ALLETE
Market Cap
US$4.3b
Last Updated
2020/01/20 23:31 UTC
Data Sources
Company Financials +
Executive Summary
ALLETE, Inc. operates as an energy company.
Rewards
Risk Analysis
Snowflake Analysis
Solid track record established dividend payer.
Similar Companies
Share Price & News
How has ALLETE's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ALE has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.6%
ALE
4.0%
US Electric Utilities
1.7%
US Market
1 Year Return
11.0%
ALE
27.2%
US Electric Utilities
23.6%
US Market
Return vs Industry: ALE underperformed the US Electric Utilities industry which returned 24.9% over the past year.
Return vs Market: ALE underperformed the US Market which returned 24.7% over the past year.
Shareholder returns
| ALE | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.6% | 4.0% | 1.7% |
| 30 Day | 2.1% | 3.6% | 3.5% |
| 90 Day | -4.0% | 5.5% | 11.7% |
| 1 Year | 14.3%11.0% | 31.5%27.2% | 26.2%23.6% |
| 3 Year | 46.9%34.4% | 52.7%37.7% | 53.2%43.3% |
| 5 Year | 67.5%42.2% | 62.1%34.8% | 75.5%56.1% |
Price Volatility Vs. Market
How volatile is ALLETE's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
Is ALLETE, Inc.'s (NYSE:ALE) 8.9% ROE Better Than Average?2 weeks ago | Simply Wall St
Key Things To Watch Out For If You Are After ALLETE, Inc.'s (NYSE:ALE) 2.9% Dividend4 weeks ago | Simply Wall St
ALLETE (NYSE:ALE) Is Growing Earnings But Are They A Good Guide?Valuation
Is ALLETE undervalued compared to its fair value and its price relative to the market?
>50%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ALE ($81.23) is trading below our estimate of fair value ($655.36)
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 (21.2x) compared to the Electric Utilities industry average (25x).
PE vs Market: ALE is poor value based on its PE Ratio (21.2x) compared to the US market (18.9x).
Price to Earnings Growth Ratio
PEG Ratio: ALE is poor value based on its PEG Ratio (3.7x)
Price to Book Ratio
PB vs Industry: ALE is good value based on its PB Ratio (1.9x) compared to the US Electric Utilities industry average (2.3x).
Next Steps
Future Growth
How is ALLETE forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
5.8%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALE's forecast earnings growth (5.8% per year) is above the savings rate (1.7%).
Earnings vs Market: ALE's earnings (5.8% per year) are forecast to grow slower than the US market (14.3% per year).
High Growth Earnings: ALE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALE's revenue (3.1% per year) is forecast to grow slower than the US market (7.5% per year).
High Growth Revenue: ALE's revenue (3.1% 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 (8.9%).
Next Steps
Past Performance
How has ALLETE performed over the past 5 years?
8.3%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALE has high quality earnings.
Growing Profit Margin: ALE's current net profit margins (14.2%) are higher than last year (11.1%).
Past Earnings Growth Analysis
Earnings Trend: ALE's earnings have grown by 8.3% per year over the past 5 years.
Accelerating Growth: ALE's earnings growth over the past year (27.6%) exceeds its 5-year average (8.3% per year).
Earnings vs Industry: ALE earnings growth over the past year (27.6%) exceeded the Electric Utilities industry 2%.
Return on Equity
High ROE: ALE's Return on Equity (8.9%) is considered low.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is ALLETE's financial position?
Financial Position Analysis
Short Term Liabilities: ALE's short term assets ($296.1M) do not cover its short term liabilities ($483.3M).
Long Term Liabilities: ALE's short term assets ($296.1M) do not cover its long term liabilities ($2.6B).
Debt to Equity History and Analysis
Debt Level: ALE's debt to equity ratio (73.3%) is considered high.
Reducing Debt: ALE's debt to equity ratio has reduced from 89.9% to 73.3% over the past 5 years.
Debt Coverage: ALE's debt is not well covered by operating cash flow (19.3%).
Interest Coverage: ALE's interest payments on its debt are well covered by EBIT (3.1x coverage).
Balance Sheet
Inventory Level: ALE has a high level of physical assets or inventory.
Debt Coverage by Assets: ALE's debt is not covered by short term assets (assets are 0.2x debt).
Next Steps
Dividend
What is ALLETE's current dividend yield, its reliability and sustainability?
2.81%
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: ALE's dividend (2.89%) is higher than the bottom 25% of dividend payers in the US market (1.4%).
High Dividend: ALE's dividend (2.89%) is low compared to the top 25% of dividend payers in the US market (3.66%).
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: With its reasonable payout ratio (60.7%), ALE's dividend 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 (60.3% payout ratio).
Next Steps
Management
What is the CEO of ALLETE's salary, the management and board of directors tenure and is there insider trading?
3.1yrs
Average management tenure
CEO
Al Hodnik (59yo)
9.7yrs
Tenure
US$3,493,458
Compensation
Mr. Alan R. Hodnik, also known as Al, has been the Chairman of the Board of ALLETE, Inc. since May 10, 2011, serves as the Chief Executive Officer since May 1, 2010 and served as its President from May 1, ...
CEO Compensation Analysis
Compensation vs Market: Al's total compensation ($USD3.49M) is about average for companies of similar size in the US market ($USD4.95M).
Compensation vs Earnings: Al's compensation has been consistent with company performance over the past year.
Management Age and Tenure
3.1yrs
Average Tenure
55yo
Average Age
Experienced Management: ALE's management team is considered experienced (3.1 years average tenure).
Board Age and Tenure
8.7yrs
Average Tenure
62.5yo
Average Age
Experienced Board: ALE's board of directors are considered experienced (8.7 years average tenure).
Insider Trading
Insider Buying: ALE insiders have only sold shares in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 1,200 |
| Max Price | US$79.45 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 735 |
| Max Price | US$82.03 |
| Entity | Individual |
| Role | Chief Financial Officer Senior VP & CFO |
| Shares | 2,885 |
| Max Price | US$82.45 |
| Entity | Individual |
| Role | Member of the Board of Directors Independent Director |
| Shares | 2,000 |
| Max Price | US$82.53 |
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Management Team
Pat Cutshall (54yo)
VP & Corporate Treasurer
- Tenure: 4yrs
Bob Adams (56yo)
Senior VP & CFO
- Tenure: 2.8yrs
- Compensation: US$1.21m
Wade Boeshans
President & GM of BNI Energy
- Tenure: 7yrs
Al Rudeck
President of Allete Clean Energy
- Tenure: 3.5yrs
Steve Morris (57yo)
VP, Controller & Chief Accounting Officer
- Tenure: 3.1yrs
Al Hodnik (59yo)
Chairman & CEO
- Tenure: 9.7yrs
- Compensation: US$3.49m
Bethany Owen (53yo)
President & Director
- Compensation: US$851.94k
Vince Meyer
Vice President of Investor Relations
Nicole Johnson
VP & Chief Administrative Officer
- Tenure: 1yrs
Margaret Thickens (52yo)
Vice President
- Tenure: 0.9yrs
Board Members
Heidi Jimmerson (62yo)
Lead Director
- Tenure: 5.7yrs
- Compensation: US$164.00k
Kitty Dindo (70yo)
Independent Director
- Tenure: 10.5yrs
- Compensation: US$158.00k
Madeleine Ludlow (64yo)
Independent Director
- Tenure: 15.3yrs
- Compensation: US$157.33k
Bob Powers (64yo)
Director
- Tenure: 2.4yrs
- Compensation: US$149.63k
Susan Nestegard (59yo)
Director
- Tenure: 2yrs
- Compensation: US$179.08k
Douglas Neve (63yo)
Independent Director
- Tenure: 12.5yrs
- Compensation: US$155.50k
Jim Hoolihan (66yo)
Independent Director
- Tenure: 13.7yrs
- Compensation: US$153.17k
Al Hodnik (59yo)
Chairman & CEO
- Tenure: 9.7yrs
- Compensation: US$3.49m
Bethany Owen (53yo)
President & Director
- Compensation: US$851.94k
George Goldfarb (60yo)
Independent Director
- Tenure: 7.3yrs
- Compensation: US$148.00k
Company Information
ALLETE, Inc.'s company bio, 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$4.318b
- Shares outstanding: 51.67m
- Website: https://www.allete.com
Number of Employees
Location
- ALLETE, Inc.
- 30 West Superior Street
- Duluth
- Minnesota
- 55802
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| ALE | NYSE (New York Stock Exchange) | Yes | Common Stock | US | USD | Jan 1968 |
| AEBA | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jan 1968 |
Biography
ALLETE, Inc. operates as an energy company. The company operates through three segments: Regulated Operations, ALLETE Clean Energy, and U.S. Water Services. It generates electricity from coal-fired, wind, hydroelectric, natural gas-fired, biomass co-fired, solar, and other sources. The company provides regulated utility electric, natural gas, and water services in northwestern Wisconsin to approximately 15,000 electric customers, 13,000 natural gas customers, and 10,000 water customers, as well as regulated utility electric services in northeastern Minnesota to approximately 145,000 retail customers and 16 non-affiliated municipal customers. It also owns and maintains electric transmission assets in Wisconsin, Michigan, Minnesota, and Illinois. In addition, the company focuses on developing, acquiring, and operating clean and renewable energy projects; and owns and operates approximately 545 megawatt of wind energy generation. Further, it offers integrated water management for industry by combining chemical, equipment, engineering, and service for customized solutions to reduce water and energy usage. Additionally, the company is involved in the coal mining operations in North Dakota; and real estate investment activities in Florida. The company owns and operates 159 substations with a total capacity of 8,531 megavolt amperes. It serves taconite mining, iron concentrate, paper, pulp and wood products, pipeline, and other industries. The company was founded in 1906 and is headquartered in Duluth, Minnesota.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/01/20 23:31 |
| End of Day Share Price | 2020/01/17 00:00 |
| Earnings | 2019/09/30 |
| Annual Earnings | 2018/12/31 |
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.