ReTo Eco-Solutions, Inc. (RETO)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
ReTo Eco-Solutions, Inc. (RETO) trades at $2.22 with AI Score 42/100 (Grade C). ReTo Eco-Solutions, Inc. manufactures and distributes eco-friendly construction materials in China and internationally. Market cap: $325,829, Sector: Basic materials.
Last analyzed: Mar 16, 2026Analyst Coverage for RETO: RETO does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates RETO against Basic Materials peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
RETO: the 1 perspectives are evenly split.
ReTo Eco-Solutions, Inc. (RETO) Materials & Commodity Exposure
ReTo Eco-Solutions, Inc. provides eco-friendly construction materials, including aggregates, bricks, and pavers, primarily in China. The company focuses on water management and infrastructure projects, offering solutions for water absorption, flood control, and ecological construction. ReTo also provides manufacturing equipment for these materials globally.
What Is the Investment Thesis for RETO?
ReTo Eco-Solutions operates in the construction materials sector with a focus on eco-friendly solutions. The company's negative P/E ratio of -0.77 and a negative profit margin of -131.6% indicate financial challenges. A gross margin of 17.7% suggests some ability to generate profit from sales, but this is offset by high operating costs. The company's beta of 1.53 indicates higher volatility compared to the market. Growth catalysts include potential expansion of 'sponge city' projects in China and increased demand for eco-friendly construction materials. Investors should monitor the company's ability to improve profitability and manage its financial risks.
Based on FMP financials and quantitative analysis
RETO Key Highlights
- Gross Margin of 17.7% indicates potential for profitability but needs improvement.
- Beta of 1.53 suggests higher volatility compared to the overall market.
- Focus on 'sponge city' projects aligns with growing demand for sustainable urban development.
- Geographic reach includes China, South Asia, North America, the Middle East, North Africa, and Southeast Asia, providing diversification.
- Negative Profit Margin of -131.6% indicates significant financial challenges.
Who Are RETO's Competitors?
Who Are RETO's Competitors?
RETO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CAPS Capstone Holding Corp. | $0.32 | +0.00% | $1.70M | 43 |
| CTVA Corteva, Inc. | $77.84 | +0.66% | $52.06B | 49 |
| ENFY Enlightify Inc. | $0.00 | +0.00% | 19K | 43 |
| AMRZ Amrize AG | $50.00 | +3.54% | 28B | 59 |
| TGLS Tecnoglass Inc. | $42.57 | -1.18% | 2B | 58 |
| LOMA Loma Negra Compañía Industrial Argentina Sociedad Anónima manufactures and sells cement and its derivatives in Argentina. The company | $12.00 | +2.30% | 2B | 56 |
| TTAM Titan America S.A. | $16.06 | -4.35% | 3B | 53 |
| JHX James Hardie Industries plc | $20.15 | +1.36% | 12B | 43 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are RETO's Key Strengths?
- Focus on eco-friendly construction materials.
- Expertise in 'sponge city' projects.
- Manufacturing and distribution of both materials and equipment.
- Geographic presence in multiple regions.
What Are RETO's Weaknesses?
- Negative profit margin indicates financial instability.
- High beta suggests higher market volatility.
- Limited brand recognition compared to larger competitors.
- Dependence on government projects can create revenue variability.
What Could Drive RETO Stock Higher?
- Government investment in 'sponge city' projects in China.
- Potential new contracts for municipal construction projects.
- Increasing demand for eco-friendly construction materials.
- Development and launch of new eco-friendly products.
What Are the Key Risks for RETO?
- Negative profit margin and financial instability.
- Economic slowdown in China could reduce demand.
- Changes in government regulations could impact projects.
- Intense competition from larger construction materials companies.
- Fluctuations in raw material prices.
What Are the Growth Opportunities for RETO?
- Expansion of 'Sponge City' Projects: China's focus on sustainable urban development through 'sponge city' initiatives presents a significant growth opportunity for ReTo. These projects aim to improve water absorption and reduce flooding in urban areas. ReTo's construction materials are well-suited for these projects, and increased government investment in this area could drive revenue growth. The market size for 'sponge city' projects in China is estimated to be billions of dollars, with ongoing projects expected to continue through 2030.
- Increased Demand for Eco-Friendly Construction Materials: Growing environmental awareness is driving demand for eco-friendly construction materials globally. ReTo's focus on sustainable products positions it to capitalize on this trend. As regulations become stricter and consumers become more environmentally conscious, the demand for ReTo's products is expected to increase. The global market for green construction materials is projected to reach $430.6 billion by 2027, creating a substantial opportunity for ReTo.
- Geographic Expansion: ReTo's existing presence in South Asia, North America, the Middle East, North Africa, and Southeast Asia provides a foundation for further geographic expansion. By targeting new markets with strong growth potential, ReTo can diversify its revenue streams and reduce its reliance on the Chinese market. Emerging economies in Asia and Africa offer particularly attractive opportunities due to rapid urbanization and infrastructure development. This expansion could occur gradually over the next 3-5 years.
- Development of New Eco-Friendly Products: Investing in research and development to create new eco-friendly construction materials can provide ReTo with a competitive advantage. By innovating and expanding its product portfolio, ReTo can attract new customers and increase its market share. Potential areas for innovation include developing materials with improved water absorption capabilities, enhanced durability, and lower carbon footprints. This is an ongoing opportunity that requires continuous investment and adaptation to market needs.
- Partnerships and Collaborations: Forming strategic partnerships with other companies in the construction industry can help ReTo expand its reach and access new markets. Collaborating with construction firms, engineering companies, and government agencies can provide ReTo with access to new projects and customers. These partnerships can also facilitate the development of new products and technologies. This is an ongoing opportunity that requires proactive engagement with potential partners.
What Opportunities Does RETO Have?
- Expansion of 'sponge city' projects in China.
- Increased demand for eco-friendly construction materials globally.
- Geographic expansion into new markets.
- Development of new eco-friendly products.
What Threats Does RETO Face?
- Intense competition from established construction materials companies.
- Economic slowdown in China could reduce demand for construction materials.
- Changes in government regulations could impact 'sponge city' projects.
- Fluctuations in raw material prices could affect profitability.
What Are RETO's Competitive Advantages?
- Focus on eco-friendly construction materials aligns with growing environmental concerns.
- Expertise in 'sponge city' projects provides a competitive advantage in urban water management.
- Manufacturing and distribution of construction materials and equipment offers vertical integration.
- Geographic presence in multiple regions provides diversification.
What Does RETO Do?
Founded in 1999 and headquartered in Beijing, ReTo Eco-Solutions, Inc. manufactures and distributes construction materials, emphasizing eco-friendly solutions. The company's products include aggregates, bricks, pavers, and tiles designed for water absorption, flood control, and water retention. These materials are utilized in various applications, including gardens, roads, bridges, city squares, retaining walls, and slope construction. ReTo also participates in hydraulic ecological projects, such as slope protection and river transformation, and provides materials for insulation, decoration, and building walls. Beyond material production, ReTo offers construction materials manufacturing equipment, including automated production equipment with hydraulic integration. The company's reach extends beyond China, with sales in South Asia, North America, the Middle East, North Africa, and Southeast Asia. ReTo also undertakes municipal construction projects, specializing in 'sponge city' initiatives aimed at improving urban water management.
What Products and Services Does RETO Offer?
- Manufactures aggregates for construction.
- Produces bricks and pavers for various applications.
- Offers tiles for construction and decoration.
- Provides construction materials for water absorption and flood control.
- Supplies materials for gardens, roads, and bridges.
- Undertakes municipal construction projects, including 'sponge city' projects.
- Offers automated production equipment for manufacturing construction materials.
How Does RETO Make Money?
- Manufactures and sells eco-friendly construction materials.
- Provides construction materials manufacturing equipment.
- Undertakes municipal construction projects.
- Generates revenue through product sales and project execution.
What Industry Does RETO Operate In?
ReTo Eco-Solutions operates within the construction materials industry, which is influenced by economic growth, infrastructure development, and environmental regulations. The demand for eco-friendly construction materials is increasing due to growing environmental awareness and government initiatives promoting sustainable development. The industry is competitive, with companies like Continental Materials Corporation (CNEY) and Titan Machinery Inc. (TITN) vying for market share. ReTo's focus on 'sponge city' projects positions it to capitalize on the trend towards sustainable urban water management solutions.
Who Are RETO's Key Customers?
- Municipal governments undertaking infrastructure projects.
- Construction companies building roads, bridges, and buildings.
- Landscaping companies creating gardens and public spaces.
- Hydraulic engineering companies working on water management projects.
RETO Financials
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RETO Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for RETO.
Price Targets
Wall Street price target analysis for RETO.
RETO MoonshotScore
What does this score mean?
The MoonshotScore rates RETO's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Who Are RETO's Competitors?
Latest News
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Why Axon Enterprise Shares Are Trading Higher By Over 16%; Here Are 20 Stocks Moving Premarket
Why Science Applications International Shares Are Trading Lower By Over 10%? Here Are Other Stocks Moving In Monday's Mid-Day Session
Why NIO Are Trading Lower By Over 7%? Here Are Other Stocks Moving In Tuesday's Mid-Day Session
Leadership: Xinyang Li
CEO
Xinyang Li is the CEO of ReTo Eco-Solutions, Inc. His leadership is pivotal in guiding the company's strategic direction and overseeing its operations. As CEO, he is responsible for managing the company's 46 employees and driving its growth in the eco-friendly construction materials market. Additional details about his career history and education are not available.
Track Record: Under Xinyang Li's leadership, ReTo Eco-Solutions has focused on expanding its presence in the 'sponge city' project sector and developing eco-friendly construction materials. The company has also worked to expand its geographic reach. Specific milestones and achievements under his tenure are not available.
RETO Basic Materials Stock FAQ
What does ReTo Eco-Solutions, Inc. do?
ReTo Eco-Solutions, Inc. manufactures and distributes eco-friendly construction materials, primarily in China. The company's products include aggregates, bricks, pavers, and tiles designed for water absorption, flood control, and water retention. These materials are used in various applications, including 'sponge city' projects, gardens, roads, and bridges. ReTo also offers construction materials manufacturing equipment. The company focuses on providing sustainable solutions for urban development and water management.
What do analysts say about RETO stock?
AI analysis is currently pending for RETO. Key valuation metrics include a negative P/E ratio of -0.77 and a negative profit margin of -131.6%, indicating financial challenges. The company's gross margin is 17.7%. The company's beta is 1.53. Growth considerations include the potential expansion of 'sponge city' projects and increased demand for eco-friendly construction materials. Investors should monitor the company's ability to improve profitability and manage its financial risks.
What are the main risks for RETO?
The main risks for ReTo Eco-Solutions include its negative profit margin and overall financial instability. The company also faces competition from larger, more established construction materials companies. Economic slowdowns in China could reduce demand for its products, and changes in government regulations could impact its 'sponge city' projects. Fluctuations in raw material prices could also affect the company's profitability. The high beta of 1.53 suggests higher market volatility.
How does ReTo Eco-Solutions, Inc. compare to competitors in its industry?
ReTo Eco-Solutions differentiates itself through its focus on eco-friendly construction materials and its expertise in 'sponge city' projects. While competitors like Continental Materials Corporation (CNEY) offer a broader range of building products, ReTo specializes in sustainable solutions for water management and urban development. This niche focus allows ReTo to target specific projects and customers who prioritize environmental sustainability. However, ReTo's smaller size and financial challenges may limit its ability to compete with larger, more established companies.
What are the key financial metrics investors watch for RETO?
Investors monitoring ReTo Eco-Solutions will closely examine its profit margin, which is currently negative at -131.6%. Improving this metric is crucial for the company's long-term viability. Gross margin, currently at 17.7%, indicates the company's ability to generate profit from sales. Revenue growth is also important, as it reflects the company's ability to expand its market share. Additionally, investors should monitor the company's debt levels and cash flow to assess its financial stability.
What are the key factors to evaluate for RETO?
ReTo Eco-Solutions, Inc. (RETO) currently holds an AI score of 42/100, indicating low score. Key strength: Focus on eco-friendly construction materials. Primary risk to monitor: Negative profit margin and financial instability. This is not financial advice.
How frequently does RETO data refresh on this page?
RETO prices update in real time during U.S. market hours (9:30 AM-4:00 PM ET, weekdays). Fundamentals refresh after quarterly or annual filings. Analyst ratings and AI insights update daily. News is aggregated continuously from financial sources.
What has driven RETO's recent stock price performance?
Recent price movement in ReTo Eco-Solutions, Inc. (RETO) can be influenced by earnings results, analyst revisions, sector rotation, and broader market sentiment. Notable catalyst: Focus on eco-friendly construction materials. Check the News and Technical Analysis tabs for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Financial data is based on available information and may be subject to change.
- AI analysis is pending and may provide additional insights.
- The construction materials industry is subject to economic and regulatory factors.