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ALE

ALLETENYSE:ALE Stock Report

Market Cap

US$3.1b

7D

-7.8%

1Y

2.4%

Updated

30 Nov, 2021

Data

Company Financials +
ALE fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance2/6
Financial Health1/6
Dividends6/6

ALE Stock Overview

ALLETE, Inc. operates as an energy company.

ALLETE Competitors

NextEra Energy

NYSE:NEE

US$170.3b

Duke Energy

NYSE:DUK

US$74.6b

Southern

NYSE:SO

US$64.8b

Exelon

NasdaqGS:EXC

US$51.6b

Price History & Performance

Summary of all time highs, changes and price drops for ALLETE
Historical stock prices
Current Share PriceUS$58.63
52 Week HighUS$73.10
52 Week LowUS$56.41
Beta0.52
1 Month Change-4.73%
3 Month Change-14.13%
1 Year Change2.43%
3 Year Change-26.82%
5 Year Change-6.33%
Change since IPO44.10%

Recent News & Updates

Oct 14
A Look At The Fair Value Of ALLETE, Inc. (NYSE:ALE)

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...

Sep 13

Allete: Double-Digit Returns On Offer

At current share price levels, Allete offers an attractive and safe dividend yield of 3.65%. A combination of wind and hydro has underpinned Allete's move to 50% renewable energy generation today, with an objective of 100% by 2050. EPS growth plus dividend yield should provide double-digit returns for this utility through end of 2023 and beyond.

Sep 08
ALLETE's (NYSE:ALE) Returns On Capital Not Reflecting Well On The Business

ALLETE's (NYSE:ALE) Returns On Capital Not Reflecting Well On The Business

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'll want to...

Shareholder Returns

ALEUS Electric UtilitiesUS Market
7D-7.8%-2.7%-2.8%
1Y2.4%6.5%20.0%

Return vs Industry: ALE underperformed the US Electric Utilities industry which returned 6.5% over the past year.

Return vs Market: ALE underperformed the US Market which returned 20% over the past year.

Price Volatility

Is ALE's price volatile compared to industry and market?
ALE volatility
ALE Average Weekly Movement3.2%
Electric Utilities Industry Average Movement2.8%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

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

FoundedEmployeesCEOWebsite
19061,357Bethany Owenhttps://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

How do ALLETE's earnings and revenue compare to its market cap?
ALE fundamental statistics
Market CapUS$3.08b
Earnings (TTM)US$154.40m
Revenue (TTM)US$1.34b

20.0x

P/E Ratio

2.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALE income statement (TTM)
RevenueUS$1.34b
Cost of RevenueUS$905.70m
Gross ProfitUS$434.90m
ExpensesUS$280.50m
EarningsUS$154.40m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.94
Gross Margin32.44%
Net Profit Margin11.52%
Debt/Equity Ratio71.0%

How did ALE perform over the long term?

See historical performance and comparison

Dividends

4.3%

Current Dividend Yield

85%

Payout Ratio

Valuation

Is ALLETE undervalued compared to its fair value and its price relative to the market?

23.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ALE ($58.63) is trading below our estimate of fair value ($76.57)

Significantly Below Fair Value: ALE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ALE is good value based on its PE Ratio (20x) compared to the US Electric Utilities industry average (21.4x).

PE vs Market: ALE is poor value based on its PE Ratio (20x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: ALE is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: ALE is good value based on its PB Ratio (1.3x) compared to the US Electric Utilities industry average (1.8x).


Future Growth

How is ALLETE forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

10.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALE's forecast earnings growth (10.9% per year) is above the savings rate (2%).

Earnings vs Market: ALE's earnings (10.9% per year) are forecast to grow slower than the US market (14.2% per year).

High Growth Earnings: ALE's earnings are forecast to grow, but not significantly.

Revenue vs Market: ALE's revenue (0.6% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: ALE's revenue (0.6% 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?

4.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ALE's dividend (4.3%) is higher than the bottom 25% of dividend payers in the US market (1.35%).

High Dividend: ALE's dividend (4.3%) is in the top 25% of dividend payers in the US market (3.63%)


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 (67.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.7yrs

Average management tenure


CEO

Bethany Owen (55 yo)

1.67yrs

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 ($USD1.99M) is below average for companies of similar size in the US market ($USD5.28M).

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 (4.7 years average tenure).


Board Members

Experienced Board: ALE's board of directors are considered experienced (7.5 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
  • Market Cap: US$3.082b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/30 23:55
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.