Allete Inc (ALE) Fundamental Analysis & Valuation

NYSE:ALE • US0185223007

Current stock price

67.9 USD
-0.04 (-0.06%)
At close:
67.99 USD
+0.09 (+0.13%)
After Hours:

This ALE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

3

1. ALE Profitability Analysis

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.
  • Each year in the past 5 years ALE had a positive operating cash flow.
ALE Yearly Net Income VS EBIT VS OCF VS FCFALE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M

1.2 Ratios

  • ALE has a Return On Assets of 2.32%. This is in the lower half of the industry: ALE underperforms 79.17% of its industry peers.
  • ALE has a Return On Equity of 5.81%. This is amonst the worse of the industry: ALE underperforms 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.
  • The Average Return On Invested Capital over the past 3 years for ALE is below the industry average of 4.52%.
Industry RankSector 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%
ALE Yearly ROA, ROE, ROICALE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

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.
  • In the last couple of years the Operating Margin of ALE has declined.
  • 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 RankSector 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%
ALE Yearly Profit, Operating, Gross MarginsALE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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3

2. ALE Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALE is destroying value.
  • ALE has more shares outstanding than it did 1 year ago.
  • ALE has more shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, ALE has an improved debt to assets ratio.
ALE Yearly Shares OutstandingALE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
ALE Yearly Total Debt VS Total AssetsALE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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 has a better Altman-Z score (1.04) than 66.67% of its industry peers.
  • A Debt/Equity ratio of 0.74 indicates that ALE is somewhat dependend on debt financing.
  • ALE's Debt to Equity ratio of 0.74 is fine compared to the rest of the industry. ALE outperforms 70.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF N/A
Altman-Z 1.04
ROIC/WACC0.26
WACC7.24%
ALE Yearly LT Debt VS Equity VS FCFALE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

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.
  • Looking at the Current ratio, with a value of 1.17, ALE belongs to the top 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.
  • With a Quick ratio value of 0.73, ALE perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 0.73
ALE Yearly Current Assets VS Current LiabilitesALE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. ALE Growth Analysis

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.
  • ALE shows a decrease in Revenue. In the last year, the revenue decreased by -4.30%.
  • 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

  • Based on estimates for the next years, ALE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.96% on average per year.
  • 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.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
ALE Yearly Revenue VS EstimatesALE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 500M 1B 1.5B 2B
ALE Yearly EPS VS EstimatesALE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4 5

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2

4. ALE Valuation Analysis

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 expensively inside the industry as 81.25% of the companies are valued cheaper.
  • Compared to an average S&P500 Price/Earnings ratio of 27.42, ALE is valued at the same level.
  • A Price/Forward Earnings ratio of 16.85 indicates a correct valuation of ALE.
  • The rest of the industry has a similar Price/Forward Earnings ratio as ALE.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.24, ALE is valued a bit cheaper.
Industry RankSector Rank
PE 23.82
Fwd PE 16.85
ALE Price Earnings VS Forward Price EarningsALE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

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 RankSector Rank
P/FCF N/A
EV/EBITDA 14.18
ALE Per share dataALE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. ALE Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 4.30%, ALE is a good candidate for dividend investing.
  • ALE's Dividend Yield is rather good when compared to the industry average which is at 2.79. ALE pays more dividend than 87.50% of the companies in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, ALE pays a better dividend.
Industry RankSector 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 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
ALE Yearly Dividends per shareALE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

  • ALE pays out 101.27% of its income as dividend. This is not a sustainable payout ratio.
  • The dividend of ALE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP101.27%
EPS Next 2Y14.02%
EPS Next 3Y15.1%
ALE Yearly Income VS Free CF VS DividendALE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M
ALE Dividend Payout.ALE Dividend Payout, showing the Payout Ratio.ALE Dividend Payout.PayoutRetained Earnings

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ALE Fundamentals: All Metrics, Ratios and Statistics

Allete Inc

NYSE:ALE (12/12/2025, 8:13:42 PM)

After market: 67.99 +0.09 (+0.13%)

67.9

-0.04 (-0.06%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-31
Earnings (Next)02-11
Inst Owners76.72%
Inst Owner Change-0.02%
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 %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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 Number56.097 (-17.38%)
Profitability
Industry RankSector 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 RankSector 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 Fundamental Analysis 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.


How profitable is Allete Inc (ALE) stock?

Allete Inc (ALE) has a profitability rating of 3 / 10.


Can you provide the PE and PB ratios for ALE stock?

The Price/Earnings (PE) ratio for Allete Inc (ALE) is 23.82 and the Price/Book (PB) ratio is 1.38.


Can you provide the dividend sustainability for ALE stock?

The dividend rating of Allete Inc (ALE) is 8 / 10 and the dividend payout ratio is 101.27%.