ReTo Eco-Solutions, Inc. (RETO) AI Stock Analysis
RETO AI stock analysis summary
AI ResearchReTo Eco-Solutions, Inc. (RETO) is a Beijing-based manufacturer and distributor of eco-friendly construction materials and automated equipment. In FY2025, the company generated revenue of $3.4M but reported a net income of -$12.3M and an operating margin of -87.9%. Over the trailing year through October 16, 2026, the stock fell 99.8% to a closing price of $0.89.
- Market cap
- $2.1M
- Revenue (TTM)
- $3.4M
- P/E
- —
- 1Y return
- -99.8% S&P 500 16.8%
- Avg. target
- —
Bull case
- Revenue increased 84.3% in FY2025 to $3.4M, followed by 118.9% year-over-year quarterly revenue growth in the period ending March 31, 2026.
- Gross margin expanded from 10.7% in FY2021 to 35.3% in FY2025.
- The stock's price-to-sales multiple of 0.6x is below the 1.8x median of its US-listed Basic Materials peers.
Bear case
- The company sustained a net loss of -$12.3M in FY2025 alongside an operating margin of -87.9%.
- Cash and short-term investments totaled just $250,008 against total debt of $2.4M and a current ratio of 0.21 as of March 31, 2026.
- The 5-year share count increased by 16196.9%, contributing to a 5-year stock return of -100.0%.
What ReTo Eco-Solutions does
Established in 1999 and headquartered in Beijing, China, ReTo Eco-Solutions, Inc. manufactures and distributes construction materials across multiple sectors. Its products include aggregates, bricks, pavers, and tiles utilized for water absorption, flood control, water retention, and landscaping across roads, bridges, and gardens. The company also supplies materials for hydraulic ecological projects such as slope protection and river transformation, as well as insulation and wall decoration. In addition, ReTo Eco-Solutions produces specialized automated equipment featuring hydraulic integration, which it sells across China, South Asia, North America, the Middle East, North Africa, and Southeast Asia. It also participates in municipal sponge city projects.
Growth and profitability
Annual revenue has experienced sharp volatility, moving from $3.6M in FY2021 to $6.5M in FY2022, before dropping to $10,781 in FY2023. Revenue subsequently rebounded to $1.8M in FY2024 and $3.4M in FY2025, which represented an 84.3% annual increase. Across the 5-year period from FY2020 to FY2025, the revenue CAGR was -16.6%. The company has reported ongoing net losses, including -$21.1M in FY2021, -$14.6M in FY2022, -$15.6M in FY2023, -$8.4M in FY2024, and -$12.3M in FY2025. Gross margin stood at 35.3% in FY2025 with an operating margin of -87.9%. For the trailing twelve months ending March 31, 2026, revenue was $3.4M with quarterly revenue growth of 118.9% year-over-year.
Balance sheet and cash flow
As of March 31, 2026, ReTo Eco-Solutions held cash and short-term investments of $250,008 against total debt of $2.4M, resulting in net debt of $2.2M. Total assets stood at $31.8M and shareholders' equity was $21.2M, yielding a debt-to-equity ratio of 0.12. The current ratio was 0.21. In FY2025, operating cash flow was -$4.3M and free cash flow was -$4.5M, while capital expenditures were $113,125. Over the trailing five years, the company's share count increased 16196.9%.
Valuation and performance
At its last close of $0.89 on October 16, 2026, ReTo Eco-Solutions carried a market capitalization of $2.1M and an enterprise value of $7.9M. The stock trades at a price-to-sales multiple of 0.6x and an EV-to-revenue multiple of 2.3x, compared to a median price-to-sales ratio of 1.8x for the median of its US-listed Basic Materials peers. Its price-to-book ratio is 0.3x. Over the past year, the stock fell 99.8% while the S&P 500 (SPY) gained 16.8%, and over five years the stock fell 100.0% compared to an 83.0% gain for SPY.
What analysts expect
Analyst ratings, target prices, and future revenue projections are not provided for the company. Over the last 4 quarters, ReTo Eco-Solutions recorded 0 EPS beats against consensus. For the trailing twelve months ending March 31, 2026, the company reported diluted earnings per share of -$2067.20.
Key risks and what to watch
- A current ratio of 0.21 and cash of $250,008 indicate tight short-term liquidity relative to total debt of $2.4M.
- Ongoing negative cash generation is highlighted by free cash flow of -$4.5M in FY2025.
- Significant historical dilution is shown by a 5-year share count expansion of 16196.9%.
AI-generated research summary. Written with AI from Quotelinks data as of October 16, 2026 and checked so every figure matches that data. For information only, not investment advice. Disclaimer
About this RETO AI stock analysis
This page is an AI-written research summary of ReTo Eco-Solutions, Inc. (RETO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.
Related: RETO income statement, RETO balance sheet, RETO key metrics, RETO chart. See the RETO stock overview for the latest quote and news.
RETO AI stock analysis FAQ
What was ReTo Eco-Solutions' revenue in FY2025?
In FY2025, ReTo Eco-Solutions generated revenue of $3.4M, which was an 84.3% increase compared to $1.8M in FY2024.
What is ReTo Eco-Solutions' cash and debt position?
As of March 31, 2026, the company held $250,008 in cash and short-term investments alongside total debt of $2.4M, resulting in net debt of $2.2M and a current ratio of 0.21.
How has RETO stock performed compared to the broader market?
Over the one-year period ending October 16, 2026, RETO fell 99.8%, while the S&P 500 (SPY) rose 16.8%. Over five years, the stock fell 100.0% while SPY gained 83.0%.
Does ReTo Eco-Solutions pay a dividend?
No dividend information is reported for ReTo Eco-Solutions, and the company reported a net income of -$12.3M in FY2025.