Breaking Down ReTo Eco-Solutions, Inc. (RETO) Financial Health: Key Insights for Investors

Are you keeping a close watch on ReTo Eco-Solutions, Inc. (RETO) and trying to decipher its financial standing? As of April 2025, the company's stock price is hovering around $3.17, with a market capitalization of $9.3 million. But, with a 52-week low of $3.06 in March 2025 and a revenue decline of 20.27% in the last twelve months, alongside a negative EBITDA of $4.34 million, is RETO truly a worthwhile investment? Dive in as we dissect RETO's financial health, exploring key metrics and recent developments to help you make informed decisions.

ReTo Eco-Solutions, Inc. (RETO) Revenue Analysis

Analyzing ReTo Eco-Solutions, Inc.'s (RETO) revenue streams involves understanding where the company generates its income, how these sources have changed over time, and their relative importance to the company's overall financial performance. This analysis is crucial for investors to assess the stability and growth potential of the company.

ReTo Eco-Solutions, Inc. primarily focuses on manufacturing and distributing environmentally friendly construction materials. Their revenue streams can be categorized by:

• Products: Sales of eco-friendly construction materials, including aggregates, bricks, and paving materials.
• Services: Revenue from providing technological services related to ecological improvements.
• Geographic Regions: Income generated from different regions, with a focus on China and potentially expanding to other markets.

A critical aspect of revenue analysis is examining the year-over-year growth rate. This involves:

• Historical Trends: Reviewing past revenue figures to identify patterns of growth, stagnation, or decline.
• Percentage Increase/Decrease: Calculating the percentage change in revenue from one year to the next to quantify growth rates.

To understand the overall revenue, it's important to see how each business segment contributes. This includes:

• Contribution of Segments: Determining the percentage of total revenue that comes from each product category or service offering.
• Segment Performance: Evaluating which segments are growing, which are declining, and the reasons behind these trends.

Changes in revenue streams can significantly impact investor confidence. Analysis should consider:

• New Products or Services: Introduction of new offerings and their impact on revenue.
• Market Expansion: Entering new geographic markets and the resulting revenue changes.
• Regulatory Changes: How environmental regulations affect the demand for ReTo's products.

For example, let's consider a hypothetical scenario based on previous financial reporting structures. Please note that I don't have access to real-time data or specific financial figures for ReTo Eco-Solutions, Inc. for the fiscal year 2024, and the following is purely illustrative.

In this example, eco-friendly construction materials contribute the majority of the revenue. Analyzing the year-over-year growth for each segment would provide further insights. If total revenue for 2024 was $20 million, and in 2023 it was $18 million, the year-over-year growth rate would be approximately 11.1%.

Understanding these elements provides a comprehensive view of ReTo Eco-Solutions, Inc.'s revenue and its financial health. For more insights into the company, consider exploring Exploring ReTo Eco-Solutions, Inc. (RETO) Investor Profile: Who’s Buying and Why?.

ReTo Eco-Solutions, Inc. (RETO) Profitability Metrics

When evaluating ReTo Eco-Solutions, Inc. (RETO), a thorough examination of its profitability metrics is crucial for investors. Profitability measures the company's ability to generate earnings relative to its revenue, assets, and equity. Key metrics to consider include gross profit, operating profit, and net profit margins.

Based on the latest available data, ReTo Eco-Solutions, Inc. (RETO) exhibits the following profitability characteristics:

• Gross Profit: For the trailing twelve months (TTM) ending June 30, 2024, the gross profit stands at $683.96K.
• Operating Margin: The operating margin (TTM) is reported at -58.42%.
• Net Profit Margin: The net profit margin is significantly negative at -132.78%.

These figures suggest that for every dollar of revenue, the company is experiencing considerable losses, particularly when considering operating and net profit margins.

Analyzing the trends in profitability over time provides valuable insights into the company's performance trajectory. However, the information about the trends in profitability over time is not available in the search results.

Comparing ReTo Eco-Solutions, Inc.'s profitability ratios with industry averages is essential to gauge its competitive positioning. Without specific industry averages for comparison, a general assessment can be made. The negative operating and net profit margins suggest that the company is underperforming compared to industry standards, as most companies aim for positive margins to ensure sustainable operations.

Operational efficiency is critical for maintaining and improving profitability. Key aspects to consider include cost management and gross margin trends. For ReTo Eco-Solutions, Inc. (RETO):

• Cost Management: Effective cost management is vital. The high negative profit margins indicate potential issues with cost control.
• Gross Margin Trends: The gross margin for the period ending June 30, 2024, is 17.81%.

To provide a clearer picture, the table below summarizes the key profitability metrics for ReTo Eco-Solutions, Inc. (RETO):

In summary, ReTo Eco-Solutions, Inc. (RETO) is currently facing significant challenges in terms of profitability. The negative operating and net profit margins highlight the need for improved cost management and operational efficiency. Investors should closely monitor how the company addresses these issues to achieve sustainable financial health. For additional insights, you can explore: Breaking Down ReTo Eco-Solutions, Inc. (RETO) Financial Health: Key Insights for Investors.

ReTo Eco-Solutions, Inc. (RETO) Debt vs. Equity Structure

Understanding how ReTo Eco-Solutions, Inc. (RETO) finances its operations and growth is crucial for investors. This involves examining the company's debt levels, its debt-to-equity ratio, and how it strategically uses debt and equity to fund its activities. Here’s a breakdown of RETO's approach to debt versus equity.

As of the fiscal year 2024, ReTo Eco-Solutions, Inc. (RETO) showcases the following financial details:

• Total Assets: $4.678 million
• Total Liabilities: $2.134 million
• Total Equity: $2.544 million

These figures provide a basic overview of the company’s financial structure, highlighting the balance between its assets, liabilities, and equity.

Overview of Debt Levels

ReTo Eco-Solutions, Inc.'s financial health can be better understood by examining its debt components. As of the third quarter of 2023, the company reported:

• Total Current Liabilities: $1.97 million
• Total Liabilities: $2.13 million

These figures include accounts payable, accrued liabilities, and deferred revenue, offering a glimpse into the company's short-term and overall debt obligations.

Debt-to-Equity Ratio

The debt-to-equity ratio is a key metric for assessing a company's financial leverage. It indicates the proportion of debt and equity a company uses to finance its assets. The formula for calculating the debt-to-equity ratio is: Total Liabilities / Total Equity. Using the 2024 data:

Debt-to-Equity Ratio = $2.134 million / $2.544 million = 0.84

A debt-to-equity ratio of 0.84 suggests that ReTo Eco-Solutions, Inc. has a balanced capital structure. This ratio means that for every dollar of equity, the company has $0.84 in debt. This level of leverage is neither excessively high nor particularly low, indicating a moderate reliance on debt financing.

Comparison to Industry Standards

The construction sector, which ReTo Eco-Solutions, Inc. operates within, often sees varied debt-to-equity ratios depending on the specific segment and company size. A study from NYU Stern in January 2024 indicated average and median debt-to-equity ratios for the construction sector:

• Average: 0.68
• Median: 0.41

Compared to these figures, ReTo Eco-Solutions, Inc.'s ratio of 0.84 is higher than both the industry average and median. This suggests that the company uses more debt relative to equity compared to its peers. While this isn't inherently negative, it indicates a higher level of financial leverage, which can amplify both profits and losses.

Recent Debt Issuances, Credit Ratings, or Refinancing Activity

Recent information regarding debt issuances and credit ratings is limited. The latest financial reports and news articles should be consulted for the most up-to-date details on any refinancing activities or credit ratings updates. Monitoring these factors is essential for gauging the company's ongoing financial strategy and stability.

Balancing Debt Financing and Equity Funding

ReTo Eco-Solutions, Inc. (RETO) strategically balances debt and equity to optimize its capital structure. While specific details on recent debt issuances and refinancing activities require up-to-date sources, the company’s overall approach can be assessed by looking at its financial statements. The balance between debt and equity allows ReTo to:

• Fund growth initiatives
• Manage operational expenses
• Ensure financial flexibility

The company's ability to maintain a balanced debt-to-equity ratio is vital for sustaining long-term financial health. Prudent management of debt and equity ensures that ReTo Eco-Solutions, Inc. can meet its obligations while pursuing growth opportunities. For more insights into the company's strategic vision, you can explore: Mission Statement, Vision, & Core Values of ReTo Eco-Solutions, Inc. (RETO).

ReTo Eco-Solutions, Inc. (RETO) Liquidity and Solvency

Liquidity and solvency are vital indicators of a company's financial health, revealing its ability to meet short-term obligations and sustain long-term operations. For investors in ReTo Eco-Solutions, Inc. (RETO), assessing these metrics provides crucial insights into the company's financial stability.

Here's an overview of ReTo Eco-Solutions' liquidity position:

• Current Ratio: As of June 30, 2024, ReTo Eco-Solutions had a current ratio of 1.02. A current ratio of 1 or more suggests that a company's assets are sufficient to cover its short-term liabilities.
• Quick Ratio: The quick ratio, which excludes inventories from current assets, stood at 0.15 as of June 30, 2024. This lower ratio indicates that the company's immediate liquidity, excluding inventory, might be constrained.

Working Capital Trends:

Working capital, the difference between current assets and current liabilities, is a key measure of short-term financial health. ReTo Eco Solutions currently holds 9.83M in liabilities with Debt to Equity (D/E) ratio of 0.44, which is about average as compared to similar companies. ReTo Eco Solutions has a current ratio of 0.88, indicating that it has a negative working capital and may not be able to pay financial obligations when due.

Cash Flow Statements Overview:

Analyzing cash flow statements provides a deeper understanding of ReTo Eco-Solutions' ability to generate cash from its operations, investments, and financing activities.

• Operating Cash Flow: For the 2024 fiscal year, RETO's operating cash flow was $-4.76M.
• Free Cash Flow: ReTo's free cash flow for Q2 2024 was $0.31. For the 2024 fiscal year, RETO's free cash flow was decreased by $-335.51K.

Potential Liquidity Concerns and Strengths:

Several factors could impact ReTo Eco-Solutions' liquidity:

• Negative Operating Cash Flow: The negative operating cash flow indicates that the company is using cash rather than generating it from its core business activities.
• Low Quick Ratio: The low quick ratio suggests that the company may face challenges in meeting its short-term obligations without relying on the sale of inventory.

Despite these concerns, there are potential strengths:

• Recent Developments: Recent news about ReTo regaining compliance with Nasdaq's minimum bid price requirement in April 2025 and securing a production line contract with a Middle Eastern client for $2 million in June 2024 could positively influence investor confidence and future cash flows.
• Revenue Increase: For the half year ended June 30, 2024, the company reported sales of $1.84 million compared to $1.23 million a year ago.

For further insights into ReTo Eco-Solutions, Inc., consider exploring this investor profile: Exploring ReTo Eco-Solutions, Inc. (RETO) Investor Profile: Who’s Buying and Why?

ReTo Eco-Solutions, Inc. (RETO) Valuation Analysis

Determining whether ReTo Eco-Solutions, Inc. (RETO) is overvalued or undervalued requires a multifaceted approach, incorporating key financial ratios, stock performance analysis, and analyst opinions. This analysis helps investors gauge the company's current market valuation relative to its intrinsic worth.

To assess ReTo Eco-Solutions, Inc. (RETO)'s valuation, several key ratios are considered:

• Price-to-Earnings (P/E) Ratio: This ratio compares the company's stock price to its earnings per share (EPS). A higher P/E ratio might suggest overvaluation, while a lower one could indicate undervaluation, relative to industry peers.
• Price-to-Book (P/B) Ratio: This ratio compares the market capitalization of the company to its book value of equity. A lower P/B ratio can suggest that the stock is undervalued.
• Enterprise Value-to-EBITDA (EV/EBITDA): This ratio compares the company's enterprise value (total market value plus debt, minus cash) to its earnings before interest, taxes, depreciation, and amortization (EBITDA). It provides a more comprehensive valuation measure, especially when comparing companies with different capital structures.

Analyzing ReTo Eco-Solutions, Inc. (RETO)'s stock price trends over the past 12 months, or longer, provides insights into market sentiment and investor confidence. Significant price fluctuations can reflect company-specific events, industry trends, or broader market conditions. As of April 2025, it's crucial to review the most recent stock performance data to understand current market perceptions.

Dividend yield and payout ratios are important for investors seeking income. However, it is important to note, that ReTo Eco-Solutions, Inc. (RETO) does not currently offer dividends. Therefore, these metrics are not applicable in assessing its valuation from an income perspective.

Lastly, it's valuable to consider analyst consensus on ReTo Eco-Solutions, Inc. (RETO)'s stock valuation. Analyst ratings typically range from 'buy' to 'sell,' reflecting their overall assessment of the stock's potential. These ratings are based on thorough financial analysis, industry knowledge, and macroeconomic forecasts.

For a deeper dive into who is investing in ReTo Eco-Solutions, Inc. (RETO) and why, check out this related article: Exploring ReTo Eco-Solutions, Inc. (RETO) Investor Profile: Who’s Buying and Why?

ReTo Eco-Solutions, Inc. (RETO) Risk Factors

ReTo Eco-Solutions, Inc. (RETO) faces a variety of internal and external risks that could significantly impact its financial health. These risks span industry competition, regulatory changes, and broader market conditions.

Here’s an overview of key risks:

• Industry Competition: The company operates in a competitive environment where maintaining market share and profitability is crucial.
• Regulatory Changes: Shifts in environmental regulations can impact the demand for RETO's products and services, potentially increasing compliance costs.
• Market Conditions: Economic downturns or changes in construction and infrastructure spending can affect the company's revenue streams.

Specific operational, financial, and strategic risks highlighted in recent earnings reports and filings may include:

• Operational Risks: These could involve disruptions in the supply chain, impacting production and delivery schedules.
• Financial Risks: Fluctuations in currency exchange rates, particularly the RMB (Chinese Yuan), can affect the reported revenue and profitability, especially since the company conducts its business in China.
• Strategic Risks: Changes in government policies and economic conditions in China are significant factors.

Mitigation strategies or plans, if available, may involve diversifying the product line, expanding into new geographic markets, or implementing cost-control measures to improve profitability.

Here's a look at potential financial impacts based on available data:

For more insights into ReTo Eco-Solutions, Inc. (RETO)'s financial health, check out: Breaking Down ReTo Eco-Solutions, Inc. (RETO) Financial Health: Key Insights for Investors

ReTo Eco-Solutions, Inc. (RETO) Growth Opportunities

For ReTo Eco-Solutions, Inc. (RETO), evaluating future growth prospects requires a close look at several key factors. These include potential product innovations, strategic market expansions, possible acquisitions, and the overall competitive landscape in which the company operates.

While specific future revenue growth projections and earnings estimates for ReTo Eco-Solutions, Inc. (RETO) are not readily available, understanding the drivers that could influence these figures is crucial. Strategic initiatives and partnerships can play a significant role in shaping the company's growth trajectory. Additionally, any competitive advantages that ReTo Eco-Solutions, Inc. (RETO) possesses will be vital in positioning it for sustained growth.

To contextualize the opportunities and challenges facing ReTo Eco-Solutions, Inc. (RETO), a SWOT analysis can provide valuable insights:

Analyzing these elements helps to create a clearer picture of where ReTo Eco-Solutions, Inc. (RETO) might be headed and what factors could influence its path.

Here are some potential growth drivers for ReTo Eco-Solutions, Inc. (RETO):

• Product Innovations: Introducing new and improved eco-friendly solutions can attract a broader customer base.
• Market Expansions: Entering new geographic markets can significantly increase revenue streams.
• Strategic Partnerships: Collaborating with other companies can provide access to new technologies and markets.
• Acquisitions: Acquiring complementary businesses can expand the company's product portfolio and market share.

Explore more about ReTo Eco-Solutions, Inc. (RETO) in this investor profile: Exploring ReTo Eco-Solutions, Inc. (RETO) Investor Profile: Who’s Buying and Why?