ALLETE, Inc. (ALE) 10-Year Financial Performance & Capital Metrics

ALE • • Utilities

UtilitiesDiversified UtilitiesRegional Electric UtilitiesMidwest Regional Electric Utilities

AboutALLETE, 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. 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 145,000 retail customers and 15 non-affiliated municipal customers. It also owns and maintains electric transmission assets in Wisconsin, Michigan, Minnesota, and Illinois. In addition, the company focuses on developing, acquiring, and operating clean and renewable energy projects; and owns and operates approximately 1,000 megawatts of wind energy generation facility. Further, it is involved in the coal mining operations in North Dakota; and real estate investment activities in Florida. The company owns and operates 158 substations with a total capacity of 10,066 megavolt amperes. It 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.Show more

Revenue $1.53B -18.6%
EBITDA $438M +1.3%
Net Income $179M -27.4%
Free Cash Flow $102M -67.5%
EBITDA Margin 28.65% +24.5%
Net Margin 11.72% -10.8%
ROE 5.28% -27.9%
Interest Coverage 1.96 -12.5%
Debt/Equity 0.53 +1.0%
Net Debt/EBITDA 4.01 +0.6%
CapEx / Revenue 23.2% +60.8%
CapEx Coverage 1.29 -40.3%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓13 years of consecutive dividend growth
✓13 consecutive years of dividend growth
✓Healthy dividend yield of 4.1%
✓Trading near 52-week high
✓Trading at only 1.2x book value

✗Weaknesses

No significant weaknesses identified

Price & Volume

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Growth Metrics

Revenue CAGR

10Y3.01%

5Y4.28%

3Y2.53%

TTM-4.3%

Profit (Net Income) CAGR

10Y3.69%

5Y-0.69%

3Y1.95%

TTM-8.05%

EPS CAGR

10Y0.68%

5Y-2.88%

3Y-1.27%

TTM-8.55%

ROCE

10Y Avg3.25%

5Y Avg2.35%

3Y Avg2.29%

Latest2.29%

Peer Comparison

Midwest Regional Electric Utilities

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
ALEALLETE, Inc.	3.94B	67.90	21.89	-18.62%	11.04%	4.96%	2.59%	0.53
OTTROtter Tail Corporation	3.7B	88.29	12.31	-1.38%	21.47%	15.23%	2.54%	0.61

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Revenue+	1.49B	1.34B	1.42B	1.5B	1.24B	1.17B	1.42B	1.57B	1.88B	1.53B
Revenue Growth %	0.31%	-0.1%	0.06%	0.06%	-0.17%	-0.06%	0.21%	0.11%	0.2%	-0.19%
Cost of Revenue	1.02B	883.4M	959.7M	1.04B	805.4M	744.3M	965.7M	1.12B	1.39B	1.03B
Gross Profit+	468.4M	456.3M	459.6M	462.7M	435.1M	424.8M	453.5M	446.8M	489.9M	497M
Gross Margin %	-	-	-	-	-	-	-	-	-	-
Gross Profit Growth %	0.27%	-0.03%	0.01%	0.01%	-0.06%	-0.02%	0.07%	-0.01%	0.1%	0.01%
Operating Expenses+	257.7M	239.3M	233.7M	261.5M	255.3M	273.9M	302.2M	312.6M	309M	336.9M
Other Operating Expenses	-	-	-	-	-	-	-	-	-	-
EBITDA+	421.8M	409M	406.6M	404.8M	381.8M	368.7M	383M	376.4M	432.7M	438.3M
EBITDA Margin %	-	-	-	-	-	-	-	-	-	-
EBITDA Growth %	0.3%	-0.03%	-0.01%	-0%	-0.06%	-0.03%	0.04%	-0.02%	0.15%	0.01%
Depreciation & Amortization+	170M	195.8M	177.5M	205.6M	202M	217.8M	231.7M	242.2M	251.8M	278.2M
D&A / Revenue %	-	-	-	-	-	-	-	-	-	-
Operating Income (EBIT)+	251.8M	213.2M	229.1M	199.2M	179.8M	150.9M	151.3M	134.2M	180.9M	160.1M
Operating Margin %	-	-	-	-	-	-	-	-	-	-
Operating Income Growth %	0.33%	-0.15%	0.07%	-0.13%	-0.1%	-0.16%	0%	-0.11%	0.35%	-0.11%
Interest Expense+	64.9M	70.3M	67M	67.9M	64.9M	65.6M	69.1M	75.2M	80.8M	81.7M
Interest Coverage	3.88x	3.03x	3.42x	2.93x	2.77x	2.30x	2.19x	1.78x	2.24x	1.96x
Interest / Revenue %	-	-	-	-	-	-	-	-	-	-
Non-Operating Income	-1000K	-1000K	-1000K	-1000K	-900K	-1000K	-1000K	-1000K	1000K	-1000K
Pretax Income+	166.8M	175.6M	186.9M	158.6M	178.9M	122.1M	110.9M	100.1M	206.8M	126.4M
Pretax Margin %	-	-	-	-	-	-	-	-	-	-
Income Tax+	25.3M	19.8M	14.7M	-15.5M	-6.6M	-39.5M	-26.9M	-31.2M	27.9M	4.7M
Effective Tax Rate %	-	-	-	-	-	-	-	-	-	-
Net Income+	141.1M	155.3M	172.2M	174.1M	185.6M	174.2M	169.2M	189.3M	247.1M	179.3M
Net Margin %	-	-	-	-	-	-	-	-	-	-
Net Income Growth %	0.13%	0.1%	0.11%	0.01%	0.07%	-0.06%	-0.03%	0.12%	0.31%	-0.27%
EPS (Diluted)+	2.92	3.14	3.38	3.38	3.59	3.36	3.22	3.38	4.30	3.10
EPS Growth %	0.01%	0.08%	0.08%	0%	0.06%	-0.07%	-0.04%	0.05%	0.27%	-0.28%
EPS (Basic)	2.92	3.15	3.39	3.39	3.60	3.36	3.23	3.39	4.31	3.11
Diluted Shares Outstanding	48.4M	49.5M	51M	51.5M	51.7M	51.9M	52.5M	56M	57.4M	57.8M

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Assets+	5.54B	5.58B	5.77B	5.86B	6.16B	6.81B	7.17B	7.61B	7.37B	7.39B
Asset Growth %	0.27%	0.01%	0.03%	0.02%	0.05%	0.11%	0.05%	0.06%	-0.03%	0%
PP&E (Net)+	3.67B	3.74B	3.82B	3.9B	4.41B	4.86B	5.1B	5.02B	5.02B	5.19B
PP&E / Total Assets %	-	-	-	-	-	-	-	-	-	-
Total Current Assets+	371M	294.5M	367.5M	334.3M	269.5M	254.9M	291.3M	718M	468.1M	435.2M
Cash & Equivalents	102.6M	29.7M	101.5M	70.4M	72.1M	45.1M	45.4M	37.9M	77M	52.7M
Receivables	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Inventory	117.1M	104.2M	95.9M	86.7M	72.8M	74.2M	97.7M	455.9M	175.4M	154.6M
Other Current Assets	19.5M	19.5M	35M	32.8M	28.2M	23.7M	24.5M	86.3M	78.5M	79.8M
Long-Term Investments	207.2M	211.3M	191.4M	259.9M	267.9M	372.2M	371.9M	372.8M	371.6M	377.4M
Goodwill	130.6M	131.2M	148.3M	148.5M	0	0	0	0	0	0
Intangible Assets	84.6M	82.2M	77.6M	74.8M	1M	0	800K	155.6M	155.4M	155.3M
Other Assets	442.6M	435.1M	472.8M	443.1M	538.8M	594.3M	654.4M	582.5M	637.2M	595.8M
Total Liabilities	3.72B	3.68B	3.7B	3.7B	3.83B	4.01B	4.23B	4.26B	3.96B	4B
Total Debt+	1.59B	1.56B	1.5B	1.49B	1.64B	1.82B	1.99B	1.93B	1.8B	1.81B
Net Debt	1.49B	1.53B	1.4B	1.42B	1.57B	1.77B	1.95B	1.9B	1.73B	1.76B
Long-Term Debt	1.56B	1.37B	1.44B	1.43B	1.4B	1.59B	1.76B	1.65B	1.68B	1.7B
Short-Term Borrowings	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Capital Lease Obligations	0	0	0	0	28.7M	22.4M	16.4M	12.5M	7.7M	10.9M
Total Current Liabilities+	275.4M	399.5M	351.2M	405.1M	507.4M	459.6M	543.4M	716.2M	377.6M	404.2M
Accounts Payable	88.8M	74M	136.3M	149.8M	165.2M	110M	111M	103M	102.2M	113.6M
Accrued Expenses	0	0	0	0	0	0	0	0	0	0
Deferred Revenue	0	0	0	7.6M	0	0	0	0	0	0
Other Current Liabilities	148.7M	137.8M	150.8M	138.8M	71.6M	80.6M	148.3M	268.3M	110M	137.7M
Deferred Taxes	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Liabilities	660.8M	659.4M	990.9M	952M	1B	1.02B	984.8M	965.5M	991.4M	994.2M
Total Equity+	1.82B	1.89B	2.07B	2.16B	2.34B	2.8B	2.95B	3.35B	3.41B	3.39B
Equity Growth %	0.13%	0.04%	0.09%	0.04%	0.08%	0.2%	0.05%	0.14%	0.02%	-0%
Shareholders Equity	1.82B	1.89B	2.07B	2.16B	2.23B	2.29B	2.41B	2.69B	2.81B	2.85B
Minority Interest	2.2M	0	0	0	103.7M	505.6M	533.2M	656.4M	597.5M	542.5M
Common Stock	1.27B	1.3B	1.4B	1.43B	1.44B	1.46B	1.54B	1.78B	1.8B	1.82B
Additional Paid-in Capital	0	0	0	0	0	0	0	0	0	0
Retained Earnings	573.3M	625.9M	689.4M	754.6M	818.8M	864.8M	900.2M	934.8M	1.03B	1.04B
Accumulated OCI	-24.5M	-28.2M	-22.6M	-27.3M	-23.6M	-31.1M	-23.8M	-24.4M	-20.5M	-18.1M
Return on Assets (ROA)	0.03%	0.03%	0.03%	0.03%	0.03%	0.03%	0.02%	0.03%	0.03%	0.02%
Return on Equity (ROE)	0.08%	0.08%	0.09%	0.08%	0.08%	0.07%	0.06%	0.06%	0.07%	0.05%
Debt / Equity	0.87x	0.82x	0.73x	0.69x	0.70x	0.65x	0.68x	0.58x	0.53x	0.53x
Debt / Assets	0.29%	0.28%	0.26%	0.25%	0.27%	0.27%	0.28%	0.25%	0.24%	0.24%
Net Debt / EBITDA	3.54x	3.74x	3.45x	3.50x	4.11x	4.81x	5.09x	5.04x	3.99x	4.01x
Book Value per Share	37.7	38.24	40.55	41.86	45.18	53.95	56.12	59.79	59.36	58.66

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	340.1M	332M	402.9M	433.1M	249.5M	299.8M	263.5M	221.3M	585.3M	457.1M
Operating CF Growth %	0.26%	-0.02%	0.21%	0.07%	-0.42%	0.2%	-0.12%	-0.16%	1.64%	-0.22%
Operating CF / Revenue %	-	-	-	-	-	-	-	-	-	-
Net Income	141.5M	155.8M	172.2M	174.1M	185.5M	161.6M	137.8M	131.3M	247.1M	121.7M
Depreciation & Amortization	171.5M	200.9M	182.1M	210.5M	213.6M	228.1M	241.5M	250.3M	251.8M	278.2M
Deferred Taxes	25.1M	19.4M	14.4M	-5.1M	-17.1M	-39.7M	-26.9M	-38.5M	17.6M	-15.8M
Other Non-Cash Items	24.8M	-44M	32.7M	-17.1M	-94.1M	-25.6M	-17.4M	25.7M	-48.2M	35.5M
Working Capital Changes	-34.4M	-5.2M	-5.1M	63.9M	-44.7M	-30.7M	-77.4M	-152.4M	109.7M	30.9M
Capital Expenditures+	-618.8M	-265.6M	-208.5M	-312.4M	-597.1M	-717.8M	-473.3M	-384M	-271.2M	-354.9M
CapEx / Revenue %	-	-	-	-	-	-	-	-	-	-
CapEx / D&A	-	-	-	-	-	-	-	-	-	-
CapEx Coverage (OCF/CapEx)	-	-	-	-	-	-	-	-	-	-
Cash from Investing+	-618.8M	-276.2M	-229M	-349M	-345.3M	-812.8M	-485.2M	-384M	-283.6M	-340.7M
Acquisitions	-333.3M	-5.9M	-18.5M	-39.2M	239M	-99.1M	-17.6M	-160.9M	-8.2M	0
Purchase of Investments	-3.9M	-14.8M	-16.4M	-13.3M	-12.2M	-8.7M	-3.6M	-2.4M	-9.4M	-2.4M
Sale of Investments	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Investing	400K	-3.3M	1.3M	5.7M	12.9M	0	2.9M	-2.4M	4.2M	14.6M
Cash from Financing+	229.9M	-125.3M	-102.5M	-115.2M	109.3M	485.7M	204.2M	155.2M	-262.5M	-140.6M
Dividends Paid	-97.9M	-102.7M	-108.7M	-115M	-121.4M	-128.2M	-131.9M	-145.9M	-155.5M	-162.8M
Dividend Payout Ratio %	0.69%	0.66%	0.63%	0.66%	0.65%	0.74%	0.78%	0.77%	0.63%	0.91%
Debt Issuance (Net)	1000K	-1000K	-1000K	-1000K	1000K	1000K	1000K	-1000K	-1000K	1000K
Stock Issued	161.2M	30.9M	86M	20.3M	1.9M	18.1M	69.9M	248M	14.9M	12.9M
Share Repurchases	0	0	0	0	0	0	0	0	0	0
Other Financing	4.4M	-1.9M	-21.3M	-600K	99.1M	412M	86.1M	144.7M	7.8M	700K
Net Change in Cash+	-48.8M	-69.5M	71.4M	-31.1M	13.5M	-27.3M	-17.5M	-7.5M	39.2M	-24.2M
Exchange Rate Effect	0	0	0	0	0	0	0	0	0	0
Cash at Beginning	145.8M	97M	27.5M	110.1M	79M	92.5M	65.2M	47.7M	40.2M	79.4M
Cash at End	97M	27.5M	98.9M	79M	92.5M	65.2M	47.7M	40.2M	79.4M	55.2M
Free Cash Flow+	-278.7M	66.4M	194.4M	120.7M	-347.6M	-418M	-209.8M	-162.7M	314.1M	102.2M
FCF Growth %	0.15%	1.24%	1.93%	-0.38%	-3.88%	-0.2%	0.5%	0.22%	2.93%	-0.67%
FCF Margin %	-	-	-	-	-	-	-	-	-	-
FCF / Net Income %	-	-	-	-	-	-	-	-	-	-

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	8.21%	8.35%	8.69%	8.24%	8.26%	6.78%	5.89%	6.01%	7.32%	5.28%
EBITDA Margin	28.38%	30.53%	28.65%	27.01%	30.78%	31.54%	26.99%	23.96%	23.02%	28.65%
Net Debt / EBITDA	3.54x	3.74x	3.45x	3.50x	4.11x	4.81x	5.09x	5.04x	3.99x	4.01x
Interest Coverage	3.88x	3.03x	3.42x	2.93x	2.77x	2.30x	2.19x	1.78x	2.24x	1.96x
CapEx / Revenue	41.63%	19.83%	14.69%	20.85%	48.13%	61.4%	33.35%	24.45%	14.43%	23.2%
Dividend Payout Ratio	69.38%	66.13%	63.12%	66.05%	65.41%	73.59%	77.96%	77.07%	62.93%	90.8%
Debt / Equity	0.87x	0.82x	0.73x	0.69x	0.70x	0.65x	0.68x	0.58x	0.53x	0.53x
EPS Growth	0.69%	7.53%	7.64%	0.02%	6.19%	-6.5%	-3.98%	4.89%	27.35%	-27.94%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Regulated Operations	991.2M	1B	1.06B	1.06B	1.04B	987.3M	1.23B	1.26B	1.24B	1.24B
Regulated Operations Growth	-	0.96%	6.31%	-0.40%	-1.61%	-5.29%	24.37%	2.56%	-1.67%	0.36%
ALLETE Clean Energy	262.1M	80.5M	80.5M	159.9M	59.6M	79.6M	86.9M	118.3M	418.5M	84.3M
ALLETE Clean Energy Growth	-	-69.29%	0.00%	98.63%	-62.73%	33.56%	9.17%	36.13%	253.76%	-79.86%
Corporate and Other	113.3M	121M	123.2M	107.1M	105.1M	102.2M	104.4M	193.1M	223M	-
Corporate and Other Growth	-	6.80%	1.82%	-13.07%	-1.87%	-2.76%	2.15%	84.96%	15.48%	-
U.S. Water Services	119.8M	137.5M	151.8M	172.1M	33.4M	-	-	-	-	-
U.S. Water Services Growth	-	14.77%	10.40%	13.37%	-80.59%	-	-	-	-	-

Frequently Asked Questions

Valuation & Price

ALLETE, Inc. (ALE) has a price-to-earnings (P/E) ratio of 21.9x. This is roughly in line with market averages.

Growth & Financials

ALLETE, Inc. (ALE) reported $1.50B in revenue for fiscal year 2024. This represents a 62% increase from $928.2M in 2011.

ALLETE, Inc. (ALE) saw revenue decline by 18.6% over the past year.

Yes, ALLETE, Inc. (ALE) is profitable, generating $165.7M in net income for fiscal year 2024 (11.7% net margin).

Dividend & Returns

Yes, ALLETE, Inc. (ALE) pays a dividend with a yield of 4.15%. This makes it attractive for income-focused investors.

ALLETE, Inc. (ALE) has a return on equity (ROE) of 5.3%. This is below average, suggesting room for improvement.

ALLETE, Inc. (ALE) had negative free cash flow of $322.1M in fiscal year 2024, likely due to heavy capital investments.

Industry Metrics

ALLETE, Inc. (ALE) has a dividend payout ratio of 91%. The high payout ratio may limit dividend growth.

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