Alto Ingredients: Unprofitable Despite Market Leadership Amid High Debt, Declining Sales, and Expensive Valuation

Alto Ingredients remains unprofitable despite being the leading producer and distributor of specialty alcohols and renewable fuels in the US. The company's high debt level, asset impairment charges, and acquisition-related expenses have weighed on profitability. However, Alto Ingredients is streamlining its cost structure, exiting unprofitable activities, and prioritizing capital investments with near-term visibility. The company's strategic focus includes lowering carbon intensity scores to benefit from the federal Section 45Z clean fuel tax credit program. Alto Ingredients is also expanding carbon dioxide capture and utilization at its facilities. The stock has gained 45.3% in a year, outperforming the industry, but is currently overvalued compared with its industry.