Is Alto Ingredients, Inc. overvalued or undervalued?

As of 14 March 2023, the valuation grade for Alto Ingredients, Inc. moved from fair to risky, indicating a shift towards a more negative outlook. The company appears to be overvalued given its current metrics, particularly with a Price to Book Value of 0.37 and an EV to Sales ratio of 0.18, which suggest significant challenges in generating value relative to its assets and sales. Additionally, the EV to EBITDA ratio stands at -12.61, reflecting ongoing operational difficulties.
In comparison to its peers, Alto Ingredients is underperforming; for instance, Westlake Chemical Partners LP has an EV to EBITDA of 2.5012, while Kronos Worldwide, Inc. boasts a much higher P/E ratio of 10.0112. These figures highlight the substantial gap in valuation and performance between Alto and its more successful competitors. Furthermore, the company's stock has significantly lagged behind the S&P 500, with a 1-year return of -27.40% compared to the index's 17.14%, reinforcing the notion that Alto Ingredients is currently overvalued.