Allete Inc (ALE) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:ALE - US0185223007 - Common Stock
67.9 USD
-0.04 (-0.06%)
67.99 USD
+0.09 (+0.13%)
We assign a fundamental rating of 3 out of 10 to ALE. ALE was compared to 46 industry peers in the Electric Utilities industry. ALE may be in some trouble as it scores bad on both profitability and health. ALE is valued expensive and it does not seem to be growing. Finally ALE also has an excellent dividend rating.
1. Profitability
1.1 Basic Checks
In the past year ALE was profitable.
ALE had a positive operating cash flow in the past year.
ALE had positive earnings in each of the past 5 years.
In the past 5 years ALE always reported a positive cash flow from operatings.
1.2 Ratios
With a Return On Assets value of 2.32%, ALE is not doing good in the industry: 79.17% of the companies in the same industry are doing better.
With a Return On Equity value of 5.81%, ALE is not doing good in the industry: 85.42% of the companies in the same industry are doing better.
ALE has a Return On Invested Capital of 1.88%. This is amonst the worse of the industry: ALE underperforms 89.58% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for ALE is below the industry average of 4.58%.
| 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 has a Profit Margin of 11.04%. This is in the lower half of the industry: ALE underperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of ALE has declined.
The Operating Margin of ALE (9.24%) is worse than 85.42% of its industry peers.
ALE's Operating Margin has declined in the last couple of years.
The Gross Margin of ALE (93.25%) is better than 97.92% of its industry peers.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so ALE is destroying value.
ALE has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, ALE has more shares outstanding
Compared to 1 year ago, ALE has an improved debt to assets ratio.
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.
Looking at the Altman-Z score, with a value of 1.04, ALE is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
ALE has a Debt/Equity ratio of 0.74. This is a neutral value indicating ALE is somewhat dependend on debt financing.
The Debt to Equity ratio of ALE (0.74) is better than 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
WACC7.24%
2.3 Liquidity
A Current Ratio of 1.17 indicates that ALE should not have too much problems paying its short term obligations.
With an excellent Current ratio value of 1.17, ALE belongs to the best of the industry, outperforming 83.33% 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.
ALE shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.89% yearly.
Looking at the last year, ALE shows a decrease in Revenue. The Revenue has decreased by -4.30% in the last year.
The Revenue has been growing slightly by 4.28% on average over the past years.
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
Based on estimates for the next years, ALE will show a quite strong growth in Earnings Per Share. The EPS will grow by 11.96% on average per year.
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
The Price/Earnings ratio is 23.82, which indicates a rather expensive current valuation of ALE.
Compared to the rest of the industry, the Price/Earnings ratio of ALE indicates a rather expensive valuation: ALE more expensive than 81.25% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 26.60. ALE is around the same levels.
ALE is valuated correctly with a Price/Forward Earnings ratio of 16.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of ALE is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, ALE is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.82 | ||
| Fwd PE | 16.85 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of ALE indicates a slightly more expensive valuation: ALE is more expensive than 77.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 14.18 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
ALE's earnings are expected to grow with 15.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y14.02%
EPS Next 3Y15.1%
5. Dividend
5.1 Amount
ALE has a Yearly Dividend Yield of 4.30%, which is a nice return.
ALE's Dividend Yield is rather good when compared to the industry average which is at 3.05. ALE pays more dividend than 87.50% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 1.94, ALE pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
5.2 History
The dividend of ALE has a limited annual growth rate of 3.68%.
ALE has been paying a dividend for at least 10 years, so it has 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.
The dividend of ALE is growing, but earnings are growing more, so the dividend growth is sustainable.
DP101.27%
EPS Next 2Y14.02%
EPS Next 3Y15.1%
67.9
-0.04 (-0.06%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners76.72%
Inst Owner Change0%
Ins Owners0.27%
Ins Owner Change-72.36%
Market Cap3.94B
Revenue(TTM)1.50B
Net Income(TTM)165.70M
Analysts80
Price Target70.67 (4.08%)
Short Float %0.03%
Short Ratio0.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 4.3% |
Yearly Dividend2.82
Dividend Growth(5Y)3.68%
DP101.27%
Div Incr Years14
Div Non Decr Years19
Ex-DateN/A
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 | 23.82 | ||
| Fwd PE | 16.85 | ||
| P/S | 2.63 | ||
| P/FCF | N/A | ||
| P/OCF | 11.51 | ||
| P/B | 1.38 | ||
| P/tB | 1.46 | ||
| EV/EBITDA | 14.18 |
EPS(TTM)2.85
EY4.2%
EPS(NY)4.03
Fwd EY5.94%
FCF(TTM)-5.54
FCFYN/A
OCF(TTM)5.9
OCFY8.69%
SpS25.82
BVpS49.07
TBVpS46.4
PEG (NY)1.26
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
WACC7.24%
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.
Can you provide the valuation status for Allete Inc?
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 23.82 and the Price/Book (PB) ratio is 1.38.
What is the earnings growth outlook for Allete Inc?
The Earnings per Share (EPS) of Allete Inc (ALE) is expected to grow by 18.92% in the next year.