Alto Ingredients (ALTO) AI Stock Analysis

• Market Cap: $189.49M
• Dividend Yield: N/A
• Average Volume (3M): 2.18M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.42
• 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: 1,876,088
• 30 Day Avg. Volume: 2,182,132
• 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: 0.88
• 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: $2.50 ▲(131.48% Upside)

Alto Ingredients' overall stock score is primarily impacted by its financial challenges, with declining revenues and negative margins. While technical indicators show a positive trend, overbought signals suggest caution. The earnings call provided some optimism with strategic improvements, but valuation metrics remain unattractive.

Positive Factors

Renewable Fuel Export Growth

The growth in renewable fuel exports indicates a strengthening market position and potential for sustained revenue increases, leveraging global demand for cleaner energy solutions.

CO2 Utilization and Strategic Acquisitions

The acquisition enhances Alto's operational capabilities and product offerings, potentially leading to improved margins and competitive advantage in the specialty chemicals sector.

Strong Cash Flow and Debt Reduction

Improved cash flow and debt reduction enhance financial stability, providing flexibility for future investments and shielding against economic downturns.

Negative Factors

Declining Revenue

A decline in net sales suggests challenges in maintaining market share or demand, which could pressure future revenue streams and profitability.

Negative Margins

Sustained negative margins highlight operational inefficiencies and cost management issues, potentially impacting long-term financial health and competitiveness.

Delay in Carbon Capture Project

Project delays can hinder strategic growth initiatives and innovation, affecting future revenue opportunities and environmental goals.

Alto Ingredients Business Overview & Revenue Model

Company Description

Alto Ingredients, Inc. is a leading producer of high-purity alcohol and specialty ingredients primarily serving the beverage, personal care, and industrial markets. The company operates in the renewable fuels sector and focuses on the production of ethanol and other alcohol products derived from renewable sources. With a commitment to sustainability, Alto Ingredients leverages advanced technology and innovative processes to create high-quality ingredients that meet the diverse needs of its customers.

How the Company Makes Money

Alto Ingredients generates revenue through the production and sale of ethanol and related products, which are used in various applications including alcoholic beverages, pharmaceuticals, and personal care products. The company's revenue model is primarily based on the manufacturing and distribution of these high-purity alcohol products. Key revenue streams include direct sales to beverage manufacturers, industrial clients, and partnerships with distributors. Additionally, Alto Ingredients benefits from strategic alliances with other firms in the renewable energy and agricultural sectors, providing access to raw materials and expanding its market reach. The company may also explore opportunities in co-products and by-products from its production processes, further diversifying its income sources.

Alto Ingredients Financial Statement Overview

Summary

Alto Ingredients is facing financial challenges with declining revenues, negative margins, and cash flow issues. Despite a low debt-to-equity ratio, the company struggles with negative returns on equity and poor cash management, necessitating strategic improvements.

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	65.10M
Operating Cash Flow	-6.08M	-3.52M	22.02M	6.05M	26.82M	71.68M
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: Neutral

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 1.75, below the 50-day MA of 1.36, and below the 200-day MA of 1.19, indicating a bullish trend. The MACD of 0.31 indicates Negative momentum. The RSI at 85.00 is Negative, neither overbought nor oversold. The STOCH value of 79.61 is Neutral, 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	$1.09B	22.33	9.47%	―	-9.57%	-24.85%
SCL	62 Neutral	$1.03B	22.99	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	$189.49M	―	-20.64%	―	-8.00%	-35.86%
GPRE	53 Neutral	$697.65M	―	-22.21%	―	-12.07%	-821.68%
IOSP	49 Neutral	$1.84B	―	-0.09%	2.29%	-4.49%	-100.80%
GEVO	48 Neutral	$504.00M	―	-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.