MeritValue

ReTo Eco-Solutions, Inc.

RETOdata completeness 100%11 fiscal years on file
The thesis, from the filings

ReTo Eco-Solutions, Inc. earns about -76% on invested capital, and has bought back 98% of its shares over 5 years. The cash-flow models don't apply cleanly here — the ledger says why below.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$3.6M1$204,4952$10,7813$1.83M3$3.37M3
Net income−$22.1M4−$14.6M5−$15.6M6−$8.35M6−$12.3M6
Operating cash flow−$2.76M7−$9.96M8−$11.6M9$3.08M9−$4.34M9
Capital expenditure$17,68610$149,54710$46,83111—$113,12511
Free cash flow (derived)−$2.78M7−$10.1M8−$11.6M9—−$4.45M9
Total debt$2.35M12$1.16M13——$197,33714
Cash & equivalents$457,49515$113,89515$152,48716$671,35517$250,00817
Diluted shares26.2M38,80116,091164,030477,462

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$443.02
your share of equity
Profit it earned you last year
−$258.45
Free cash flow it threw off
−$93.29
Debt you’d be carrying
$4.13

10 shares is a claim on $443.02 of net worth that earned you −$258.45 and generated −$93.29 of cash last year, against $4.13 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
-76% avg · 5y
FY21 -104%FY22 -92%FY23 -121%FY24 -21%FY25 -44%

It earned an average -76% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−98% shares · 5y

Share count is down 98% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has fallen 92% — deleveraging.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0
DCF · Growth Exit 10Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
DCF · Growth Exit 5Y
not applicable
3y-median FCF non-positive — growth-exit DCF not applicable (see EPV)
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001213900-23-034833 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001213900-25-041195 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 20-F · period ending 2023-12-31 · accession 0001213900-26-050658 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 20-F · period ending 2021-12-31 · accession 0001213900-23-034833 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001213900-25-041195 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001213900-26-050658 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001213900-23-034833 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001213900-25-041195 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001213900-26-050658 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001213900-23-034833 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2023-12-31 · accession 0001213900-26-050658 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2021-12-31 · accession 0001213900-22-023161 (ShortTermBorrowings)
  13. 20-F · period ending 2022-12-31 · accession 0001213900-23-034833 (LongTermDebtNoncurrent)
  14. 20-F · period ending 2025-12-31 · accession 0001213900-26-050658 (ShortTermBorrowings)
  15. 20-F · period ending 2021-12-31 · accession 0001213900-23-034833 (CashAndCashEquivalentsAtCarryingValue)
  16. 20-F · period ending 2023-12-31 · accession 0001213900-25-041195 (CashAndCashEquivalentsAtCarryingValue)
  17. 20-F · period ending 2024-12-31 · accession 0001213900-26-050658 (CashAndCashEquivalentsAtCarryingValue)