ReTo Eco-Solutions (RETO) AI Stock Analysis

• Market Cap: $4.71M
• Dividend Yield: N/A
• Average Volume (3M): 31.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 46
• Sector: Basic Materials
• Sector Strength: 68
• Industry: Construction Materials
• EPS (TTM): -1.43
• Shares Outstanding: 1,935,264
• 10 Day Avg. Volume: 15,250
• 30 Day Avg. Volume: 31,131
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 3.30
• Enterprise Value/Revenue: 4.05
• Enterprise Value/Gross Profit: 22.74
• Enterprise Value/Ebitda: -3.93
• 1Y Price Target: $2.00
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 1

• Rating: 38 Underperform
• Price Target: $2.00 ▲(8.70% Upside)

ReTo Eco-Solutions faces significant financial difficulties with persistent losses and declining revenues, heavily impacting its overall performance score. The bearish technical indicators further contribute to the low score, highlighting ongoing market challenges. The negative valuation score due to unprofitability underscores the need for strategic changes to improve investor confidence.

ReTo Eco-Solutions Business Overview & Revenue Model

Company Description

ReTo Eco-Solutions, Inc., together with its subsidiaries, manufactures and distributes construction materials primarily in China. Its products include aggregates, bricks, pavers, and tiles. The company's construction materials are used for water absorption, flood control, and water retention; for gardens, roads, bridges, city squares, retaining walls, and slope construction; for hydraulic ecological projects, such as slope protection and river transformation; and for insulation, decoration, and building walls. It also offers construction materials manufacturing equipment, such as automated production equipment with hydraulic integration in China, South Asia, North America, the Middle East, North Africa, and Southeast Asia. In addition, the company undertakes municipal construction projects, including sponge city projects. ReTo Eco-Solutions, Inc. was founded in 1999 and is headquartered in Beijing, the People's Republic of China.

How the Company Makes Money

RETO generates revenue through multiple streams including the sale of eco-friendly building materials, consulting services for sustainable construction practices, and licensing of its proprietary waste recycling technologies. The company partners with construction firms, governmental agencies, and environmental organizations to implement its solutions, enabling them to access new markets and enhance their sustainable practices. Additionally, RETO may receive grants and funding from initiatives focused on environmental sustainability, further bolstering its financial position.

ReTo Eco-Solutions Financial Statement Overview

Summary

ReTo Eco-Solutions is experiencing significant financial challenges, with persistent losses and declining revenues affecting overall profitability. While there is some improvement in cash flow management and a healthier balance sheet due to reduced debt levels, operational inefficiencies remain a concern.

Income Statement

ReTo Eco-Solutions faces significant challenges in profitability. The net profit margin is negative, indicating consistent losses. Despite a recent increase in gross profit margin, the TTM (Trailing-Twelve-Months) revenue shows a significant decline from previous years. EBIT and EBITDA margins remain severely negative, highlighting ongoing operational inefficiencies.

Balance Sheet

The company's balance sheet shows a modest improvement in equity ratio, suggesting better asset management. However, the debt-to-equity ratio is low due to reduced debt levels, which is a positive sign. Return on equity remains negative, reflecting continued losses impacting shareholder value.

Cash Flow

Cash flow from operations has improved recently, turning positive in the latest TTM. However, free cash flow remains negative, indicating ongoing capital expenditure challenges. The operating cash flow to net income ratio suggests better cash management, yet free cash flow to net income ratio is still unfavorable.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.84M	1.83M	3.24M	6.47M	3.60M	9.73M
Gross Profit	683.96K	825.20K	210.07K	806.66K	385.73K	1.16M
EBITDA	-3.95M	-8.27M	-14.74M	-13.98M	-19.18M	-2.99M
Net Income	-5.10M	-8.35M	-15.64M	-15.38M	-20.48M	-15.13M
Balance Sheet
Total Assets	33.67M	34.26M	25.25M	24.06M	30.96M	57.97M
Cash, Cash Equivalents and Short-Term Investments	1.55M	671.36K	1.41M	113.89K	457.50K	1.12M
Total Debt	8.51M	109.60K	9.83M	7.94M	5.87M	16.23M
Total Liabilities	19.89M	4.33M	20.39M	18.98M	16.88M	30.01M
Stockholders Equity	13.33M	29.92M	4.35M	4.24M	13.55M	27.28M
Cash Flow
Free Cash Flow	-4.76M	-4.32M	-11.75M	-11.42M	-2.78M	726.65K
Operating Cash Flow	-4.76M	3.08M	-11.59M	-9.96M	-2.76M	976.14K
Investing Cash Flow	-3.95M	-33.58M	351.68K	4.24M	-1.74M	944.40K
Financing Cash Flow	9.32M	29.78M	12.47M	4.76M	4.05M	-1.90M

ReTo Eco-Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.84
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RETO, the sentiment is Negative. The current price of 1.84 is below the 20-day moving average (MA) of 1.92, below the 50-day MA of 2.17, and below the 200-day MA of 4.98, indicating a bearish trend. The MACD of -0.15 indicates Negative momentum. The RSI at 42.76 is Neutral, neither overbought nor oversold. The STOCH value of 42.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for RETO.

ReTo Eco-Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SMID	78 Outperform	$219.40M	18.44	27.87%	―	32.97%	160.17%
CPAC	78 Outperform	$622.34M	10.13	16.29%	7.39%	3.95%	27.28%
USLM	77 Outperform	$3.47B	27.74	24.95%	0.19%	21.97%	44.87%
CX	73 Outperform	$14.01B	8.99	7.12%	0.90%	-9.62%	795.20%
Sector *	62 Neutral	$10.36B	6.35	0.76%	2.84%	3.10%	-36.03%
LOMA	58 Neutral	$1.10B	16.06	8.93%	―	-33.46%	-32.34%
RETO	38 Underperform	$4.71M	―	-57.03%	―	―	―