Wetouch Technology Inc. Common Stock (WETH)

FairStock Score: 71/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

As a Graham-style investor, I start with the balance sheet. Wetouch is a $13.1M market-cap maker of medium-to-large projected capacitive touchscreens, with 152 employees. The FairStock data show a Lynch asset play: price at 0.09 times book at the $0.98 close on 2026-10-13, no debt (D/E 0.00), Altman Z-Score 4.07, and a Piotroski F-Score 6/9. That is not a fortress franchise, but it is a statistically cheap asset. In fiscal Q1 2026, the quarter ended 2026-03-31, revenue was $5.3M, net income $3.9M, and diluted EPS $0.32. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $4.4M, net income $2.2M, and diluted EPS $0.18. Sequential revenue and profit fell, though fiscal Q2 2026 revenue was above fiscal Q2 2025's $4.0M. FY2025, ended 2025-12-31, had revenue $14.2M and net income $7.2M; FY2024 had revenue $14.9M and net income $6.0M; FY2023 had revenue $12.0M and net income $8.3M. So the business is profitable but erratic. Free cash flow is $7.9M on a trailing basis, a 59.9% FCF yield by FairStock's calculation, and the Graham Number is $14.01 versus the $0.98 close on 2026-10-13, a 93% margin of safety. The lack of debt and high cash generation are real attractions. The moat, however, looks thin: touchscreens are competitive, and 152 employees do not suggest scale advantages. The market's distrust may be rational around the durability of reported earnings and assets. I would want the discount to persist only if the filings keep confirming cash and book value.

In plain English: Wetouch Technology makes touchscreens used in cars, industrial controls, bank terminals, and similar machines. The business is profitable, carries no debt, and produces more cash than its tiny market value implies, but sales and profits have been uneven. At $0.98 a share, the stock looks very cheap compared with its stated assets and earnings, though it is a very small company.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer