Allete Inc (ALE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALE - US0185223007 - Common Stock
67.9 USD
-0.04 (-0.06%)
67.99 USD
+0.09 (+0.13%)
Overall ALE gets a fundamental rating of 3 out of 10. We evaluated ALE against 46 industry peers in the Electric Utilities industry. ALE has a bad profitability rating. Also its financial health evaluation is rather negative. ALE is valued expensive and it does not seem to be growing. Finally 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.
- In the past 5 years ALE has always been profitable.
- Each year in the past 5 years ALE had a positive operating cash flow.
1.2 Ratios
- ALE's Return On Assets of 2.32% is on the low side compared to the rest of the industry. ALE is outperformed by 79.17% of its industry peers.
- With a Return On Equity value of 5.81%, ALE is not doing good in the industry: 85.42% of the companies in the same industry are doing better.
- With a Return On Invested Capital value of 1.88%, ALE is not doing good in the industry: 89.58% of the companies in the same industry are doing better.
- ALE had an Average Return On Invested Capital over the past 3 years of 2.33%. This is below the industry average of 4.58%.
| 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's Profit Margin of 11.04% is on the low side compared to the rest of the industry. ALE is outperformed by 66.67% of its industry peers.
- ALE's Profit Margin has declined in the last couple of years.
- Looking at the Operating Margin, with a value of 9.24%, ALE is doing worse than 85.42% of the companies in the same industry.
- ALE's Operating Margin has declined in the last couple of years.
- With an excellent Gross Margin value of 93.25%, ALE belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
- 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALE 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
- ALE has an Altman-Z score of 1.04. This is a bad value and indicates that ALE is not financially healthy and even has some risk of bankruptcy.
- ALE's Altman-Z score of 1.04 is fine compared to the rest 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.
- ALE has a better Debt to Equity ratio (0.74) than 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.26
WACC7.24%
2.3 Liquidity
- ALE has a Current Ratio of 1.17. This is a normal value and indicates that ALE is financially healthy and should not expect problems in meeting 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.
- ALE has a Quick ratio of 0.73. This is comparable to the rest of the industry: ALE outperforms 56.25% of its industry peers.
| 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%.
- The Earnings Per Share has been decreasing by -2.89% on average over the past years.
- ALE shows a decrease in Revenue. In the last year, the revenue decreased by -4.30%.
- ALE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.28% yearly.
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.
- Based on estimates for the next years, ALE will show a small growth in Revenue. The Revenue will grow by 5.14% on average per year.
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
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 23.82, the valuation of ALE can be described as rather expensive.
- Based on the Price/Earnings ratio, ALE is valued more expensive than 81.25% of the companies in the same industry.
- ALE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.38, which is the current average of the S&P500 Index.
- ALE is valuated correctly with a Price/Forward Earnings ratio of 16.85.
- The rest of the industry has a similar Price/Forward Earnings ratio as ALE.
- ALE is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 24.29, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 16.85 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALE indicates a slightly more expensive valuation: ALE is more expensive than 77.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.18 |
4.3 Compensation for Growth
- ALE's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as ALE's earnings are expected to grow with 15.10% in the coming years.
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 4.30%, which is a nice return.
- Compared to an average industry Dividend Yield of 2.93, ALE pays a better dividend. On top of this ALE pays more dividend than 87.50% of the companies listed in the same industry.
- Compared to an average S&P500 Dividend Yield of 1.84, ALE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
- The dividend of ALE has a limited annual growth rate of 3.68%.
- ALE has been paying a dividend for at least 10 years, so it has a reliable track record.
- ALE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.68%
Div Incr Years14
Div Non Decr Years19
5.3 Sustainability
- ALE pays out 101.27% of its income as dividend. 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%
67.9
-0.04 (-0.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-31 2025-10-31/bmo
Earnings (Next)02-11 2026-02-11/amc
Inst Owners76.72%
Inst Owner Change-0.64%
Ins Owners0.27%
Ins Owner Change-78.95%
Market Cap3.94B
Revenue(TTM)1.50B
Net Income(TTM)165.70M
Analysts80
Price Target70.67 (4.08%)
Short Float %0.03%
Short Ratio0.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend2.82
Dividend Growth(5Y)3.68%
DP101.27%
Div Incr Years14
Div Non Decr Years19
Ex-DateN/A
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 | 23.82 | ||
| Fwd PE | 16.85 | ||
| P/S | 2.63 | ||
| P/FCF | N/A | ||
| P/OCF | 11.51 | ||
| P/B | 1.38 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 14.18 |
EPS(TTM)2.85
EY4.2%
EPS(NY)4.03
Fwd EY5.94%
FCF(TTM)-5.54
FCFYN/A
OCF(TTM)5.9
OCFY8.69%
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
WACC7.24%
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.
Can you provide the valuation status for Allete Inc?
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 23.82 and the Price/Book (PB) ratio is 1.38.
What is the earnings growth outlook for Allete Inc?
The Earnings per Share (EPS) of Allete Inc (ALE) is expected to grow by 18.92% in the next year.