(ALTO) Alto Ingredients - Ratings and Ratios

Alto Ingredients Inc (NASDAQ:ALTO) is a US-based company that specializes in producing, distributing, and marketing a diverse range of products including specialty alcohols, renewable fuels, and essential ingredients. The companys operations are segmented into Marketing and Distribution, Pekin Campus Production, and Western Production, allowing for a broad reach across various markets. Alto Ingredients product portfolio caters to multiple industries, including health and beauty, food and beverages, industrial and agriculture, and animal feed.

The companys product offerings include specialty alcohols for personal care and pharmaceutical applications, grain neutral spirits for the beverage industry, and essential ingredients such as dried yeast, corn protein meal, and distillers grains for animal feed. Additionally, Alto Ingredients produces fuel-grade ethanol and distillers corn oil, which are used as renewable energy sources. The company also provides transportation, storage, and delivery services through third-party providers, further enhancing its logistical capabilities.

With a history dating back to 2003, Alto Ingredients has evolved significantly, having rebranded from Pacific Ethanol, Inc. to its current name in January 2021. Headquartered in Pekin, Illinois, the company has established a strong presence in the US market. Its customer base includes integrated oil companies, gasoline marketers, dairies, feedlots, and poultry producers, among others.

Analyzing the and of Alto Ingredients, we observe that the stock is currently trading at $0.86, below its SMA20, SMA50, and SMA200. The ATR indicates a relatively high volatility of 7.91%. The companys market capitalization stands at $70.29M USD, with a forward P/E ratio of 5.06, suggesting potential undervaluation. However, the negative RoE of -24.46% raises concerns about the companys profitability.

Based on the available data, a forecast for Alto Ingredients can be constructed by considering both technical and fundamental aspects. The stocks current price is near its 52-week low, and the SMA indicators suggest a downward trend. However, the ATR indicates significant volatility, which could lead to potential price swings. From a fundamental perspective, the companys diversified product portfolio and presence in various markets are positive factors. Nevertheless, the negative RoE and lack of a trailing P/E ratio are concerning. Assuming the company can improve its profitability and considering the current undervaluation, a potential price target could be around $1.20-$1.50 in the next 6-12 months, representing a 40-75% increase from the current price. However, this forecast is contingent upon the companys ability to address its profitability concerns and improve its overall financial performance.