Alto Ingredients (ALTO) AI Stock Analysis

• Market Cap: $89.56M
• Dividend Yield: N/A
• Average Volume (3M): 334.53K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.91
• Revenue Growth: -17.27%
• EPS Growth: -112.62%
• Country: US
• Employees: 393
• Sector: Basic Materials
• Sector Strength: 66
• Industry: Chemicals - Specialty
• EPS (TTM): -0.16
• Shares Outstanding: 77,210,175
• 10 Day Avg. Volume: 378,850
• 30 Day Avg. Volume: 334,530
• PEG Ratio: N/A
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -2.90
• Enterprise Value/Market Cap: 2.14
• Enterprise Value/Revenue: 0.05
• Enterprise Value/Gross Profit: 27.48
• Enterprise Value/Ebitda: -3.03
• 1Y Price Target: $5.50
• Price Target Upside: 386.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: $1.00 ▼(-11.50%Downside)

Alto Ingredients faces financial and operational challenges, reflected in the low financial performance score. The potential delisting notice adds further risk, impacting the overall stock score. Technical analysis shows some positive momentum, but valuation concerns and persistent losses weigh heavily on the score.

Positive Factors

Acquisition

The acquisition of a liquid CO2 business is expected to be immediately accretive, providing future earnings upside.

Cost Management

Cost-cutting measures, including reducing headcount and cold idling a facility, are expected to save $8 million annually.

Strategic Initiatives

Management is considering various strategic options to unlock shareholder value beyond selling assets, indicating a proactive approach to improving the company's financial health.

Negative Factors

Financial Performance

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

Global Trade

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

Gross Margins

Depressed crush spreads continued to impact gross margins during the quarter.

Alto Ingredients Business Overview & Revenue Model

Company Description

Alto Ingredients, Inc. (ALTO) is a leading producer and marketer of specialty alcohols and essential ingredients. Operating primarily in the United States, the company serves key markets such as health, home and beauty, food and beverage, and renewable fuels. Its core products include high-grade alcohols used in consumer products, as well as corn-based products like distillers' grains and corn oil.

How the Company Makes Money

Alto Ingredients generates revenue through the production and sale of its specialty alcohols and essential ingredients. The company operates several production facilities where it converts corn into alcohol and other co-products. Revenue streams include high-grade alcohols for consumer and industrial use, co-products such as distillers' grains sold to the animal feed industry, and corn oil. Additionally, the company benefits from strategic partnerships and distribution agreements that enhance market reach and operational efficiency. Factors such as commodity prices, government regulations on renewable fuels, and market demand for specialty alcohols significantly influence its earnings.

Alto Ingredients Financial Statement Overview

Summary

Alto Ingredients is experiencing financial difficulties, with declining revenues, negative net margins, and cash flow challenges. Despite a moderate debt level, profitability and cash generation are significant concerns that require strategic adjustments.

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
951.17M	965.26M	1.22B	1.34B	1.21B	897.02M
	Gross Profit
6.98M	9.72M	15.65M	-27.55M	67.78M	52.86M
	EBIT
-53.20M	-51.67M	-23.85M	-61.36M	16.52M	-18.60M
	EBITDA
-24.63M	-26.76M	2.60M	-12.75M	61.89M	51.15M
	Net Income Common Stockholders
-58.94M	-58.98M	-28.00M	-41.60M	46.08M	-17.28M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
26.78M	35.47M	30.01M	36.46M	50.61M	47.67M
	Total Assets
402.21M	401.44M	454.24M	478.32M	484.95M	476.82M
	Total Debt
131.27M	114.67M	105.46M	87.27M	63.65M	108.23M
	Net Debt
104.50M	79.20M	75.44M	50.81M	13.04M	60.57M
	Total Liabilities
188.29M	176.38M	174.68M	170.23M	139.74M	180.58M
	Stockholders Equity
213.92M	225.06M	279.56M	308.09M	345.21M	296.24M
Cash Flow		Free Cash Flow
-30.14M	-14.59M	-7.51M	-31.70M	10.44M	65.20M
	Operating Cash Flow
-23.18M	-3.52M	22.02M	6.05M	26.82M	71.78M
	Investing Cash Flow
-15.23M	-13.47M	-33.03M	-37.66M	27.12M	23.32M
	Financing Cash Flow
23.51M	7.72M	6.96M	19.01M	-40.00M	-66.42M

Alto Ingredients Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1.13
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 1.13 is above the 20-day moving average (MA) of 1.03, above the 50-day MA of 0.93, and below the 200-day MA of 1.39, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 63.90 is Neutral, neither overbought nor oversold. The STOCH value of 69.92 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	72 Outperform	$815.70M	15.36	10.68%	―	-18.36%	-13.81%
KOP	64 Neutral	$623.31M	27.20	5.08%	1.03%	-4.09%	-66.97%
GEVO	53 Neutral	$330.60M	―	-16.11%	―	145.38%	-22.02%
GPRE	52 Neutral	$369.51M	―	-12.34%	―	-19.82%	-34.91%
Sector *	51 Neutral	$2.01B	-1.27	-21.11%	5.15%	2.92%	-30.46%
ALTO	50 Neutral	$89.56M	―	-24.43%	―	-17.27%	-112.62%
TSE	46 Neutral	$134.40M	―	103.25%	1.06%	-5.28%	51.91%

Alto Ingredients Corporate Events

Alto Ingredients Faces Nasdaq Delisting Notice

On May 19, 2025, Alto Ingredients, Inc. received a notification from Nasdaq indicating that its stock price had fallen below the minimum required for continued listing. The company has until November 15, 2025, to regain compliance by ensuring its stock price closes at or above $1.00 for at least 10 consecutive business days. If unsuccessful, Alto may qualify for an additional 180-day period to meet the requirements, potentially involving a reverse stock split. Failure to comply could result in delisting, though the company can appeal such a decision.

The most recent analyst rating on (ALTO) stock is a Buy with a $5.50 price target. To see the full list of analyst forecasts on Alto Ingredients stock, see the ALTO Stock Forecast page.