NasdaqCM:RETO

Stock Analysis Report

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Executive Summary

ReTo Eco-Solutions, Inc. manufactures and distributes construction materials primarily in China. More Details


Snowflake Analysis

Mediocre balance sheet and overvalued.

Share Price & News

How has ReTo Eco-Solutions's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RETO is more volatile than 90% of US stocks over the past 3 months, typically moving +/- 19% a week.

Volatility Over Time: RETO's weekly volatility (19%) has been stable over the past year, but is still higher than 75% of US stocks.


Market Performance


7 Day Return

7.6%

RETO

0.1%

US Basic Materials

1.3%

US Market


1 Year Return

-37.6%

RETO

-1.7%

US Basic Materials

21.0%

US Market

Return vs Industry: RETO underperformed the US Basic Materials industry which returned -0% over the past year.

Return vs Market: RETO underperformed the US Market which returned 20.9% over the past year.


Shareholder returns

RETOIndustryMarket
7 Day7.6%0.1%1.3%
30 Day-12.9%0.9%12.1%
90 Day9.2%19.7%4.8%
1 Year-37.6%-37.6%-0.7%-1.7%23.7%21.0%
3 Year-94.1%-94.1%4.6%1.9%46.6%36.8%
5 Yearn/a51.7%45.4%94.6%73.2%

Long-Term Price Volatility Vs. Market

How volatile is ReTo Eco-Solutions's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ReTo Eco-Solutions undervalued compared to its fair value and its price relative to the market?

0.42x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate RETO's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate RETO's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: RETO is unprofitable, so we can't compare its PE Ratio to the US Basic Materials industry average.

PE vs Market: RETO is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RETO's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RETO is good value based on its PB Ratio (0.4x) compared to the US Basic Materials industry average (1.8x).


Next Steps

Future Growth

How is ReTo Eco-Solutions forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.2%

Forecasted Materials industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as ReTo Eco-Solutions has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has ReTo Eco-Solutions performed over the past 5 years?

-27.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RETO is currently unprofitable.

Growing Profit Margin: RETO is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RETO is unprofitable, and losses have increased over the past 5 years at a rate of 27.8% per year.

Accelerating Growth: Unable to compare RETO's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RETO is unprofitable, making it difficult to compare its past year earnings growth to the Basic Materials industry (22.5%).


Return on Equity

High ROE: RETO has a negative Return on Equity (-32.4%), as it is currently unprofitable.


Next Steps

Financial Health

How is ReTo Eco-Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: RETO's short term assets ($25.5M) exceed its short term liabilities ($25.2M).

Long Term Liabilities: RETO's short term assets ($25.5M) exceed its long term liabilities ($7.6M).


Debt to Equity History and Analysis

Debt Level: RETO's debt to equity ratio (46%) is considered high.

Reducing Debt: RETO's debt to equity ratio has reduced from 145.2% to 46% over the past 5 years.

Debt Coverage: RETO's debt is not well covered by operating cash flow (0.5%).

Interest Coverage: Insufficient data to determine if RETO's interest payments on its debt are well covered by EBIT.


Balance Sheet


Next Steps

Dividend

What is ReTo Eco-Solutions's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate RETO's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate RETO's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if RETO's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if RETO's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of RETO's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Hengfang Li (57 yo)

4.58yrs

Tenure

Mr. Hengfang Li has been Chairman and Chief Executive Officer of Reto Eco-Solutions Inc. since April 19, 2016. Mr. Li founded Beijing REIT in 1999 and has served as Beijing REIT’s Chief Executive Officer a...


Leadership Team

NamePositionTenureCompensationOwnership
Hengfang Li
Chairman & CEO4.58yrsno data0.97%
$ 155.1k
Guangfeng Dai
President & Director4yrsno data0.62%
$ 99.0k
Xingchun Wang
Chief Financial Officer1yrno data0.083%
$ 13.2k
Zhizhong Hu
CTO & Director4yrsno data0.52%
$ 82.5k
Degang Hou
Chief Internal Control Officer0.83yrno datano data

1.0yrs

Average Tenure

57yo

Average Age

Experienced Management: RETO's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Hengfang Li
Chairman & CEO4.58yrsno data0.97%
$ 155.1k
Guangfeng Dai
President & Director4yrsno data0.62%
$ 99.0k
Zhizhong Hu
CTO & Director4yrsno data0.52%
$ 82.5k
Zhi Li
Independent Director4yrsno data0.083%
$ 13.2k
Sophia Liu
Independent Director4yrsno data0.083%
$ 13.2k
Austin Huang
Independent Director4yrsno data0.083%
$ 13.2k
Shuhua Ma
Independent Director1yrno datano data

4.0yrs

Average Tenure

57yo

Average Age

Experienced Board: RETO's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.2%.


Top Shareholders

Company Information

ReTo Eco-Solutions, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ReTo Eco-Solutions, Inc.
  • Ticker: RETO
  • Exchange: NasdaqCM
  • Founded: 1999
  • Industry: Construction Materials
  • Sector: Materials
  • Market Cap: US$15.929m
  • Shares outstanding: 24.14m
  • Website: https://www.retoeco.com

Number of Employees


Location

  • ReTo Eco-Solutions, Inc.
  • Building X-702
  • 60 Anli Road
  • Beijing
  • 100101
  • China

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RETONasdaqCM (Nasdaq Capital Market)YesCommon StockUSUSDNov 2017

Biography

ReTo Eco-Solutions, Inc. manufactures and distributes construction materials primarily in China. Its products include aggregates, bricks, pavers, and tiles. The company’s construction materials are used fo...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 00:14
End of Day Share Price2020/11/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.