MeritValue

Wetouch Technology Inc.

WETHdata completeness 88%7 fiscal years on file

Data notes: no data for concept 'totalDebt'

The thesis, from the filings

Wetouch Technology Inc. earns about 55% on invested capital, far above its ~9% cost of capital, and has bought back 63% of its shares over 5 years — the marks of a durable business run for its owners. The estimate methods put fair value between $7.18 and $45.26 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$40.7M1$37.9M2$12M3$14.9M4$14.2M4
Net income$17.4M5$8.73M6$8.26M7$6.03M8$7.16M8
Operating cash flow$14.1M9$8.59M10$12.7M11$1.07M12$7.39M12
Capital expenditure$11.7M13—$2.26M14$271,83015$322,30415
Free cash flow (derived)$2.36M9—$10.5M11$797,24812$7.07M12
Total debt—————
Cash & equivalents$46.2M16$51.3M16$98M17$103.8M18$118.4M18
Diluted shares32.7M1.8M9.4M11.7M11.9M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$115.15
your share of equity
Profit it earned you last year
$6
Free cash flow it threw off
$5.92
Debt you’d be carrying
—

10 shares is a claim on $115.15 of net worth that earned you $6 and generated $5.92 of cash last year.

iii. Is this a good business?
Moat signal · return on invested capital
55% avg · 5y
FY21 96%FY22 51%FY23 57%FY24 33%FY25 38%

It earned about 55% on invested capital, year after year, against a ~9% cost of capital — the footprint of real pricing power. Competition usually drags returns like this back down; here it hasn't.

seeing a moat in the numbers →
Management signal · capital allocation
−63% shares · 5y

Share count is down 63% over 5 years — management has been buying back stock, quietly handing owners a bigger slice.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 3 estimate methods that apply put fair value between $7.18 and $45.26 a share. They rest on different assumptions, so where they diverge is the story; the Graham Number is a stricter floor, not a target.

DCF · Growth Exit 10Y
$45.26
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth20.0%
  • fcfBase$7.07M
DCF · Growth Exit 5Y
$29.24
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth20.0%
  • fcfBase$7.07M
Earnings Power Value
$7.18
assumptions (8)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$8.26M
  • growthAssumed0.0%
Graham Number
$12.47
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years20.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $29.24
The three cases
Bear0.0%$18.39
Base20.0%$29.24
Bull20.0%$29.24

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 20.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 10-K · period ending 2021-12-31 · accession 0001493152-23-012473 (RevenueFromContractWithCustomerExcludingAssessedTax)
  2. 10-K · period ending 2022-12-31 · accession 0001493152-24-014934 (RevenueFromContractWithCustomerExcludingAssessedTax)
  3. 10-K · period ending 2023-12-31 · accession 0001213900-25-086651 (RevenueFromContractWithCustomerExcludingAssessedTax)
  4. 10-K · period ending 2024-12-31 · accession 0001213900-26-043017 (RevenueFromContractWithCustomerExcludingAssessedTax)
  5. 10-K · period ending 2021-12-31 · accession 0001493152-23-012473 (NetIncomeLoss)
  6. 10-K · period ending 2022-12-31 · accession 0001493152-24-014934 (NetIncomeLoss)
  7. 10-K · period ending 2023-12-31 · accession 0001213900-25-086651 (NetIncomeLoss)
  8. 10-K · period ending 2024-12-31 · accession 0001213900-26-043017 (NetIncomeLoss)
  9. 10-K · period ending 2021-12-31 · accession 0001493152-23-012473 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-12-31 · accession 0001493152-24-014934 (NetCashProvidedByUsedInOperatingActivities)
  11. 10-K · period ending 2023-12-31 · accession 0001213900-25-086651 (NetCashProvidedByUsedInOperatingActivities)
  12. 10-K · period ending 2024-12-31 · accession 0001213900-26-043017 (NetCashProvidedByUsedInOperatingActivities)
  13. 10-K · period ending 2021-12-31 · accession 0001493152-23-012473 (PaymentsToAcquireProductiveAssets)
  14. 10-K · period ending 2023-12-31 · accession 0001213900-25-086651 (PaymentsToAcquirePropertyPlantAndEquipment)
  15. 10-K · period ending 2024-12-31 · accession 0001213900-26-043017 (PaymentsToAcquirePropertyPlantAndEquipment)
  16. 10-K · period ending 2021-12-31 · accession 0001493152-23-012473 (CashAndCashEquivalentsAtCarryingValue)
  17. 10-K · period ending 2023-12-31 · accession 0001213900-25-086651 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2024-12-31 · accession 0001213900-26-043017 (CashAndCashEquivalentsAtCarryingValue)