NasdaqCM:RETO

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet and fair value.

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


Market Performance


7 Day Return

-3.6%

RETO

0.5%

US Basic Materials

1.0%

US Market


1 Year Return

-59.2%

RETO

42.0%

US Basic Materials

6.7%

US Market

Return vs Industry: RETO underperformed the US Basic Materials industry which returned 42% over the past year.

Return vs Market: RETO underperformed the US Market which returned 6.7% over the past year.


Share holder returns

RETOIndustryMarket
7 Day-3.6%0.5%1.0%
30 Day9.4%0.6%-1.8%
90 Day-23.0%7.5%-1.8%
1 Year-59.2%-59.2%43.3%42.0%9.1%6.7%
3 Yearn/a36.7%33.3%46.1%36.6%
5 Yearn/a112.7%104.1%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

5.44x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

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

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


Price Based on Earnings

PE vs Industry: RETO is good value based on its PE Ratio (5.4x) compared to the Basic Materials industry average (21.4x).

PE vs Market: RETO is good value based on its PE Ratio (5.4x) compared to the US market (17.5x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: RETO is good value based on its PB Ratio (0.5x) compared to the US Basic Materials industry average (2x).


Next Steps

Future Growth

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

7.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: RETO's forecast earnings growth (7.3% per year) is above the savings rate (2.7%).

Earnings vs Market: RETO's earnings (7.3% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: RETO's earnings are forecast to grow, but not significantly.

Revenue vs Market: Insufficient data to determine if RETO's revenue is forecast to grow faster than the US market.

High Growth Revenue: Insufficient data to determine if RETO's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: Insufficient data to determine if RETO's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

24.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: RETO's earnings have grown significantly by 24.6% per year over the past 5 years.

Accelerating Growth: RETO's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RETO had negative earnings growth (-25.1%) over the past year, making it difficult to compare to the Basic Materials industry average (-25.1%).


Return on Equity

High ROE: RETO's Return on Equity (8.6%) is considered low.


Return on Assets

ROA vs Industry: RETO has a higher Return on Assets than the Basic Materials industry average last year.


Return on Capital Employed

ROCE Improving: RETO's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is ReTo Eco-Solutions's financial position?


Financial Position Analysis

Short Term Liabilities: RETO's short term assets ($29.5M) exceeds its short term liabilities ($20.7M)

Long Term Liabilities: RETO's short term assets (29.5M) exceeds its long term liabilities (8.1M)


Debt to Equity History and Analysis

Debt Level: RETO's debt to equity ratio (33.8%) is considered satisfactory

Reducing Debt: Insufficient data to determine if RETO's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: RETO's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: RETO's interest payments on its debt are well covered by EBIT (6.8x coverage).


Balance Sheet

Inventory Level: RETO has a high level of physical assets or inventory.

Debt Coverage by Assets: RETO's debt is covered by short term assets (assets are 1.640250x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage0.8%forecastin3Yearsn/a

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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

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

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

What is the CEO of ReTo Eco-Solutions's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Hengfang Li (56yo)

3.5yrs

Tenure

0

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 ...


Management Age and Tenure

3.0yrs

Average Tenure

56yo

Average Age

Experienced Management: RETO's management team is considered experienced (3 years average tenure).


Board Age and Tenure

2.9yrs

Average Tenure

56yo

Average Age

Experienced Board: RETO's board of directors are not considered experienced ( 2.9 years average tenure), which suggests a new board.


Insider Trading

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


Ownership Breakdown


Management Team

  • Hengfang Li (56yo)

    Chairman & CEO

    • Tenure: 3.5yrs
  • Guangfeng Dai (58yo)

    COO & Director

    • Tenure: 2.9yrs
  • Zhizhong Hu (56yo)

    CTO & Director

    • Tenure: 2.9yrs
  • Yuxia Jia (43yo)

    Chief Financial Officer

    • Tenure: 3.1yrs

Board Members

  • Hengfang Li (56yo)

    Chairman & CEO

    • Tenure: 3.5yrs
  • Guangfeng Dai (58yo)

    COO & Director

    • Tenure: 2.9yrs
  • Zhizhong Hu (56yo)

    CTO & Director

    • Tenure: 2.9yrs
  • Xingchun Wang (49yo)

    Independent Director

    • Tenure: 2.9yrs
  • Zhi Li (56yo)

    Independent Director

    • Tenure: 2.9yrs
  • hia Liu (41yo)

    Independent Director

    • Tenure: 2.9yrs
  • Austin Huang (62yo)

    Independent Director

    • Tenure: 2.9yrs

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$24.781m
  • Shares outstanding: 23.16m
  • Website: https://www.retoeco.com

Number of Employees


Location

  • ReTo Eco-Solutions, Inc.
  • X-702, 60 Anli Road
  • 24th Floor, Tower B
  • 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, tiles, river sand, and granite; ground works materials that ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 03:13
End of Day Share Price2019/10/11 00:00
Earnings2018/12/31
Annual Earnings2018/12/31


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.

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