| Snowflake Score | |
|---|---|
| Valuation | 3/6 |
| Future Growth | 1/6 |
| Past Performance | 2/6 |
| Financial Health | 1/6 |
| Dividends | 6/6 |
ALE Stock Overview
ALLETE, Inc. operates as an energy company.
ALLETE Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$64.15 |
| 52 Week High | US$73.10 |
| 52 Week Low | US$56.84 |
| Beta | 0.56 |
| 1 Month Change | 0.77% |
| 3 Month Change | 4.50% |
| 1 Year Change | -7.03% |
| 3 Year Change | -15.92% |
| 5 Year Change | -0.33% |
| Change since IPO | 57.66% |
Recent News & Updates
Allete Update: Double-Digit Returns Still On Offer
At current share price levels, Allete offers an attractive and safe dividend yield of 3.74%. EPS growth plus dividend yield should provide double-digit returns for this utility through end of 2023 and beyond. Allete is making good progress with conversion of its energy generation to renewables, an important aspect of energy utilities' operations.
Calculating The Intrinsic Value Of ALLETE, Inc. (NYSE:ALE)
Today we'll do a simple run through of a valuation method used to estimate the attractiveness of ALLETE, Inc...
Some Investors May Be Worried About ALLETE's (NYSE:ALE) Returns On Capital
To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...
A Look At The Fair Value Of ALLETE, Inc. (NYSE:ALE)
Does the October share price for ALLETE, Inc. ( NYSE:ALE ) reflect what it's really worth? Today, we will estimate the...
Shareholder Returns
| ALE | US Electric Utilities | US Market | |
|---|---|---|---|
| 7D | -2.3% | -1.0% | -3.5% |
| 1Y | -7.0% | 8.6% | 10.2% |
Return vs Industry: ALE underperformed the US Electric Utilities industry which returned 8.6% over the past year.
Return vs Market: ALE underperformed the US Market which returned 10.2% over the past year.
Price Volatility
| ALE volatility | |
|---|---|
| ALE Average Weekly Movement | 3.1% |
| Electric Utilities Industry Average Movement | 2.6% |
| Market Average Movement | 6.6% |
| 10% most volatile stocks in US Market | 15.8% |
| 10% least volatile stocks in US Market | 2.4% |
Stable Share Price: ALE is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: ALE's weekly volatility (3%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1906 | 1,357 | Bethany Owen | https://www.allete.com |
ALLETE, Inc. operates as an energy company. The company operates through Regulated Operations, ALLETE Clean Energy, and Corporate and Other segments. It generates electricity from coal-fired, biomass co-fired / natural gas, hydroelectric, wind, and solar.
ALLETE Fundamentals Summary
| ALE fundamental statistics | |
|---|---|
| Market Cap | US$3.37b |
| Earnings (TTM) | US$154.40m |
| Revenue (TTM) | US$1.34b |
21.8x
P/E Ratio2.5x
P/S RatioIs ALE overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| ALE income statement (TTM) | |
|---|---|
| Revenue | US$1.34b |
| Cost of Revenue | US$905.70m |
| Gross Profit | US$434.90m |
| Expenses | US$280.50m |
| Earnings | US$154.40m |
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Feb 16, 2022
| Earnings per share (EPS) | 2.94 |
| Gross Margin | 32.44% |
| Net Profit Margin | 11.52% |
| Debt/Equity Ratio | 71.0% |
How did ALE perform over the long term?
See historical performance and comparisonDividends
3.9%
Current Dividend Yield85%
Payout RatioValuation
Is ALLETE undervalued compared to its fair value and its price relative to the market?
18.2%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALE ($64.15) is trading below our estimate of fair value ($78.44)
Significantly Below Fair Value: ALE is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: ALE is good value based on its PE Ratio (21.8x) compared to the US Electric Utilities industry average (22.6x).
PE vs Market: ALE is poor value based on its PE Ratio (21.8x) compared to the US market (17x).
Price to Earnings Growth Ratio
PEG Ratio: ALE is poor value based on its PEG Ratio (2.1x)
Price to Book Ratio
PB vs Industry: ALE is good value based on its PB Ratio (1.4x) compared to the US Electric Utilities industry average (1.9x).
Future Growth
How is ALLETE forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
10.6%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALE's forecast earnings growth (10.6% per year) is above the savings rate (2%).
Earnings vs Market: ALE's earnings (10.6% per year) are forecast to grow slower than the US market (13% per year).
High Growth Earnings: ALE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALE's revenue (0.9% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: ALE's revenue (0.9% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ALE's Return on Equity is forecast to be low in 3 years time (7.8%).
Past Performance
How has ALLETE performed over the past 5 years?
1.7%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALE has high quality earnings.
Growing Profit Margin: ALE's current net profit margins (11.5%) are lower than last year (15.3%).
Past Earnings Growth Analysis
Earnings Trend: ALE's earnings have grown by 1.7% per year over the past 5 years.
Accelerating Growth: ALE's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ALE had negative earnings growth (-12.7%) over the past year, making it difficult to compare to the Electric Utilities industry average (3.7%).
Return on Equity
High ROE: ALE's Return on Equity (4.6%) is considered low.
Financial Health
How is ALLETE's financial position?
Financial Position Analysis
Short Term Liabilities: ALE's short term assets ($278.7M) do not cover its short term liabilities ($646.0M).
Long Term Liabilities: ALE's short term assets ($278.7M) do not cover its long term liabilities ($2.8B).
Debt to Equity History and Analysis
Debt Level: ALE's net debt to equity ratio (68.9%) is considered high.
Reducing Debt: ALE's debt to equity ratio has reduced from 82.5% to 71% over the past 5 years.
Debt Coverage: ALE's debt is not well covered by operating cash flow (13.2%).
Interest Coverage: ALE's interest payments on its debt are not well covered by EBIT (2.2x coverage).
Balance Sheet
Dividend
What is ALLETE current dividend yield, its reliability and sustainability?
3.93%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ALE's dividend (3.93%) is higher than the bottom 25% of dividend payers in the US market (1.35%).
High Dividend: ALE's dividend (3.93%) is in the top 25% of dividend payers in the US market (3.48%)
Stability and Growth of Payments
Stable Dividend: ALE's dividends per share have been stable in the past 10 years.
Growing Dividend: ALE's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (84.9%), ALE's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: ALE's dividends in 3 years are forecast to be covered by earnings (67.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.8yrs
Average management tenure
CEO
Bethany Owen (55 yo)
3yrs
Tenure
US$1,985,344
Compensation
Ms. Bethany M. Owen has been Chief Executive Officer of ALLETE, Inc. since February 3, 2020 and has been its Chair since May 11, 2021. Ms. Owen serves as the President at ALLETE, Inc. since January 31, 201...
CEO Compensation Analysis
Compensation vs Market: Bethany's total compensation ($USD1.99M) is below average for companies of similar size in the US market ($USD5.14M).
Compensation vs Earnings: Bethany's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: ALE's management team is considered experienced (4.8 years average tenure).
Board Members
Experienced Board: ALE's board of directors are considered experienced (9.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
ALLETE, Inc.'s employee growth, exchange listings and data sources
Key Information
- Name: ALLETE, Inc.
- Ticker: ALE
- Exchange: NYSE
- Founded: 1906
- Industry: Electric Utilities
- Sector: Utilities
- Implied Market Cap: US$3.373b
- Shares outstanding: 52.57m
- Website: https://www.allete.com
Number of Employees
Location
- ALLETE, Inc.
- 30 West Superior Street
- Duluth
- Minnesota
- 55802-2093
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/01/19 23:34 |
| End of Day Share Price | 2022/01/19 00:00 |
| Earnings | 2021/09/30 |
| Annual Earnings | 2020/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.