Alto Ingredients, Inc. (ALTO) AI Stock Analysis

Alto Ingredients, Inc., based in Pekin, Illinois, manufactures and markets specialty alcohols, essential ingredients, and renewable fuels across three reportable segments: Marketing and Distribution, Pekin Production, and Other Production. The company supplies specialty alcohols and grain neutral spirits used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, cleaners, alcoholic beverages, and flavor extracts. It also manufactures essential feed ingredients, such as dried yeast, corn gluten meal, corn gluten feed, and distillers grains for commercial animal and pet food. In addition, the firm produces fuel-grade ethanol for transportation fuels and distillers corn oil for biodiesel feedstocks through a network of five production facilities located across the Midwest and Western United States.

Alto Ingredients experienced top-line volatility over recent years, with revenue climbing to $1.34B in FY2022 before dropping to $965.3M in FY2024 and $917.9M in FY2025. Net margins swung from 3.8% in FY2021 to -6.1% in FY2024, rebounding to 1.5% in FY2025 as net income reached $13.3M. In the latest quarter ended June 30, 2026, quarterly revenue grew 12.5% year-over-year, while quarterly earnings declined 66.2%. Trailing twelve-month revenue stands at $943.3M with an operating margin of 3.5% and a profit margin of 5.5%.

As of June 30, 2026, Alto Ingredients held $24.0M in cash and short-term investments alongside total debt of $82.9M, resulting in net debt of $59.0M. The company maintains a current ratio of 3.19 and a debt-to-equity ratio of 0.32 against $259.9M in shareholders' equity. Operating cash flow improved to $13.2M in FY2025, supporting free cash flow of $8.6M after capital expenditures of $4.6M. Capital allocation in FY2025 also included $1.3M in dividends paid, while share count expanded 6.7% over five years.

Alto Ingredients trades at a trailing price-to-earnings multiple of 5.1x and an enterprise value-to-EBITDA multiple of 4.1x, both lower than the median of its US-listed Basic Materials peers at 19.7x and 10.5x, respectively. The stock's price-to-sales ratio of 0.3x also sits below the peer median of 1.8x, while its forward price-to-earnings multiple of 13.6x is near the peer median of 13.4x. Over the past 12 months, the stock returned 202.6%, compared with a 16.8% return for the S&P 500.

Consensus coverage from 3 analysts reflects 3 Strong Buy ratings with zero Buy, Hold, or Sell ratings. The mean price target of $8.33 represents a 141.5% premium to the last closing price of $3.45. For the fiscal year ending December 31, 2026, analysts estimate EPS of $0.38 on revenue of $966.8M, followed by an EPS estimate of $0.33 on $977.4M in revenue for the next fiscal year. The company beat EPS estimates in 3 of the last 4 quarters, with its next earnings report scheduled for November 4, 2026.

This page is an AI-written research summary of Alto Ingredients, Inc. (ALTO). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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