ALLETE, Inc. (ALE) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

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PNM Resources, Inc.

ALLETE, Inc.

NRG Energy, Inc.

Why is ALLETE, Inc. ?

Poor long term growth as Operating profit has grown by an annual rate -0.67% of over the last 5 years

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)

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 4.80%, its profits have fallen by -33%

Real-Time Research Report

Verdict Report

How 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.

4.99%

1.22

6.64%

S&P 500

22.24%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality 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)

0.35

Tax Ratio

6.43%

Dividend Payout Ratio

90.91%

Pledged Shares

Institutional Holding

91.85%

ROCE (avg)

3.45%

ROE (avg)

5.36%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

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

Dividend Yield

ROCE (Latest)

3.53%

ROE (Latest)

4.17%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

RSI

Bearish

No Signal

Bollinger Bands

Mildly Bullish

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bearish

No Trend

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

Not enough Data to analyse Financial Trend

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 years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Dividend Payout Ratio

Highest at 132.97%

in the last five years

MOJO Watch

Company is distributing higher proportion of profits generated as dividend

DPR (%)

Depreciation

Highest at USD 74.9 MM

in the last five periods

MOJO 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 MM

MOJO 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 years

MOJO 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 periods

MOJO 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 MM

MOJO 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 periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 25.78 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Pre-Tax Profit

Lowest at USD 6 MM

in the last five periods

MOJO 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 periods

MOJO Watch

Near term Net Profit trend is negative

Net Profit (USD MM)

EPS

Lowest at USD 0.55

in the last five periods

MOJO 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 periods

MOJO 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 periods

MOJO Watch

Increased income from non business activities may not be sustainable

Non Operating income