ReTo Eco-Solutions (RETO) AI Stock Analysis

• Market Cap: $2.57M
• Dividend Yield: N/A
• Average Volume (3M): 191.89K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: N/A
• EPS Growth: N/A
• Country: US
• Employees: 46
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Construction Materials
• EPS (TTM): N/A
• Shares Outstanding: 1,858,842
• 10 Day Avg. Volume: 77,388
• 30 Day Avg. Volume: 191,893
• PEG Ratio: <0.01
• Price to Book (P/B): 0.08
• Price to Sales (P/S): 1.34
• P/FCF Ratio: -0.57
• Enterprise Value/Market Cap: -0.11
• Enterprise Value/Revenue: -0.27
• Enterprise Value/Gross Profit: -1.52
• Enterprise Value/Ebitda: 0.23
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 41 Neutral
• Price Target: $0.93 ▼(-52.26% Downside)
• Action: Reiterated Date: 01/13/26
• Date: Action: Reiterated 01/13/26

The score is primarily weighed down by weak financial performance (ongoing losses and declining revenue) and bearish technical signals (price below all key moving averages with negative MACD). Improved operating cash flow and reduced leverage provide some support, while valuation inputs are unavailable and therefore do not materially influence the score.

Positive Factors

Revenue Growth

A 37% revenue increase in the first half of 2025 indicates strong market demand and effective business strategies, enhancing long-term growth prospects.

Debt Reduction

Reduced debt levels improve financial flexibility and lower risk, supporting sustainable operations and potential future investments.

Strategic Share Offering

The share offering aims to fund growth and acquisitions, enhancing market position and operational capabilities, benefiting long-term stakeholders.

Negative Factors

Persistent Losses

Ongoing losses indicate operational inefficiencies and financial strain, challenging the company's ability to achieve profitability and sustain growth.

Declining Revenues

Declining revenues suggest weakening market position and demand, potentially impacting long-term financial stability and growth potential.

Negative Profit Margins

Negative profit margins reflect ongoing operational challenges, limiting the company's ability to generate sustainable profits and shareholder value.

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

Weak financial performance driven by persistent losses (negative net, EBIT, and EBITDA margins) and a significant TTM revenue decline. Offsetting factors include reduced leverage (low debt-to-equity) and improved operating cash flow turning positive, but negative free cash flow remains a key constraint.

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	1.05M	1.83M	3.24M	6.47M	3.60M	9.73M
Gross Profit	185.34K	825.20K	210.07K	806.66K	385.73K	1.16M
EBITDA	-1.21M	-8.27M	-14.74M	-13.98M	-19.18M	-2.99M
Net Income	-1.38M	-8.35M	-15.64M	-15.38M	-20.48M	-15.13M
Balance Sheet
Total Assets	41.41M	34.26M	25.25M	24.06M	30.96M	57.97M
Cash, Cash Equivalents and Short-Term Investments	2.46M	671.36K	1.41M	113.89K	457.50K	1.12M
Total Debt	1.59M	109.60K	9.83M	7.94M	5.87M	16.23M
Total Liabilities	7.19M	4.33M	20.39M	18.98M	16.88M	30.01M
Stockholders Equity	30.37M	29.92M	4.35M	4.24M	13.55M	27.28M
Cash Flow
Free Cash Flow	-1.65M	-4.32M	-11.75M	-11.42M	-2.78M	726.65K
Operating Cash Flow	-1.60M	3.08M	-11.59M	-9.96M	-2.76M	976.14K
Investing Cash Flow	-29.84K	-33.58M	351.68K	4.24M	-1.74M	944.40K
Financing Cash Flow	3.65M	29.78M	12.47M	4.76M	4.05M	-1.90M

ReTo Eco-Solutions Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 1.95
• 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 Neutral. The current price of 1.95 is above the 20-day moving average (MA) of 0.83, above the 50-day MA of 1.37, and below the 200-day MA of 7.27, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 45.72 is Neutral, neither overbought nor oversold. The STOCH value of 65.95 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for RETO.

ReTo Eco-Solutions Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
USLM	75 Outperform	$3.27B	24.43	23.80%	0.19%	20.27%	31.94%
CX	71 Outperform	$18.92B	18.82	3.14%	0.74%	-6.34%	210.97%
SMID	67 Neutral	$203.75M	17.34	25.46%	―	16.37%	81.03%
CPAC	64 Neutral	$963.83M	21.01	16.04%	5.46%	9.24%	24.01%
LOMA	63 Neutral	$1.26B	33.02	5.06%	―	-33.99%	-61.41%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
RETO	41 Neutral	$2.57M	―	―	―	―	―

ReTo Eco-Solutions Corporate Events

ReTo Eco-Solutions Shareholders Approve Director Slate and Expand Equity Incentive Plan at 2025 AGM

On December 22, 2025 (December 23, 2025 Beijing time), ReTo Eco-Solutions, Inc. held its 2025 Annual General Meeting of Shareholders, where investors approved all resolutions on the agenda, reinforcing the company’s governance and capital management framework. Shareholders elected Xinyang Li, Guangfeng Dai, and Zhizhong Hu as Class C directors through 2028, ratified YCM CPA, Inc. as the independent auditor for fiscal 2025, and endorsed an amendment to the 2022 Share Incentive Plan that increases the pool to 360,000 unissued Class A shares and shifts the plan’s “evergreen” share reserve adjustments from an annual to a semi-annual schedule; this move effectively expands ReTo’s equity-based compensation capacity and may enhance its ability to attract and retain key talent, while the strong voting support underscores alignment between management and controlling shareholders given the company’s dual-class share structure.

The most recent analyst rating on (RETO) stock is a Hold with a $3.50 price target. To see the full list of analyst forecasts on ReTo Eco-Solutions stock, see the RETO Stock Forecast page.

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.

The most recent analyst rating on (RETO) stock is a Sell with a $3.00 price target. To see the full list of analyst forecasts on ReTo Eco-Solutions stock, see the RETO Stock Forecast page.

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.

The most recent analyst rating on (RETO) stock is a Sell with a $3.00 price target. To see the full list of analyst forecasts on ReTo Eco-Solutions stock, see the RETO Stock Forecast page.