Wetouch TechnologyWETH -4.10%72 Operating Margin % is 31.18% as of Mar. 2026, which is 2% below its 10-year median of 31.86. GuruFocus rates WETH with a GF Score™ of 72/100 and a GF Value™ of $1.79 (Possible Value Trap). The stock has 4 warning signs investors should review. Among 2,472 Hardware companies, Wetouch Technology ranks better than 94.7% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Wetouch Technology Operating Margin % Related Terms
Wetouch Technology Operating Margin % Historical Data
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The historical data trend for Wetouch Technology's Operating 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: Operating Margin % Comparison
For the Electronic Components subindustry, Wetouch Technology's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Hardware Industry
For the Hardware industry and Technology sector, Wetouch Technology's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Wetouch Technology's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Wetouch Technology's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Wetouch Technology (WETH) has a Operating Margin % of 31.18% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Wetouch Technology and its competitors. This is near median its historical median of 31.86. Over the past decade, Wetouch Technology's Operating Margin % has ranged from 22.04 to 43.12. According to the industry distribution chart, Wetouch Technology ranks #131 out of 2472 companies in the Hardware industry, placing it in the top 5.3%.
Is Wetouch Technology's Operating Margin % too high?
Wetouch Technology's current Operating Margin % of 31.18% is near median its 10-year median of 31.86. Over the past 10 years, this metric has ranged from a low of 22.04 to a high of 43.12. The Hardware industry median Operating Margin % is 3.80. Wetouch Technology's value of 31.18% is 720.5% above this industry median. Based on the distribution chart, Wetouch Technology ranks #131 out of 2472 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, Wetouch Technology has a GF Score™ of 72/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does Wetouch Technology's Operating Margin % compare to GAUZ and MTEK?
According to the Hardware industry distribution chart, Wetouch Technology ranks #131 out of 2472 companies for Operating Margin %. This places Wetouch Technology in the top 5% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 3.80. Wetouch Technology's value of 31.18% is 720.5% above this benchmark. Historically, Wetouch Technology's own Operating Margin % has ranged from 22.04 to 43.12 over the past decade. While the company's 10-year median is 31.86 vs. the industry median of 3.80, 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 Operating Margin % for a Hardware company?
The median Operating Margin % among Hardware companies is 3.80, based on 2,472 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Wetouch Technology's current Operating Margin % of 31.18% is 720.5% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Wetouch Technology and its competitors. For the Hardware industry, the median Operating Margin % is 3.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Wetouch Technology's current Operating Margin % is 31.18%, which is near median its own 10-year median of 31.86. 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 $1.79, compared to a current price of $1.21 — trading 32.2% below its estimated fair value. The current Operating Margin % is 31.18%, which is near median its 10-year median of 31.86 and 720.5% above the Hardware industry median of 3.80. Wetouch Technology's overall GF Score™ is 72/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Wetouch Technology (WETH), the current Operating Margin % is 31.18% 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 $1.21 is trading 32.2% below its estimated GF Value™ of $1.79.
GuruFocus considers Wetouch Technology to be Possible Value Trap.
Key valuation signals for WETH:
Operating Margin %: 31.18% (near median its 10-year median of 31.86)
GF Value™: $1.79 vs. price of $1.21 (32.2% below fair value)
Industry Position: 720.5% above the Hardware median (#131 of 2472)
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.
72GF Score
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