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ALE 
Allete Inc (ALE)
Stock price based on last close (see disclosures)
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Upturn Advisory Summary
12/12/2024: ALE (2-star) has a low Upturn Star Rating. Not recommended to BUY.
Upturn Star Rating
Below Average Performance
These Stocks/ETFs, based on Upturn Advisory, often underperform the market, warranting careful consideration before investing.
AI Based Fundamental Rating
Moderate Performance
These Stocks/ETFs, based on Upturn Advisory, typically align with the market average, offering steady but unremarkable returns.
Analysis of Past Performance
Type Stock | Historic Profit 12.23% | Avg. Invested days 61 | Today’s Advisory Consider higher Upturn Star rating |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 12/12/2024 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.75B USD | Price to earnings Ratio 20.77 | 1Y Target Price 66 |
Price to earnings Ratio 20.77 | 1Y Target Price 66 | ||
Volume (30-day avg) 287630 | Beta 0.79 | 52 Weeks Range 54.04 - 65.19 | Updated Date 01/1/2025 |
52 Weeks Range 54.04 - 65.19 | Updated Date 01/1/2025 | ||
Dividends yield (FY) 4.35% | Basic EPS (TTM) 3.12 |
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 11.5% | Operating Margin (TTM) 12.43% |
Management Effectiveness
Return on Assets (TTM) 1.69% | Return on Equity (TTM) 3.55% |
Valuation
Trailing PE 20.77 | Forward PE 17.45 | Enterprise Value 5433140095 | Price to Sales(TTM) 2.39 |
Enterprise Value 5433140095 | Price to Sales(TTM) 2.39 | ||
Enterprise Value to Revenue 3.47 | Enterprise Value to EBITDA 11.13 | Shares Outstanding 57819000 | Shares Floating 57612557 |
Shares Outstanding 57819000 | Shares Floating 57612557 | ||
Percent Insiders 0.27 | Percent Institutions 74.97 |
AI Summary
Allete Inc. (NYSE: ALE): A Comprehensive Overview
Company Profile
Detailed History and Background:
- Founded in 1909 as Superior Water, Light and Power Company.
- Changed name to Minnesota Power & Light Company in 1923.
- Acquired several smaller utilities throughout the 20th century.
- Renamed Allete Inc. in 1999 to reflect diversification beyond energy.
- Currently operates in three segments: Regulated Energy, Non-Regulated Energy, and Other.
Core Business Areas:
- Regulated Energy: Provides electricity and natural gas to customers in Minnesota and Wisconsin through its subsidiary, Minnesota Power.
- Non-Regulated Energy: Owns and operates renewable energy assets, including wind farms and solar power plants.
- Other: Offers engineering, consulting, and construction services through its ALLETE Clean Energy business.
Leadership and Corporate Structure:
- CEO: Bethany Owen
- President: David deGuelle
- Board of Directors: Comprised of 10 members with diverse industry experience.
- Corporate structure organized into three segments: Regulated Energy, Non-Regulated Energy, and Other.
Top Products and Market Share
Top Products and Offerings:
- Electricity and natural gas for residential, commercial, and industrial customers.
- Renewable energy from wind and solar farms.
- Engineering, consulting, and construction services for renewable energy projects.
Market Share:
- Regulated Energy: Holds a dominant position in its service territory in Minnesota and Wisconsin.
- Non-Regulated Energy: Contributes significantly to the growing renewable energy market in the United States.
- Other: ALLETE Clean Energy has a strong presence in the engineering and construction services market for renewable energy projects.
Product Performance and Competitiveness:
- Allete's energy businesses consistently deliver reliable service and competitive rates.
- The company is a leader in renewable energy development, with a growing portfolio of wind and solar projects.
- ALLETE Clean Energy has a strong track record of delivering successful renewable energy projects for clients.
Total Addressable Market
- Regulated Energy: The US electricity and natural gas market is estimated at over $400 billion.
- Non-Regulated Energy: The global renewable energy market is expected to reach over $2 trillion by 2025.
- Other: The engineering and construction services market for renewable energy projects is estimated to be worth over $100 billion.
Financial Performance
Recent Financial Statements:
- Revenue: $1.7 billion (2022)
- Net Income: $202 million (2022)
- Profit Margin: 11.9% (2022)
- Earnings per Share (EPS): $2.04 (2022)
Year-over-Year Performance:
- Revenue increased by 5.2% in 2022 compared to 2021.
- Net income increased by 10.2% in 2022 compared to 2021.
- EPS increased by 12.3% in 2022 compared to 2021.
Cash Flow and Balance Sheet Health:
- Strong cash flow from operations.
- Solid balance sheet with low debt-to-equity ratio.
Dividends and Shareholder Returns
Dividend History:
- Consecutive dividend payer for over 30 years.
- Current dividend yield: 2.8%
- Payout ratio: 50%
Shareholder Returns:
- Total shareholder return over the past year: 10.2%
- Total shareholder return over the past 5 years: 58.7%
- Total shareholder return over the past 10 years: 185.2%
Growth Trajectory
Historical Growth:
- Revenue has grown at a compound annual growth rate (CAGR) of 4.2% over the past 5 years.
- Net income has grown at a CAGR of 6.5% over the past 5 years.
- EPS has grown at a CAGR of 7.2% over the past 5 years.
Future Growth Projections:
- Expected to benefit from increasing demand for clean energy.
- Continued expansion of renewable energy portfolio.
- Growth opportunities in engineering and construction services for renewable energy projects.
Recent Growth Initiatives:
- Announced plans to invest $1 billion in renewable energy projects over the next five years.
- Expanded its engineering and construction services business through acquisitions.
Market Dynamics
Industry Trends:
- Increasing demand for clean energy.
- Rapid advancements in renewable energy technologies.
- Growing focus on energy efficiency and sustainability.
Allete's Positioning and Adaptability:
- Well-positioned to benefit from the transition to clean energy with its existing renewable energy assets and expertise.
- Committed to investing in new technologies and adapting to market changes.
Competitors
About NVIDIA Corporation
Exchange NYSE | Headquaters Duluth, MN, United States | ||
IPO Launch date 1973-05-03 | Chair, CEO & President Ms. Bethany M. Owen | ||
Sector Utilities | Industry Utilities - Diversified | Full time employees 1564 | Website https://www.allete.com |
Full time employees 1564 | Website https://www.allete.com | ||
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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