Alto Ingredients, Inc. (ALTO) Stock Analysis

Why this analysis is different

• A sector-relative MoonshotScore — five pillars (business quality, financial safety, valuation, growth durability, momentum) re-ranked nightly against the full universe of US-listed common stocks.
• An AI Council read across up to eight perspectives — value, macro, quantitative, and momentum lenses — that shows where they disagree instead of averaging the tension away.
• Figures come straight from FMP and Yahoo Finance filings data. The AI writes the narrative around the numbers — it never edits the numbers.

Alto Ingredients, Inc. (ALTO) Materials & Commodity Exposure

Alto Ingredients, Inc. produces and markets specialty alcohols and essential ingredients in the United States. Operating five alcohol production facilities, the company serves diverse sectors, including health, home, beauty, and food and beverage, positioning itself as a key supplier in the specialty chemicals market.

What Is the Investment Thesis for ALTO?

Alto Ingredients, Inc. presents a mixed investment thesis. The company's focus on specialty alcohols and essential ingredients caters to stable and growing markets. With a market capitalization of $308M and a P/E ratio of 5.80, the company's valuation reflects current profitability. A gross margin of 5.0% and a profit margin of 3.2% indicate areas for potential improvement. However, investors should monitor the company's ability to manage input costs and navigate fluctuations in ethanol and corn oil prices. The company's beta of 0.67 suggests lower volatility compared to the broader market.

Based on FMP financials and quantitative analysis

ALTO Key Highlights

Market capitalization of $308M, reflecting the company's current market value.

• P/E ratio of 5.80, indicating the price investors are willing to pay for each dollar of earnings.
• Gross margin of 5.0%, showing the percentage of revenue remaining after deducting the cost of goods sold.
• Profit margin of 3.2%, representing the percentage of revenue remaining after deducting all expenses.
• Beta of 0.67, suggesting lower volatility compared to the overall market.

Who Are ALTO's Competitors?

ALTO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.

AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance This table mixes two scoring engines — compare a number only with others carrying the same tag.

What Are ALTO's Key Strengths?

Diverse product portfolio.

• Strategic location of production facilities.
• Established relationships with key customers.
• Expertise in ethanol and specialty alcohol production.

What Are ALTO's Weaknesses?

Relatively low gross and profit margins.

• Dependence on commodity prices.
• Exposure to regulatory changes in the ethanol market.
• Limited brand recognition.

What Could Drive ALTO Stock Higher?

Potential increase in demand for specialty alcohols due to heightened hygiene awareness.

• Expansion of production capacity to meet growing demand.
• Strategic partnerships to expand market reach.

What Are the Key Risks for ALTO?

Financial-distress signal — its Altman Z-Score of 1.66 sits in the distress zone (elevated bankruptcy risk).

• Fluctuations in corn and ethanol prices impacting profitability.
• Changes in government regulations affecting the ethanol industry.
• Competition from larger chemical companies.
• Economic downturn reducing demand for products.

What Are the Growth Opportunities for ALTO?

• Growth opportunity 1: Expansion of Specialty Alcohol Production: Alto Ingredients can capitalize on the growing demand for high-purity alcohols used in pharmaceuticals, cosmetics, and sanitizers. Investing in increased production capacity and advanced purification technologies could significantly boost revenue. The global specialty alcohol market is projected to reach $XX billion by 2028, presenting a substantial opportunity for Alto Ingredients to increase its market share. Timeline: 2-3 years.
• Growth opportunity 2: Diversification of Essential Ingredients Portfolio: The company can expand its range of essential ingredients, such as animal feed additives and nutritional supplements. This diversification would reduce reliance on ethanol and create new revenue streams. The animal feed additives market is expected to grow to $XX billion by 2027, offering a significant growth avenue. Timeline: 3-4 years.
• Growth opportunity 3: Strategic Partnerships and Acquisitions: Forming partnerships with companies in the food, beverage, and pharmaceutical industries can provide access to new markets and distribution channels. Acquisitions of smaller specialty chemical producers could expand the company's product portfolio and geographic reach. Timeline: Ongoing.
• Growth opportunity 4: Development of Sustainable Products: Investing in research and development to create sustainable and bio-based alternatives to traditional chemical products can attract environmentally conscious customers. The market for sustainable chemicals is growing rapidly, driven by increasing environmental regulations and consumer demand. Timeline: 4-5 years.
• Growth opportunity 5: Optimization of Production Processes: Implementing advanced technologies and process improvements to reduce production costs and increase efficiency can improve profitability. This includes optimizing energy consumption, reducing waste, and improving yields. Timeline: Ongoing.

What Are ALTO's Competitive Advantages?

• Established production facilities in key agricultural regions.
• Diverse product portfolio catering to multiple industries.
• Long-standing relationships with key customers.
• Expertise in ethanol production and specialty alcohol manufacturing.

What Does ALTO Do?

Founded in 2003 and headquartered in Pekin, Illinois, Alto Ingredients, Inc., formerly known as Pacific Ethanol, Inc., underwent a name change in January 2021, signaling a strategic shift towards specialty alcohols and essential ingredients. The company operates across three segments: Marketing and Distribution, Pekin Production, and Other Production. Alto Ingredients offers specialty alcohols used in various applications, including mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants, and cleaners for the health, home, and beauty markets. Additionally, it produces grain neutral spirits for alcoholic beverages, flavor extracts, and vinegar, along with corn germ for corn oils and carbon dioxide for the food and beverage sectors. Its essential ingredients segment provides dried yeast, corn gluten meal, corn gluten feed, distillers grains, and liquid feed for commercial animal feed and pet food. The company also supplies fuel-grade ethanol and distillers corn oil. Alto Ingredients operates five alcohol production facilities located in Illinois, Oregon, and Idaho, serving integrated oil companies, gasoline marketers, dairies, feedlots, poultry farms, and biodiesel customers.

What Products and Services Does ALTO Offer?

• Produces specialty alcohols for mouthwash, cosmetics, and pharmaceuticals.
• Manufactures grain neutral spirits for alcoholic beverages and flavor extracts.
• Supplies corn germ for corn oils and carbon dioxide for food and beverage markets.
• Offers essential ingredients like dried yeast and corn gluten meal for animal feed.
• Provides fuel-grade ethanol as transportation fuel.
• Produces distillers corn oil for biodiesel feedstock.
• Offers transportation, storage, and delivery services.

How Does ALTO Make Money?

• Produces and sells specialty alcohols and essential ingredients.
• Generates revenue from three segments: Marketing and Distribution, Pekin Production, and Other Production.
• Sells ethanol to integrated oil companies and gasoline marketers.
• Sells essential ingredient feed products to dairies and feedlots.
• Sells corn oil to poultry and biodiesel customers.

What Industry Does ALTO Operate In?

Alto Ingredients operates within the specialty chemicals industry, which is influenced by demand from various sectors, including healthcare, food and beverage, and animal feed. The market is characterized by increasing demand for sustainable and bio-based products. Competition includes both large chemical companies and smaller specialty producers. Alto Ingredients differentiates itself through its focus on specialty alcohols and essential ingredients derived from ethanol production. The company's strategic location of production facilities in the Midwest and Western states provides logistical advantages.

Who Are ALTO's Key Customers?

• Integrated oil companies and gasoline marketers.
• Dairies and feedlots.
• Poultry farms and biodiesel customers.
• Companies in the health, home, and beauty markets.
• Food and beverage companies.

Over the past six months, Alto Ingredients, Inc. insiders filed 18 SEC Form 4 transactions — 6 sales and 12 purchases. On net that is roughly 196K shares acquired (about $610K) — insiders putting money in tends to read as conviction.

Wall Street analysts project Alto Ingredients, Inc. revenue of about $954.3M for fiscal 2026, with EPS near $0.38.

Alto Ingredients, Inc. has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 167.0% above estimates on average.

Alto Ingredients, Inc.'s Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 1.66 places it in the distress zone, a signal of elevated financial risk.

Return on equity for Alto Ingredients, Inc. stands at 12.7%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 7.6%, showing how much profit it generates from its asset base. ALTO trades at a trailing price-to-earnings ratio of 5.80, below the Basic Materials sector average of ~21.40x. Its free cash flow yield is 6.9%, a gauge of the cash the business throws off relative to its market value. A current ratio of 3.81 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 6.8%, the inverse of the P/E and a quick read on earnings relative to price.

Alto Ingredients, Inc. (ALTO) Valuation Context

Valued at $308M, ALTO is classified as a small-cap stock. Analyst price targets span from $10.00 to $10.00, with a consensus of $10.00. At the current price of $3.98, that implies approximately 152% upside potential. Relative to its peer group, ALTO's quantitative score of 86/100 is above the peer average of 54/100.

ALTO Revenue & Earnings Trend

In Jun 2026, ALTO generated $245.7M in top-line revenue, marking a sequential increase of 9.4%. The company recorded net income of $11.4M, with diluted EPS of $0.15. Quarter-over-quarter revenue has been mixed, typical for a small-cap company operating in Basic Materials. Across the four most recent quarters, ALTO averaged $0.17 in diluted EPS.

Company Profile

Alto Ingredients, Inc. operates in the Chemicals - Specialty industry within the Basic Materials sector. It is headquartered in Pekin, US. The company is led by CEO Bryon T. McGregor. ALTO has traded publicly since 2005.

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Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.

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