ScoreWhy is ALLETE, Inc. ?
1
Poor long term growth as Operating profit has grown by an annual rate -0.67% of over the last 5 years
2
Negative results in Jun 25
- OPERATING CASH FLOW(Y) Lowest at USD 430.2 MM
- INTEREST COVERAGE RATIO(Q) Lowest at 402.16
- RAW MATERIAL COST(Y) Grown by 29.94% (YoY)
3
With ROCE of 3.53%, it has a very expensive valuation with a 1.20 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 4.40%, its profits have fallen by -33%
Real-Time Research ReportHow much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is ALLETE, Inc. for you?
Low Risk, Low Return
Absolute
Risk Adjusted
Volatility
ALLETE, Inc.
4.4%
1.14
6.65%
S&P 500
13.22%
0.65
20.20%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
5.95%
EBIT Growth (5y)
-0.67%
EBIT to Interest (avg)
2.04
Debt to EBITDA (avg)
4.61
Net Debt to Equity (avg)
0.64
Sales to Capital Employed (avg)
0.36
Tax Ratio
6.43%
Dividend Payout Ratio
90.91%
Pledged Shares
0
Institutional Holding
89.47%
ROCE (avg)
3.45%
ROE (avg)
5.36%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
32
Industry P/E
Price to Book Value
1.32
EV to EBIT
33.89
EV to EBITDA
12.62
EV to Capital Employed
1.20
EV to Sales
3.68
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
3.53%
ROE (Latest)
4.17%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend3What is working for the Company
DIVIDEND PER SHARE(HY)
Highest at USD 11.67
DIVIDEND PAYOUT RATIO(Y)
Highest at 132.97%
-18What is not working for the Company
OPERATING CASH FLOW(Y)
Lowest at USD 430.2 MM
INTEREST COVERAGE RATIO(Q)
Lowest at 402.16
RAW MATERIAL COST(Y)
Grown by 29.94% (YoY
DEBT-EQUITY RATIO
(HY)
Highest at 67.79 %
INTEREST(Q)
Highest at USD 23.1 MM
OPERATING PROFIT(Q)
Lowest at USD 92.9 MM
OPERATING PROFIT MARGIN(Q)
Lowest at 25.78 %
PRE-TAX PROFIT(Q)
Lowest at USD 6 MM
NET PROFIT(Q)
Lowest at USD 31.9 MM
EPS(Q)
Lowest at USD 0.55
Here's what is working for ALLETE, Inc.
Dividend per share
Highest at USD 11.67 and Grown
In each year in the last five yearsMOJO Watch
Company is distributing higher dividend from profits generated
DPS (USD)
Dividend Payout Ratio
Highest at 132.97%
in the last five yearsMOJO Watch
Company is distributing higher proportion of profits generated as dividend
DPR (%)
Depreciation
Highest at USD 74.9 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
Here's what is not working for ALLETE, Inc.
Pre-Tax Profit
At USD 6 MM has Fallen at -81.19%
over average net sales of the previous four periods of USD 31.9 MMMOJO Watch
Near term Pre-Tax Profit trend is very negative
Pre-Tax Profit (USD MM)
Operating Cash Flow
Lowest at USD 430.2 MM and Fallen
In each year in the last three yearsMOJO Watch
The company's cash revenues from business operations are falling
Operating Cash Flows (USD MM)
Interest Coverage Ratio
Lowest at 402.16
in the last five periodsMOJO Watch
The company's ability to manage interest payments is deteriorating
Operating Profit to Interest
Net Profit
At USD 31.9 MM has Fallen at -30.91%
over average net sales of the previous four periods of USD 46.17 MMMOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Interest
Highest at USD 23.1 MM
in the last five periods and Increased by 7.94% (QoQ)MOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (USD MM)
Operating Profit
Lowest at USD 92.9 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (USD MM)
Operating Profit Margin
Lowest at 25.78 %
in the last five periodsMOJO Watch
Company's profit margin has deteriorated
Operating Profit to Sales
Pre-Tax Profit
Lowest at USD 6 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is negative
Pre-Tax Profit (USD MM)
Net Profit
Lowest at USD 31.9 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.55
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
Debt-Equity Ratio
Highest at 67.79 %
in the last five Semi-Annual periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Raw Material Cost
Grown by 29.94% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin
Raw Material Cost as a percentage of Sales
Non Operating Income
Highest at USD 1.85 MM
in the last five periodsMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating income
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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