ALTO is now undervalued and could go up 733%
Alto Ingredients, headquartered in Sacramento, California, produces specialty alcohols, fuel-grade ethanol, and essential ingredients, employing 460 people and operating since its IPO on March 24, 2005. Its segments include Pekin Campus production, marketing and distribution, and Western production facilities.
Based on our analysis, Alto Ingredients is rated undervalued at 5 out of 5 stars by Cashu due to several key financial ratios that demonstrate its potential for recovery and growth within the industry.
The company's price-to-book (PB) ratio stands at 0.53, significantly below the sector average of 1.52. A lower PB ratio suggests that the company's stock is trading for less than its book value, indicating that it may be undervalued compared to its peers.
Alto Ingredients has a net profit margin of -6.11, which, while negative, is impressive relative to the sector average of -340.71. This indicates that the company is managing its costs better than the average competitor, hinting at operational efficiencies and potential for profitability in the future.
The return on equity (ROE) ratio for Alto Ingredients is -26.21, which is worse than the sector's -21.13. Although both figures are negative, the smaller gap suggests that Alto is closer to achieving positive returns than many of its competitors.
Additionally, Alto's dividend yield is 1.90, outperforming the sector's 1.18. This yield offers investors a source of income during a time when many companies are cutting dividends, signaling confidence in future cash flows.
Finally, the return on assets (ROA) ratio is -14.69, better than the sector average of -17.98, indicating that Alto is utilizing its assets more effectively than its peers.
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.