ALLETE INC (ALE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALE - US0185223007 - Common Stock
67.615 USD
-0.02 (-0.02%)
We assign a fundamental rating of 3 out of 10 to ALE. ALE was compared to 48 industry peers in the Electric Utilities industry. Both the profitability and financial health of ALE have multiple concerns. ALE does not seem to be growing, but still is valued expensively. ALE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
ALE had positive earnings in the past year.
ALE had a positive operating cash flow in the past year.
In the past 5 years ALE has always been profitable.
Each year in the past 5 years ALE had a positive operating cash flow.
1.2 Ratios
The Return On Assets of ALE (2.32%) is worse than 79.17% of its industry peers.
ALE has a worse Return On Equity (5.81%) than 85.42% of its industry peers.
With a Return On Invested Capital value of 1.88%, ALE is not doing good in the industry: 89.58% of the companies in the same industry are doing better.
The Average Return On Invested Capital over the past 3 years for ALE is below the industry average of 4.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 5.81% | ||
| ROIC | 1.88% |
ROA(3y)3.04%
ROA(5y)2.9%
ROE(3y)7.37%
ROE(5y)7.27%
ROIC(3y)2.33%
ROIC(5y)2.36%
1.3 Margins
ALE's Profit Margin of 11.04% is on the low side compared to the rest of the industry. ALE is outperformed by 66.67% of its industry peers.
In the last couple of years the Profit Margin of ALE has declined.
ALE has a worse Operating Margin (9.24%) than 87.50% of its industry peers.
In the last couple of years the Operating Margin of ALE has declined.
With an excellent Gross Margin value of 93.25%, ALE belongs to the best of the industry, outperforming 97.92% of the companies in the same industry.
In the last couple of years the Gross Margin of ALE has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 9.24% | ||
| PM (TTM) | 11.04% | ||
| GM | 93.25% |
OM growth 3Y-0.62%
OM growth 5Y-6.31%
PM growth 3Y-0.57%
PM growth 5Y-4.77%
GM growth 3Y-1.28%
GM growth 5Y-0.42%
2. Health
2.1 Basic Checks
ALE has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, ALE has more shares outstanding
Compared to 5 years ago, ALE has more shares outstanding
ALE has a better debt/assets ratio than last year.
2.2 Solvency
ALE has an Altman-Z score of 1.04. This is a bad value and indicates that ALE is not financially healthy and even has some risk of bankruptcy.
ALE has a Altman-Z score of 1.04. This is in the better half of the industry: ALE outperforms 66.67% of its industry peers.
ALE has a Debt/Equity ratio of 0.74. This is a neutral value indicating ALE is somewhat dependend on debt financing.
ALE has a Debt to Equity ratio of 0.74. This is in the better half of the industry: ALE outperforms 70.83% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.04 |
ROIC/WACC0.26
WACC7.14%
2.3 Liquidity
ALE has a Current Ratio of 1.17. This is a normal value and indicates that ALE is financially healthy and should not expect problems in meeting its short term obligations.
With an excellent Current ratio value of 1.17, ALE belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
ALE has a Quick Ratio of 1.17. This is a bad value and indicates that ALE is not financially healthy enough and could expect problems in meeting its short term obligations.
ALE's Quick ratio of 0.73 is in line compared to the rest of the industry. ALE outperforms 56.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.73 |
3. Growth
3.1 Past
The earnings per share for ALE have decreased by -8.65% in the last year.
The Earnings Per Share has been decreasing by -2.89% on average over the past years.
ALE shows a decrease in Revenue. In the last year, the revenue decreased by -4.30%.
ALE shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.28% yearly.
EPS 1Y (TTM)-8.65%
EPS 3Y-1.36%
EPS 5Y-2.89%
EPS Q2Q%-41.03%
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y2.53%
Revenue growth 5Y4.28%
Sales Q2Q%-7.91%
3.2 Future
The Earnings Per Share is expected to grow by 11.96% on average over the next years. This is quite good.
The Revenue is expected to grow by 5.14% on average over the next years.
EPS Next Y18.92%
EPS Next 2Y14.02%
EPS Next 3Y15.1%
EPS Next 5Y11.96%
Revenue Next Year-1.51%
Revenue Next 2Y2%
Revenue Next 3Y3.82%
Revenue Next 5Y5.14%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 23.72, ALE is valued on the expensive side.
Based on the Price/Earnings ratio, ALE is valued more expensive than 83.33% of the companies in the same industry.
ALE is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
ALE is valuated correctly with a Price/Forward Earnings ratio of 16.78.
The rest of the industry has a similar Price/Forward Earnings ratio as ALE.
ALE's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 36.21.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 16.78 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, ALE is valued a bit more expensive than the industry average as 75.00% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.15 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as ALE's earnings are expected to grow with 15.10% in the coming years.
PEG (NY)1.25
PEG (5Y)N/A
EPS Next 2Y14.02%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
ALE has a Yearly Dividend Yield of 4.32%, which is a nice return.
Compared to an average industry Dividend Yield of 3.33, ALE pays a better dividend. On top of this ALE pays more dividend than 87.50% of the companies listed in the same industry.
ALE's Dividend Yield is rather good when compared to the S&P500 average which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
5.2 History
The dividend of ALE has a limited annual growth rate of 3.68%.
ALE has paid a dividend for at least 10 years, which is a reliable track record.
ALE has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)3.68%
Div Incr Years14
Div Non Decr Years19
5.3 Sustainability
101.27% of the earnings are spent on dividend by ALE. This is not a sustainable payout ratio.
ALE's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP101.27%
EPS Next 2Y14.02%
EPS Next 3Y15.1%
NYSE:ALE (12/2/2025, 1:26:05 PM)
67.615
-0.02 (-0.02%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.96%
Inst Owner Change-3.71%
Ins Owners0.27%
Ins Owner Change2.7%
Market Cap3.93B
Revenue(TTM)1.50B
Net Income(TTM)165.70M
Analysts80
Price Target70.67 (4.52%)
Short Float %1.45%
Short Ratio1.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.32% |
Yearly Dividend2.82
Dividend Growth(5Y)3.68%
DP101.27%
Div Incr Years14
Div Non Decr Years19
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-44.8%
Min EPS beat(2)-52.56%
Max EPS beat(2)-37.05%
EPS beat(4)0
Avg EPS beat(4)-30%
Min EPS beat(4)-52.56%
Max EPS beat(4)-7.65%
EPS beat(8)0
Avg EPS beat(8)-24.56%
EPS beat(12)2
Avg EPS beat(12)-8.06%
EPS beat(16)4
Avg EPS beat(16)-5.82%
Revenue beat(2)0
Avg Revenue beat(2)-15.37%
Min Revenue beat(2)-16.12%
Max Revenue beat(2)-14.63%
Revenue beat(4)0
Avg Revenue beat(4)-14.17%
Min Revenue beat(4)-16.12%
Max Revenue beat(4)-12.76%
Revenue beat(8)1
Avg Revenue beat(8)-14.57%
Revenue beat(12)4
Avg Revenue beat(12)-4.84%
Revenue beat(16)8
Avg Revenue beat(16)-0.83%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.72 | ||
| Fwd PE | 16.78 | ||
| P/S | 2.62 | ||
| P/FCF | N/A | ||
| P/OCF | 11.46 | ||
| P/B | 1.38 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 14.15 |
EPS(TTM)2.85
EY4.22%
EPS(NY)4.03
Fwd EY5.96%
FCF(TTM)-5.54
FCFYN/A
OCF(TTM)5.9
OCFY8.73%
SpS25.82
BVpS49.07
TBVpS46.4
PEG (NY)1.25
PEG (5Y)N/A
Graham Number56.1
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.32% | ||
| ROE | 5.81% | ||
| ROCE | 2.06% | ||
| ROIC | 1.88% | ||
| ROICexc | 1.9% | ||
| ROICexgc | 1.95% | ||
| OM | 9.24% | ||
| PM (TTM) | 11.04% | ||
| GM | 93.25% | ||
| FCFM | N/A |
ROA(3y)3.04%
ROA(5y)2.9%
ROE(3y)7.37%
ROE(5y)7.27%
ROIC(3y)2.33%
ROIC(5y)2.36%
ROICexc(3y)2.34%
ROICexc(5y)2.38%
ROICexgc(3y)2.4%
ROICexgc(5y)2.41%
ROCE(3y)2.55%
ROCE(5y)2.58%
ROICexgc growth 3Y0.06%
ROICexgc growth 5Y-6.66%
ROICexc growth 3Y-0.77%
ROICexc growth 5Y-7.11%
OM growth 3Y-0.62%
OM growth 5Y-6.31%
PM growth 3Y-0.57%
PM growth 5Y-4.77%
GM growth 3Y-1.28%
GM growth 5Y-0.42%
F-Score4
Asset Turnover0.21
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.74 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 4.88 | ||
| Cap/Depr | 228.02% | ||
| Cap/Sales | 44.32% | ||
| Interest Coverage | 1.74 | ||
| Cash Conversion | 79.67% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 0.73 | ||
| Altman-Z | 1.04 |
F-Score4
WACC7.14%
ROIC/WACC0.26
Cap/Depr(3y)106.82%
Cap/Depr(5y)166.23%
Cap/Sales(3y)17.22%
Cap/Sales(5y)29.28%
Profit Quality(3y)61.51%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-8.65%
EPS 3Y-1.36%
EPS 5Y-2.89%
EPS Q2Q%-41.03%
EPS Next Y18.92%
EPS Next 2Y14.02%
EPS Next 3Y15.1%
EPS Next 5Y11.96%
Revenue 1Y (TTM)-4.3%
Revenue growth 3Y2.53%
Revenue growth 5Y4.28%
Sales Q2Q%-7.91%
Revenue Next Year-1.51%
Revenue Next 2Y2%
Revenue Next 3Y3.82%
Revenue Next 5Y5.14%
EBIT growth 1Y-15.99%
EBIT growth 3Y1.9%
EBIT growth 5Y-2.29%
EBIT Next Year158.47%
EBIT Next 3Y53.28%
EBIT Next 5Y37.33%
FCF growth 1Y-179.04%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-48.07%
OCF growth 3Y20.16%
OCF growth 5Y12.87%
ALLETE INC / ALE FAQ
What is the fundamental rating for ALE stock?
ChartMill assigns a fundamental rating of 3 / 10 to ALE.
What is the valuation status for ALE stock?
ChartMill assigns a valuation rating of 2 / 10 to ALLETE INC (ALE). This can be considered as Overvalued.
What is the profitability of ALE stock?
ALLETE INC (ALE) has a profitability rating of 3 / 10.
What are the PE and PB ratios of ALLETE INC (ALE) stock?
The Price/Earnings (PE) ratio for ALLETE INC (ALE) is 23.72 and the Price/Book (PB) ratio is 1.38.
How sustainable is the dividend of ALLETE INC (ALE) stock?
The dividend rating of ALLETE INC (ALE) is 8 / 10 and the dividend payout ratio is 101.27%.