Wetouch Technology Inc. Common Stock (WETH)

FairStock Score: 71/100 — STEADY

Key Financials

Strengths

• Generates $10 million in annual free cash flow (43.8% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.00, providing financial flexibility
• Altman Z-Score of 5.9 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 44.5% demonstrates strong top-line momentum
• FairStock composite score of 71/100 places it in the top tier across value, quality, and momentum factors

Concerns

• Weak Piotroski F-Score of 3/9 suggests deteriorating financial quality across multiple dimensions

AI Analysis

Wetouch Technology Inc. Common Stock is a micro-cap technology company valued at $22 million. Revenue stands at $45 million. From a quality standpoint, Wetouch shows weak Piotroski F-Score of 3/9 signaling deteriorating fundamentals and Altman Z-Score of 5.9 confirms fortress-level solvency. On valuation, the stock is deeply undervalued on a P/E basis at 3.1x, with offers a 85% margin of safety vs Graham Number of $12. Growth dynamics show revenue growing at 44.5% and profit growth of -255.8%. Our composite FairStock Score of 71/100 reflects above-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Wetouch's 45% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $10 million in annual free cash flow (43.8% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

Macro headwinds or sector-specific disruption could pressure margins, particularly if competitive intensity increases in the technology space. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer