Allete Inc (ALE) Stock Analysis — PE Ratio, PS Ratio, Intrinsic Value & 2030 Price Target
Allete Inc stock (ALE) is currently trading at $67.90. Allete Inc PE ratio is 23.82. Allete Inc PS ratio (Price-to-Sales) is 2.63. Analyst consensus price target for ALE is $67.00. WallStSmart rates ALE as Sell.
- ALE PE ratio analysis and historical PE chart
- ALE PS ratio (Price-to-Sales) history and trend
- ALE intrinsic value — DCF, Graham Number, EPV models
- ALE stock price prediction 2025 2026 2027 2028 2029 2030
- ALE fair value vs current price
- ALE insider transactions and insider buying
- Is ALE undervalued or overvalued?
- Allete Inc financial analysis — revenue, earnings, cash flow
- ALE Piotroski F-Score and Altman Z-Score
- ALE analyst price target and Smart Rating
Allete Inc
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ALE Intrinsic Value Analysis for Value Investors
Benjamin Graham Formula · Allete Inc (ALE)
ALE trades 250% above its Graham fair value of $19.38, indicating the stock may be overvalued at current levels.
Based on Benjamin Graham Formula. Growth rate capped at 25%. For informational purposes only. Not financial advice.
Smart Analysis
Allete Inc (ALE) · 10 metrics scored
Smart Score
Category Performance
WallStSmart pulls financial metrics like revenue growth, profit margins, and valuation ratios and scores each one from 0 to 10 based on how strong or weak it is. Those 10 scores are grouped into 4 categories: Growth, Profitability, Valuation, and Quality — which form the 4 axes of the spider chart you see. The categories are then combined into a final score out of 100, but not equally. Growth and Profitability together count for 60% of the total, because a fast-growing profitable business matters more than just a cheap one. That final number maps to a rating (Strong Buy, Buy, Hold, Avoid) and a letter grade, giving you one clear Stock Rating.
Investment Thesis
Strong fundamentals in price/book, institutional own.. Concerns around return on equity and operating margin. Mixed signals suggest waiting for clearer direction before acting.
Allete Inc (ALE) Key Strengths (3)
76.88% of shares held by major funds and institutions
Trading at 1.38x book value, attractively priced
Mid-cap company balancing growth potential with stability
Allete Inc (ALE) Areas to Watch (7)
Revenue declining -7.90%, a shrinking business
Earnings declining -40.90%, profits shrinking
Very low returns on shareholder equity
Very thin margins with limited operational efficiency
Paying a premium for growth, expensive relative to earnings expansion
Revenue is fairly priced at 2.63x sales
Decent profitability, keeps $11 per $100 revenue
Supporting Valuation Data
Allete Inc (ALE) Detailed Analysis Report
Overall Assessment
This company scores 43/100 in our Smart Analysis, earning a D grade. Out of 10 metrics analyzed, 3 register as strengths (avg 8.3/10) while 7 fall into concern territory (avg 2.7/10). The category breakdown reveals uneven performance, with some areas requiring attention.
The Bull Case
The strongest argument centers on Institutional Own., Price/Book, Market Cap. Valuation metrics including Price/Book (1.38) suggest the stock is attractively priced.
The Bear Case
The primary concerns are Revenue Growth, EPS Growth, Return on Equity. Some valuation metrics including PEG Ratio (2.57), Price/Sales (2.63) suggest expensive pricing. Growth concerns include Revenue Growth at -7.90%, EPS Growth at -40.90%, which may limit upside. Profitability pressure is visible in Return on Equity at 2.58%, Operating Margin at 8.35%, Profit Margin at 11.00%.
Key Dynamics to Monitor
Three factors to monitor going forward. First, whether Revenue Growth improves, as this is the primary drag on the overall score. Second, margin trajectory, with Return on Equity at 2.58% needing improvement to support the investment thesis. Third, growth sustainability, with Revenue Growth at -7.90% needing to reaccelerate.
Risk Considerations
Based on the metric profile, this is a higher risk investment. There are more areas of concern than strength, warranting a more conservative position size. Investors should size positions according to their risk tolerance and maintain diversification.
Bottom Line
Fundamental challenges outweigh strengths at current levels. Revenue Growth and EPS Growth are the primary drags. Consider waiting for meaningful improvement before committing capital.
Disclaimer: Smart Analysis is a scoring system developed by WallStSmart Team. Scores update daily using multi-model valuation framework. Always conduct your own research and consult with financial advisors before making investment decisions.
ALE Price-to-Sales(PS) Ratio Chart
Historical valuation based on market cap ÷ trailing 12-month revenue
ALE's Price-to-Sales ratio of 2.63x sits near its historical average of 2.81x (40th percentile), suggesting the market is pricing in steady-state growth. The current valuation is 30% below its historical high of 3.78x set in Jul 2006, and 46% above its historical low of 1.8x in Apr 2009.
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Data-driven financial summary for Allete Inc (ALE) · UTILITIES › UTILITIES - DIVERSIFIED
The Big Picture
Allete Inc faces headwinds with declining revenue, though profitability provides a cushion. Revenue reached 1.5B with 8% decline year-over-year. Profit margins of 11.0% are healthy, with room for further expansion as the business scales.
Key Findings
ROE of 258.0% means the company generates strong returns on shareholder equity. Above 20% is considered top-tier.
Revenue contracted 8% YoY. Worth determining whether this is cyclical or structural.
Free cash flow is -174M, meaning the company is burning cash. This may be acceptable for high-growth companies investing heavily.
What to Watch Next
Margin expansion: can Allete Inc push profit margins above 15% as the business scales?
Dividend sustainability with a current yield of 4.3%. Watch payout ratio and free cash flow coverage.
Debt management: total debt of 2.2B is significantly higher than cash (79M). Monitor refinancing risk.
Sector dynamics: monitor UTILITIES - DIVERSIFIED industry trends, competitive moves, and regulatory changes that could impact Allete Inc.
Bottom Line
Allete Inc faces challenges with declining revenue. While profitability provides a buffer, the long-term trajectory needs to improve. Watch for management's strategic response and whether the company can stabilize or pivot to new growth drivers.
This synopsis is generated from publicly available financial data. It is not financial advice. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
Insider Transactions(0 last 3 months)
Data sourced from SEC Form 4 filings
Last updated: 8:22:24 AM
About Allete Inc(ALE)
NYSE
UTILITIES
UTILITIES - DIVERSIFIED
USA
ALLETE, Inc. is an energy company. The company is headquartered in Duluth, Minnesota.