Alto Ingredients, Inc. (PEIX) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Proto Labs, Inc.

Koppers Holdings, Inc.

TETRA Technologies, Inc.

Mativ Holdings, Inc.

Alto Ingredients, Inc.

Westlake Chemical Partners LP

REX American Resources Corp.

Advansix, Inc.

Valhi, Inc.

Kronos Worldwide, Inc.

Lightwave Logic, Inc.

Why is Alto Ingredients, Inc. ?

Poor Management Efficiency with a low ROCE of 2.03%

The company has been able to generate a Return on Capital Employed (avg) of 2.03% signifying low profitability per unit of total capital (equity and debt)

Poor long term growth as Net Sales has grown by an annual rate of -5.62% and Operating profit at -9.46% over the last 5 years

The company has declared Negative results for the last 5 consecutive quarters

INTEREST(HY) At USD 5.54 MM has Grown at 67.73%
ROCE(HY) Lowest at -28.22%
PRE-TAX PROFIT(Q) At USD -13.11 MM has Fallen at -29.88%

Risky - Negative EBITDA

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of 75.00%, its profits have fallen by -2034.7%

High Institutional Holdings at 43.82%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Market Beating Performance

The stock has generated a return of 75.00% in the last 1 year, much higher than market (S&P 500) returns of 12.33%

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Alto Ingredients, Inc. should be less than 10%
Overall Portfolio exposure to Specialty Chemicals should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Specialty Chemicals)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Alto Ingredients, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Alto Ingredients, Inc.

93.75%

0.91

76.96%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

-5.62%

EBIT Growth (5y)

-9.46%

EBIT to Interest (avg)

-4.79

Debt to EBITDA (avg)

2.34

Net Debt to Equity (avg)

0.41

Sales to Capital Employed (avg)

3.13

Tax Ratio

0.29%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

43.82%

ROCE (avg)

2.03%

ROE (avg)

4.89%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

NA (Loss Making)

Industry P/E

Price to Book Value

0.37

EV to EBIT

-4.38

EV to EBITDA

-12.61

EV to Capital Employed

0.55

EV to Sales

0.18

PEG Ratio

Dividend Yield

ROCE (Latest)

-12.63%

ROE (Latest)

-18.96%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bullish

RSI

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bullish

Dow Theory

Mildly Bullish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

2What is working for the Company

NET PROFIT(HY)

Higher at USD -23.16 MM

-22What is not working for the Company

INTEREST(HY)

At USD 5.54 MM has Grown at 67.73%

ROCE(HY)

Lowest at -28.22%

PRE-TAX PROFIT(Q)

At USD -13.11 MM has Fallen at -29.88%

RAW MATERIAL COST(Y)

Grown by 170.71% (YoY

DEBT-EQUITY RATIO (HY)

Highest at 52.07 %

DEBTORS TURNOVER RATIO(HY)

Lowest at 15.36 times

NET SALES(Q)

Lowest at USD 218.44 MM

NET PROFIT(Q)

At USD -13.11 MM has Fallen at -29.33%

Here's what is not working for Alto Ingredients, Inc.

Interest

At USD 5.54 MM has Grown at 67.73%

over previous Semi-Annual period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Pre-Tax Profit

At USD -13.11 MM has Fallen at -29.88%

over average net sales of the previous four periods of USD -10.1 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Sales

Lowest at USD 218.44 MM

in the last five periods

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Net Profit

At USD -13.11 MM has Fallen at -29.33%

over average net sales of the previous four periods of USD -10.14 MM

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

Debt-Equity Ratio

Highest at 52.07 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio

Debtors Turnover Ratio

Lowest at 15.36 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Raw Material Cost

Grown by 170.71% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales