ALLETE
Market Cap
US$3.4b
Last Updated
2021/01/21 23:55 UTC
Data Sources
Company Financials +
Executive Summary
ALLETE, Inc. operates as an energy company. More Details
Rewards
Risk Analysis
Snowflake Analysis
Undervalued 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 is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: ALE's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
-5.1%
ALE
0.5%
US Electric Utilities
1.4%
US Market
1 Year Return
-22.1%
ALE
-7.1%
US Electric Utilities
22.6%
US Market
Return vs Industry: ALE underperformed the US Electric Utilities industry which returned -5.4% over the past year.
Return vs Market: ALE underperformed the US Market which returned 22.8% over the past year.
Shareholder returns
| ALE | Industry | Market | |
|---|---|---|---|
| 7 Day | -5.1% | 0.5% | 1.4% |
| 30 Day | 10.3% | 3.7% | 4.9% |
| 90 Day | 17.1% | -0.3% | 14.6% |
| 1 Year | -18.9%-22.1% | -3.9%-7.1% | 25.4%22.6% |
| 3 Year | -1.4%-10.8% | 25.6%14.9% | 46.8%37.0% |
| 5 Year | 48.8%26.0% | 46.2%25.2% | 132.0%106.1% |
Long-Term 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. (NYSE:ALE) Popular Amongst Institutions?3 weeks ago | Simply Wall St
Did ALLETE, Inc. (NYSE:ALE) Insiders Sell Shares?1 month ago | Simply Wall St
What Type Of Returns Would ALLETE's(NYSE:ALE) Shareholders Have Earned If They Purchased Their SharesYear Ago?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 ($65.49) is trading below our estimate of fair value ($290.96)
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 (19.2x) compared to the US Electric Utilities industry average (20x).
PE vs Market: ALE is good value based on its PE Ratio (19.2x) compared to the US market (21.1x).
Price to Earnings Growth Ratio
PEG Ratio: ALE is poor value based on its PEG Ratio (2.4x)
Price to Book Ratio
PB vs Industry: ALE is good value based on its PB Ratio (1.5x) compared to the US Electric Utilities industry average (1.8x).
Next Steps
Future Growth
How is ALLETE forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
7.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ALE's forecast earnings growth (7.9% per year) is above the savings rate (2%).
Earnings vs Market: ALE's earnings (7.9% per year) are forecast to grow slower than the US market (21.6% per year).
High Growth Earnings: ALE's earnings are forecast to grow, but not significantly.
Revenue vs Market: ALE's revenue (5.7% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: ALE's revenue (5.7% 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 (8.6%).
Next Steps
Past Performance
How has ALLETE performed over the past 5 years?
5.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ALE has high quality earnings.
Growing Profit Margin: ALE's current net profit margins (15.3%) are higher than last year (14.2%).
Past Earnings Growth Analysis
Earnings Trend: ALE's earnings have grown by 5.2% 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 (-10.2%) over the past year, making it difficult to compare to the Electric Utilities industry average (6.1%).
Return on Equity
High ROE: ALE's Return on Equity (6.9%) is considered low.
Next Steps
Financial Health
How is ALLETE's financial position?
Financial Position Analysis
Short Term Liabilities: ALE's short term assets ($265.1M) do not cover its short term liabilities ($630.0M).
Long Term Liabilities: ALE's short term assets ($265.1M) do not cover its long term liabilities ($2.8B).
Debt to Equity History and Analysis
Debt Level: ALE's debt to equity ratio (82.3%) is considered high.
Reducing Debt: ALE's debt to equity ratio has reduced from 87.6% to 82.3% over the past 5 years.
Debt Coverage: ALE's debt is not well covered by operating cash flow (15.8%).
Interest Coverage: ALE's interest payments on its debt are not well covered by EBIT (2.8x coverage).
Balance Sheet
Next Steps
Dividend
What is ALLETE current dividend yield, its reliability and sustainability?
3.77%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: ALE's dividend (3.77%) is higher than the bottom 25% of dividend payers in the US market (1.37%).
High Dividend: ALE's dividend (3.77%) is low compared to the top 25% of dividend payers in the US market (3.86%).
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 (71.4%), 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 (64.7% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
4.0yrs
Average management tenure
CEO
Bethany Owen (54 yo)
0.92
Tenure
US$1,010,272
Compensation
Ms. Bethany M. Owen has been Chief Executive Officer of ALLETE, Inc. since February 3, 2020. Ms. Owen serves as a President at ALLETE, Inc. since January 31, 2019 and has been its Director since February 1...
CEO Compensation Analysis
Compensation vs Market: Bethany's total compensation ($USD1.01M) is below average for companies of similar size in the US market ($USD5.00M).
Compensation vs Earnings: Bethany's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 9.67yrs | US$4.71m | 0.10% $ 3.5m | |
| CEO, President & Director | 0.92yr | US$1.01m | 0.026% $ 895.9k | |
| Senior VP & CFO | 3.83yrs | US$1.64m | 0.025% $ 851.3k | |
| VP, Controller & Chief Accounting Officer | 4.08yrs | US$633.75k | 0.012% $ 410.5k | |
| VP & Chief Administrative Officer | 1.58yrs | US$595.15k | 0.0095% $ 324.7k | |
| Vice President of Investor Relations | no data | no data | no data | |
| VP, Chief Legal Officer & Corporate Secretary | 1.92yrs | no data | 0.0047% $ 159.3k | |
| President & GM of BNI Energy | 8yrs | no data | no data | |
| President of Allete Clean Energy | 4.5yrs | no data | no data | |
| VP & Corporate Treasurer | 5yrs | no data | 0.0095% $ 324.0k | |
| President of Superior Water | no data | no data | no data | |
| Vice President of Customer Experience- Minnesota Power | no data | no data | no data |
4.0yrs
Average Tenure
55yo
Average Age
Experienced Management: ALE's management team is considered experienced (4 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Executive Chairman | 9.67yrs | US$4.71m | 0.10% $ 3.5m | |
| CEO, President & Director | 0.92yr | US$1.01m | 0.026% $ 895.9k | |
| Independent Lead Director | 6.67yrs | US$185.95k | 0.047% $ 1.6m | |
| Independent Director | 11.5yrs | US$164.95k | 0.035% $ 1.2m | |
| Independent Director | 16.25yrs | US$165.95k | 0.024% $ 802.6k | |
| Independent Director | 3.42yrs | US$160.95k | 0.0013% $ 43.6k | |
| Director | 0.50yr | no data | 0.0082% $ 280.1k | |
| Independent Director | 3yrs | US$153.45k | 0.0013% $ 44.9k | |
| Independent Director | 13.5yrs | US$162.45k | 0.024% $ 829.5k | |
| Independent Director | 14.67yrs | US$155.95k | 0.019% $ 634.1k | |
| Independent Director | 8.25yrs | US$154.95k | 0.0051% $ 172.6k |
8.3yrs
Average Tenure
63yo
Average Age
Experienced Board: ALE's board of directors are considered experienced (8.3 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 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$3.404b
- Shares outstanding: 51.97m
- Website: https://www.allete.com
Number of Employees
Location
- ALLETE, Inc.
- 30 West Superior Street
- Duluth
- Minnesota
- 55802-2093
- 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 Regulated Operations, ALLETE Clean Energy, and Corporate and Other segments. It generates electricity from coal-fired, hydroelectric...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/21 23:55 |
| End of Day Share Price | 2021/01/21 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.