📊 ALTO Key Takeaways
Is Alto Ingredients, Inc. (ALTO) a Good Investment?
Alto Ingredients demonstrates stable financial health with strong liquidity and moderate leverage, but faces significant profitability headwinds with razor-thin margins (1.5% net, 0.8% operating) and declining revenue (-4.9% YoY). The company's improving net income and EPS represent modest operational progress, though growth quality remains constrained by minimal margin expansion and low capital efficiency.
Alto Ingredients shows adequate financial health, with solid liquidity, moderate leverage, and positive free cash flow supporting balance-sheet stability. However, the business remains fundamentally constrained by declining revenue and extremely thin gross, operating, and free-cash-flow margins, which makes earnings quality vulnerable to commodity swings and operating volatility. The company appears financially stable but not fundamentally strong enough to warrant a more bullish rating.
Why Buy Alto Ingredients, Inc. Stock? ALTO Key Strengths
- Strong liquidity position with 2.64x current ratio and 1.60x quick ratio, providing financial flexibility
- Conservative leverage with 0.34x debt-to-equity ratio and robust 8.3x interest coverage, indicating manageable debt burden
- Positive net income growth of 10.5% YoY with 119.5% EPS growth despite revenue decline, suggesting operational improvements
- Strong liquidity profile with a 2.64x current ratio and 1.60x quick ratio
- Moderate leverage and manageable debt burden, with debt/equity of 0.34x and interest coverage of 8.3x
- Positive net income, operating cash flow, and free cash flow indicate the business is currently self-funding
ALTO Stock Risks: Alto Ingredients, Inc. Investment Risks
- Severely compressed margins across all levels (3.8% gross, 0.8% operating, 1.5% net) characteristic of low-margin commodity chemical business with limited pricing power
- Revenue contraction of 4.9% YoY indicates weakening demand or market share loss in core markets
- Poor asset efficiency with only 3.4% ROA and 5.4% ROE despite reasonable equity base, suggesting suboptimal capital allocation
- Revenue declined 4.9% year over year, suggesting weak top-line momentum
- Profitability is very thin, with only 3.8% gross margin and 0.8% operating margin
- Free cash flow margin of 0.9% indicates limited cushion if margins or volumes deteriorate
Key Metrics to Watch
- Gross margin trend - critical indicator of pricing power and input cost management in commodity chemicals
- Revenue growth trajectory - must stabilize and return to growth to support valuation
- Free cash flow sustainability - FCF margin of 0.9% leaves minimal cushion for unexpected challenges or shareholder returns
- Gross and operating margin trend
- Revenue growth and operating cash flow conversion
Alto Ingredients, Inc. (ALTO) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 0.9% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.64x current ratio provides a solid financial cushion.
ALTO Profit Margin, ROE & Profitability Analysis
ALTO vs Materials Sector: How Alto Ingredients, Inc. Compares
How Alto Ingredients, Inc. compares to Materials sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Alto Ingredients, Inc. Stock Overvalued? ALTO Valuation Analysis 2026
Based on fundamental analysis, Alto Ingredients, Inc. has mixed fundamental signals relative to the Materials sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Alto Ingredients, Inc. Balance Sheet: ALTO Debt, Cash & Liquidity
ALTO Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Alto Ingredients, Inc.'s revenue has declined by 94% over the 5-year period, indicating business contraction. The most recent EPS of $-0.40 indicates the company is currently unprofitable.
ALTO Revenue Growth, EPS Growth & YoY Performance
ALTO Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $241.0M | -$2.4M | $-0.04 |
| Q2 2025 | $218.4M | -$3.1M | $-0.05 |
| Q1 2025 | $226.5M | -$11.7M | $-0.16 |
| Q3 2024 | $251.8M | -$2.4M | $-0.04 |
| Q2 2024 | $236.5M | -$3.1M | $-0.05 |
| Q1 2024 | $240.6M | -$11.7M | $-0.17 |
| Q3 2023 | $318.1M | -$2.6M | $-0.05 |
| Q2 2023 | $317.3M | -$2.6M | $-0.08 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Alto Ingredients, Inc. Dividends, Buybacks & Capital Allocation
ALTO SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Alto Ingredients, Inc. (CIK: 0000778164)
📋 Recent SEC Filings
❓ Frequently Asked Questions about ALTO
What is the AI rating for ALTO?
Alto Ingredients, Inc. (ALTO) has a Combined AI Rating of HOLD from Claude (HOLD) and ChatGPT (HOLD) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are ALTO's key strengths?
Claude: Strong liquidity position with 2.64x current ratio and 1.60x quick ratio, providing financial flexibility. Conservative leverage with 0.34x debt-to-equity ratio and robust 8.3x interest coverage, indicating manageable debt burden. ChatGPT: Strong liquidity profile with a 2.64x current ratio and 1.60x quick ratio. Moderate leverage and manageable debt burden, with debt/equity of 0.34x and interest coverage of 8.3x.
What are the risks of investing in ALTO?
Claude: Severely compressed margins across all levels (3.8% gross, 0.8% operating, 1.5% net) characteristic of low-margin commodity chemical business with limited pricing power. Revenue contraction of 4.9% YoY indicates weakening demand or market share loss in core markets. ChatGPT: Revenue declined 4.9% year over year, suggesting weak top-line momentum. Profitability is very thin, with only 3.8% gross margin and 0.8% operating margin.
What is ALTO's revenue and growth?
Alto Ingredients, Inc. reported revenue of $917.9M.
Does ALTO pay dividends?
Alto Ingredients, Inc. does not currently pay dividends.
Where can I find ALTO SEC filings?
Official SEC filings for Alto Ingredients, Inc. (CIK: 0000778164) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is ALTO's EPS?
Alto Ingredients, Inc. has a diluted EPS of $0.16.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is ALTO a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Alto Ingredients, Inc. has a HOLD rating with 72% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is ALTO stock overvalued or undervalued?
Valuation metrics for ALTO: ROE of 5.4% (sector avg: 14%), net margin of 1.5% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy ALTO stock in 2026?
Our dual AI analysis gives Alto Ingredients, Inc. a combined HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is ALTO's free cash flow?
Alto Ingredients, Inc.'s operating cash flow is $13.2M, with capital expenditures of $4.6M. FCF margin is 0.9%.
How does ALTO compare to other Materials stocks?
Vs Materials sector averages: Net margin 1.5% (avg: 10%), ROE 5.4% (avg: 14%), current ratio 2.64 (avg: 1.6).