The company demonstrates resilient profitability with gross margins frequently exceeding 30%, though revenue growth remains highly volatile with quarterly year-over-year fluctuations ranging from double-digit expansion to contraction.
| Revenue | 46.16M | 45.14M | 42.28M | 39.71M | 37.92M | 40.79M | 31.35M | 40M |
| Revenue Growth % | 8.12% | 6.76% | 6.48% | 4.7% | -7.02% | 30.11% | -21.64% | - |
| Property Operating Expenses | 31.62M | 30.77M | 28.67M | 22.52M | 23.87M | 22.35M | 15.74M | 21.3M |
| Net Operating Income (NOI) | 14.54M | 14.37M | 13.61M | 17.19M | 14.05M | 18.43M | 15.61M | 18.7M |
| NOI Margin % | 31.51% | 31.84% | 32.18% | 43.3% | 37.05% | 45.19% | 49.8% | 46.75% |
| Operating Expenses | 3.46M | 4.4M | 4.29M | 4.54M | 2.64M | 5.81M | 3.73M | 1.7M |
| G&A Expenses | 421.05B | 4.4M | 4.29M | 4.46M | 2.55M | 5.72M | 3.65M | 1.56M |
| EBITDA | 11.71M | 10.59M | 9.33M | 12.66M | 11.42M | 13.01M | 12.94M | 18.04M |
| EBITDA Margin % | 25.37% | 23.46% | 22.06% | 31.88% | 30.13% | 31.89% | 41.27% | 45.09% |
| Depreciation & Amortization | 631.48K | 623.53K | 9.8K | 9.4K | 9.89K | 381.17K | 1.06M | 1.04M |
| D&A / Revenue % | 1.37% | 1.38% | 0.02% | 0.02% | 0.03% | 0.93% | 3.37% | 2.59% |
| Operating Income | 11.08M | 9.97M | 9.32M | 12.65M | 11.41M | 12.62M | 11.88M | 17M |
| Operating Margin % | 24% | 22.08% | 22.04% | 31.86% | 30.1% | 30.95% | 37.9% | 42.5% |
| Interest Expense | 0 | 0 | 1.17M | 252.32K | 224.88K | 27.45K | 1.73M | 16.88K |
| Interest Coverage | - | - | 8.43x | 49.93x | 54.73x | 795.01x | 6.87x | 1006.93x |
| Non-Operating Income | -154.24K | -192.53K | -541.41K | 51.02K | -893.46K | -9.2M | 0 | 0 |
| Pretax Income | 11.23M | 10.16M | 8.69M | 12.35M | 12.08M | 21.8M | 10.48M | 16.44M |
| Pretax Margin % | 24.34% | 22.51% | 20.55% | 31.1% | 31.86% | 53.44% | 33.43% | 41.1% |
| Income Tax | 2.77M | 3M | 2.66M | 4.08M | 3.35M | 4.41M | 1.55M | 2.72M |
| Effective Tax Rate % | 24.66% | 29.51% | 30.59% | 33.07% | 27.75% | 20.23% | 14.78% | 16.57% |
| Net Income | 8.46M | 7.16M | 6.03M | 8.26M | 8.73M | 17.39M | 8.93M | 13.72M |
| Net Margin % | 18.34% | 15.86% | 14.26% | 20.81% | 23.02% | 42.63% | 28.49% | 34.29% |
| Net Income Growth % | 5.34% | 18.73% | -27.02% | -5.34% | -49.78% | 94.68% | -34.89% | - |
| Funds From Operations (FFO) | 9.1M | 7.78M | 6.04M | 8.27M | 8.74M | 17.77M | 9.99M | 14.75M |
| FFO Margin % | 19.7% | 17.25% | 14.29% | 20.84% | 23.05% | 43.56% | 31.86% | 36.88% |
| FFO Growth % | -72.91% | 28.85% | -26.99% | -5.34% | -50.81% | 77.91% | -32.32% | - |
| FFO per Share | 0.76 | 0.65 | 0.52 | 0.88 | 4.74 | 10.88 | 6.89 | 10.18 |
| FFO Payout Ratio % | 0% | 0% | 0% | 0% | 0% | 0% | 0% | 0% |
| EPS (Diluted) | 0.71 | 0.60 | 0.52 | 0.88 | 4.74 | 10.65 | 6.20 | 9.46 |
| EPS Growth % | 5.44% | 15.38% | -40.91% | -81.43% | -55.49% | 71.77% | -34.46% | - |
| EPS (Basic) | - | 0.60 | 0.52 | 0.89 | 5.39 | 10.93 | 6.21 | 9.53 |
| Diluted Shares Outstanding | 11.93M | 11.93M | 11.68M | 9.38M | 1.84M | 1.63M | 1.45M | 1.45M |
Lumpy project-based revenue
As reported in recent financial filings, Wetouch Technology's revenue growth remains highly volatile, with quarterly year-over-year fluctuations ranging from significant double-digit expansion to contraction, reflecting a business model heavily dependent on the timing of specific industrial and financial terminal project deployments rather than steady organic demand.
The company's revenue trajectory appears to be dictated by the lumpy nature of design-win cycles in the automotive and industrial sectors. Investors should monitor whether the current 6.76% year-over-year growth rate represents a sustainable baseline or merely a temporary recovery from previous quarterly troughs.
Based on the provided income statement data, Wetouch maintains a robust gross margin profile, frequently exceeding 30%, which suggests that the firm's specialized PCAP touchscreen manufacturing for harsh environments provides a meaningful buffer against the commoditization pressures typically seen in broader consumer electronics display markets.
The ability to sustain these margins indicates that the company's value-added assembly process for large-format screens likely commands pricing power within its niche. However, any shift toward integrated 'in-cell' display technologies could threaten this structural advantage and warrants ongoing scrutiny of future margin trends.
According to the latest quarterly figures, Wetouch demonstrates significant operating leverage, as the company successfully scales its operating income during peak revenue periods while maintaining a lean cost structure that avoids the heavy R&D burdens often associated with high-tech hardware manufacturing firms of this size.
The company's ability to convert gross profit into operating income with minimal overhead suggests a highly disciplined management approach. This efficiency is a key driver of the firm's bottom-line health, though it may also imply a lack of aggressive investment in future product innovation.
As indicated by the historical income statements, Wetouch's net income is characterized by extreme quarterly variance, with EPS swings that appear to be driven more by the timing of project-based revenue recognition than by underlying changes in the company's core operational efficiency or cost management.
The absence of stock-based compensation and the lack of debt-related interest expenses contribute to a clean, albeit lumpy, earnings profile. Analysts should be cautious in extrapolating recent EPS performance, as the lack of consistent quarterly growth suggests that earnings quality is highly sensitive to contract delivery schedules.
Based on the company's reported figures, the massive cash-to-revenue disparity suggests a potential 'cash trap' scenario, where the firm's inability to deploy its $118.3 million in liquid assets toward meaningful growth initiatives may indicate limited scalability or a lack of strategic vision for its niche.
Short-term observers might view the zero-debt balance sheet as a sign of strength, but the stagnant growth profile raises questions about the company's long-term competitive relevance. Investors should investigate whether this idle capital is a result of management's extreme conservatism or a lack of viable reinvestment opportunities.
Quick answers to the most common questions about buying WETH stock.
For fiscal year 2025, Wetouch Technology Inc. (WETH) reported total revenue of $45.1M. This represents a 12.8% increase compared to $40.0M in 2019.
Wetouch Technology Inc. (WETH) is profitable, generating $7.2M in net income for the fiscal year ending 2025 with a net profit margin of 15.9%.
Wetouch Technology Inc. (WETH) reported an operating income of $10.0M, resulting in an operating profit margin of 22.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Wetouch Technology Inc. (WETH) generated $14.4M in gross profit for the year, representing a gross profit margin of 31.8%. This demonstrates the company's core pricing power and production efficiency.