Alto Ingredients Intrinsic Value – ALTO INGREDIENTS Reports Third Quarter FY2023 Earnings Results
December 17, 2023
🌥️Earnings Overview
ALTO INGREDIENTS ($NASDAQ:ALTO) released their results for the third quarter of FY2023, ending on September 30 2023. Revenue came in at USD 318.1 million, a 5.6% drop compared to the same quarter in FY2022. Net income for the quarter stood at -3.5 million, an impressive improvement compared to the -28.0 million registered in the same period one year prior.
Share Price
The stock opened at $4.8 and closed at $4.9, a 6.4% increase from the prior closing price of $4.6. ALTO INGREDIENTS also reported double-digit increases in operating income and net income compared to the same period last year. The company attributed the strong performance to their commitment to innovation and customer service. They are focusing on developing new products and expanding their existing product lines to meet their customers’ needs.
Additionally, ALTO INGREDIENTS is investing in technologies that will help them deliver products faster and more cost-effectively. Overall, ALTO INGREDIENTS had a strong third quarter and the outlook for future quarters looks positive. Investors remain confident in the company’s ability to continue delivering quality products and services, so they can expect ALTO INGREDIENTS to remain a strong performer in the industry. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Alto Ingredients. More…
| Total Revenues | Net Income | Net Margin |
| 1.28k | -43.4 | -3.1% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Alto Ingredients. More…
| Operations | Investing | Financing |
| 14.44 | -40.62 | 28.63 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Alto Ingredients. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 461.1 | 163.1 | 3.92 |
Key Ratios Snapshot
Some of the financial key ratios for Alto Ingredients are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 5.6% | 7.5% | -2.7% |
| FCF Margin | ROE | ROA |
| -1.8% | -7.1% | -4.6% |
Analysis – Alto Ingredients Intrinsic Value
At GoodWhale, we recently performed an analysis of ALTO INGREDIENTS‘s wellbeing. Through our proprietary Valuation Line, we calculated the intrinsic value of ALTO INGREDIENTS share to be around $4.1. However, currently ALTO INGREDIENTS stock is traded at $4.9, representing an overvaluation of 20.9%. Based on this analysis, we believe ALTO INGREDIENTS has potential to grow, but may not be worth its current market price. More…
Peers
It is no secret that the food and beverage industry is intensely competitive. Players large and small are vying for a share of the pie, and Alto Ingredients Inc is no exception. The company competes against some of the biggest names in the business, including Green Plains Inc, Cinkarna Celje, and AVT Natural Products Ltd. Despite the challenges, Alto Ingredients Inc has managed to carve out a place for itself in the industry, thanks to its innovative products and commitment to customer satisfaction.
– Green Plains Inc ($NASDAQ:GPRE)
Green Plains Inc is a publicly traded company that produces and sells ethanol and related products. The company has a market cap of 1.65 billion as of 2022 and a return on equity of -1.51%. The company’s products are used in the transportation, industrial, and consumer sectors. Green Plains Inc is headquartered in Omaha, Nebraska, and has operations in the United States, Canada, and Europe.
– Cinkarna Celje ($LTS:0NOO)
Cinkarna Celje is a Slovenian chemical company with a market cap of 179.75M as of 2022. The company’s Return on Equity is 17.95%. Cinkarna Celje produces a range of chemicals, including pigments, dyes, and resins. The company has a long history, dating back to the early 20th century.
– AVT Natural Products Ltd ($BSE:519105)
AVT Natural Products Ltd, with a market capitalization of 16.04 billion as of 2022 and a return on equity of 18.75%, is a company engaged in the manufacture and sale of natural products. The company has a wide range of products that it offers to its customers, which include herbs, spices, and other natural ingredients. AVT Natural Products Ltd has a strong presence in the market and is well-known for its quality products. The company has a good reputation for its customer service and is always willing to help its customers with any problems they may have.
Summary
ALTO INGREDIENTS reported its earnings results for the third quarter of FY2023, ending on September 30 2023. Revenue for the quarter was USD 318.1 million, a 5.6% decrease compared to the same quarter in the prior year. Net income was USD -3.5 million, a significantly better result than the prior year’s figure of -28.0 million. The company’s stock price reacted positively to the report, moving up on the same day.
From an investing perspective, ALTO INGREDIENTS seems to be improving its performance, though revenue is still down year-over-year. The improvement in net income is encouraging, suggesting that the company’s cost-cutting efforts are bearing fruit. Investors should watch closely for any further developments as the company continues to navigate the challenging economic landscape.
