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ReTo Eco-SolutionsRETO -3.37%38 Gross Margin % is 43.26% as of Dec. 2025, which is 31% above its 10-year median of 33.05. 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 399 Building Materials companies, ReTo Eco-Solutions ranks better than 71.93% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
ReTo Eco-Solutions had a gross margin of 43.26% for the quarter that ended in Dec. 2025 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
ReTo Eco-Solutions Gross Margin % Related Terms
ReTo Eco-Solutions Gross Margin % Historical Data
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The historical data trend for ReTo Eco-Solutions's Gross Margin % 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.
RETO vs BASA, CAPS, CRH: Gross Margin % Comparison
For the Building Materials subindustry, ReTo Eco-Solutions's Gross Margin %, along with its competitors' market caps and Gross Margin % 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 Gross Margin % vs Building Materials Industry
For the Building Materials industry and Basic Materials sector, ReTo Eco-Solutions's Gross Margin % distribution charts can be found below:
* The bar in red indicates where ReTo Eco-Solutions's Gross Margin % 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.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
ReTo Eco-Solutions (RETO) has a Gross Margin % of 43.26% as of Dec. 2025. Gross margin is the ratio of total gross profit to net sales. View historical data on ReTo Eco-Solutions and its competitors. This is 31% above median its historical median of 33.05. Over the past decade, ReTo Eco-Solutions' Gross Margin % has ranged from 0.49 to 57.37. According to the industry distribution chart, ReTo Eco-Solutions ranks #112 out of 399 companies in the Building Materials industry, placing it in the top 28.1%.
Is ReTo Eco-Solutions' Gross Margin % too high?
ReTo Eco-Solutions' current Gross Margin % of 43.26% is 31% above median its 10-year median of 33.05. Over the past 10 years, this metric has ranged from a low of 0.49 to a high of 57.37. The Building Materials industry median Gross Margin % is 26.27. ReTo Eco-Solutions' value of 43.26% is 64.7% above this industry median. Based on the distribution chart, ReTo Eco-Solutions ranks #112 out of 399 companies in the Building Materials industry, which is above the industry midpoint. 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' Gross Margin % compare to BASA and CAPS?
According to the Building Materials industry distribution chart, ReTo Eco-Solutions ranks #112 out of 399 companies for Gross Margin %. This puts ReTo Eco-Solutions in the upper half of its industry. The industry median Gross Margin % is 26.27. ReTo Eco-Solutions' value of 43.26% is 64.7% above this benchmark. Historically, ReTo Eco-Solutions' own Gross Margin % has ranged from 0.49 to 57.37 over the past decade. While the company's 10-year median is 33.05 vs. the industry median of 26.27, ReTo Eco-Solutions has consistently been above 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 Gross Margin % for a Building Materials company?
The median Gross Margin % among Building Materials companies is 26.27, based on 399 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ReTo Eco-Solutions's current Gross Margin % of 43.26% is 64.7% above 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 Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on ReTo Eco-Solutions and its competitors. For the Building Materials industry, the median Gross Margin % is 26.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ReTo Eco-Solutions's current Gross Margin % is 43.26%, which is 31% above median its own 10-year median of 33.05. 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 $1.58 — trading 99.7% below its estimated fair value. The current Gross Margin % is 43.26%, which is 31% above median its 10-year median of 33.05 and 64.7% above the Building Materials industry median of 26.27. 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 Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For ReTo Eco-Solutions (RETO), the current Gross Margin % is 43.26% 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 $1.58 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:
Gross Margin %: 43.26% (31% above median its 10-year median of 33.05)
GF Value™: $551.42 vs. price of $1.58 (99.7% below fair value)
Industry Position: 64.7% above the Building Materials median (#112 of 399)
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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