ReTo Eco-Solutions (RETO) AI Stock Analysis

• Market Cap: $9.36M
• Dividend Yield: N/A
• Average Volume (3M): 28.26K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: -20.27%
• EPS Growth: N/A
• Country: US
• Employees: 46
• Sector: Basic Materials
• Sector Strength: 63
• Industry: Construction Materials
• EPS (TTM): -1.43
• Shares Outstanding: 1,935,264
• 10 Day Avg. Volume: 15,174
• 30 Day Avg. Volume: 28,259
• PEG Ratio: 0.02
• Price to Book (P/B): 3.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.39
• Enterprise Value/Market Cap: 3.92
• Enterprise Value/Revenue: 2.00
• Enterprise Value/Gross Profit: 53.72
• Enterprise Value/Ebitda: -0.68
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 37 Underperform
• Price Target: ―

ReTo Eco-Solutions' overall stock score is significantly low due to its poor financial performance characterized by declining revenues and high leverage. The technical analysis indicates a persistent downtrend, and the negative P/E ratio reflects ongoing losses. The lack of information from earnings calls further contributes to the uncertainty surrounding the stock.

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 Eco-Solutions generates revenue primarily through the sale of its eco-friendly construction materials. The company operates manufacturing facilities where it produces a range of building materials using recycled waste, which are then sold to construction companies, wholesalers, and retailers. Additionally, ReTo engages in partnerships with local governments and private enterprises to promote sustainable construction practices and to expand its market reach. These partnerships often involve contracts for large-scale construction projects that incorporate ReTo's eco-friendly products. The company's revenue is also supported by its research and development efforts, which allow it to innovate and improve its product offerings, thereby attracting more customers and increasing sales.

ReTo Eco-Solutions Financial Statement Overview

Summary

ReTo Eco-Solutions is facing significant financial difficulties across all areas. Declining revenues, negative profit margins, high leverage, and negative cash flows indicate financial instability. Comprehensive strategic changes are necessary to improve its financial health.

Income Statement

ReTo Eco-Solutions has experienced significant revenue decline with a negative revenue growth rate in recent years. Gross profit margins are very low, and both EBIT and EBITDA margins are negative, indicating operational inefficiencies. The net profit margin is deeply negative, reflecting substantial net losses.

Balance Sheet

The company has a high debt-to-equity ratio, indicating high leverage and potential financial risk. The return on equity is negative due to consistent net losses, which poses a challenge to shareholder returns. The equity ratio is weak but shows a declining trend in liabilities, which slightly offsets the negative aspects.

Cash Flow

Operating cash flows are negative, indicating the company is not generating sufficient cash from its core business operations. Free cash flow is also negative and shows a downward trend, signaling cash flow challenges. The ratios of operating and free cash flow to net income are unfavorable, highlighting cash flow inefficiencies.

Breakdown
TTM	Dec 2023	Dec 2022	Dec 2021	Dec 2020	Dec 2019
Income Statement		Total Revenue
3.84M	3.24M	6.47M	3.60M	9.73M	29.55M
	Gross Profit
683.96K	210.07K	806.66K	385.73K	1.16M	7.36M
	EBIT
-5.01M	-11.34M	-12.52M	-5.41M	-5.10M	1.96M
	EBITDA
-3.95M	-14.74M	-13.98M	-19.18M	-2.99M	-3.23M
	Net Income Common Stockholders
-5.10M	-15.64M	-15.38M	-20.48M	-15.13M	-12.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.55M	1.41M	113.89K	457.50K	1.12M	897.28K
	Total Assets
33.67M	25.25M	24.06M	30.96M	57.97M	70.80M
	Total Debt
8.51M	9.83M	7.94M	5.87M	16.23M	17.55M
	Net Debt
6.95M	8.42M	7.83M	5.41M	15.11M	16.65M
	Total Liabilities
19.89M	20.39M	18.98M	16.88M	30.01M	32.84M
	Stockholders Equity
13.33M	4.35M	4.24M	13.55M	27.28M	36.14M
Cash Flow		Free Cash Flow
-4.76M	-11.75M	-11.42M	-2.78M	726.65K	-1.37M
	Operating Cash Flow
-4.76M	-11.59M	-9.96M	-2.76M	976.14K	86.83K
	Investing Cash Flow
-3.95M	351.68K	4.24M	-1.74M	944.40K	-73.64K
	Financing Cash Flow
9.32M	12.47M	4.76M	4.05M	-1.90M	-547.48K

ReTo Eco-Solutions Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 3.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 3.19 is below the 20-day moving average (MA) of 3.42, below the 50-day MA of 3.46, and below the 200-day MA of 7.71, indicating a bearish trend. The MACD of -0.09 indicates Positive momentum. The RSI at 43.26 is Neutral, neither overbought nor oversold. The STOCH value of 27.18 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	75 Outperform	$544.32M	9.27	15.93%	8.69%	2.50%	15.20%
USLM	73 Outperform	$2.83B	23.55	25.44%	0.24%	17.83%	50.28%
CX	72 Outperform	$10.22B	7.11	6.58%	1.30%	-8.41%	570.14%
SMID	66 Neutral	$156.75M	20.56	20.22%	―	32.40%	1034.04%
LOMA	64 Neutral	$1.42B	13.21	14.05%	―	-37.30%	32.91%
Sector *	51 Neutral	$1.98B	-1.26	-21.11%	5.99%	2.92%	-30.46%
RETO	37 Underperform	$9.36M	―	-57.03%	―	-20.27%	―