 0% and 5%. They earn a few cents back per dollar invested in the business.

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Growth

Sales YoY
+8.1%
Steady sales growth (8.1% YoY)
EPS YoY
+5.4%
Modest earnings growth (5.4% YoY)

Single-digit earnings growth — steady but not exciting.

EPS Consistency
2/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
69%
Modest — 69% of profit becomes cash
FCF Margin
12.0%
Converts sales into free cash efficiently (12.0%)

FCF margin between 10% and 20%. Every $100 in sales becomes $10 to $20 in real cash.

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Stability

Debt / Equity
N/A
Data not available
Interest Cover
100.00x
Comfortably covers interest (100.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
1.9x
Attractive valuation — P/E 1.9

P/E under 10. The price tag is small relative to last year's profit.

P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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