company background image
ALE

ALLETE NYSE:ALE Stock Report

Last Price

US$57.75

Market Cap

US$3.3b

7D

0.8%

1Y

-17.6%

Updated

26 Jun, 2022

Data

Company Financials +
ALE fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance4/6
Financial Health1/6
Dividends5/6

ALE Stock Overview

ALLETE, Inc. operates as an energy company.

ALLETE Competitors

Price History & Performance

Summary of all time highs, changes and price drops for ALLETE
Historical stock prices
Current Share PriceUS$57.75
52 Week HighUS$73.10
52 Week LowUS$56.55
Beta0.61
1 Month Change-6.81%
3 Month Change-12.67%
1 Year Change-17.57%
3 Year Change-30.60%
5 Year Change-19.43%
Change since IPO41.93%

Recent News & Updates

May 11
New Forecasts: Here's What Analysts Think The Future Holds For ALLETE, Inc. (NYSE:ALE)

New Forecasts: Here's What Analysts Think The Future Holds For ALLETE, Inc. (NYSE:ALE)

ALLETE, Inc. ( NYSE:ALE ) shareholders will have a reason to smile today, with the analysts making substantial upgrades...

May 04
Is There An Opportunity With ALLETE, Inc.'s (NYSE:ALE) 27% Undervaluation?

Is There An Opportunity With ALLETE, Inc.'s (NYSE:ALE) 27% Undervaluation?

Today we will run through one way of estimating the intrinsic value of ALLETE, Inc. ( NYSE:ALE ) by taking the expected...

Shareholder Returns

ALEUS Electric UtilitiesUS Market
7D0.8%7.0%6.6%
1Y-17.6%4.1%-18.4%

Return vs Industry: ALE underperformed the US Electric Utilities industry which returned 4.1% over the past year.

Return vs Market: ALE matched the US Market which returned -18.4% over the past year.

Price Volatility

Is ALE's price volatile compared to industry and market?
ALE volatility
ALE Average Weekly Movement3.3%
Electric Utilities Industry Average Movement3.3%
Market Average Movement8.1%
10% most volatile stocks in US Market16.6%
10% least volatile stocks in US Market3.2%

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$3.26b
Earnings (TTM)US$183.70m
Revenue (TTM)US$1.46b

17.8x

P/E Ratio

2.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ALE income statement (TTM)
RevenueUS$1.46b
Cost of RevenueUS$994.10m
Gross ProfitUS$469.40m
Other ExpensesUS$285.70m
EarningsUS$183.70m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)3.25
Gross Margin32.07%
Net Profit Margin12.55%
Debt/Equity Ratio62.0%

How did ALE perform over the long term?

See historical performance and comparison

Dividends

4.5%

Current Dividend Yield

73%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is ALE undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ALE?

Other financial metrics that can be useful for relative valuation.

ALE key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue4x
Enterprise Value/EBITDA14.5x
PEG Ratio2.1x

Price to Earnings Ratio vs Peers

How does ALE's PE Ratio compare to its peers?

ALE PE Ratio vs Peers
The above table shows the PE ratio for ALE vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average21.3x
MGEE MGE Energy
26.5x4.7%US$2.8b
HE Hawaiian Electric Industries
17.7x4.9%US$4.4b
POR Portland General Electric
20.2x6.3%US$4.2b
PNM PNM Resources
21.1x7.2%US$4.1b
ALE ALLETE
17.8x8.5%US$3.3b

Price-To-Earnings vs Peers: ALE is good value based on its Price-To-Earnings Ratio (17.8x) compared to the peer average (21.3x).


Price to Earnings Ratio vs Industry

How does ALE's PE Ratio compare vs other companies in the US Electric Utilities Industry?

Price-To-Earnings vs Industry: ALE is good value based on its Price-To-Earnings Ratio (17.8x) compared to the US Electric Utilities industry average (21.1x)


Price to Earnings Ratio vs Fair Ratio

What is ALE's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ALE PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio17.8x
Fair PE Ratio20.7x

Price-To-Earnings vs Fair Ratio: ALE is good value based on its Price-To-Earnings Ratio (17.8x) compared to the estimated Fair Price-To-Earnings Ratio (20.7x).


Share Price vs Fair Value

What is the Fair Price of ALE when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ALE ($57.75) is trading below our estimate of fair value ($80.95)

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


Price to Earnings Growth Ratio

PEG Ratio: ALE is poor value based on its PEG Ratio (2.1x)


Discover undervalued companies

Future Growth

How is ALLETE forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ALE's forecast earnings growth (8.5% per year) is above the savings rate (1.9%).

Earnings vs Market: ALE's earnings (8.5% per year) are forecast to grow slower than the US market (13.9% per year).

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

Revenue vs Market: ALE's revenue (2.4% per year) is forecast to grow slower than the US market (8.4% per year).

High Growth Revenue: ALE's revenue (2.4% 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%).


Discover growth companies

Past Performance

How has ALLETE performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.05%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ALE has high quality earnings.

Growing Profit Margin: ALE's current net profit margins (12.6%) are lower than last year (13.3%).


Past Earnings Growth Analysis

Earnings Trend: ALE's earnings have grown by 0.05% per year over the past 5 years.

Accelerating Growth: ALE's earnings growth over the past year (15%) exceeds its 5-year average (0.05% per year).

Earnings vs Industry: ALE earnings growth over the past year (15%) exceeded the Electric Utilities industry 9.5%.


Return on Equity

High ROE: ALE's Return on Equity (4.5%) is considered low.


Discover strong past performing companies

Financial Health

How is ALLETE's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ALE's short term assets ($480.5M) do not cover its short term liabilities ($556.6M).

Long Term Liabilities: ALE's short term assets ($480.5M) do not cover its long term liabilities ($2.9B).


Debt to Equity History and Analysis

Debt Level: ALE's net debt to equity ratio (60%) is considered high.

Reducing Debt: ALE's debt to equity ratio has reduced from 76.6% to 62% over the past 5 years.

Debt Coverage: ALE's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: ALE's interest payments on its debt are not well covered by EBIT (2.5x coverage).


Balance Sheet


Discover healthy companies

Dividend

What is ALLETE current dividend yield, its reliability and sustainability?

Dividend Score

6/6

Dividend Score 6/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


4.50%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: ALE's dividend (4.5%) is higher than the bottom 25% of dividend payers in the US market (1.57%).

High Dividend: ALE's dividend (4.5%) is in the top 25% of dividend payers in the US market (4.24%)


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (72.9%), ALE's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: ALE is paying a dividend but the company has no free cash flows.


Discover strong dividend paying companies

Management

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

3.3yrs

Average management tenure


CEO

Bethany Owen (55 yo)

3.42yrs

Tenure

US$2,578,539

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 ($USD2.58M) is below average for companies of similar size in the US market ($USD6.88M).

Compensation vs Earnings: Bethany's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: ALE's management team is considered experienced (3.3 years average tenure).


Board Members

Experienced Board: ALE's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 8.3%.


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$3.263b
  • Shares outstanding: 56.51m
  • 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 Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.