Alto Ingredients (ALTO) AI Stock Analysis

• Market Cap: $228.94M
• Dividend Yield: N/A
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.52
• 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: 1,606,118
• 30 Day Avg. Volume: 1,721,659
• 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: 0.73
• Enterprise Value/Revenue: 0.18
• Enterprise Value/Gross Profit: 9.36
• Enterprise Value/Ebitda: -12.57
• 1Y Price Target: $5.50
• Price Target Upside: 85.81% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): -0.4
• Revenue Forecast (FY): $919.95M

• Rating: 59 Neutral
• Price Target: $3.00 ▲(1.35% Upside)

Alto Ingredients' stock score is primarily influenced by its financial challenges, despite positive technical indicators and promising earnings call highlights. The company's strategic initiatives and market momentum are overshadowed by its current unprofitability and cash flow issues.

Positive Factors

Strategic Initiatives

The strategic focus on tax credits and CO2 utilization enhances profitability and sustainability, aligning with long-term industry trends.

Debt Management

Effective debt reduction and strong cash flow generation improve financial flexibility and reduce interest burden, supporting long-term stability.

Renewable Fuel Export Growth

Growth in renewable fuel exports strengthens market position and aligns with global sustainability trends, driving future revenue growth.

Negative Factors

Declining Revenue

The decline in net sales indicates challenges in market demand or competitive pressures, impacting long-term revenue growth potential.

Negative Profit Margins

Sustained negative profit margins reflect operational inefficiencies, which could hinder long-term profitability and competitive positioning.

Leadership Change

Leadership changes can disrupt strategic continuity and affect investor confidence, potentially impacting long-term strategic execution.

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: 2.96
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• 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 2.96 is above the 20-day moving average (MA) of 2.55, above the 50-day MA of 1.84, and above the 200-day MA of 1.27, indicating a bullish trend. The MACD of 0.25 indicates Positive momentum. The RSI at 70.61 is Negative, neither overbought nor oversold. The STOCH value of 80.84 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	78 Outperform	$1.12B	22.67	8.89%	―	-3.10%	-22.31%
SCL	66 Neutral	$1.08B	24.05	3.67%	3.26%	5.35%	-1.43%
Sector *	61 Neutral	$10.43B	7.12	-0.05%	2.87%	2.86%	-36.73%
ALTO	59 Neutral	$228.94M	-4.24	-20.64%	―	-8.00%	-35.86%
GPRE	56 Neutral	$656.45M	-3.21	-22.21%	―	-12.07%	-821.68%
GEVO	55 Neutral	$523.39M	-11.23	-9.27%	―	675.75%	42.00%
IOSP	54 Neutral	$1.92B	-1,320.24	-0.09%	2.20%	-4.49%	-100.80%

Alto Ingredients Corporate Events

Alto Ingredients Board Member Jeremy Bezdek Resigns

On November 24, 2025, Jeremy T. Bezdek resigned from the Board of Directors and all related committees at Alto Ingredients, Inc., effective immediately. His resignation was not due to any disagreements with the company regarding its operations, policies, or practices.