ReTo Eco-Solutions (RETO) AI Stock Analysis

• Market Cap: $7.74M
• Dividend Yield: N/A
• Average Volume (3M): 191.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 46
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): -1.43
• Shares Outstanding: 1,465,498
• 10 Day Avg. Volume: 77,388
• 30 Day Avg. Volume: 191,893
• PEG Ratio: 0.04
• Price to Book (P/B): 0.82
• Price to Sales (P/S): 13.36
• P/FCF Ratio: -5.66
• Enterprise Value/Market Cap: 2.01
• Enterprise Value/Revenue: 4.05
• Enterprise Value/Gross Profit: 22.74
• Enterprise Value/Ebitda: -3.93
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 40 Underperform
• Price Target: $3.00 ▲(2.74% Upside)

ReTo Eco-Solutions' overall stock score is primarily impacted by its poor financial performance and valuation. The company's persistent losses and declining revenues are significant concerns. Additionally, technical indicators suggest bearish momentum, further weighing on the stock's attractiveness.

Positive Factors

Revenue Growth

A 37% revenue growth in the first half of 2025 indicates strong demand for ReTo's products and services, suggesting effective market strategies and potential for sustained growth.

Cash Management

Improved operational cash flow suggests better financial discipline, enhancing ReTo's ability to fund operations and invest in growth opportunities.

Debt Reduction

Reduced debt levels improve financial stability and lower interest burdens, allowing more resources for strategic investments and growth.

Negative Factors

Profitability Challenges

Negative profit margins highlight ongoing operational inefficiencies, which could hinder long-term financial health and shareholder value.

Operational Inefficiencies

Severely negative EBIT and EBITDA margins indicate that ReTo is struggling to cover its operating costs, which may impact its ability to sustain operations without strategic changes.

Free Cash Flow Issues

Negative free cash flow suggests that ReTo may face difficulties in funding new projects or expansions without external financing, limiting growth potential.

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, primarily relying on the sale of its eco-friendly construction materials and products. The company profits from contracts with construction firms and government projects that prioritize sustainable building practices. Additionally, RETO engages in partnerships with local governments and environmental organizations to promote recycling initiatives, which can lead to grants and subsidies that contribute to its earnings. The firm's focus on innovation also allows it to license its proprietary technologies and processes, providing another significant revenue stream. Overall, RETO's ability to position itself within the growing green construction market and capitalize on sustainability trends plays a crucial role in its financial success.

ReTo Eco-Solutions Financial Statement Overview

Summary

ReTo Eco-Solutions is struggling with persistent losses and declining revenues, affecting overall profitability. Despite some improvements in cash management and a healthier balance sheet, the company faces significant financial challenges that require strategic changes for sustainable growth.

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: 2.92
• 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 2.92 is above the 20-day moving average (MA) of 2.88, below the 50-day MA of 4.44, and below the 200-day MA of 13.36, indicating a bearish trend. The MACD of -0.52 indicates Negative momentum. The RSI at 31.09 is Neutral, neither overbought nor oversold. The STOCH value of 78.05 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
CPAC	79 Outperform	$605.00M	9.43	16.04%	8.22%	9.24%	24.01%
CX	78 Outperform	$16.24B	11.60	7.10%	0.80%	-6.34%	210.97%
SMID	67 Neutral	$182.32M	15.51	25.46%	―	16.37%	81.03%
USLM	63 Neutral	$3.35B	25.73	24.29%	0.20%	20.27%	31.94%
LOMA	63 Neutral	$1.53B	39.00	5.06%	―	-33.99%	-61.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RETO	40 Underperform	$7.74M	-0.22	―	―	―	―

ReTo Eco-Solutions Corporate Events

ReTo Eco-Solutions Schedules 2025 Annual Shareholder Meeting

ReTo Eco-Solutions, Inc. announced its 2025 Annual General Meeting of Shareholders, scheduled for December 23, 2025, in Beijing. Key agenda items include the election of Class C directors, ratification of YCM CPA, Inc. as the independent accounting firm, and amendments to the 2022 Share Incentive Plan. These decisions could impact the company’s governance and financial strategies, influencing shareholder value and operational direction.

ReTo Eco-Solutions Announces 2025 Annual Shareholders Meeting

On November 13, 2025, ReTo Eco-Solutions, Inc. announced its plans to hold the 2025 Annual Meeting of Shareholders on December 23, 2025, at its headquarters in Beijing. Shareholders of record as of November 19, 2025, will be eligible to vote. The meeting details, including proposals for consideration, will be outlined in the company’s upcoming proxy statement to be filed with the SEC. This announcement is part of the company’s ongoing efforts to engage with its stakeholders and ensure transparency in its governance practices.

ReTo Eco-Solutions Announces 5-to-1 Share Combination

On October 29, 2025, ReTo Eco-Solutions, Inc. announced a 5-to-1 share combination of its Class A shares, which will begin trading on a post-combination basis on November 3, 2025. This move reduces the number of outstanding shares from 7,327,491 to approximately 1,465,498 and aims to increase the market price per share to maintain its Nasdaq listing. The share combination will not require shareholder approval under British Virgin Islands law, and no fractional shares will be issued, with the company’s transfer agent handling the exchange process.

ReTo Eco-Solutions Announces Share Offering to Fund Growth

On October 23, 2025, ReTo Eco-Solutions, Inc. announced a securities purchase agreement with certain purchasers for the sale of 1,373,625 class A shares at a price of US$1.16 per share, with the actual sale price being US$1.04 per share. The offering, expected to close by October 28, 2025, aims to raise approximately US$1,397,571, which will be used to fund business growth in China and other regions, as well as for potential acquisitions and general corporate purposes. This strategic move is anticipated to enhance the company’s market position and operational capabilities, potentially benefiting stakeholders by expanding its technological and business assets.

ReTo Eco-Solutions Reports 37% Revenue Growth in First Half of 2025

ReTo Eco-Solutions, Inc. reported its financial results for the six months ended June 30, 2025, showing a significant increase in revenue compared to the same period in 2024. The company achieved a revenue of $1,049,341, a 37% increase from the previous year, driven by its continuing operations in equipment and craft beer sales. The strategic divestment of its eco-friendly construction materials and ecological restoration projects on December 31, 2024, marked a shift in its business operations, impacting its financial results and positioning in the industry.