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1. Company Snapshot

1.a. Company Description

Alto Ingredients, Inc.produces and markets specialty alcohols and essential ingredients in the United States.The company operates in three segments: Marketing and Distribution, Pekin Production, and Other Production.


It offers specialty alcohols used in mouthwash, cosmetics, pharmaceuticals, hand sanitizers, disinfectants, and cleaners for health, home, and beauty markets; grain neutral spirits used in alcoholic beverages, flavor extracts, and vinegar, as well as corn germ used in corn oils and carbon dioxide for food and beverage markets; and essential ingredients include dried yeast, corn gluten meal, corn gluten feed, distillers grains, and liquid feed for commercial animal feed and pet food applications.The company also provides fuel-grade ethanol used as transportation fuel and distillers corn oil used as a biodiesel feedstock, as well as fuel-grade ethanol produced by third parties.In addition, it offers transportation, storage, and delivery services through third-party service providers.


The company sells ethanol to integrated oil companies and gasoline marketers; essential ingredient feed products to dairies and feedlots; and corn oil to poultry and biodiesel customers.It operates five alcohol production facilities, including three plants in the Midwestern states of Illinois; and two facilities located in the Western states of Oregon and Idaho.The company was formerly known as Pacific Ethanol, Inc.


and changed its name to Alto Ingredients, Inc.in January 2021.Alto Ingredients, Inc.


was founded in 2003 and is headquartered in Pekin, Illinois.

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1.b. Last Insights on ALTO

Alto Ingredients, Inc.'s recent performance was impacted by a quarterly loss of $0.15 per share, widening from a loss of $0.05 per share a year ago. Despite beating revenue estimates, the company's financials were affected by increased costs. Western Assets' gross profit rose $5.6 million compared to Q2 2024, but this was not enough to offset overall losses. The company's participation in the 27th Annual H.C. Wainwright Global Investment Conference may provide insight into its future prospects. Its essential ingredients segment faces challenges.

1.c. Company Highlights

2. Alto Ingredients' Q3 2025 Earnings: Strong Performance Amidst Strategic Realignment

Alto Ingredients reported net sales of $241 million, a decrease of $11 million from Q3 2024, primarily due to fewer gallons sold. However, gross profit was $23.5 million, up $17.5 million from the prior year, driven by a positive $8 million change in unrealized noncash derivatives, $5.6 million more from fuel ethanol exports, and a strong crush margin. The company's consolidated net income was $13.9 million or $0.19 per share, improving $16.6 million from Q3 2024, beating analyst estimates of -$0.06. Adjusted EBITDA increased $9.2 million to $21.4 million.

Publication Date: Nov -23

📋 Highlights
  • Financial Improvements:: Gross profit rose $18M, net income climbed $17M, and adjusted EBITDA increased $9.2M to $21.4M in Q3 2025.
  • 45Z Tax Credits:: Projected $0.10/gallon in 2025 and $0.20/gallon in 2026 for the Columbia plant, enhancing future profitability.
  • Net Sales Decline:: Sales dipped $11M to $241M due to fewer gallons sold, despite a $17.5M gross profit increase driven by exports and derivatives.
  • Magic Valley Facility Options:: Evaluating sale, CO2 utilization, or 45Z tax credits for the Idaho plant, focusing on local market premiums in Oregon/California.
  • European Export Momentum:: Locked in renewable fuel exports to Europe with a solid crush spread, but limited by certification constraints and plant location challenges.

Operational Highlights

The company saw improvements across all segments, driven by strong market conditions and strategic realignment. Renewable fuel export sales rose, and liquid CO2 demand was strong, particularly on the West Coast. The company has locked in a significant export volume of renewable fuel to Europe, with a good solid spread over crush, providing a foundation during the seasonal low.

Section 45Z Tax Credits and Carbon Intensity Score

Alto Ingredients expects to earn $0.10 per gallon in Section 45Z tax credits at its Columbia plant for 2025 and $0.20 per gallon in 2026. The company is focused on lowering its carbon intensity score to capture more Section 45Z tax credits. It is evaluating options for its Magic Valley facility in Idaho, including sale, CO2 utilization, and 45Z tax credits.

Valuation and Growth Prospects

The company's current valuation metrics indicate a P/E Ratio of -3.11, P/B Ratio of 0.7, and P/S Ratio of 0.18. Analysts estimate next year's revenue growth at 8.1%. With a strong performance in Q3 2025, Alto Ingredients is well-positioned to benefit from the renewable fuel and export opportunities, driven by the newly signed California Assembly Bill 30. The company's efforts to maximize the value of its products and deliver profitability to shareholders are evident in its operational and strategic decisions.

Cost Savings and Future Plans

SG&A costs are expected to remain at current levels, as the cost savings initiatives implemented year-to-date are not temporary and are expected to continue forward. The company is planning to build a new dock, expected to be completed in spring 2026, and is working with its insurance carrier to determine the level of coverage for the asset. As Bryon McGregor, President and CEO, highlighted, the company's strategic realignment is aimed at driving profitability and maximizing shareholder value.

3. NewsRoom

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Alto Ingredients: Upgrading On Improved Execution And Outlook - Buy

Nov -25

Source: seekingalpha.com

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Alto Ingredients (ALTO) Just Flashed Golden Cross Signal: Do You Buy?

Nov -12

Source: zacks.com

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Is Alto Ingredients (ALTO) Outperforming Other Consumer Discretionary Stocks This Year?

Nov -11

Source: zacks.com

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Alto Ingredients (ALTO) Q3 Earnings and Revenues Surpass Estimates

Nov -06

Source: zacks.com

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Alto Ingredients, Inc. (ALTO) Q3 2025 Earnings Call Transcript

Nov -06

Source: seekingalpha.com

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Alto Ingredients, Inc. to Release Third Quarter 2025 Financial Results on November 5, 2025

Oct -29

Source: globenewswire.com

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Alto Ingredients (NASDAQ:ALTO) Trading 4.6% Higher – Here’s What Happened

Oct -21

Source: defenseworld.net

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Alto Neuroscience Announces Plans to Accelerate Development of ALTO-207 in Treatment Resistant Depression Following Successful Outcome from Recent FDA Meeting

Oct -20

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.35%)

6. Segments

Pekin Campus Production

Expected Growth: 5.5%

Increasing demand for renewable energy sources, government incentives, and growing adoption of ethanol-blended fuels drive the growth of the ethanol production market, positioning Pekin Campus Production as a leading facility in the industry.

Marketing and Distribution

Expected Growth: 5.5%

Growing demand for specialty alcohols and essential ingredients in beverage, food, and pharmaceutical industries, driven by increasing consumer preference for premium and craft products, as well as the need for innovative ingredients in pharmaceutical applications.

Western Production

Expected Growth: 4.8%

Growing demand for specialty alcohols and essential ingredients in food, pharmaceutical, and personal care industries, driven by increasing consumer preference for natural and sustainable products, and advancements in biotechnology.

Corporate and Other

Expected Growth: 4.5%

The Corporate and Other segment of Alto Ingredients, Inc. is expected to grow driven by increasing interest income and reduction in unallocated corporate expenses, resulting in improved operational efficiency.

Intersegment Eliminations

Expected Growth: 4.5%

Alto Ingredients' Intersegment Eliminations are expected to grow steadily, driven by increasing demand for sustainable biofuels and rising ethanol production, as well as the company's strategic expansion into new markets and product lines.

7. Detailed Products

Specialty Alcohols

Alto Ingredients, Inc. produces specialty alcohols used in various industries such as pharmaceuticals, cosmetics, and food processing.

Fuel Ethanol

Alto Ingredients, Inc. produces fuel ethanol, a biofuel used as a cleaner-burning alternative to gasoline.

Dried Yeast

Alto Ingredients, Inc. produces dried yeast used in the production of bread, beer, and wine.

Corn Oil

Alto Ingredients, Inc. produces corn oil used in food processing, biodiesel production, and industrial applications.

Distillers Grains

Alto Ingredients, Inc. produces distillers grains used as animal feed.

Carbon Dioxide

Alto Ingredients, Inc. produces carbon dioxide used in various industries such as food processing, oil recovery, and medical applications.

8. Alto Ingredients, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Alto Ingredients, Inc. is medium due to the availability of alternative products in the market. However, the company's focus on specialty ingredients and its strong relationships with customers help to mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers for Alto Ingredients, Inc. is low due to the company's strong relationships with its customers and its ability to provide customized solutions.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Alto Ingredients, Inc. is medium due to the company's dependence on a few key suppliers. However, the company's strong relationships with its suppliers help to mitigate this threat.

Threat Of New Entrants

The threat of new entrants for Alto Ingredients, Inc. is low due to the high barriers to entry in the specialty ingredients market and the company's strong brand recognition.

Intensity Of Rivalry

The intensity of rivalry for Alto Ingredients, Inc. is high due to the competitive nature of the specialty ingredients market. However, the company's focus on innovation and its strong relationships with customers help to differentiate it from its competitors.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 23.62%
Debt Cost 7.02%
Equity Weight 76.38%
Equity Cost 13.57%
WACC 12.02%
Leverage 30.92%

11. Quality Control: Alto Ingredients, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Stepan

A-Score: 4.3/10

Value: 6.2

Growth: 3.3

Quality: 3.9

Yield: 4.0

Momentum: 1.0

Volatility: 7.3

1-Year Total Return ->

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Stock-Card
Ingevity

A-Score: 4.1/10

Value: 6.3

Growth: 2.0

Quality: 3.5

Yield: 0.0

Momentum: 9.0

Volatility: 4.0

1-Year Total Return ->

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Stock-Card
Gevo

A-Score: 3.8/10

Value: 7.6

Growth: 4.8

Quality: 4.7

Yield: 0.0

Momentum: 5.0

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Alto Ingredients

A-Score: 2.9/10

Value: 9.8

Growth: 1.8

Quality: 3.9

Yield: 0.0

Momentum: 0.5

Volatility: 1.7

1-Year Total Return ->

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Stock-Card
Trinseo

A-Score: 2.8/10

Value: 8.5

Growth: 0.8

Quality: 1.1

Yield: 5.0

Momentum: 0.5

Volatility: 1.0

1-Year Total Return ->

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Stock-Card
Green Plains

A-Score: 2.5/10

Value: 7.6

Growth: 2.0

Quality: 1.5

Yield: 0.0

Momentum: 2.0

Volatility: 1.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

2.51$

Current Price

2.51$

Potential

-0.00%

Expected Cash-Flows