Wetouch TechnologyWETH -8.55%68 Gross Margin % is 35.70% as of Mar. 2026, which is 18% below its 10-year median of 43.30. GuruFocus rates WETH with a GF Score™ of 68/100 and a GF Value™ of $1.78 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,450 Hardware companies, Wetouch Technology ranks better than 63.02% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Wetouch Technology had a gross margin of 35.70% for the quarter that ended in Mar. 2026 => Competition eroding margins
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Wetouch Technology Gross Margin % Related Terms
Wetouch Technology Gross Margin % Historical Data
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The historical data trend for Wetouch Technology's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
WETH vs GAUZ, MTEK, MSAI: Gross Margin % Comparison
For the Electronic Components subindustry, Wetouch Technology's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Wetouch Technology Gross Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Wetouch Technology's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Wetouch Technology's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Wetouch Technology (WETH) has a Gross Margin % of 35.70% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Wetouch Technology and its competitors. This is 18% below median its historical median of 43.30. Over the past decade, Wetouch Technology's Gross Margin % has ranged from 31.53 to 49.80. According to the industry distribution chart, Wetouch Technology ranks #906 out of 2450 companies in the Hardware industry, placing it in the top 37%.
Is Wetouch Technology's Gross Margin % too high?
Wetouch Technology's current Gross Margin % of 35.70% is 18% below median its 10-year median of 43.30. Over the past 10 years, this metric has ranged from a low of 31.53 to a high of 49.80. The Hardware industry median Gross Margin % is 24.53. Wetouch Technology's value of 35.70% is 45.5% above this industry median. Based on the distribution chart, Wetouch Technology ranks #906 out of 2450 companies in the Hardware industry, which is above the industry midpoint. Overall, Wetouch Technology has a GF Score™ of 68/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Wetouch Technology's Gross Margin % compare to GAUZ and MTEK?
According to the Hardware industry distribution chart, Wetouch Technology ranks #906 out of 2450 companies for Gross Margin %. This puts Wetouch Technology in the upper half of its industry. The industry median Gross Margin % is 24.53. Wetouch Technology's value of 35.70% is 45.5% above this benchmark. Historically, Wetouch Technology's own Gross Margin % has ranged from 31.53 to 49.80 over the past decade. While the company's 10-year median is 43.30 vs. the industry median of 24.53, Wetouch Technology has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Hardware company?
The median Gross Margin % among Hardware companies is 24.53, based on 2,450 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Wetouch Technology's current Gross Margin % of 35.70% is 45.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Wetouch Technology and its competitors. For the Hardware industry, the median Gross Margin % is 24.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wetouch Technology's current Gross Margin % is 35.70%, which is 18% below median its own 10-year median of 43.30. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Wetouch Technology stock overvalued right now?
Based on GuruFocus' analysis, Wetouch Technology (WETH) is currently considered Possible Value Trap. The stock's GF Value™ is $1.78, compared to a current price of $1.08 — trading 39.3% below its estimated fair value. The current Gross Margin % is 35.70%, which is 18% below median its 10-year median of 43.30 and 45.5% above the Hardware industry median of 24.53. Wetouch Technology's overall GF Score™ is 68/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Wetouch Technology (WETH), the current Gross Margin % is 35.70% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Wetouch Technology (WETH) Overvalued in 2026?
Based on GuruFocus' analysis, Wetouch Technology stock appears to be undervalued.
The current stock price of $1.08 is trading 39.3% below its estimated GF Value™ of $1.78.
GuruFocus considers Wetouch Technology to be Possible Value Trap.
Key valuation signals for WETH:
Gross Margin %: 35.70% (18% below median its 10-year median of 43.30)
GF Value™: $1.78 vs. price of $1.08 (39.3% below fair value)
Industry Position: 45.5% above the Hardware median (#906 of 2450)
No single metric tells the full story. See the WETH stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Wetouch Technology Inc is a business of research and development, manufacturing, and distribution of touchscreen displays to customers both in the PRC and overseas. The touchscreen products, which are manufactured by the Company, are mainly for use in financial terminals, automotive, Point of Sales, gaming, lottery, medical, Human-Machine Interface (HMI), and other specialized industries. The company sells touchscreen products both domestically in China and internationally, covering areas in Mainland China, including but not limited to the eastern, southern, northern, and southwest regions of Mainland China, Taiwan, South Korea, Germany, and other countries.
68GF Score
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