Alto Ingredients (ALTO) AI Stock Analysis

• Market Cap: $157.78M
• Dividend Yield: N/A
• Average Volume (3M): 1.84M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.48
• Revenue Growth: -8.00%
• EPS Growth: -35.86%
• Country: US
• Employees: 393
• Sector: Basic Materials
• Sector Strength: 58
• Industry: Chemicals - Specialty
• EPS (TTM): 0.19
• Shares Outstanding: 77,342,490
• 10 Day Avg. Volume: 5,022,662
• 30 Day Avg. Volume: 1,838,515
• PEG Ratio: -0.02
• Price to Book (P/B): 0.51
• Price to Sales (P/S): 0.12
• P/FCF Ratio: -7.86
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 9.36
• Enterprise Value/Ebitda: -12.57
• 1Y Price Target: $5.50
• Price Target Upside: 409.26% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.4
• Revenue Forecast (FY): $919.95M

• Rating: 54 Neutral
• Price Target: $2.00 ▲(85.19% Upside)

Alto Ingredients' stock score is primarily influenced by financial challenges, despite positive technical indicators and strategic improvements noted in the earnings call. The negative P/E ratio and lack of dividend yield further impact the valuation negatively.

Positive Factors

Strategic Initiatives

The strategic focus on tax credits and optimizing product mix enhances profitability and aligns with regulatory incentives, supporting long-term growth.

Renewable Fuel Export Growth

Growth in renewable fuel exports indicates strong market demand and positions the company to benefit from sustainability trends, supporting revenue growth.

Debt Reduction and Cash Flow

Effective cash flow management and debt reduction improve financial flexibility and reduce interest expenses, strengthening long-term financial health.

Negative Factors

Declining Revenue

Declining revenue reflects challenges in maintaining sales volumes, which could impact profitability and market position if not addressed.

Negative Margins

Sustained negative margins indicate operational inefficiencies and pricing pressures, which could hinder profitability and require strategic adjustments.

Cash Flow Challenges

Negative cash flow highlights liquidity issues, limiting the company's ability to invest in growth and manage financial obligations effectively.

Alto Ingredients Business Overview & Revenue Model

Company Description

Alto Ingredients, Inc. produces and markets specialty alcohols and essential ingredients in the United States. The company operates in three segments: Marketing and Distribution, Pekin Production, and Other Production. It offers specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants, and cleaners for health, home, and beauty markets; grain neutral spirits used in alcoholic beverages, flavor extracts, and vinegar, as well as corn germ used in corn oils and carbon dioxide for food and beverage markets; and essential ingredients include dried yeast, corn gluten meal, corn gluten feed, distillers grains, and liquid feed for commercial animal feed and pet food applications. The company also provides fuel-grade ethanol used as transportation fuel and distillers corn oil used as a biodiesel feedstock, as well as fuel-grade ethanol produced by third parties. In addition, it offers transportation, storage, and delivery services through third-party service providers. The company sells ethanol to integrated oil companies and gasoline marketers; essential ingredient feed products to dairies and feedlots; and corn oil to poultry and biodiesel customers. It operates five alcohol production facilities, including three plants in the Midwestern states of Illinois; and two facilities located in the Western states of Oregon and Idaho. The company was formerly known as Pacific Ethanol, Inc. and changed its name to Alto Ingredients, Inc. in January 2021. Alto Ingredients, Inc. was founded in 2003 and is headquartered in Pekin, Illinois.

How the Company Makes Money

Alto Ingredients generates revenue primarily through the sale of its ethanol and specialty ingredients. The company has multiple revenue streams, including sales of fuel-grade ethanol to the energy sector, high-purity alcohol for industrial applications, and value-added products for the food and beverage industries. Key partnerships with major distributors and manufacturers enhance its market reach and enable the company to tap into various customer segments. Additionally, the company benefits from a focus on sustainability, which attracts clients looking for eco-friendly solutions. Fluctuations in commodity prices and regulatory changes also play significant roles in shaping the company's earnings, as they impact production costs and market demand for its products.

Alto Ingredients Financial Statement Overview

Summary

Alto Ingredients is facing financial challenges across all verticals. The income statement shows declining revenues and negative margins, the balance sheet reflects poor returns on equity despite low leverage, and cash flow statements indicate cash management issues. The company needs strategic improvements to enhance profitability and stabilize cash flows.

Income Statement

Alto Ingredients has faced declining revenue and profitability over the past years, with a negative revenue growth rate of -1.16% in the TTM. The gross profit margin is low at 1.94%, and the net profit margin is negative at -5.44%, indicating challenges in maintaining profitability. The EBIT and EBITDA margins are also negative, reflecting operational inefficiencies. The company needs to address these issues to improve its financial health.

Balance Sheet

The balance sheet shows a relatively low debt-to-equity ratio of 0.02 in the TTM, suggesting manageable leverage. However, the return on equity is negative at -23.09%, indicating that the company is not generating sufficient returns on shareholder investments. The equity ratio is not provided, but the overall stability is affected by the negative ROE.

Cash Flow

Cash flow analysis reveals negative operating cash flow and free cash flow in the TTM, with a significant decline in free cash flow growth. The operating cash flow to net income ratio is negative, indicating cash flow challenges. The free cash flow to net income ratio is positive, suggesting some ability to cover net losses, but overall cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	922.31M	965.26M	1.22B	1.34B	1.21B	897.02M
Gross Profit	17.88M	9.72M	15.65M	-27.55M	67.78M	52.86M
EBITDA	-13.31M	-26.76M	2.60M	-12.75M	74.43M	30.91M
Net Income	-50.18M	-58.98M	-28.00M	-41.60M	46.08M	-15.12M
Balance Sheet
Total Assets	388.47M	401.44M	454.24M	478.32M	484.95M	476.82M
Cash, Cash Equivalents and Short-Term Investments	32.52M	35.47M	30.01M	36.46M	50.61M	47.67M
Total Debt	119.69M	114.67M	105.46M	87.27M	63.65M	108.23M
Total Liabilities	166.07M	176.38M	174.68M	170.23M	139.74M	180.58M
Stockholders Equity	222.40M	225.06M	279.56M	308.09M	345.21M	296.24M
Cash Flow
Free Cash Flow	-10.01M	-14.59M	-7.51M	-31.70M	10.44M	65.20M
Operating Cash Flow	-6.08M	-3.52M	22.02M	6.05M	26.82M	71.78M
Investing Cash Flow	-13.45M	-13.47M	-33.03M	-37.66M	27.12M	23.32M
Financing Cash Flow	14.18M	7.72M	6.96M	19.01M	-40.00M	-66.42M

Alto Ingredients Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.08
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ALTO, the sentiment is Positive. The current price of 1.08 is below the 20-day moving average (MA) of 1.30, below the 50-day MA of 1.19, and below the 200-day MA of 1.16, indicating a bullish trend. The MACD of 0.21 indicates Negative momentum. The RSI at 85.08 is Negative, neither overbought nor oversold. The STOCH value of 93.08 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for ALTO.

Alto Ingredients Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
REX	75 Outperform	$1.10B	22.49	9.47%	―	-9.57%	-24.85%
SCL	62 Neutral	$999.08M	22.35	3.67%	3.49%	5.35%	-1.43%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALTO	54 Neutral	$157.78M	―	-20.64%	―	-8.00%	-35.86%
GPRE	53 Neutral	$676.70M	―	-22.21%	―	-12.07%	-821.68%
IOSP	49 Neutral	$1.84B	―	-0.09%	2.13%	-4.49%	-100.80%
GEVO	47 Neutral	$477.35M	―	-9.27%	―	675.75%	42.00%

Alto Ingredients Corporate Events

Alto Ingredients’ Earnings Call: Financial Gains Amid Challenges

The recent earnings call for Alto Ingredients, Inc. painted a picture of both progress and challenges. The company reported significant financial improvements and successful strategic initiatives, which were met with enthusiasm. However, the call also acknowledged hurdles such as a decline in net sales, impacts from dock outages, and delays in key projects, which tempered the overall positive sentiment.

Alto Ingredients, Inc. Reports Strong Q3 2025 Growth

Alto Ingredients, Inc. is a leading producer and distributor of specialty alcohols, renewable fuels, and essential ingredients, serving a diverse range of markets including Health, Home & Beauty, Food & Beverage, Industry & Agriculture, and Renewable Fuels.