RETO (ReTo Eco-Solutions) Profitability Rank: 2 (As of Dec. 2025) — 60% Below Median

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RETO ReTo Eco-Solutions Inc RETO
38 GF Score
Price $1.62
GF Value $551.42
Valuation Possible Value Trap
! 8 Warning Signs
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What is ReTo Eco-Solutions Profitability Rank?

ReTo Eco-Solutions RETO -0.61% 38 Profitability Rank is 2 as of Dec. 2025, which is 60% below its 10-year median of 5.00. 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.

ReTo Eco-Solutions has the Profitability Rank of 2. It has had trouble to make a profit.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

ReTo Eco-Solutions's Operating Margin % for the quarter that ended in Dec. 2025 was -67.47%. As of today, ReTo Eco-Solutions's Piotroski F-Score is 2.


ReTo Eco-Solutions Profitability Rank Related Terms


RETO vs BASA, CAPS, CRH: Profitability Rank Comparison

For the Building Materials subindustry, ReTo Eco-Solutions's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank vs Building Materials Industry

For the Building Materials industry and Basic Materials sector, ReTo Eco-Solutions's Profitability Rank distribution charts can be found below:

* The bar in red indicates where ReTo Eco-Solutions's Profitability Rank falls into.


RETO
38GF Score
ReTo Eco-Solutions Inc RETO
Profitability Rank is just one metric. See GF Score™, valuation, warning signs, and more.
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ReTo Eco-Solutions Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

ReTo Eco-Solutions has the Profitability Rank of 2. It has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

ReTo Eco-Solutions's Operating Margin % for the quarter that ended in Dec. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Dec. 2025 ) / Revenue (Q: Dec. 2025 )
=-1.566 / 2.321
=-67.47 %

* 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.

2. Piotroski F-Score

Warning Sign:

Piotroski F-Score of 2 is low, which usually implies poor business operation.

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

ReTo Eco-Solutions has an F-score of 2. It is a bad or low score, which usually implies poor business operation.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

ReTo Eco-Solutions Inc operating margin has been in a 5-year decline. The average rate of decline per year is -18.2%.

4. Consistency of the profitability

5. Predictability Rank

Frequently Asked Questions Learn more about Profitability Rank →
What does a Profitability Rank of 2 mean?
ReTo Eco-Solutions (RETO) has a Profitability Rank of 2 as of Dec. 2025. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on ReTo Eco-Solutions and its competitors. This is 60% below median its historical median of 5.00. Over the past decade, ReTo Eco-Solutions' Profitability Rank has ranged from 1.00 to 5.00.
Is ReTo Eco-Solutions' Profitability Rank too high?
ReTo Eco-Solutions' current Profitability Rank of 2 is 60% below median its 10-year median of 5.00. Over the past 10 years, this metric has ranged from a low of 1.00 to a high of 5.00. 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' Profitability Rank compare to BASA and CAPS?
ReTo Eco-Solutions' Profitability Rank of 2 can be compared against companies in the Building Materials industry. Historically, ReTo Eco-Solutions' own Profitability Rank has ranged from 1.00 to 5.00 over the past decade. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Profitability Rank for a Building Materials company?
A good Profitability Rank depends on the Building Materials industry context. However, Profitability Rank should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Profitability Rank mean?
A high Profitability Rank can signal that a stock is expensive relative to its fundamentals. Profitability and Growth ranks a company based on its profit margins and earnings growth. View historical data on ReTo Eco-Solutions and its competitors. ReTo Eco-Solutions's current Profitability Rank is 2, which is 60% below median its own 10-year median of 5.00. 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 $1.62 — trading 99.7% below its estimated fair value. The current Profitability Rank is 2, which is 60% below median its 10-year median of 5.00. 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 Profitability Rank calculated?
Profitability Rank is calculated from a company's financial statements. For ReTo Eco-Solutions (RETO), the current Profitability Rank is 2 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 $1.62 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:

  • Profitability Rank: 2 (60% below median its 10-year median of 5.00)
  • GF Value™: $551.42 vs. price of $1.62 (99.7% below fair value)
  • GF Score™: 38/100 with 8 warning signs

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 Business Description

Address 60 Anli Road, X-702, Tower A, Chaoyang District, Beijing, CHN, 100101
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

Get the complete analysis for RETO

Profitability Rank is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

$1.62
Price
$551.42
GF Value