ALLETE, Inc. (ALE) Financial Ratios
30 years of historical data (1995–2024) · Utilities · Diversified Utilities
EV/EBITDA
↓
13.01
-3% vs avg
5yr avg: 13.40
30Y Low3.3·High15.1
P/FCF
↑
38.60
↑+61% vs avg
5yr avg: 23.91
30Y Low2.5·High104.8
P/B Ratio
↓
1.16
+4% vs avg
5yr avg: 1.11
30Y Low0.4·High2.0
ROE
↓
5.3%
-16% vs avg
5yr avg: 6.3%
30Y Low3%·High18%
Debt/EBITDA
↓
4.13
↓-12% vs avg
5yr avg: 4.71
30Y Low2.1·High5.2
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
ALE Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
ALLETE, Inc. trades at 21.9x earnings, 17% above its 5-year average of 18.6x, sitting at the 80th percentile of its historical range. Compared to the Utilities sector median P/E of 19.0x, the stock trades at a premium of 15%. On a free-cash-flow basis, the stock trades at 38.6x P/FCF, 61% above the 5-year average of 23.9x.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.9B | $3.7B | $3.5B | $3.6B | $3.5B | $3.2B | $4.2B | $3.9B | $3.8B | $3.2B | $2.5B |
| Enterprise Value | $5.7B | $5.5B | $5.2B | $5.5B | $5.4B | $5.0B | $5.8B | $5.3B | $5.2B | $4.7B | $4.0B |
| P/E Ratio → | 21.89 | 20.89 | 14.21 | 19.08 | 20.59 | 18.45 | 22.61 | 22.55 | 22.00 | 20.44 | 17.41 |
| P/S Ratio | 2.58 | 2.45 | 1.87 | 2.30 | 2.45 | 2.75 | 3.38 | 2.62 | 2.67 | 2.37 | 1.66 |
| P/B Ratio | 1.16 | 1.10 | 1.03 | 1.08 | 1.18 | 1.15 | 1.80 | 1.82 | 1.83 | 1.68 | 1.35 |
| P/FCF | 38.60 | 36.65 | 11.18 | — | — | — | — | 32.52 | 19.51 | 47.85 | — |
| P/OCF | 8.63 | 8.19 | 6.00 | 16.32 | 13.22 | 10.72 | 16.82 | 9.06 | 9.41 | 9.57 | 7.23 |
P/E links to full P/E history page with 30-year chart
ALE EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
ALLETE, Inc.'s enterprise value stands at 13.0x EBITDA, roughly in line with its 5-year average of 13.4x. The Utilities sector median is 11.9x, placing the stock at a 9% premium on an enterprise-value basis.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.60 | 2.79 | 3.51 | 3.83 | 4.27 | 4.65 | 3.56 | 3.66 | 3.51 | 2.66 |
| EV / EBITDA | 13.01 | 12.56 | 12.10 | 14.63 | 14.18 | 13.53 | 15.10 | 13.19 | 12.77 | 11.51 | 9.37 |
| EV / EBIT | 35.62 | 26.44 | 18.20 | 31.42 | 30.18 | 26.58 | 23.65 | 23.58 | 20.46 | 19.14 | 17.05 |
| EV / FCF | — | 53.85 | 16.67 | — | — | — | — | 44.25 | 26.72 | 70.87 | — |
ALE Profitability
Margins and return-on-capital ratios measuring operating efficiency
ALLETE, Inc. earns an operating margin of 10.5%, below the Utilities sector average of 18.5%. Operating margins have expanded from 8.5% to 10.5% over the past 3 years, signaling improving operational efficiency. ROE of 5.3% is modest, trailing the sector median of 9.3%. ROIC of 2.3% represents below-average returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.5% | 32.5% | 26.1% | 28.4% | 32.0% | 36.3% | 35.1% | 30.9% | 32.4% | 34.1% | 31.5% |
| Operating Margin | 10.5% | 10.5% | 9.6% | 8.5% | 10.7% | 12.9% | 14.5% | 13.3% | 16.1% | 15.9% | 16.9% |
| Net Profit Margin | 11.7% | 11.7% | 13.1% | 12.1% | 11.9% | 14.9% | 15.0% | 11.6% | 12.1% | 11.6% | 9.5% |
Return on Capital
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.3% | 5.3% | 7.3% | 6.0% | 5.9% | 6.8% | 8.3% | 8.2% | 8.7% | 8.4% | 8.2% |
| ROA | 2.4% | 2.4% | 3.3% | 2.6% | 2.4% | 2.7% | 3.1% | 3.0% | 3.0% | 2.8% | 2.9% |
| ROIC | 2.3% | 2.3% | 2.6% | 2.0% | 2.4% | 2.7% | 3.6% | 4.2% | 5.0% | 4.7% | 6.1% |
| ROCE | 2.3% | 2.3% | 2.6% | 2.0% | 2.3% | 2.5% | 3.2% | 3.7% | 4.3% | 4.1% | 5.5% |
ALE Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
ALLETE, Inc. carries a Debt/EBITDA ratio of 4.1x, which is highly leveraged (20% below the sector average of 5.2x). Net debt stands at $1.8B ($1.8B total debt minus $53M cash). Interest coverage of just 2.5x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.53 | 0.53 | 0.53 | 0.58 | 0.68 | 0.65 | 0.70 | 0.69 | 0.73 | 0.82 | 0.87 |
| Debt / EBITDA | 4.13 | 4.13 | 4.16 | 5.14 | 5.21 | 4.93 | 4.30 | 3.67 | 3.70 | 3.81 | 3.78 |
| Net Debt / Equity | — | 0.52 | 0.51 | 0.57 | 0.66 | 0.63 | 0.67 | 0.66 | 0.68 | 0.81 | 0.82 |
| Net Debt / EBITDA | 4.01 | 4.01 | 3.99 | 5.04 | 5.09 | 4.81 | 4.11 | 3.50 | 3.45 | 3.74 | 3.54 |
| Debt / FCF | — | 17.20 | 5.49 | — | — | — | — | 11.73 | 7.21 | 23.02 | — |
| Interest Coverage | 2.55 | 2.55 | 3.56 | 2.33 | 2.60 | 2.86 | 3.76 | 3.34 | 3.79 | 3.50 | 3.57 |
ALE Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
A current ratio of 1.08x means ALLETE, Inc. can comfortably meet its short-term obligations, though there is limited excess liquidity. The quick ratio of 0.69x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 1.00x to 1.08x over the past 3 years.
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.08 | 1.08 | 1.24 | 1.00 | 0.54 | 0.55 | 0.53 | 0.83 | 1.05 | 0.74 | 1.35 |
| Quick Ratio | 0.69 | 0.69 | 0.78 | 0.37 | 0.36 | 0.39 | 0.39 | 0.61 | 0.77 | 0.48 | 0.92 |
| Cash Ratio | 0.13 | 0.13 | 0.20 | 0.05 | 0.08 | 0.10 | 0.14 | 0.17 | 0.29 | 0.07 | 0.37 |
| Asset Turnover | — | 0.21 | 0.26 | 0.21 | 0.20 | 0.17 | 0.20 | 0.26 | 0.25 | 0.24 | 0.27 |
| Inventory Turnover | 6.68 | 6.68 | 7.92 | 2.47 | 9.88 | 10.03 | 11.06 | 11.95 | 10.01 | 8.48 | 8.69 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
ALE Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
ALLETE, Inc. returns 4.1% to shareholders annually primarily through dividends. The payout ratio of 90.8% is elevated — while still covered by earnings, there is limited headroom for dividend increases. The earnings yield of 4.6% (inverse of P/E) provides a useful comparison to bond yields when assessing the stock's relative attractiveness to fixed income.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.1% | 4.3% | 4.4% | 4.0% | 3.8% | 4.0% | 2.9% | 2.9% | 2.9% | 3.2% | 4.0% |
| Payout Ratio | 90.8% | 90.8% | 62.9% | 77.1% | 78.0% | 73.6% | 65.4% | 66.1% | 63.1% | 66.1% | 69.4% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.6% | 4.8% | 7.0% | 5.2% | 4.9% | 5.4% | 4.4% | 4.4% | 4.5% | 4.9% | 5.7% |
| FCF Yield | 2.6% | 2.7% | 8.9% | — | — | — | — | 3.1% | 5.1% | 2.1% | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 4.1% | 4.3% | 4.4% | 4.0% | 3.8% | 4.0% | 2.9% | 2.9% | 2.9% | 3.2% | 4.0% |
| Shares Outstanding | — | $58M | $57M | $56M | $53M | $52M | $52M | $52M | $51M | $50M | $48M |
Peer Comparison
Compare ALE with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 ALEYou | $4B | 21.9 | 13.0 | 38.6 | 32.5% | 10.5% | 5.3% | 2.3% | 4.1 |
 NWE | $4B | 23.8 | 13.2 | — | 82.3% | 20.2% | 6.3% | 4.0% | 5.7 |
 AVA | $3B | 16.7 | 10.3 | — | 24.2% | 18.0% | 7.3% | 4.5% | 5.3 |
 OTTR | $4B | 13.4 | 9.5 | 37.5 | 27.8% | 26.5% | 15.6% | 10.4% | 2.4 |
 IDA | $8B | 24.1 | 17.3 | — | 22.1% | 21.9% | 9.4% | 4.6% | 5.6 |
 XEL | $48B | 22.6 | 14.2 | — | 24.3% | 19.6% | 9.4% | 4.0% | 6.0 |
 WEC | $37B | 23.2 | 15.3 | — | 50.5% | 24.2% | 11.6% | 5.1% | 5.8 |
 EVRG | $19B | 22.5 | 12.7 | — | 32.3% | 25.2% | 8.4% | 4.5% | 5.7 |
 PNW | $12B | 20.3 | 14.5 | — | 25.4% | 20.9% | 8.8% | 3.9% | 8.5 |
 BKH | $6B | 18.3 | 12.2 | — | 38.5% | 23.3% | 7.8% | 4.9% | 5.7 |
 NEE | $181B | 26.4 | 17.8 | — | 62.8% | 30.1% | 10.7% | 4.1% | 6.2 |
| Utilities Median | — | 19.0 | 11.9 | 18.6 | 38.4% | 18.5% | 9.3% | 4.9% | 5.2 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
Download Financial Ratios Data
Includes 30+ ratios · 30 years · Updated daily
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ALE — Frequently Asked Questions
Quick answers to the most common questions about buying ALE stock.
What is ALLETE, Inc.'s P/E ratio?
ALLETE, Inc.'s current P/E ratio is 21.9x. The historical average is 16.9x. This places it at the 80th percentile of its historical range.
What is ALLETE, Inc.'s EV/EBITDA?
ALLETE, Inc.'s current EV/EBITDA is 13.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.2x.
What is ALLETE, Inc.'s ROE?
ALLETE, Inc.'s return on equity (ROE) is 5.3%. The historical average is 9.2%.
Is ALE stock overvalued?
Based on historical data, ALLETE, Inc. is trading at a P/E of 21.9x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
What is ALLETE, Inc.'s dividend yield?
ALLETE, Inc.'s current dividend yield is 4.15% with a payout ratio of 90.8%.
What are ALLETE, Inc.'s profit margins?
ALLETE, Inc. has 32.5% gross margin and 10.5% operating margin. Operating margin between 10-20% is typical for established companies.
How much debt does ALLETE, Inc. have?
ALLETE, Inc.'s Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.