ALLETE INC (ALE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALE - US0185223007 - Common Stock
67.71 USD
-0.04 (-0.06%)
67.71 USD
0 (0%)
ALE gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 industry peers in the Electric Utilities industry. ALE has a bad profitability rating. Also its financial health evaluation is rather negative. ALE has a expensive valuation and it also scores bad on growth. ALE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ALE was profitable.
ALE had a positive operating cash flow in the past year.
ALE had positive earnings in each of the past 5 years.
ALE had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 2.32%, ALE is doing worse than 79.17% of the companies in the same industry.
The Return On Equity of ALE (5.81%) is worse than 85.42% of its industry peers.
ALE's Return On Invested Capital of 1.88% is on the low side compared to the rest of the industry. ALE is outperformed by 89.58% of its industry peers.
ALE had an Average Return On Invested Capital over the past 3 years of 2.33%. This is below the industry average of 4.95%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 5.81% | ||
| ROIC | 1.88% |
ROA(3y)3.04%
ROA(5y)2.9%
ROE(3y)7.37%
ROE(5y)7.27%
ROIC(3y)2.33%
ROIC(5y)2.36%
1.3 Margins
ALE has a worse Profit Margin (11.04%) than 66.67% of its industry peers.
ALE's Profit Margin has declined in the last couple of years.
ALE's Operating Margin of 9.24% is on the low side compared to the rest of the industry. ALE is outperformed by 85.42% of its industry peers.
ALE's Operating Margin has declined in the last couple of years.
The Gross Margin of ALE (93.25%) is better than 97.92% of its industry peers.
ALE's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.24% | ||
| PM (TTM) | 11.04% | ||
| GM | 93.25% |
OM growth 3Y-0.62%
OM growth 5Y-6.31%
PM growth 3Y-0.57%
PM growth 5Y-4.77%
GM growth 3Y-1.28%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
ALE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
The number of shares outstanding for ALE has been increased compared to 1 year ago.
The number of shares outstanding for ALE has been increased compared to 5 years ago.
Compared to 1 year ago, ALE has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.04, we must say that ALE is in the distress zone and has some risk of bankruptcy.
ALE has a Altman-Z score of 1.04. This is in the better half of the industry: ALE outperforms 66.67% of its industry peers.
ALE has a Debt/Equity ratio of 0.74. This is a neutral value indicating ALE is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.74, ALE is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.26
WACC7.25%
2.3 Liquidity
A Current Ratio of 1.17 indicates that ALE should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.17, ALE belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
ALE has a Quick Ratio of 1.17. This is a bad value and indicates that ALE is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.73, ALE is in line with its industry, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
ALE shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.65%.
ALE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.89% yearly.
Looking at the last year, ALE shows a decrease in Revenue. The Revenue has decreased by -4.30% in the last year.
Measured over the past years, ALE shows a small growth in Revenue. The Revenue has been growing by 4.28% on average per year.
EPS 1Y (TTM)-8.65%
EPS 3Y-1.36%
EPS 5Y-2.89%
EPS Q2Q%-41.03%
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y2.53%
Revenue growth 5Y4.28%
Sales Q2Q%-7.91%
3.2 Future
ALE is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.96% yearly.
The Revenue is expected to grow by 5.14% on average over the next years.
EPS Next Y18.92%
EPS Next 2Y14.02%
EPS Next 3Y15.1%
EPS Next 5Y11.96%
Revenue Next Year-1.51%
Revenue Next 2Y2%
Revenue Next 3Y3.82%
Revenue Next 5Y5.14%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
ALE is valuated rather expensively with a Price/Earnings ratio of 23.76.
81.25% of the companies in the same industry are cheaper than ALE, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of ALE to the average of the S&P500 Index (26.59), we can say ALE is valued inline with the index average.
ALE is valuated correctly with a Price/Forward Earnings ratio of 16.80.
ALE's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.80. ALE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.76 | ||
| Fwd PE | 16.8 |
4.2 Price Multiples
77.08% of the companies in the same industry are cheaper than ALE, based on the Enterprise Value to EBITDA ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.16 |
4.3 Compensation for Growth
ALE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ALE's earnings are expected to grow with 15.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y14.02%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
ALE has a Yearly Dividend Yield of 4.32%, which is a nice return.
Compared to an average industry Dividend Yield of 3.42, ALE pays a better dividend. On top of this ALE pays more dividend than 85.42% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.31, ALE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
5.2 History
The dividend of ALE has a limited annual growth rate of 3.68%.
ALE has paid a dividend for at least 10 years, which is a reliable track record.
ALE has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)3.68%
Div Incr Years14
Div Non Decr Years19
5.3 Sustainability
101.27% of the earnings are spent on dividend by ALE. This is not a sustainable payout ratio.
ALE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP101.27%
EPS Next 2Y14.02%
EPS Next 3Y15.1%
67.71
-0.04 (-0.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.72%
Inst Owner Change-3.71%
Ins Owners0.27%
Ins Owner Change0%
Market Cap3.93B
Revenue(TTM)1.50B
Net Income(TTM)165.70M
Analysts80
Price Target70.67 (4.37%)
Short Float %1.45%
Short Ratio1.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
Yearly Dividend2.82
Dividend Growth(5Y)3.68%
DP101.27%
Div Incr Years14
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-44.8%
Min EPS beat(2)-52.56%
Max EPS beat(2)-37.05%
EPS beat(4)0
Avg EPS beat(4)-30%
Min EPS beat(4)-52.56%
Max EPS beat(4)-7.65%
EPS beat(8)0
Avg EPS beat(8)-24.56%
EPS beat(12)2
Avg EPS beat(12)-8.06%
EPS beat(16)4
Avg EPS beat(16)-5.82%
Revenue beat(2)0
Avg Revenue beat(2)-15.37%
Min Revenue beat(2)-16.12%
Max Revenue beat(2)-14.63%
Revenue beat(4)0
Avg Revenue beat(4)-14.17%
Min Revenue beat(4)-16.12%
Max Revenue beat(4)-12.76%
Revenue beat(8)1
Avg Revenue beat(8)-14.57%
Revenue beat(12)4
Avg Revenue beat(12)-4.84%
Revenue beat(16)8
Avg Revenue beat(16)-0.83%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.76 | ||
| Fwd PE | 16.8 | ||
| P/S | 2.62 | ||
| P/FCF | N/A | ||
| P/OCF | 11.48 | ||
| P/B | 1.38 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 14.16 |
EPS(TTM)2.85
EY4.21%
EPS(NY)4.03
Fwd EY5.95%
FCF(TTM)-5.54
FCFYN/A
OCF(TTM)5.9
OCFY8.71%
SpS25.82
BVpS49.07
TBVpS46.4
PEG (NY)1.26
PEG (5Y)N/A
Graham Number56.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 5.81% | ||
| ROCE | 2.06% | ||
| ROIC | 1.88% | ||
| ROICexc | 1.9% | ||
| ROICexgc | 1.95% | ||
| OM | 9.24% | ||
| PM (TTM) | 11.04% | ||
| GM | 93.25% | ||
| FCFM | N/A |
ROA(3y)3.04%
ROA(5y)2.9%
ROE(3y)7.37%
ROE(5y)7.27%
ROIC(3y)2.33%
ROIC(5y)2.36%
ROICexc(3y)2.34%
ROICexc(5y)2.38%
ROICexgc(3y)2.4%
ROICexgc(5y)2.41%
ROCE(3y)2.55%
ROCE(5y)2.58%
ROICexgc growth 3Y0.06%
ROICexgc growth 5Y-6.66%
ROICexc growth 3Y-0.77%
ROICexc growth 5Y-7.11%
OM growth 3Y-0.62%
OM growth 5Y-6.31%
PM growth 3Y-0.57%
PM growth 5Y-4.77%
GM growth 3Y-1.28%
GM growth 5Y-0.42%
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.88 | ||
| Cap/Depr | 228.02% | ||
| Cap/Sales | 44.32% | ||
| Interest Coverage | 1.74 | ||
| Cash Conversion | 79.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.04 |
F-Score4
WACC7.25%
ROIC/WACC0.26
Cap/Depr(3y)106.82%
Cap/Depr(5y)166.23%
Cap/Sales(3y)17.22%
Cap/Sales(5y)29.28%
Profit Quality(3y)61.51%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.65%
EPS 3Y-1.36%
EPS 5Y-2.89%
EPS Q2Q%-41.03%
EPS Next Y18.92%
EPS Next 2Y14.02%
EPS Next 3Y15.1%
EPS Next 5Y11.96%
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y2.53%
Revenue growth 5Y4.28%
Sales Q2Q%-7.91%
Revenue Next Year-1.51%
Revenue Next 2Y2%
Revenue Next 3Y3.82%
Revenue Next 5Y5.14%
EBIT growth 1Y-15.99%
EBIT growth 3Y1.9%
EBIT growth 5Y-2.29%
EBIT Next Year158.47%
EBIT Next 3Y53.28%
EBIT Next 5Y37.33%
FCF growth 1Y-179.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-48.07%
OCF growth 3Y20.16%
OCF growth 5Y12.87%
ALLETE INC / ALE FAQ
What is the fundamental rating for ALE stock?
ChartMill assigns a fundamental rating of 3 / 10 to ALE.
What is the valuation status for ALE stock?
ChartMill assigns a valuation rating of 2 / 10 to ALLETE INC (ALE). This can be considered as Overvalued.
What is the profitability of ALE stock?
ALLETE INC (ALE) has a profitability rating of 3 / 10.
What are the PE and PB ratios of ALLETE INC (ALE) stock?
The Price/Earnings (PE) ratio for ALLETE INC (ALE) is 23.76 and the Price/Book (PB) ratio is 1.38.
How sustainable is the dividend of ALLETE INC (ALE) stock?
The dividend rating of ALLETE INC (ALE) is 8 / 10 and the dividend payout ratio is 101.27%.