Alto IngredientsALTO -1.08%38 Gross Margin % is 4.10% as of Mar. 2026, which is 257% above its 10-year median of 1.15. GuruFocus rates ALTO with a GF Score™ of 38/100 and a GF Value™ of $1.44 (Significantly Overvalued). The stock has 3 warning signs investors should review. Among 1,564 Chemicals companies, Alto Ingredients ranks worse than 90.54% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Alto Ingredients had a gross margin of 4.10% for the quarter that ended in Mar. 2026 => No sustainable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Alto Ingredients Gross Margin % Related Terms
Alto Ingredients Gross Margin % Historical Data
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The historical data trend for Alto Ingredients's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ALTO vs OEC, GEVO, MATV: Gross Margin % Comparison
For the Specialty Chemicals subindustry, Alto Ingredients's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Alto Ingredients Gross Margin % vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Alto Ingredients's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Alto Ingredients's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Alto Ingredients (ALTO) has a Gross Margin % of 4.10% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Alto Ingredients and its competitors. This is 257% above median its historical median of 1.15. According to the industry distribution chart, Alto Ingredients ranks #1416 out of 1564 companies in the Chemicals industry, placing it in the top 90.5%.
Is Alto Ingredients' Gross Margin % too high?
Alto Ingredients' current Gross Margin % of 4.10% is 257% above median its 10-year median of 1.15. The Chemicals industry median Gross Margin % is 23.38. Alto Ingredients' value of 4.10% is 82.5% below this industry median. Based on the distribution chart, Alto Ingredients ranks #1416 out of 1564 companies in the Chemicals industry, which is in the bottom quartile relative to peers. Overall, Alto Ingredients has a GF Score™ of 38/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Alto Ingredients' Gross Margin % compare to OEC and GEVO?
According to the Chemicals industry distribution chart, Alto Ingredients ranks #1416 out of 1564 companies for Gross Margin %. This places Alto Ingredients in the lower half of its industry. The industry median Gross Margin % is 23.38. Alto Ingredients' value of 4.10% is 82.5% below this benchmark. While the company's 10-year median is 1.15 vs. the industry median of 23.38, Alto Ingredients has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Chemicals company?
The median Gross Margin % among Chemicals companies is 23.38, based on 1,564 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alto Ingredients's current Gross Margin % of 4.10% is 82.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Alto Ingredients and its competitors. For the Chemicals industry, the median Gross Margin % is 23.38 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alto Ingredients's current Gross Margin % is 4.10%, which is 257% above median its own 10-year median of 1.15. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Alto Ingredients stock overvalued right now?
Based on GuruFocus' analysis, Alto Ingredients (ALTO) is currently considered Significantly Overvalued. The stock's GF Value™ is $1.44, compared to a current price of $5.06 — trading 251% above its estimated fair value. The current Gross Margin % is 4.10%, which is 257% above median its 10-year median of 1.15 and 82.5% below the Chemicals industry median of 23.38. Alto Ingredients' overall GF Score™ is 38/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Alto Ingredients (ALTO), the current Gross Margin % is 4.10% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Alto Ingredients (ALTO) Overvalued in 2026?
Based on GuruFocus' analysis, Alto Ingredients stock appears to be overvalued.
The current stock price of $5.06 is trading 251% above its estimated GF Value™ of $1.44.
GuruFocus considers Alto Ingredients to be Significantly Overvalued.
Key valuation signals for ALTO:
Gross Margin %: 4.10% (257% above median its 10-year median of 1.15)
GF Value™: $1.44 vs. price of $5.06 (251% above fair value)
Industry Position: 82.5% below the Chemicals median (#1416 of 1564)
No single metric tells the full story. See the ALTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Alto Ingredients Inc is a producer and distributor of specialty alcohols, renewable fuels and essential ingredients in the United States. The company serves five markets: Health, Home and Beauty, Food and Beverage, Essential Ingredients, and Renewable Fuels. Its customers include food and beverage companies and consumer products manufacturers and distributors. The company operates under three segments: Marketing and distribution, Pekin Campus production, and Western production.
38GF Score
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