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RETO ECO-SOLUTIONS INC-A (RETO) Stock Fundamental Analysis

NASDAQ:RETO - Nasdaq - VGG752713070 - Common Stock - Currency: USD

3.27  +0.1 (+3.15%)

Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to RETO. RETO was compared to 12 industry peers in the Construction Materials industry. There are concerns on the financial health of RETO while its profitability can be described as average. RETO has a expensive valuation and it also scores bad on growth.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year RETO was profitable.
In the past 5 years RETO always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: RETO reported negative operating cash flow in multiple years.
RETO Yearly Net Income VS EBIT VS OCF VS FCFRETO Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 10M -10M -20M

1.2 Ratios

RETO's Return On Assets of 85.89% is amongst the best of the industry. RETO outperforms 100.00% of its industry peers.
The Return On Equity of RETO (216.99%) is better than 100.00% of its industry peers.
RETO has a better Return On Invested Capital (116.63%) than 100.00% of its industry peers.
Industry RankSector Rank
ROA 85.89%
ROE 216.99%
ROIC 116.63%
ROA(3y)-63.64%
ROA(5y)-46.43%
ROE(3y)-286.67%
ROE(5y)-188.83%
ROIC(3y)N/A
ROIC(5y)N/A
RETO Yearly ROA, ROE, ROICRETO Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -100 -200 -300

1.3 Margins

RETO has a better Profit Margin (752.80%) than 100.00% of its industry peers.
RETO has a better Operating Margin (755.05%) than 100.00% of its industry peers.
The Gross Margin of RETO (17.79%) is worse than 91.67% of its industry peers.
RETO's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 755.05%
PM (TTM) 752.8%
GM 17.79%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-35.3%
GM growth 5Y-32.95%
RETO Yearly Profit, Operating, Gross MarginsRETO Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -200 -400

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3

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), RETO is creating value.
RETO has more shares outstanding than it did 1 year ago.
RETO has more shares outstanding than it did 5 years ago.
The debt/assets ratio for RETO is higher compared to a year ago.
RETO Yearly Shares OutstandingRETO Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 200K 400K 600K 800K 1M
RETO Yearly Total Debt VS Total AssetsRETO Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M

2.2 Solvency

RETO has an Altman-Z score of 0.53. This is a bad value and indicates that RETO is not financially healthy and even has some risk of bankruptcy.
RETO has a worse Altman-Z score (0.53) than 83.33% of its industry peers.
RETO has a Debt/Equity ratio of 0.43. This is a healthy value indicating a solid balance between debt and equity.
RETO's Debt to Equity ratio of 0.43 is fine compared to the rest of the industry. RETO outperforms 66.67% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF N/A
Altman-Z 0.53
ROIC/WACC15.39
WACC7.58%
RETO Yearly LT Debt VS Equity VS FCFRETO Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20M 40M

2.3 Liquidity

RETO has a Current Ratio of 1.02. This is a normal value and indicates that RETO is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.02, RETO is doing worse than 83.33% of the companies in the same industry.
RETO has a Quick Ratio of 1.00. This is a normal value and indicates that RETO is financially healthy and should not expect problems in meeting its short term obligations.
RETO has a Quick ratio (1.00) which is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.02
Quick Ratio 1
RETO Yearly Current Assets VS Current LiabilitesRETO Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M

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1

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 124.36% over the past year.
RETO shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -20.27%.
Measured over the past years, RETO shows a very negative growth in Revenue. The Revenue has been decreasing by -35.64% on average per year.
EPS 1Y (TTM)124.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%97.03%
Revenue 1Y (TTM)-20.27%
Revenue growth 3Y-27.06%
Revenue growth 5Y-35.64%
Sales Q2Q%49%

3.2 Future

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A

3.3 Evolution

No EPS estimates are available, so we could not analyze the future EPS growth and evolution.
No Revenue estimates are available, so we could not analyze the future revenue growth and evolution.
RETO Yearly Revenue VS EstimatesRETO Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 10M 20M 30M

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 0.13, which indicates a rather cheap valuation of RETO.
100.00% of the companies in the same industry are more expensive than RETO, based on the Price/Earnings ratio.
RETO is valuated cheaply when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 0.13
Fwd PE N/A
RETO Price Earnings VS Forward Price EarningsRETO Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 0 0 0 0

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, RETO is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 0.28
RETO Per share dataRETO EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15 20 25

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2YN/A
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

RETO does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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RETO ECO-SOLUTIONS INC-A

NASDAQ:RETO (4/17/2025, 8:00:02 PM)

3.27

+0.1 (+3.15%)

Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryConstruction Materials
Earnings (Last)N/A N/A
Earnings (Next)N/A N/A
Inst Owners0.95%
Inst Owner Change0%
Ins Owners28.68%
Ins Owner ChangeN/A
Market Cap6.34M
Analysts0
Price TargetN/A
Short Float %N/A
Short Ratio0.17
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 0.13
Fwd PE N/A
P/S 1.65
P/FCF N/A
P/OCF N/A
P/B 0.48
P/tB 0.69
EV/EBITDA 0.28
EPS(TTM)25.31
EY774.01%
EPS(NY)N/A
Fwd EYN/A
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS1.98
BVpS6.87
TBVpS4.73
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 85.89%
ROE 216.99%
ROCE 201.65%
ROIC 116.63%
ROICexc 126.64%
ROICexgc 164.4%
OM 755.05%
PM (TTM) 752.8%
GM 17.79%
FCFM N/A
ROA(3y)-63.64%
ROA(5y)-46.43%
ROE(3y)-286.67%
ROE(5y)-188.83%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-35.3%
GM growth 5Y-32.95%
F-ScoreN/A
Asset Turnover0.11
Health
Industry RankSector Rank
Debt/Equity 0.43
Debt/FCF N/A
Debt/EBITDA 0.19
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 1.02
Quick Ratio 1
Altman-Z 0.53
F-ScoreN/A
WACC7.58%
ROIC/WACC15.39
Cap/Depr(3y)85.68%
Cap/Depr(5y)66.39%
Cap/Sales(3y)9.3%
Cap/Sales(5y)6.72%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)124.36%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%97.03%
EPS Next YN/A
EPS Next 2YN/A
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-20.27%
Revenue growth 3Y-27.06%
Revenue growth 5Y-35.64%
Sales Q2Q%49%
Revenue Next YearN/A
Revenue Next 2YN/A
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y158.48%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-2.94%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-16.35%
OCF growth 3YN/A
OCF growth 5YN/A