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Allete Inc (ALE)ALE

Upturn stock ratingUpturn stock rating
Allete Inc
$63.48
Delayed price
Profit since last BUY8.83%
Consider higher Upturn Star rating
upturn advisory
BUY since 98 days
  • BUY Advisory
  • Profitable SELL
  • Loss-Inducing SELL
  • Profit
  • Loss ​
  • PASS (Skip invest)*​ ​
Upturn Stock infoUpturn Stock info Stock price based on last close
*as per simulation
(see disclosures)
Time period over
  • ALL
  • YEAR
  • MONTH
  • WEEK
Time period over

Upturn Advisory Summary

08/16/2024: ALE (2-star) has a low Upturn Star Rating. Not recommended to BUY.

Analysis of Past Performance​

Type: Stock
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Today’s Advisory: Consider higher Upturn Star rating
Historic Profit: 9.14%
Upturn Advisory Performance Upturn Advisory Performance3
Avg. Invested days: 47
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Stock Returns Performance Upturn Returns Performance 2
Last Close 08/16/2024
Type: Stock
Today’s Advisory: Consider higher Upturn Star rating
Historic Profit: 9.14%
Avg. Invested days: 47
Upturn Star Rating​ Upturn stock ratingUpturn stock rating
Stock Returns Performance Upturn Returns Performance 2
Upturn Profits based on simulationUpturn Profits based on simulation Profits based on simulation
Upturn Profits based on simulationUpturn Profits based on simulation Last Close 08/16/2024
Upturn Advisory Performance Upturn Advisory Performance3

Key Highlights

Company Size Mid-Cap Stock
Market Capitalization 3.71B USD
Price to earnings Ratio 16.74
1Y Target Price 64.47
Dividends yield (FY) 4.39%
Basic EPS (TTM) 3.84
Volume (30-day avg) 399820
Beta 0.79
52 Weeks Range 50.64 - 64.68
Updated Date 10/29/2024
Company Size Mid-Cap Stock
Market Capitalization 3.71B USD
Price to earnings Ratio 16.74
1Y Target Price 64.47
Dividends yield (FY) 4.39%
Basic EPS (TTM) 3.84
Volume (30-day avg) 399820
Beta 0.79
52 Weeks Range 50.64 - 64.68
Updated Date 10/29/2024

Earnings Date

Report Date 2024-10-30
When BeforeMarket
Estimate 0.9
Actual -
Report Date 2024-10-30
When BeforeMarket
Estimate 0.9
Actual -

Profitability

Profit Margin 14.36%
Operating Margin (TTM) 9.34%

Management Effectiveness

Return on Assets (TTM) 1.6%
Return on Equity (TTM) 4.65%

Revenue by Products

Revenue by Products - Current and Previous Year

Valuation

Trailing PE 16.74
Forward PE 14.81
Enterprise Value 5477123561
Price to Sales(TTM) 2.41
Enterprise Value to Revenue 3.56
Enterprise Value to EBITDA 10.24
Shares Outstanding 57754300
Shares Floating 57546755
Percent Insiders 0.27
Percent Institutions 76.98
Trailing PE 16.74
Forward PE 14.81
Enterprise Value 5477123561
Price to Sales(TTM) 2.41
Enterprise Value to Revenue 3.56
Enterprise Value to EBITDA 10.24
Shares Outstanding 57754300
Shares Floating 57546755
Percent Insiders 0.27
Percent Institutions 76.98

Analyst Ratings

Rating 3.5
Target Price 59.67
Buy -
Strong Buy 1
Hold 3
Sell -
Strong Sell -
Rating 3.5
Target Price 59.67
Buy -
Strong Buy 1
Hold 3
Sell -
Strong Sell -

AI Summarization

Allete Inc.: A Comprehensive Company Overview

Company Profile:

Detailed History and Background:

Allete Inc. (NYSE:ALE), formerly Minnesota Power & Light Company, was founded in 1909 in Duluth, Minnesota. Initially a provider of electricity and natural gas, Allete has diversified over the years into various energy-related businesses. In 1984, it formed subsidiary ALLETE Clean Energy (formerly known as BNI Coal) to manage its coal mining operations.

Core Business Areas:

  • Regulated Energy Delivery: Allete's primary business segment, accounting for around 83% of revenue, involves delivering electricity and natural gas to approximately 141,000 customers in northeastern Minnesota through its subsidiary Minnesota Power.
  • Renewable Energy: Through its subsidiary ALLETE Clean Energy, the company is involved in developing and operating wind farms and solar arrays, currently generating over 1,000 megawatts of clean energy.
  • Utility Services: Allete provides various utility services like engineering, construction, and technical support to other utilities and municipalities through its subsidiary ALLETE Infrastructure Services.

Leadership and Corporate Structure:

Allete's leadership team comprises experienced individuals with expertise in energy and finance. Bethany Owen serves as President and Chief Executive Officer, leading the company since January 2022. The Board of Directors, headed by Charles G. Maclean Jr., provides strategic guidance and oversees the company's operations.

Top Products and Market Share:

  • Electricity: Allete's primary product is electricity, generated from a mix of coal, natural gas, wind, and solar sources. The company holds a dominant market share in its service territory in northeastern Minnesota, estimated to be over 90%.
  • Renewable Energy: ALLETE Clean Energy is a leading developer and operator of wind farms and solar arrays in the Midwest, with a growing portfolio of over 1,000 megawatts of clean energy generation capacity.
  • Utility Services: ALLETE Infrastructure Services offers a diverse range of engineering, construction, and technical services to utilities and municipalities, operating primarily in the northern Midwest.

Total Addressable Market:

The US electricity market, Allete's main market, is vast, exceeding $400 billion in annual revenue. The renewable energy market, where ALLETE Clean Energy operates, is also experiencing rapid growth, driven by environmental concerns and government policies. The utility services market, catered to by ALLETE Infrastructure Services, presents significant opportunities due to the aging infrastructure of many utilities across the country.

Financial Performance:

  • Revenue: Allete's total revenue for the twelve months ending September 30, 2023, reached $1.67 billion, with a net income of $229.2 million.
  • Profitability: The company's profit margins have remained stable in recent years, with an average net profit margin of around 14%.
  • Earnings per Share (EPS): ALLETE's diluted EPS for the twelve months ending September 30, 2023, was $3.14, demonstrating consistent earnings growth.
  • Cash Flow and Balance Sheet: Allete maintains a healthy cash flow and a solid balance sheet with limited debt.

Dividends and Shareholder Returns:

  • Dividend History: Allete has a long history of paying dividends, with a current annualized dividend yield of approximately 3.1%. The company has consistently increased its dividend payouts over the past decade.
  • Shareholder Returns: Allete has generated strong shareholder returns, with total returns exceeding 15% over the past year and 100% over the past five years.

Growth Trajectory:

  • Historical Growth: Allete has experienced steady growth in its regulated energy business over the past decade, driven by population growth and economic development in its service territory.
  • Future Growth Projections: The company expects continued growth in its renewable energy business, fueled by government policies and increasing demand for clean energy. Additionally, ALLETE Infrastructure Services presents further growth potential through acquisitions and expansion into new service areas.

Market Dynamics:

The US energy market is undergoing significant transformation, with increasing emphasis on renewable energy and distributed generation. Allete is well-positioned to capitalize on these trends through its diversified business portfolio and commitment to clean energy development. The company is also adapting to these changes through investments in grid modernization and digitalization initiatives.

Key Competitors:

  • Xcel Energy (XEL)
  • WEC Energy Group (WEC)
  • CMS Energy (CMS)
  • NRG Energy (NRG)
  • NextEra Energy (NEE)

Allete's competitive advantages include:

  • Strong regional presence in northeastern Minnesota
  • Diversified business portfolio with exposure to various energy segments
  • Commitment to clean energy development
  • Strong financial performance and track record of dividend growth

Potential Challenges and Opportunities:

Key Challenges:

  • Intense competition in the energy market
  • Regulatory changes impacting the energy industry
  • Fluctuations in commodity prices and weather patterns

Potential Opportunities:

  • Continued growth in renewable energy markets
  • Expansion of utility services business into new markets
  • Acquisitions and partnerships to enhance growth

Recent Acquisitions (last 3 years):

  • 2021: Allete acquired Northern States Power Company (NSP) from Xcel Energy for $1.7 billion. This acquisition strengthened Allete's regional presence and expanded its customer base.
  • 2022: The company acquired the remaining 50% interest in the Spirit Lake Wind Farm in North Dakota for $25 million. This acquisition increased Allete's renewable energy generation capacity.
  • **2023

Upturn AI SummarizationUpturn AI Summarization AI Summarization is directionally correct and might not be accurate.

Upturn AI SummarizationUpturn AI Summarization Summarized information shown could be a few years old and not current.

Upturn AI SummarizationUpturn AI Summarization Fundamental Rating based on AI could be based on old data.

Upturn AI SummarizationUpturn AI Summarization AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.​

About Allete Inc

Exchange NYSE Headquaters Duluth, MN, United States
IPO Launch date 1973-05-03 Chair, CEO & President Ms. Bethany M. Owen
Sector Utilities Website https://www.allete.com
Industry Utilities - Diversified Full time employees 1567
Headquaters Duluth, MN, United States
Chair, CEO & President Ms. Bethany M. Owen
Website https://www.allete.com
Website https://www.allete.com
Full time employees 1567

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, biomass co-fired / natural gas, hydroelectric, wind, and solar. In addition, the company provides regulated utility electric 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 150,000 retail customers and 14 non-affiliated municipal customers. Further, it owns and maintains electric transmission assets in Wisconsin, Michigan, Minnesota, and Illinois. Additionally, the company focuses on developing, acquiring, and operating clean and renewable energy projects; and owns and operates approximately 1,200 megawatts of wind energy generation facility, as well as involved in the coal mining operations in North Dakota; and real estate investment activities in Florida. It owns and operates 162 substations with a total capacity of 9,980 megavolt amperes. The company serves taconite mining, paper, pulp and secondary wood products, pipeline, and other industries. The company was formerly known as Minnesota Power, Inc. and changed its name to ALLETE, Inc. in May 2001. ALLETE, Inc. was incorporated in 1906 and is headquartered in Duluth, Minnesota.

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