WNW

We rate Meiwu Technology Co Ltd (WNW) as Avoid with a composite score of 39.8/100 at a current price of $1.43. The stock falls in the bottom quintile of our universe across key quantitative factors, and the multi-factor weakness suggests a high probability of continued underperformance.

The rating is primarily driven by strength in momentum (63th percentile) and value (36th percentile), which together account for the majority of the composite score. Offsetting weakness in stability (10th percentile) and investment (17th percentile) tempers our overall conviction. We assign a No Moat rating (33/100), High uncertainty, and Exemplary capital allocation.

Key items to watch: whether strong momentum is fundamentally supported by revenue trends. Any material change in these dynamics could warrant a reassessment of our rating. The moat trend is stable, which suggests the competitive landscape is stable for now.

Meiwu Technology Co Ltd holds a top-quartile position (#0 of 50) within the Retail Trade sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 39.8/100 places it at rank #3564 in our full 7,333-stock universe. At $6M in market capitalization, Meiwu Technology Co Ltd is a small-cap player in the Retail Trade space, which limits certain scale advantages but may allow for more agile strategic execution.

Despite positive momentum (63th percentile), revenue contraction of -99% creates a divergence between price action and fundamental trajectory. This divergence suggests either that the market is looking through near-term weakness or that technical factors are temporarily inflating the stock. Investors should assess whether the revenue decline reflects cyclical weakness or structural challenges.

The margin cascade tells an important story: gross margins of 42% (+6.2pp vs sector) narrow to operating margins of -1292% (-1295.5pp vs sector) and net margins of 3227.2%, yielding a gross-to-net conversion rate of 7619%. This efficient conversion suggests well-controlled operating costs and limited margin leakage between the gross and net levels.

At a current price of $1.43, Meiwu Technology Co Ltd is trading at a premium to fundamental value. Our value factor score of 36/100 reflects a composite assessment across multiple valuation metrics including price-to-earnings, price-to-book, EV/EBITDA, and price-to-sales ratios relative to both sector peers and the broader market. The premium valuation implies the market is pricing in significant future growth or quality improvements that are not yet fully reflected in current fundamentals.

The stock currently trades at a P/E of 9.0x (a 58% discount to the sector median of 21.4x), EV/EBITDA of 1.6x (discounted to peers), P/B of 1.3x, P/S of 118.5x. The below-sector P/E suggests possible undervaluation or the market pricing in near-term headwinds.

We assign a High uncertainty rating to Meiwu Technology Co Ltd. Key risk factors include elevated market sensitivity (beta of 2.23), below-average price stability (10th percentile), weak quality scores (19th percentile). The wide range of potential outcomes widens our fair value estimate and increases the possibility of permanent capital impairment. Investors considering this name should size positions accordingly and demand a meaningful margin of safety before initiating.

Specific risk factors that inform our assessment include: elevated market sensitivity (beta of 2.23); below-average price stability (10th percentile); weak quality scores (19th percentile). Each of these factors independently widens the distribution of potential outcomes, and in combination they create a risk profile that demands careful position sizing. The stability factor at the 10th percentile and quality factor at the 19th percentile provide a quantitative summary of the overall risk landscape.

Key risk mitigants include: healthy gross margins of 42% provide a buffer against cost pressures; conservative leverage (0% D/E) limits balance sheet risk. These factors partially offset the identified risks and provide downside protection in adverse scenarios. On balance, the risk-reward profile warrants caution and disciplined position management.

We rate Meiwu Technology Co Ltd's capital allocation as Exemplary. Management demonstrates a strong track record of balancing reinvestment with shareholder returns, evidenced by returns on equity of 34.5%, disciplined leverage (0% D/E), best-in-class net margins of 3227.2%. Exemplary allocators typically generate returns on equity above 20% while maintaining debt-to-equity below 50% — Meiwu Technology Co Ltd meets this high bar.

The balance sheet remains conservatively managed, providing financial flexibility for opportunistic investments while maintaining a margin of safety for shareholders. We note that the combination of 33.6% return on assets and controlled leverage suggests management is deploying capital at rates well above the cost of capital — the hallmark of exemplary stewardship.

In summary, Meiwu Technology Co Ltd receives a Avoid rating with a composite score of 39.8/100 (rank #3564 of 7,333). Our quantitative framework assigns a No Moat (33/100, trend: stable), High uncertainty, and Exemplary capital allocation. The average factor score across quality, value, momentum, stability, and investment is 29/100.

Our analysis does not support a constructive view on Meiwu Technology Co Ltd at this time. The combination of limited competitive advantages, high uncertainty, and exemplary capital allocation suggests unfavorable risk-reward at current levels. We recommend investors avoid new positions and existing holders consider reducing exposure.