Alto IngredientsALTO +3.08%38 Return-on-Tangible-Equity is 7.12% as of Mar. 2026. GuruFocus rates ALTO with a GF Score™ of 38/100 and a GF Value™ of $1.44 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,572 Chemicals companies, Alto Ingredients ranks better than 78.12% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Alto Ingredients's annualized net income for the quarter that ended in Mar. 2026 was $17.1 Mil. Alto Ingredients's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $240.1 Mil. Therefore, Alto Ingredients's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 7.12%.
The historical rank and industry rank for Alto Ingredients's Return-on-Tangible-Equity or its related term are showing as below:
ALTO'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -34.6 Med: -9.7 Max: 14.43
Current: 13.31
During the past 13 years, Alto Ingredients's highest Return-on-Tangible-Equity was 14.43%. The lowest was -34.60%. And the median was -9.70%.
ALTO's Return-on-Tangible-Equity is ranked better than 78.12% of 1572
companies
in the Chemicals industry
Industry Median: 5.69
vs ALTO: 13.31
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Alto Ingredients Return-on-Tangible-Equity Related Terms
Alto Ingredients Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Alto Ingredients's Return-on-Tangible-Equity 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, MATV, GEVO: Return-on-Tangible-Equity Comparison
For the Specialty Chemicals subindustry, Alto Ingredients's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Chemicals Industry
For the Chemicals industry and Basic Materials sector, Alto Ingredients's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Alto Ingredients's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 7.12% mean?
Alto Ingredients (ALTO) has a Return-on-Tangible-Equity of 7.12% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alto Ingredients and its competitors. According to the industry distribution chart, Alto Ingredients ranks #344 out of 1572 companies in the Chemicals industry, placing it in the top 21.9%.
Is Alto Ingredients' Return-on-Tangible-Equity too high?
Alto Ingredients' current Return-on-Tangible-Equity is 7.12%. The Chemicals industry median Return-on-Tangible-Equity is 5.69. Alto Ingredients' value of 7.12% is 25.1% above this industry median. Based on the distribution chart, Alto Ingredients ranks #344 out of 1572 companies in the Chemicals industry, which is in the top quartile — a strong position 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' Return-on-Tangible-Equity compare to OEC and MATV?
According to the Chemicals industry distribution chart, Alto Ingredients ranks #344 out of 1572 companies for Return-on-Tangible-Equity. This places Alto Ingredients in the top 22% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.69. Alto Ingredients' value of 7.12% is 25.1% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Chemicals company?
The median Return-on-Tangible-Equity among Chemicals companies is 5.69, based on 1,572 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Alto Ingredients's current Return-on-Tangible-Equity of 7.12% is 25.1% above 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Alto Ingredients and its competitors. For the Chemicals industry, the median Return-on-Tangible-Equity is 5.69 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Alto Ingredients's current Return-on-Tangible-Equity is 7.12%. 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 $5.35 — trading 271.5% above its estimated fair value. The current Return-on-Tangible-Equity is 7.12% and 25.1% above the Chemicals industry median of 5.69. Alto Ingredients' overall GF Score™ is 38/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Alto Ingredients (ALTO), the current Return-on-Tangible-Equity is 7.12% 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 $5.35 is trading 271.5% above its estimated GF Value™ of $1.44.
GuruFocus considers Alto Ingredients to be Significantly Overvalued.
Key valuation signals for ALTO:
Return-on-Tangible-Equity: 7.12%
GF Value™: $1.44 vs. price of $5.35 (271.5% above fair value)
Industry Position: 25.1% above the Chemicals median (#344 of 1572)
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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