RETO:NASDAQReTo Eco-Solutions, Inc. Analysis
Data as of 2026-05-31 - not real-time
$2.22
Latest Price
9/10Risk
Risk Level: High
Executive Summary
Technical outlook: The stock trades at $2.22, below the 20‑day SMA of $2.39 and the 50‑day SMA of $2.93, with a bearish trend direction and decreasing volume. RSI sits around 42, indicating limited upside momentum, while the MACD shows a marginal bullish histogram but the lines remain negative.
Fundamental outlook: The company reports zero profit margin, a massive operating loss (‑67% margin), negative operating and free cash flow, and a debt‑to‑equity ratio near 10×. With a max drawdown of over 97% and a beta above 1.4, risk is extreme. The only bright spot is a very low price‑to‑book of 0.11, but this reflects severe distress rather than hidden value. Recent material news about a 4‑for‑1 reverse stock split adds short‑term price support but does not address the underlying financial weakness.
Fundamental outlook: The company reports zero profit margin, a massive operating loss (‑67% margin), negative operating and free cash flow, and a debt‑to‑equity ratio near 10×. With a max drawdown of over 97% and a beta above 1.4, risk is extreme. The only bright spot is a very low price‑to‑book of 0.11, but this reflects severe distress rather than hidden value. Recent material news about a 4‑for‑1 reverse stock split adds short‑term price support but does not address the underlying financial weakness.
Market Outlook
Short Term
< 1 yearCautious
Model confidence: 8/10
Key Factors
- Price below key moving averages and bearish trend
- Severe cash‑flow deficits and high leverage
- Low and decreasing trading volume
Medium Term
1–3 yearsNeutral
Model confidence: 6/10
Key Factors
- Pending 4‑for‑1 reverse split may create temporary price floor
- Market sentiment reflected by extreme greed index
- Continued financial distress without clear turnaround plan
Long Term
> 3 yearsCautious
Model confidence: 7/10
Key Factors
- Sustained negative earnings and margins
- High debt burden and risk of insolvency
- Exposure to Chinese regulatory and geopolitical environment
Key Metrics & Analysis
Financial Health
Revenue Growth118.90%
ROE-46.15%
ROA-5.60%
Debt/Equity9.85
P/B Ratio0.1
Op. Cash Flow$-4341056
Free Cash Flow$-2728219
Technical Analysis
TrendBearish
RSI41.8
Support$1.80
Resistance$2.80
MA 20$2.39
MA 50$2.93
MA 200$12.05
MACDBullish
VolumeDecreasing
Fear & Greed Index94.07
Valuation
GradeOvervalued
TypeValue
Risk Assessment
Beta1.44
Volatility185.69%
Sector RiskMedium
Reg. RiskHigh
Geo RiskHigh
Currency RiskMedium
Liquidity RiskHigh
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.