Alto IngredientsALTO -1.08%38 Interest Coverage is 2.92 as of Mar. 2026, which is 126% above its 10-year median of 1.29. 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 1,237 Chemicals companies, Alto Ingredients ranks worse than 78.17% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Alto Ingredients's
Operating Income
for the
three
months ended in Mar. 2026 was $6.4 Mil. Alto Ingredients's Interest Expense for the
three
months ended in Mar. 2026 was $-2.2 Mil.
Alto Ingredients's interest coverage for the quarter that ended in Mar. 2026 was 2.92.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Alto Ingredients's Interest Coverage or its related term are showing as below:
ALTO'
s Interest Coverage Range Over the Past 10 Years
Min: 1.05 Med: 1.29 Max: 10.76
Current: 2.99
ALTO's Interest Coverage is ranked worse than 78.17% of 1237
companies
in the Chemicals industry
Industry Median: 10.26
vs ALTO: 2.99
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Alto Ingredients Interest Coverage Related Terms
Alto Ingredients Interest Coverage Historical Data
* Premium members only.
The historical data trend for Alto Ingredients's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
ALTO vs OEC, GEVO, MATV: Interest Coverage Comparison
For the Specialty Chemicals subindustry, Alto Ingredients's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Alto Ingredients's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Alto Ingredients's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 Ingredients (ALTO) has a Interest Coverage of 2.92 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Alto Ingredients and its competitors. This is 126% above median its historical median of 1.29. Over the past decade, Alto Ingredients' Interest Coverage has ranged from 1.05 to 10.76. According to the industry distribution chart, Alto Ingredients ranks #967 out of 1237 companies in the Chemicals industry, placing it in the top 78.2%.
Is Alto Ingredients' Interest Coverage too high?
Alto Ingredients' current Interest Coverage of 2.92 is 126% above median its 10-year median of 1.29. Over the past 10 years, this metric has ranged from a low of 1.05 to a high of 10.76. The Chemicals industry median Interest Coverage is 10.26. Alto Ingredients' value of 2.92 is 71.5% below this industry median. Based on the distribution chart, Alto Ingredients ranks #967 out of 1237 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' Interest Coverage compare to OEC and GEVO?
According to the Chemicals industry distribution chart, Alto Ingredients ranks #967 out of 1237 companies for Interest Coverage. This places Alto Ingredients in the lower half of its industry. The industry median Interest Coverage is 10.26. Alto Ingredients' value of 2.92 is 71.5% below this benchmark. Historically, Alto Ingredients' own Interest Coverage has ranged from 1.05 to 10.76 over the past decade. While the company's 10-year median is 1.29 vs. the industry median of 10.26, 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 Interest Coverage for a Chemicals company?
The median Interest Coverage among Chemicals companies is 10.26, based on 1,237 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alto Ingredients's current Interest Coverage of 2.92 is 71.5% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Alto Ingredients and its competitors. For the Chemicals industry, the median Interest Coverage is 10.26 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alto Ingredients's current Interest Coverage is 2.92, which is 126% above median its own 10-year median of 1.29. 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 Interest Coverage is 2.92, which is 126% above median its 10-year median of 1.29 and 71.5% below the Chemicals industry median of 10.26. 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 Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Alto Ingredients (ALTO), the current Interest Coverage is 2.92 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:
Interest Coverage: 2.92 (126% above median its 10-year median of 1.29)
GF Value™: $1.44 vs. price of $5.06 (251% above fair value)
Industry Position: 71.5% below the Chemicals median (#967 of 1237)
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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