Alto Ingredients, Inc.

Industrials
Major Chemicals
www.altoingredients.com

Earnings Score
Moat Score
Safety Score

Market Cap $110.05M
PE -3
Debt $90.57M
Cash $38.49M
EV $162.12M
FCF $3.36M

Earnings

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Sales & Net Margins

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Earnings	-$37.49M
EBIT	-$29.63M
ROE	-14%
ROA	-7%
FCF	$3.36M
Equity	$263.93M
Growth Stability	-94K%
PE	-2.94
PEG	-0.61
PB	0.42
P/FCF	32.78
P/S	0.11
Price/Cash	0.35
Debt/Equity	0.34
Debt/FCF	26.98
Net Margins	-2%
Gross Margins	1%
Op. Margins	-3%
Earnings CAGR	4%
Sales Growth YoY	-21%
Sales Growth QoQ	6%
Sales CAGR	-6%
FCF CAGR	-2%
Equity CAGR	-1%
Earnings Stability	0.03
Earnings Growth YoY	-28%
Earnings Growth QoQ	-19%

Earnings CAGR 5Y	5%
Sales CAGR 5Y	18%
FCF CAGR 5Y	-16%
Equity CAGR 5Y	3%
Earnings CAGR 3Y	-8%
Sales CAGR 3Y	-8%
FCF CAGR 3Y	-23%
Equity CAGR 3Y	-11%
Market Cap	$110.05M
Revenue	$1.00B
Assets	$417.41M
Total Debt	$90.57M
Cash	$38.49M
Shares Outstanding	73.36M
EV	162.12M
Earnings Score	6%
Moat Score	10%
Safety Score	42%
Final Score	19%
Working Capital	100.05M
Current Ratio	3.22
Gross Profit	$8.59M
Shares Growth 3y	1%
Equity Growth QoQ	-1%
Equity Growth YoY	-11%

Assets & ROA

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Stockholders Equity & ROE

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Alto Ingredients Inc is a producer of specialty alcohols and essential ingredients. The company serves five markets: Health, Home & Beauty, Food & Beverage, Essential Ingredients, and Renewable Fuels. Its customers include major food and beverage companies and consumer products manufacturers and distributors. The company operates under three segments: Marketing and distribution, Pekin Campus production, and Other production. The Marketing and distribution segment participates in marketing and merchant trading for alcohols and essential ingredients; Pekin Campus produces and sells products produced at the company's Pekin, Illinois, campus, and about half of the firm's revenue flows from this segment. Other production makes and sells from the company's other production facilities.

SEC Filings

Direct access to Alto Ingredients, Inc. (ALTO) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Alto Ingredients, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Alto Ingredients, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 4%

Stability 3%

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Alto Ingredients, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Alto Ingredients, Inc..

Years

Calculation mode

= $29M

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$3.4M	$3.3M	$3.2M	$3.1M	$3.1M	$3M	$2.9M	$2.8M	$2.8M	$2.7M	$2.6M	$26M
DCF		$3M	$2.6M	$2.3M	$2.1M	$1.8M	$1.6M	$1.5M	$1.3M	$1.1M	$1M	$10M
Value	$29M

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	05/2021	12/2021	12/2022	12/2023	TTM
Net Margins	2%	-2%	0%	-2%	-4%	-7%	-2%	-	4%	-3%	-2%	-2%
ROA	-	-3%	3%	-4%	-8%	-12%	2%	-	10%	-8%	-5%	-7%
ROE	-	-5%	0%	-10%	-21%	-45%	-6%	-	13%	-14%	-10%	-14%

Bad Net Margins (-2.5%)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	05/2021	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-8.16	10	16.9	-27.98	-18.43	1.89	-	4.83	-2.46	-12.08	26.98
Debt over Equity	0.24	1.04	0.51	0.69	1.19	2.16	0.42	-	0.15	0.25	0.32	0.34
Growth Stability	-	-	-	-94K%	-	-	-	-	-	-476%	-6K%	-94K%

Bad Debt/FCF ratio (26.98)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.34)

The company is not overleveraged and has a good balance between equity and debt.

Bad Graham’s Stability (-94K%)

The company has a bad stability in its earnings, which is a sign of a bad competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	05/2021	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	8%	36%	0%	-7%	-6%	-37%	-	-	11%	-8%	18%
Earnings YoY growth	-	-200%	-101%	-26K%	78%	49%	-83%	-101%	44K%	-197%	-32%	5%
Equity YoY growth	-	70%	13%	-8%	-17%	-29%	30%	-	-	-11%	-9%	3%
FCF YoY growth	-	-163%	-145%	-26%	-187%	96%	-345%	-	-	-404%	-76%	-16%