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ALTO is now undervalued and could go up 733%

Jun 26, 2024, 12:02 PM
5.68%
What does ALTO do
Alto Ingredients, Inc., based in Sacramento, California, specializes in producing and marketing specialty alcohols and essential ingredients, with a focus on sectors like health, food, and renewable fuels. The company, which employs 439 full-time workers and went public in 2005, operates through segments including marketing, production at its Pekin campus, and other production facilities.
Based on our analysis, Alto Ingredients Inc has been rated as undervalued, receiving a 5 out of 5 stars from Cashu. This assessment is rooted in a detailed comparison of the company's financial ratios against sector averages, revealing several areas where Alto Ingredients Inc performs favorably. Firstly, the Price-to-Book (PB) ratio of Alto Ingredients Inc stands at 0.72, significantly lower than the sector average of 1.68. The PB ratio measures the market's valuation of a company relative to its book value. A lower PB ratio can suggest that the company is undervalued compared to its book value, indicating potential for investment. Additionally, the Net Profit Margin for Alto Ingredients is -2.29, compared to a sector average of -307.68. Although negative, this ratio is substantially closer to profitability than the sector norm. The Net Profit Margin is crucial as it shows what percentage of revenue is actual profit after all expenses are paid. In this context, Alto Ingredients is managing its expenses much more efficiently than its sector peers. Regarding Return on Equity (ROE), the company's ratio is -10.02 versus the sector's -19.78. ROE is a measure of financial performance calculated by dividing net income by shareholders' equity. Although negative, Alto Ingredients' ROE indicates lesser losses in equity compared to its sector, suggesting better relative internal financial management and potential resilience. The Return on Assets (ROA) ratio, which indicates how effectively a company uses its assets to generate earnings, stands at -6.17 for Alto Ingredients compared to -16.76 for the sector. This suggests that Alto Ingredients is more efficient in converting its investment in assets into profit. Lastly, the Dividend Yield for both Alto Ingredients and its sector is 1.26. This ratio, which shows how much a company pays out in dividends each year relative to its stock price, aligns with the sector, providing investors with comparable income opportunities. This is not a comprehensive overview of our valuation, and should not be viewed as financial advice. Always do your own research before considering an investment.
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