Fact based stock research
ALLETE (NYSE:ALE)

US0185223007

How to read the free ranks

For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

ALLETE stock research in summary

allete.com

ANALYSIS: With an Obermatt Combined Rank of 100 (better than 100% compared with investment alternatives), ALLETE (Electric Utilities, USA) shares have much better financial characteristics than comparable stocks. Shares of ALLETE are a good value (attractively priced) with a consolidated Value Rank of 73 (better than 73% of alternatives), show above-average growth (Growth Rank of 63), and are safely financed (Safety Rank of 96), which means low debt burdens. ...read more

RECOMMENDATION: A Combined Rank of 100, is a strong buy recommendation based on ALLETE's financial characteristics. As the company ALLETE's key financial metrics all exhibit excellent performance, such as good value (Obermatt Value Rank of 73), above-average growth (Obermatt Growth Rank of 63), and indicate that the company is safely financed (Obermatt Safety Rank of 96), it is a solid stock investment where the risk of paying too much for the share is limited, unless the company has a bleak future. Such good financial performance can indicate that the company's future might actually be challenging, as it may be difficult to maintain the good performance. If they are safely financed and have been growing above average, and are still a good value, it means that the market is keeping prices low, for a reason which may become clearer over time. We recommend evaluating the future of ALLETE. If you believe the company's future is market-typical or even better, this could be an argument for a share purchase. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	73
Growth Rank	63
Safety Rank	96
Combined Rank	100

Country	USA
Industry	Electric Utilities
Index	Low Emissions, Dividends USA, Diversity USA, Wind Energy, S&P MIDCAP
Size class	Large

This stock has achievements: Top 10 Stock.

14-Nov-2024. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

Multiple opinions. One number.

Analysts rarely agree on a stock’s future. So, who do you believe? Obermatt translates those collective views into a single Sentiment Rank. That plus the financial ranks give you the ultimate 360° View. Sign up to access them.

Why popular stocks have low ratings

It’s easier said than done. When your stock drops, it’s easy to want to sell it and find a better performer. Think twice, or even three times, before trading. Those fees (especially the hidden ones) can eat up your gains.

Review the performance ranks of the individual metrics that form each investment strategy.

Research History: ALLETE

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	43	89	68	73
GROWTH
GROWTH	31	9	91	63
SAFETY
SAFETY	13	48	80	96
SENTIMENT
SENTIMENT	n/a	67	60	^new
360° VIEW
360° VIEW	n/a	59	98	^new

Most recent update of the stock research: 14-Nov-2024. Financial reporting date used for calculating ranks: 30-Jun-2024. Stock research history is based on the Obermatt Method. The higher the rank, the better ALLETE is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	43	89	68	73
GROWTH
GROWTH	31	9	91	63
SAFETY
SAFETY	13	48	80	96
COMBINED
COMBINED	13	54	100	100

Last update of combined financial performance: 14-Nov-2024. Stock analysis on combined financial performance: The higher the rank of ALLETE the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 73 (better than 73% compared with alternatives), ALLETE shares are more attractively priced than the majority of comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for ALLETE. Price-to-Sales is 54 which means that the stock price compared with what market professionals expect for future sales is lower than for 54% of comparable companies, indicating a good value for ALLETE's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 63% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 84. Compared with other companies in the same industry, dividend yields of ALLETE are expected to be higher than for 71% of all competitors (a Dividend Yield rank of 71). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 73, is a buy recommendation based on ALLETE's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in ALLETE based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	33	58	43	54
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	29	87	65	63
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	54	79	82	84
DIVIDEND YIELD
DIVIDEND YIELD	60	67	62	71
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	43	89	68	73

Last update of Value Rank: 14-Nov-2024. Stock analysis on value ratios: The higher the rank, the lower the value ratio of ALLETE; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 63 (better than 63% compared with alternatives), ALLETE shows an above-average growth dynamic in its industry. Investors also speak of positive momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for ALLETE. Sales Growth has a rank of 95 which means that currently, professionals expect the company to grow more than 95% of its competitors. Both Profit Growth, with a rank of 75, and Stock Returns, with a rank of 57, are also above average. But Capital Growth only has a rank of 9, which means that, currently, professionals expect the company to grow its invested capital less than 91% of its competitors. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 63, is a buy recommendation for growth and momentum investors. That may be a good sign if the company is already well positioned and doesn't require more investments at this time. They may focus on growing the top (revenues) and bottom (profits) lines, recently rewarded with above-average stock returns for shareholders. But it may also be a sign of danger as the company is falling back with capital investment activities concerning competition. This requires further analysis of corporate communications. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	50	77	12	95
PROFIT GROWTH
PROFIT GROWTH	63	16	88	75
CAPITAL GROWTH
CAPITAL GROWTH	n/a	17	98	9
STOCK RETURNS
STOCK RETURNS	50	23	79	57
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	31	9	91	63

Last update of Growth Rank: 14-Nov-2024. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of ALLETE.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 96 (better than 96% compared with alternatives) for 2024, the company ALLETE has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of ALLETE is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for ALLETE.Leverage is at 98, meaning the company has a below-average debt-to-equity ratio. It has less debt than 98% of its competitors.Refinancing is at a rank of 94, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 94% of its competitors. Liquidity is at 32, meaning that the company generates less profit to service its debt than 68% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 96 (better than 96% compared with alternatives), ALLETE has a financing structure that is significantly safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for ALLETE more challenging. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	34	94	96	98
REFINANCING
REFINANCING	23	24	88	94
LIQUIDITY
LIQUIDITY	13	25	16	32
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	13	48	80	96

Last update of Safety Rank: 14-Nov-2024. Stock analysis on safety metrics: The higher the rank, the lower the leverage of ALLETE and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	19	15	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	79	72	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	35	44	^new
MARKET PULSE
MARKET PULSE	n/a	92	95	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	67	60	^new

Last update of Sentiment Rank: 14-Nov-2024. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for ALLETE.
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