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 has received a 5 out of 5 star undervalued rating from Cashu due to several compelling financial metrics that suggest significant growth potential.
The company’s Price-to-Book (PB) Ratio stands at 0.53, compared to the sector average of 1.62. A lower PB ratio indicates that the stock is trading for less than its book value, suggesting it may be undervalued relative to its assets. This could present a buying opportunity for investors looking for value.
Alto Ingredients also exhibits a net profit margin of -6.11, significantly better than the sector's -324.62. This indicates that while the company is currently operating at a loss, it is managing its costs far more effectively than its peers, making it a more attractive option for future profitability.
The Return on Equity (ROE) ratio is reported at -26.21, which, while negative, is only slightly worse than the sector average of -21.73. This suggests that Alto Ingredients is facing challenges, but it is doing so within a more manageable framework than its competitors.
Additionally, the company’s Dividend Yield of 1.58 is closely aligned with the sector average of 1.99, indicating a relatively stable return for investors. The Return on Assets ratio is -14.69, again not ideal, but better than the sector's -18.56, reinforcing the potential for improvement.
These ratios collectively indicate that Alto Ingredients may be undervalued relative to its peers, pointing to potential for recovery and growth.
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.