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ReTo Eco-SolutionsRETO -1.84%38 Cash Ratio is 0.04 as of Dec. 2025, which is 20% below its 10-year median of 0.05. GuruFocus rates RETO with a GF Score™ of 38/100 and a GF Value™ of $551.42 (Possible Value Trap). The stock has 8 warning signs investors should review. Among 386 Building Materials companies, ReTo Eco-Solutions ranks worse than 87.82% on this metric.
ReTo Eco-Solutions has a Cash Ratio of 0.04. It indicates that there are more current liabilities than Cash, Cash Equivalents, Marketable Securities, and the company does not have sufficient cash on hand to pay off its short-term debt.
The historical rank and industry rank for ReTo Eco-Solutions's Cash Ratio or its related term are showing as below:
RETO'
s Cash Ratio Range Over the Past 10 Years
Min: 0.01 Med: 0.05 Max: 0.41
Current: 0.04
During the past 11 years, ReTo Eco-Solutions's highest Cash Ratio was 0.41. The lowest was 0.01. And the median was 0.05.
RETO's Cash Ratio is ranked worse than 87.82% of 386
companies
in the Building Materials industry
Industry Median: 0.3
vs RETO: 0.04
ReTo Eco-Solutions (NAS:RETO) Cash Ratio Explanation
The cash ratio is more conservative than other liquidity ratios, such as Quick Ratio and Current Ratio, because it only considers a company's most liquid resources. The numerator of cash ratio only considers Cash, Cash Equivalents and marketable securities. Other current assets, such as accounts receivable and inventories, are not included. The rationale is that these assets may require time to be transformed into cash, and the amount of money received is also uncertain.
The cash ratio shows a company’s ability to pay all current liabilities immediately without selling or liquidating other assets. Generally speaking, a higher cash ratio suggests the company has a stronger ability to cover its short-term debt. However, a high cash ratio could also indicate inefficient management: the company is inefficient in making full utilization of cash to invest protential profitable project. It may also suggest that the company is not confident about future profitability.
In general, the higher the cash ratio, the better the company's liquidity position.
ReTo Eco-Solutions Cash Ratio Related Terms
ReTo Eco-Solutions Cash Ratio Historical Data
* Premium members only.
The historical data trend for ReTo Eco-Solutions's Cash Ratio can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Building Materials subindustry, ReTo Eco-Solutions's Cash Ratio, along with its competitors' market caps and Cash Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ReTo Eco-Solutions Cash Ratio vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, ReTo Eco-Solutions's Cash Ratio distribution charts can be found below:
* The bar in red indicates where ReTo Eco-Solutions's Cash Ratio falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ReTo Eco-Solutions (RETO) has a Cash Ratio of 0.04 as of Dec. 2025. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on ReTo Eco-Solutions and its competitors. This is 20% below median its historical median of 0.05. Over the past decade, ReTo Eco-Solutions' Cash Ratio has ranged from 0.01 to 0.41. According to the industry distribution chart, ReTo Eco-Solutions ranks #339 out of 386 companies in the Building Materials industry, placing it in the top 87.8%.
Is ReTo Eco-Solutions' Cash Ratio too high?
ReTo Eco-Solutions' current Cash Ratio of 0.04 is 20% below median its 10-year median of 0.05. Over the past 10 years, this metric has ranged from a low of 0.01 to a high of 0.41. The Building Materials industry median Cash Ratio is 0.30. ReTo Eco-Solutions' value of 0.04 is 86.7% below this industry median. Based on the distribution chart, ReTo Eco-Solutions ranks #339 out of 386 companies in the Building Materials industry, which is in the bottom quartile relative to peers. Overall, ReTo Eco-Solutions has a GF Score™ of 38/100 and is considered Possible Value Trap, reflecting its overall financial health beyond just this single metric.
How does ReTo Eco-Solutions' Cash Ratio compare to BASA and CAPS?
According to the Building Materials industry distribution chart, ReTo Eco-Solutions ranks #339 out of 386 companies for Cash Ratio. This places ReTo Eco-Solutions in the lower half of its industry. The industry median Cash Ratio is 0.30. ReTo Eco-Solutions' value of 0.04 is 86.7% below this benchmark. Historically, ReTo Eco-Solutions' own Cash Ratio has ranged from 0.01 to 0.41 over the past decade. While the company's 10-year median is 0.05 vs. the industry median of 0.30, ReTo Eco-Solutions has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Ratio for a Building Materials company?
The median Cash Ratio among Building Materials companies is 0.30, based on 386 companies in the industry. Companies in the top quartile (top 25%) have a Cash Ratio significantly above this median, while those in the bottom quartile fall well below. However, Cash Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ReTo Eco-Solutions's current Cash Ratio of 0.04 is 86.7% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Ratio mean?
A high Cash Ratio can signal that a stock is expensive relative to its fundamentals. Cashflow ratio is the ratio of Cash, Cash Equivalents, Marketable Securities to current liabilities. View historical data on ReTo Eco-Solutions and its competitors. For the Building Materials industry, the median Cash Ratio is 0.30 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReTo Eco-Solutions's current Cash Ratio is 0.04, which is 20% below median its own 10-year median of 0.05. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ReTo Eco-Solutions stock overvalued right now?
Based on GuruFocus' analysis, ReTo Eco-Solutions (RETO) is currently considered Possible Value Trap. The stock's GF Value™ is $551.42, compared to a current price of $1.60 — trading 99.7% below its estimated fair value. The current Cash Ratio is 0.04, which is 20% below median its 10-year median of 0.05 and 86.7% below the Building Materials industry median of 0.30. ReTo Eco-Solutions' overall GF Score™ is 38/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Ratio calculated?
Cash Ratio is calculated from a company's financial statements. For ReTo Eco-Solutions (RETO), the current Cash Ratio is 0.04 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ReTo Eco-Solutions (RETO) Overvalued in 2026?
Based on GuruFocus' analysis, ReTo Eco-Solutions stock appears to be undervalued.
The current stock price of $1.60 is trading 99.7% below its estimated GF Value™ of $551.42.
GuruFocus considers ReTo Eco-Solutions to be Possible Value Trap.
Key valuation signals for RETO:
Cash Ratio: 0.04 (20% below median its 10-year median of 0.05)
GF Value™: $551.42 vs. price of $1.60 (99.7% below fair value)
Industry Position: 86.7% below the Building Materials median (#339 of 386)
No single metric tells the full story. See the RETO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ReTo Eco-Solutions Inc is a manufacturer and distributor of eco-friendly construction materials and fly ash, as well as equipment used to produce these eco-friendly construction materials. The company engaged in providing consultation, design, project implementation, and construction of urban ecological environments for capturing, controlling, and reusing rainwater. It operates through two segments, namely Equipment and technical service segment, and Craft beer segment. The company earns its revenue from the Equipment and technical service segment. Geographically, it derives a majority of its revenue from China.
38GF Score
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