ALLETE INC (ALE) Stock Fundamental Analysis
USA - NYSE:ALE - US0185223007 - Common Stock
64 USD
-0.09 (-0.14%)
64 USD
0 (0%)
Overall ALE gets a fundamental rating of 4 out of 10. We evaluated ALE against 48 industry peers in the Electric Utilities industry. ALE has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past year ALE had a positive cash flow from operations.
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
ALE has a Return On Assets (2.66%) which is in line with its industry peers.
With a Return On Equity value of 6.42%, ALE is not doing good in the industry: 85.42% of the companies in the same industry are doing better.
The Return On Invested Capital of ALE (2.15%) is worse than 89.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALE is below the industry average of 5.43%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 6.42% | ||
| ROIC | 2.15% |
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 Profit Margin (11.98%) which is in line with its industry peers.
In the last couple of years the Profit Margin of ALE has declined.
ALE has a worse Operating Margin (10.08%) than 85.42% of its industry peers.
ALE's Operating Margin has declined in the last couple of years.
ALE has a better Gross Margin (92.03%) than 95.83% of its industry peers.
In the last couple of years the Gross Margin of ALE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.08% | ||
| PM (TTM) | 11.98% | ||
| GM | 92.03% |
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.
The debt/assets ratio for ALE has been reduced compared to a year ago.
2.2 Solvency
ALE has an Altman-Z score of 1.08. This is a bad value and indicates that ALE is not financially healthy and even has some risk of bankruptcy.
ALE has a better Altman-Z score (1.08) than 64.58% of its industry peers.
ALE has a Debt/Equity ratio of 0.68. This is a neutral value indicating ALE is somewhat dependend on debt financing.
The Debt to Equity ratio of ALE (0.68) is better than 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.08 |
ROIC/WACC0.3
WACC7.16%
2.3 Liquidity
A Current Ratio of 1.34 indicates that ALE should not have too much problems paying its short term obligations.
ALE's Current ratio of 1.34 is fine compared to the rest of the industry. ALE outperforms 72.92% of its industry peers.
A Quick Ratio of 0.81 indicates that ALE may have some problems paying its short term obligations.
ALE has a Quick ratio (0.81) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 |
3. Growth
3.1 Past
The earnings per share for ALE have decreased strongly by -17.23% in the last year.
Measured over the past years, ALE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.89% on average per year.
ALE shows a decrease in Revenue. In the last year, the revenue decreased by -0.44%.
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)-17.23%
EPS 3Y-1.36%
EPS 5Y-2.89%
EPS Q2Q%-3.51%
Revenue 1Y (TTM)-0.44%
Revenue growth 3Y2.53%
Revenue growth 5Y4.28%
Sales Q2Q%1.64%
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.
ALE is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.14% yearly.
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.
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
The Price/Earnings ratio is 20.19, which indicates a rather expensive current valuation of ALE.
Based on the Price/Earnings ratio, ALE is valued a bit more expensive than the industry average as 70.83% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of ALE to the average of the S&P500 Index (27.38), we can say ALE is valued slightly cheaper.
A Price/Forward Earnings ratio of 15.88 indicates a correct valuation of ALE.
The rest of the industry has a similar Price/Forward Earnings ratio as ALE.
The average S&P500 Price/Forward Earnings ratio is at 22.86. ALE is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.19 | ||
| Fwd PE | 15.88 |
4.2 Price Multiples
ALE's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. ALE is more expensive than 64.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 12.73 |
4.3 Compensation for Growth
The 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)1.07
PEG (5Y)N/A
EPS Next 2Y14.02%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 4.60%, ALE is a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 3.47, ALE pays a better dividend. On top of this ALE pays more dividend than 83.33% of the companies listed in the same industry.
ALE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
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 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
ALE pays out 90.47% 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.
DP90.47%
EPS Next 2Y14.02%
EPS Next 3Y15.1%
64
-0.09 (-0.14%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners74.54%
Inst Owner Change1.73%
Ins Owners0.27%
Ins Owner Change2.7%
Market Cap3.71B
Analysts80
Price Target70.67 (10.42%)
Short Float %1.64%
Short Ratio1.52
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.6% |
Yearly Dividend2.82
Dividend Growth(5Y)3.68%
DP90.47%
Div Incr Years14
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-22.35%
Min EPS beat(2)-37.05%
Max EPS beat(2)-7.65%
EPS beat(4)0
Avg EPS beat(4)-21.03%
Min EPS beat(4)-37.05%
Max EPS beat(4)-7.65%
EPS beat(8)1
Avg EPS beat(8)-2.12%
EPS beat(12)2
Avg EPS beat(12)-5.43%
EPS beat(16)4
Avg EPS beat(16)-4.14%
Revenue beat(2)0
Avg Revenue beat(2)-14.64%
Min Revenue beat(2)-16.12%
Max Revenue beat(2)-13.16%
Revenue beat(4)1
Avg Revenue beat(4)-9.73%
Min Revenue beat(4)-16.12%
Max Revenue beat(4)3.11%
Revenue beat(8)1
Avg Revenue beat(8)-13.44%
Revenue beat(12)5
Avg Revenue beat(12)-2.88%
Revenue beat(16)9
Avg Revenue beat(16)0.95%
PT rev (1m)0.83%
PT rev (3m)4.71%
EPS NQ rev (1m)1.05%
EPS NQ rev (3m)2.13%
EPS NY rev (1m)-5.03%
EPS NY rev (3m)-7.36%
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 | 20.19 | ||
| Fwd PE | 15.88 | ||
| P/S | 2.42 | ||
| P/FCF | N/A | ||
| P/OCF | 8.63 | ||
| P/B | 1.3 | ||
| P/tB | 1.37 | ||
| EV/EBITDA | 12.73 |
EPS(TTM)3.17
EY4.95%
EPS(NY)4.03
Fwd EY6.3%
FCF(TTM)-0.92
FCFYN/A
OCF(TTM)7.41
OCFY11.58%
SpS26.4
BVpS49.31
TBVpS46.63
PEG (NY)1.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.66% | ||
| ROE | 6.42% | ||
| ROCE | 2.35% | ||
| ROIC | 2.15% | ||
| ROICexc | 2.16% | ||
| ROICexgc | 2.22% | ||
| OM | 10.08% | ||
| PM (TTM) | 11.98% | ||
| GM | 92.03% | ||
| 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%
ROICexcg growth 3Y0.06%
ROICexcg 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 Turnover0.22
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.34 | ||
| Cap/Depr | 166.59% | ||
| Cap/Sales | 31.56% | ||
| Interest Coverage | 1.96 | ||
| Cash Conversion | 96.74% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.34 | ||
| Quick Ratio | 0.81 | ||
| Altman-Z | 1.08 |
F-Score4
WACC7.16%
ROIC/WACC0.3
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)-17.23%
EPS 3Y-1.36%
EPS 5Y-2.89%
EPS Q2Q%-3.51%
EPS Next Y18.92%
EPS Next 2Y14.02%
EPS Next 3Y15.1%
EPS Next 5Y11.96%
Revenue 1Y (TTM)-0.44%
Revenue growth 3Y2.53%
Revenue growth 5Y4.28%
Sales Q2Q%1.64%
Revenue Next Year-1.51%
Revenue Next 2Y2%
Revenue Next 3Y3.82%
Revenue Next 5Y5.14%
EBIT growth 1Y-0.9%
EBIT growth 3Y1.9%
EBIT growth 5Y-2.29%
EBIT Next Year158.47%
EBIT Next 3Y53.28%
EBIT Next 5Y37.33%
FCF growth 1Y-117.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-23.29%
OCF growth 3Y20.16%
OCF growth 5Y12.87%