Allete Inc (ALE) Stock Fundamental Analysis

NYSE:ALE • US0185223007

67.9 USD
-0.04 (-0.06%)
At close: Dec 12, 2025
67.99 USD
+0.09 (+0.13%)
After Hours: 12/12/2025, 8:13:42 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

Overall ALE gets a fundamental rating of 3 out of 10. We evaluated ALE against 46 industry peers in the Electric Utilities industry. ALE has a bad profitability rating. Also its financial health evaluation is rather negative. ALE is valued expensive and it does not seem to be growing. Finally ALE also has an excellent dividend rating.


Dividend Valuation Growth Profitability Health

3

1. Profitability

1.1 Basic Checks

  • In the past year ALE was profitable.
  • In the past year ALE had a positive cash flow from operations.
  • In the past 5 years ALE has always been profitable.
  • Each year in the past 5 years ALE had a positive operating cash flow.
ALE Yearly Net Income VS EBIT VS OCF VS FCFALE Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M 400M -400M

1.2 Ratios

  • Looking at the Return On Assets, with a value of 2.32%, ALE is doing worse than 79.17% of the companies in the same industry.
  • The Return On Equity of ALE (5.81%) is worse than 85.42% of its industry peers.
  • The Return On Invested Capital of ALE (1.88%) is worse than 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 RankSector 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%
ALE Yearly ROA, ROE, ROICALE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2 4 6 8

1.3 Margins

  • ALE has a worse Profit Margin (11.04%) than 66.67% of its industry peers.
  • In the last couple of years the Profit Margin of ALE has declined.
  • Looking at the Operating Margin, with a value of 9.24%, ALE is doing worse than 85.42% of the companies in the same industry.
  • ALE's Operating Margin has declined in the last couple of years.
  • Looking at the Gross Margin, with a value of 93.25%, ALE belongs to the top 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 RankSector 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%
ALE Yearly Profit, Operating, Gross MarginsALE Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

3

2. Health

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), ALE is destroying value.
  • The number of shares outstanding for ALE has been increased compared to 1 year ago.
  • The number of shares outstanding for ALE has been increased compared to 5 years ago.
  • ALE has a better debt/assets ratio than last year.
ALE Yearly Shares OutstandingALE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 10M 20M 30M 40M 50M
ALE Yearly Total Debt VS Total AssetsALE Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B

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's Debt to Equity ratio of 0.74 is fine compared to the rest of the industry. ALE outperforms 70.83% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.74
Debt/FCF N/A
Altman-Z 1.04
ROIC/WACC0.26
WACC7.24%
ALE Yearly LT Debt VS Equity VS FCFALE Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B

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.
  • Looking at the Current ratio, with a value of 1.17, ALE belongs to the top 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 has a Quick ratio of 0.73. This is comparable to the rest of the industry: ALE outperforms 56.25% of its industry peers.
Industry RankSector Rank
Current Ratio 1.17
Quick Ratio 0.73
ALE Yearly Current Assets VS Current LiabilitesALE Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

3

3. Growth

3.1 Past

  • The earnings per share for ALE have decreased by -8.65% in the last year.
  • Measured over the past years, ALE shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.89% on average per year.
  • ALE shows a decrease in Revenue. In the last year, the revenue decreased by -4.30%.
  • 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

  • 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

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
  • The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
ALE Yearly Revenue VS EstimatesALE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 500M 1B 1.5B 2B
ALE Yearly EPS VS EstimatesALE Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 1 2 3 4 5

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Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 23.82, which indicates a rather expensive current valuation of ALE.
  • Based on the Price/Earnings ratio, ALE is valued expensively inside the industry as 81.25% of the companies are valued cheaper.
  • When comparing the Price/Earnings ratio of ALE to the average of the S&P500 Index (26.98), we can say ALE is valued inline with the index average.
  • ALE is valuated correctly with a Price/Forward Earnings ratio of 16.85.
  • ALE's Price/Forward Earnings ratio is in line with the industry average.
  • When comparing the Price/Forward Earnings ratio of ALE to the average of the S&P500 Index (28.01), we can say ALE is valued slightly cheaper.
Industry RankSector Rank
PE 23.82
Fwd PE 16.85
ALE Price Earnings VS Forward Price EarningsALE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, ALE is valued a bit more expensive than the industry average as 77.08% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF N/A
EV/EBITDA 14.18
ALE Per share dataALE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 20 30 40

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)1.26
PEG (5Y)N/A
EPS Next 2Y14.02%
EPS Next 3Y15.1%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

8

5. Dividend

5.1 Amount

  • ALE has a Yearly Dividend Yield of 4.30%, which is a nice return.
  • Compared to an average industry Dividend Yield of 3.15, ALE pays a better dividend. On top of this ALE pays more dividend than 87.50% of the companies listed in the same industry.
  • Compared to an average S&P500 Dividend Yield of 1.81, ALE pays a better dividend.
Industry RankSector Rank
Dividend Yield 4.3%

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
ALE Yearly Dividends per shareALE Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.5 1 1.5 2 2.5

5.3 Sustainability

  • ALE pays out 101.27% of its income as dividend. 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%
ALE Yearly Income VS Free CF VS DividendALE Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M -200M -400M
ALE Dividend Payout.ALE Dividend Payout, showing the Payout Ratio.ALE Dividend Payout.PayoutRetained Earnings

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Find the best dividend stocksShow peers with best dividend

Allete Inc

NYSE:ALE (12/12/2025, 8:13:42 PM)

After market: 67.99 +0.09 (+0.13%)

67.9

-0.04 (-0.06%)

Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)10-31
Earnings (Next)02-11
Inst Owners76.72%
Inst Owner Change-77.59%
Ins Owners0.27%
Ins Owner Change-78.95%
Market Cap3.94B
Revenue(TTM)1.50B
Net Income(TTM)165.70M
Analysts80
Price Target70.67 (4.08%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector 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 RankSector 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 RankSector 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 RankSector 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.