Alto Ingredients Inc logo

Alto Ingredients Inc(ALTO)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$3.67
09/28/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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Upturn Advisory & Investor View for ALTO

09/28/2026: ALTO (1-star) is currently NOT-A-BUY. Pass it for now.

Alto Ingredients is a specialty alcohol and essential ingredient producer that has evolved from a pure-play ethanol manufacturer. The company is currently focused on shifting its business mix toward higher-margin products like specialty alcohols and high-protein feed. This diversification provides a potential path to mitigate the inherent volatility of commodity-driven fuel markets. However, the company remains subject to risks from fluctuating raw material costs, intense competition from larger agricultural processors, and potential regulatory changes. The stock may appeal to investors looking for exposure to renewable industrial trends, provided they can tolerate significant earnings sensitivity to commodity cycles and operational execution risks.

How to Read the Upturn Advisory

The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.

Company fundamentals, valuation, risks, and news provide supporting context about the business.

Investor Fit

Investor styleFitWhy
Growth investorMixed fitThe company is transitioning toward higher-value products, though growth remains tied to volatile commodity cycles.
Momentum investorWeak fitThe stock often experiences high volatility and lacks consistent upward price momentum.
Value investorMixed fitThe stock may appear attractively priced during cyclical lows, but carries significant execution and commodity risk.
Dividend investorWeak fitThe company does not pay a dividend and prioritizes capital reinvestment.
Low-risk investorWeak fitHigh sensitivity to commodity prices and operational risks make this unsuitable for risk-averse portfolios.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityHighEarnings are significantly impacted by fluctuations in corn costs and ethanol market pricing.
Valuation riskMediumMarket valuation often fluctuates based on energy sector sentiment rather than long-term earnings potential.
Competition risk (Agricultural processors)HighThe company must compete against larger firms with greater economies of scale.
Business qualityMediumBusiness quality is improving due to diversification but remains susceptible to industrial cycles.
Dividend incomeLow / noneInvestors should not expect income from this investment.
Execution riskMedium / highSuccessful growth depends on effectively ramping up high-margin specialty alcohol production.

Price Behavior

Rolling Over
PRICE PATH

Rolling Over

The price momentum is slowing down and beginning to turn downward.

Extreme Price Shocks
PRICE STABILITY

Extreme Price Shocks

The stock has experienced exceptionally large and disruptive price movements during the period.

Analysis of Past Performance

Type Stock
Historic Profit -76.8%
Avg. Invested days 23
Today’s Advisory PASS
Upturn Advisory Rating upturn star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/28/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
ALTO receives a 3-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak unit economics, and weak price momentum.

Company Fundamentals

★★★★★
ALTO has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2025 versus FY2024, strong earnings growth (+122.6%) is partially offset by soft cash generation (FCF margin 0.9%), slightly negative revenue growth (-4.9%), soft profitability (net margin 1.5%).

Financial Health Rating

★★★★★
ALTO's financial health is supported by solid cash strength, including free-cash-flow generation (0.9% of revenue). Profitability is soft (2 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is ALTO's strongest growth driver at +159.3% FY2025 versus FY2024 (strong, 5 stars). By comparison, earnings growth (+122.6%, strong) is also strong, while revenue growth (-4.9%, slightly negative) holds the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 55.4% and approximately 89.3% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 6.34% supports management-shareholder alignment.

Top 5 Institutional Investors

Marshall Wace Asset Management Ltd 4.30%
Vanguard Capital Management, LLC 4.10%
Arrowstreet Capital Limited Partnership 2.31%
Hillsdale Investment Management Inc. 2.20%
Renaissance Technologies Corp 2.16%

Unit Economics (Per $1K Revenue)

★★★★★
ALTO generates approximately $29 of gross profit, $8 of operating income, and $9 of free cash flow for every $1,000 of revenue. Based on FY2025 results. Weak margins explain the 1-star rating, with weak cash conversion and weak capital efficiency.

Economic Dimensions

★★★★★
Effective Tax Rate: -4.88% (Tax Credit)

Quantitative Style Profile

★★★★★
ALTO has a high-quality, liquid, relatively low-volatility profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltLow VolatilitySmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

Key Highlights

Company Size Small-Cap Stock
Market Capitalization 289.33M USD
Price to earnings Ratio 5.57
1Y Target Price 9
Price to earnings Ratio 5.57
1Y Target Price 9
Volume (30-day avg) 1.3M shares
Beta 0.16
52 Weeks Range 0.99 - 6.11
Updated Date 09/27/2026
52 Weeks Range 0.99 - 6.11
Updated Date 09/27/2026
Dividends yield (FY) -
Basic EPS (TTM) 0.67

How Company Makes Money

Business areaWhat it includesRetail investor read
Specialty AlcoholsHigh-purity industrial and consumable alcohols.This is their higher-margin growth segment.
Essential IngredientsAnimal feed and yeast coproducts.This helps monetize the byproducts of their main production.
Fuel-Grade EthanolStandard biofuel production.This is a low-margin, high-volume commodity business.

Analyzing Revenue: Products, Geography and Growth

Revenue by Products

Product revenue - Year on Year

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Valuation

Trailing PE 5.57
Forward PE 13.64
Enterprise Value 355.29M
Price to Sales(TTM) 0.31
Enterprise Value 355.29M
Price to Sales(TTM) 0.31
Enterprise Value to Revenue 0.38
Enterprise Value to EBITDA 4.12
Shares Outstanding 77.57M
Shares Floating 69.28M
Shares Outstanding 77.57M
Shares Floating 69.28M
Percent Insiders 6.34
Percent Institutions 55.39

Icon representing Upturn AI-generated SWOT analysis summary Upturn AI Summary

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.

Net Income (Profit)

Information icon Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.

Free Cash Flow (Cash Strength)

Information icon Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.

📈 Growth & Strength

Operating Income (Core Profit)

Information icon Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.

EBITDA (Cash Earnings)

Information icon Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.

Gross Profit (Unit Profitability)

Information icon Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.

🛡️ Financial Safety

Cash (Liquidity Buffer)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.

Net Working Capital (Short-Term Health)

Information icon Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.

🧱 Balance Sheet Strength

Stockholder Equity (Net Worth)

Information icon Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.

Total Assets (Asset Base)

Information icon The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.

Income Before Tax (Pre-Tax Earnings)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.

Total Operating Expenses (Operating Cost)

Information icon Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.

Income Tax Expense (Tax Drag)

Information icon Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.

About Alto Ingredients Inc

Exchange NASDAQ
Headquarters Pekin, IL, United States
IPO Launch date 2005-03-24
CEO, President & Director Mr. Bryon T. McGregor
Sector Basic Materials
Industry Specialty Chemicals
Full time employees 390
Full time employees 390

Alto Ingredients, Inc. produces, distributes, and markets specialty alcohols, renewable fuel, and essential ingredients in the United States. The company operates in three segments: Marketing and Distribution, Pekin Campus Production, and Western 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 and vinegar, as well as corn germ used in corn oils in the food and beverage markets; alcohols and other products for paint applications and fertilizers in the industrial and agriculture markets; and essential ingredients, including dried yeast, corn protein meal, corn protein feed, corn germ, distillers grains, and liquid feed for commercial animal feed and pet food applications, as well as yeast and gas liquid CO2 for human consumption. The company also provides fuel-grade ethanol used as transportation fuel additives and distillers corn oil used as a renewable diesel and 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. Further, the company operates alcohol production facilities. It sells ethanol to integrated oil companies and gasoline marketers; essential ingredient feed products to dairies and feedlots; and corn oil to poultry, renewable diesel, and biodiesel customers. 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.