Latest Ratios: P/E Ratio 1.8x · EV/EBITDA -9.9x · ROE 5.5%. (2019–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Market Cap | $13M | $16M | $21M | $61M | $7M | $24M | $97M | $15M |
| Enterprise Value | $-105075253 | $-101853114 | $-82030809 | $-35393655 | $-42581117 | $-20231042 | $73M | $759687 |
| P/E Ratio → | 1.78 | 2.23 | 3.40 | 7.39 | 0.80 | 1.37 | 10.81 | 1.07 |
| P/S Ratio | 0.28 | 0.35 | 0.49 | 1.53 | 0.18 | 0.59 | 3.10 | 0.37 |
| P/B Ratio | 0.09 | 0.12 | 0.17 | 0.54 | 0.10 | 0.37 | 2.19 | 0.46 |
| P/FCF | 1.81 | 2.26 | 22.18 | 5.83 | 0.82 | 10.15 | 7.49 | 1.44 |
| P/OCF | 1.73 | 2.16 | 17.17 | 4.79 | 0.82 | 1.70 | 7.49 | 1.44 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | -2.26 | -1.94 | -0.89 | -1.12 | -0.50 | 2.33 | 0.02 |
| EV / EBITDA | -9.92 | -9.62 | -8.79 | -2.80 | -3.73 | -1.56 | 5.65 | 0.04 |
| EV / EBIT | -10.54 | -10.03 | -8.32 | -2.81 | -3.46 | -0.93 | 6.16 | 0.04 |
| EV / FCF | — | -14.41 | -87.99 | -3.38 | -4.96 | -8.59 | 5.64 | 0.07 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 31.8% | 31.8% | 32.2% | 43.3% | 37.0% | 45.2% | 49.8% | 46.7% |
| Operating Margin | 22.1% | 22.1% | 22.0% | 31.9% | 30.1% | 31.0% | 37.9% | 42.5% |
| Net Profit Margin | 15.9% | 15.9% | 14.3% | 20.8% | 23.0% | 42.6% | 28.5% | 34.3% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| ROE | 5.5% | 5.5% | 5.1% | 9.1% | 13.1% | 32.0% | 23.5% | 43.3% |
| ROA | 5.3% | 5.3% | 4.9% | 8.6% | 12.3% | 30.0% | 20.1% | 32.9% |
| ROIC | 36.1% | 36.1% | 36.3% | 53.0% | 43.4% | 46.7% | 46.6% | 71.6% |
| ROCE | 7.6% | 7.6% | 7.8% | 13.9% | 17.0% | 22.9% | 30.8% | 52.6% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.00 | 0.00 | 0.01 | 0.02 | 0.02 | 0.03 | — | 0.01 |
| Debt / EBITDA | 0.05 | 0.05 | 0.11 | 0.13 | 0.15 | 0.16 | — | 0.02 |
| Net Debt / Equity | — | -0.86 | -0.82 | -0.85 | -0.72 | -0.69 | -0.54 | -0.44 |
| Net Debt / EBITDA | -11.13 | -11.13 | -11.01 | -7.61 | -4.34 | -3.39 | -1.85 | -0.77 |
| Debt / FCF | — | -16.67 | -110.17 | -9.21 | -5.78 | -18.73 | -1.85 | -1.36 |
| Interest Coverage | — | — | 8.43 | 49.93 | 54.73 | 795.01 | 6.87 | 1006.93 |
Net cash position: cash ($118M) exceeds total debt ($521454)
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Current Ratio | 38.88 | 38.88 | 38.68 | 16.84 | 15.49 | 17.54 | 16.07 | 3.27 |
| Quick Ratio | 38.86 | 38.86 | 38.64 | 16.80 | 15.38 | 17.46 | 15.90 | 3.25 |
| Cash Ratio | 36.49 | 36.49 | 35.16 | 15.46 | 12.77 | 14.24 | 10.53 | 1.51 |
| Asset Turnover | — | 0.32 | 0.33 | 0.33 | 0.52 | 0.59 | 0.67 | 0.96 |
| Inventory Turnover | 629.94 | 629.94 | 255.27 | 101.37 | 56.40 | 91.47 | 39.14 | 104.54 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 |
|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 56.1% | 44.8% | 29.4% | 13.5% | 124.7% | 72.7% | 9.3% | 93.8% |
| FCF Yield | 55.4% | 44.2% | 4.5% | 17.2% | 122.6% | 9.9% | 13.3% | 69.5% |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Shares Outstanding | — | $12M | $12M | $9M | $2M | $2M | $1M | $1M |
Excessive idle cash accumulation
According to recent financial filings, Wetouch trades at a P/B ratio of 0.09, a valuation level that suggests the market is heavily discounting the company's assets, likely due to the massive, underutilized cash position that dominates the balance sheet and obscures underlying operational performance.
The P/S ratio of 0.28 and P/E of 1.78 indicate that investors are assigning almost no value to the company's future growth prospects or its specialized industrial touchscreen manufacturing capabilities. This valuation appears to reflect a 'cash box' discount, where the market treats the company as a stagnant entity rather than a technology provider with high-margin potential.
Based on reported figures, Wetouch's ROIC has fluctuated significantly, reaching 17.9% in 2026Q1, yet this metric is heavily distorted by the company's massive cash pile, which dilutes the return on invested capital and masks the true profitability of the core manufacturing operations.
While the operating margins remain strong, the inability to deploy capital into high-return projects suggests that the company is failing to compound its returns effectively. Investors should monitor whether management can pivot toward more aggressive capital allocation, as the current ROIC trend appears more reflective of interest income on cash than operational excellence.
As reported in financial statements, the company's cash conversion cycle has shown extreme variance, peaking at 379 days in 2023Q4 before normalizing to 40 days in 2026Q1, highlighting the inherent instability of managing inventory and receivables within a project-based industrial hardware business model.
The erratic DSO and CCC trends suggest that Wetouch lacks consistent leverage over its customer base, likely due to the lumpy nature of large-format touchscreen deployments. This volatility in working capital management warrants further investigation into whether the company's operational efficiency is truly improving or merely benefiting from the timing of specific contract completions.
According to the latest balance sheet data, Wetouch maintains a current ratio of 32.24, an exceptionally high figure that indicates a massive, idle cash buffer that far exceeds the company's operational requirements and suggests a significant inefficiency in the firm's current capital structure.
While this liquidity position provides a fortress-like defense against insolvency, it appears to be a drag on overall shareholder value by depressing ROE. The lack of debt, while conservative, may be preventing the company from optimizing its cost of capital and pursuing growth opportunities that could justify a higher market valuation.
Based on the company's reported figures, the P/E ratio is the most commonly misapplied metric for Wetouch, as it fails to account for the massive cash-to-revenue disparity that renders traditional earnings-based valuation models largely irrelevant for this specific business model.
Investors should instead focus on an 'ex-cash' valuation or EV/EBITDA, as the current P/E ratio is artificially deflated by the company's non-operating cash holdings. Relying on standard multiples obscures the underlying operational health and may lead to an incorrect assessment of the company's true market value.
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Quick answers to the most common questions about buying WETH stock.
Wetouch Technology Inc.'s current P/E ratio is 1.8x. The historical average is 3.9x. This places it at the 43th percentile of its historical range.
Wetouch Technology Inc.'s current EV/EBITDA is -9.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 2.8x.
Wetouch Technology Inc.'s return on equity (ROE) is 5.5%. The historical average is 18.8%.
Based on historical data, Wetouch Technology Inc. is trading at a P/E of 1.8x. This is at the 43th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Wetouch Technology Inc. has 31.8% gross margin and 22.1% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Wetouch Technology Inc.'s Debt/EBITDA ratio is 0.0x, indicating low leverage. A ratio below 2x is generally considered financially healthy.