| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 96 | 5.8x | 17.8x | Top tier | |
Growth | 37 | 1.1% | 7.1% | Bottom tier | |
Quality | 55 | 10.2% | 4.5% | Around median | |
Safety | 76 | 1.3x | 2.6x | Top tier | |
Capital Return | 92 | — | 2.12% | Top tier | |
Momentum | 72 | 318.1% | 2.9% | Top tier | |
Sentiment | 79 | 1 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Alto Ingredients is a leading producer of specialty alcohols, essential ingredients, and renewable fuels. The company generates its revenue by processing corn to produce high-quality ethanol, premium carbon dioxide, and dried distillers grains used in animal feed. Through its multiple facilities, such as the Pekin campus and Columbia facility, the company serves diverse end markets ranging from domestic fuel blending to food and beverage sectors, benefiting from a flexible operating model that allows it to shift production toward the most profitable markets and capture premium value opportunities based on market crush margins.
In the second quarter of fiscal year 2026, the company demonstrated strong financial performance with consolidated net sales reaching $246 million, driven by the sale of 88.5 million gallons of ethanol and specialty alcohols at an average price of $2.15 per gallon. Gross profit increased significantly to $17 million, an increase of $19 million compared to the previous year, while net income available to common stockholders was $11.4 million, or $0.15 per share. This profitability was bolstered by strong domestic demand, improved crush margins that reached $0.33 per gallon, and strategic gains from 45Z tax credits.
Automated analysis for informational purposes only — not investment advice.
The company's stock currently trades at a significant discount compared to the analyst consensus average price target of $10 per share. The analyst community maintains a strong buy recommendation, reflecting clear optimism about the company's ability to reduce its debt and capitalize on earnings generated by 45Z tax credits. Although the trailing 12-month P/E ratio is not available, the wide gap between the current valuation and the analysts' target indicates substantial upside potential if the company continues to execute its capital projects successfully.
Figures in the text are as of 2026-08-12; the live price is shown at the top of the page.
The company is benefiting significantly from the 45Z tax credits, having already recorded $5.1 million in earnings during the second quarter of 2026. Management expects to qualify at least 90 million gallons of combined production this year, which is estimated to generate a minimum of $15 million in net income. Furthermore, the company is working with its farmer partners to source low carbon intensity corn, which could substantially increase the value of these credits in 2027 and beyond.
During the second quarter, the company completed a planned dry mill outage and a critical debottlenecking project at its Pekin campus. This strategic upgrade was designed to increase the facility's annual production capacity by approximately 8 percent, which equates to adding 5 million gallons. Management expects to realize the full operational and financial benefits of this expanded, highly efficient capacity by the fourth quarter of 2026.
The decrease in renewable fuel export volumes, which fell by 2.2 million gallons compared to the previous year, was primarily driven by ongoing geopolitical disruptions in the Middle East. These conflicts led to higher freight costs and reduced vessel availability, which squeezed export arbitrage opportunities between the United States and Europe. As a result, Brazilian exports became more competitive in Europe, prompting the company to pivot its product mix toward domestic ethanol markets that enjoy strong demand.
The company is actively advancing multiple pathways to monetize its CO2 stream through utilization and sequestration opportunities, focusing on low-capital, high-return projects. The company is currently installing a third CO2 storage tank at the Columbia facility, which is expected to come online in the fourth quarter of 2026. This expanded capacity will allow the company to better capitalize on the growing demand for premium carbon dioxide in the Pacific Northwest, especially during the peak demand summer months.
