Alto Ingredients (ALTO) AI Stock Analysis

• Market Cap: $90.56M
• Dividend Yield: N/A
• Average Volume (3M): 207.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -12.70%
• EPS Growth: -74.32%
• Country: US
• Employees: 393
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): -0.15
• Shares Outstanding: 77,396,805
• 10 Day Avg. Volume: 146,698
• 30 Day Avg. Volume: 207,292
• 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: 2.14
• Enterprise Value/Revenue: 0.21
• Enterprise Value/Gross Profit: 562.42
• Enterprise Value/Ebitda: -6.26
• 1Y Price Target: $3.25
• Price Target Upside: 185.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

• Rating: 48 Neutral
• Price Target: $1.00 ▼(-12.28% Downside)

Alto Ingredients faces significant financial challenges, as reflected in its low financial performance score. While there are some positive technical indicators and a favorable corporate event, the company's valuation and earnings call reveal ongoing profitability issues and operational challenges. The overall stock score reflects these mixed factors, with financial difficulties being the most significant concern.

Positive Factors

Cost Savings

Operational efficiencies and corporate reorganization are expected to lead to $8M in annualized savings, enhancing the company's financial stability.

Financial Performance

The company managed to lower its adjusted EBITDA loss significantly, indicating improvement in financial management and operational efficiencies.

Negative Factors

Export Challenges

Global headwinds resulting from reduced exports to China have the potential to impact ethanol demand adversely.

Revenues

Revenues declined by 13.6% year-over-year due to lower ethanol prices, and the company reported a net loss for the quarter.

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 difficulties with declining revenues, negative net profit margins, and cash flow challenges. Despite a moderate debt level, profitability and cash generation remain concerns.

Income Statement

Alto Ingredients has faced declining revenues and profitability. The TTM Gross Profit Margin is low at 0.73%, and the Net Profit Margin is negative at -6.20%, indicating operational challenges. Revenue has decreased by 2.52% from the previous year, and EBIT and EBITDA margins are negative, underscoring profitability issues.

Balance Sheet

The company maintains a moderate Debt-to-Equity Ratio of 0.61, reflecting balanced leverage. However, Stockholders' Equity has decreased over recent periods. The Equity Ratio stands at 53.17%, suggesting a solid equity base relative to total assets. Return on Equity (ROE) is not positive due to net losses, indicating inefficiencies in generating profits from equity.

Cash Flow

Alto's Free Cash Flow has deteriorated, with a significant negative Free Cash Flow Growth Rate. The Operating Cash Flow to Net Income Ratio is -0.39, reflecting cash generation issues. Free Cash Flow to Net Income Ratio is negative, showing cash flow challenges in covering losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	933.14M	965.26M	1.22B	1.34B	1.21B	897.02M
Gross Profit	345.00K	9.72M	15.65M	-27.55M	67.78M	52.86M
EBITDA	-31.01M	-26.76M	2.60M	-12.75M	61.89M	51.15M
Net Income	-66.83M	-58.98M	-28.00M	-41.60M	46.08M	-17.28M
Balance Sheet
Total Assets	393.06M	401.44M	454.24M	478.32M	484.95M	476.82M
Cash, Cash Equivalents and Short-Term Investments	30.49M	35.47M	30.01M	36.46M	50.61M	47.67M
Total Debt	138.72M	114.67M	105.46M	87.27M	63.65M	108.23M
Total Liabilities	185.22M	176.38M	174.68M	170.23M	139.74M	180.58M
Stockholders Equity	207.84M	225.06M	279.56M	308.09M	345.21M	296.24M
Cash Flow
Free Cash Flow	-13.09M	-14.59M	-7.51M	-31.70M	10.44M	65.20M
Operating Cash Flow	-10.30M	-3.52M	22.02M	6.05M	26.82M	71.78M
Investing Cash Flow	-11.90M	-13.47M	-33.03M	-37.66M	27.12M	23.32M
Financing Cash Flow	24.28M	7.72M	6.96M	19.01M	-40.00M	-66.42M

Alto Ingredients Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.14
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 1.14 is above the 20-day moving average (MA) of 1.08, above the 50-day MA of 1.13, and below the 200-day MA of 1.25, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 56.80 is Neutral, neither overbought nor oversold. The STOCH value of 86.94 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	$1.02B	20.87	9.47%	―	-9.57%	-24.85%
Sector *	61 Neutral	$10.37B	6.45	-0.08%	2.84%	3.09%	-36.03%
KOP	61 Neutral	$569.19M	40.51	2.92%	1.07%	-6.20%	-80.00%
GPRE	59 Neutral	$697.62M	―	-18.95%	―	-15.66%	-237.12%
GEVO	56 Neutral	$403.87M	―	-11.71%	―	341.75%	20.16%
ALTO	48 Neutral	$90.56M	―	-28.22%	―	-12.70%	-74.32%
TSE	43 Neutral	$88.08M	―	103.25%	1.63%	-7.97%	13.42%

Alto Ingredients Corporate Events

Alto Ingredients Regains Nasdaq Compliance

On June 23, 2025, Alto Ingredients, Inc. received a notification from Nasdaq confirming that the company’s stock price had met the minimum requirement of $1.00 per share for 10 consecutive business days, thus regaining compliance with Nasdaq’s listing rules. This development ensures the company’s continued listing on the Nasdaq Stock Market, which is crucial for maintaining investor confidence and market presence.

Alto Ingredients Approves Key Proposals at Annual Meeting

On June 25, 2025, Alto Ingredients, Inc. held its Annual Meeting of Stockholders, where several key proposals were approved. The meeting resulted in the election of six directors, approval of executive compensation, a recommendation for the frequency of advisory votes on executive compensation, and the ratification of RSM US LLP as the independent accounting firm for 2025.