ALTO INGREDIENTS INC (ALTO)
US0215131063 - Common Stock
We assign a fundamental rating of 3 out of 10 to ALTO. ALTO was compared to 84 industry peers in the Chemicals industry. The financial health of ALTO is average, but there are quite some concerns on its profitability. ALTO has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
ALTO had negative earnings in the past year.
In the past year ALTO had a positive cash flow from operations.
ALTO had negative earnings in 4 of the past 5 years.
ALTO had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
ALTO has a worse Return On Assets (-8.91%) than 82.14% of its industry peers.
Looking at the Return On Equity, with a value of -14.49%, ALTO is doing worse than 78.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.91% | ||
| ROE | -14.49% | ||
| ROIC | N/A |
ROA(3y)-2.1%
ROA(5y)-4.89%
ROE(3y)-3.86%
ROE(5y)-11.63%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
ALTO has a Gross Margin of 0.64%. This is amonst the worse of the industry: ALTO underperforms 89.29% of its industry peers.
In the last couple of years the Gross Margin of ALTO has declined.
ALTO does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 0.64% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-39.9%
GM growth 5YN/A
2. Health
2.1 Basic Checks
ALTO does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, ALTO has more shares outstanding
The number of shares outstanding for ALTO has been increased compared to 5 years ago.
Compared to 1 year ago, ALTO has a worse debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 0.57, we must say that ALTO is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of ALTO (0.57) is worse than 79.76% of its industry peers.
ALTO has a debt to FCF ratio of 51.45. This is a negative value and a sign of low solvency as ALTO would need 51.45 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 51.45, ALTO is doing worse than 60.71% of the companies in the same industry.
A Debt/Equity ratio of 0.34 indicates that ALTO is not too dependend on debt financing.
The Debt to Equity ratio of ALTO (0.34) is better than 69.05% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | 51.45 | ||
| Altman-Z | 0.57 |
ROIC/WACCN/A
WACC9.43%
2.3 Liquidity
ALTO has a Current Ratio of 3.09. This indicates that ALTO is financially healthy and has no problem in meeting its short term obligations.
ALTO's Current ratio of 3.09 is amongst the best of the industry. ALTO outperforms 82.14% of its industry peers.
ALTO has a Quick Ratio of 2.09. This indicates that ALTO is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of ALTO (2.09) is better than 79.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.09 |
3. Growth
3.1 Past
ALTO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.86%, which is quite good.
ALTO shows a decrease in Revenue. In the last year, the revenue decreased by -8.44%.
Measured over the past years, ALTO shows a decrease in Revenue. The Revenue has been decreasing by -4.20% on average per year.
EPS 1Y (TTM)11.86%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%20%
Revenue 1Y (TTM)-8.44%
Revenue growth 3Y10.88%
Revenue growth 5Y-4.2%
Sales Q2Q%-20.85%
3.2 Future
ALTO is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 31.25% yearly.
Based on estimates for the next years, ALTO will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y68.62%
EPS Next 2Y61.29%
EPS Next 3Y42.43%
EPS Next 5Y31.25%
Revenue Next Year-18.39%
Revenue Next 2Y0.04%
Revenue Next 3Y3.56%
Revenue Next 5Y2.01%
3.3 Evolution
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings Ratio is negative for ALTO. In the last year negative earnings were reported.
The Price/Forward Earnings ratio is 5.16, which indicates a rather cheap valuation of ALTO.
Based on the Price/Forward Earnings ratio, ALTO is valued cheaply inside the industry as 92.86% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.02, ALTO is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Price/Free Cash Flow ratio of ALTO indicates a slightly more expensive valuation: ALTO is more expensive than 63.10% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 52.35 | ||
| EV/EBITDA | N/A |
4.3 Compensation for Growth
ALTO's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as ALTO's earnings are expected to grow with 42.43% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y61.29%
EPS Next 3Y42.43%
5. Dividend
5.1 Amount
No dividends for ALTO!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
ALTO INGREDIENTS INC
NASDAQ:ALTO (11/7/2024, 5:09:16 PM)
After market: 1.2302 +0.02 (+1.67%)1.21
-0.73 (-37.63%)
Chartmill FA Rating
GICS SectorMaterials
GICS IndustryGroupMaterials
GICS IndustryChemicals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap92.55M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | N/A | ||
| Fwd PE | 5.16 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -8.91% | ||
| ROE | -14.49% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 0.64% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover2.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.34 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.09 | ||
| Quick Ratio | 2.09 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)11.86%
EPS 3YN/A
EPS 5Y
EPS Q2Q%
EPS Next Y68.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.44%
Revenue growth 3Y10.88%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y