-0.09%
1.11%
2.45%
1.50%
11.07%
2.21%
-21.93%
AI Spotlight on ALE
Company Description
ALLETE, 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.
Market Data
| Last Price | 65.62 |
| Change Percentage | -0.09% |
| Open | 65.59 |
| Previous Close | 65.68 |
| Market Cap ( Millions) | 3794 |
| Volume | 442547 |
| Year High | 65.95 |
| Year Low | 55.86 |
| M A 50 | 64.96 |
| M A 200 | 63.7 |
Financial Ratios
| FCF Yield | 3.04% |
| Dividend Yield | 4.30% |
| ROE | 6.39% |
| Debt / Equity | 63.51% |
| Net Debt / EBIDTA | 363.08% |
| Price To Book | 1.34 |
| Price Earnings Ratio | 21.05 |
| Price To FCF | 32.93 |
| Price To sales | 2.42 |
| EV / EBITDA | 11.75 |
News
- Jan -30 - ALLETE Board of Directors Raises Quarterly Common Stock Dividend
- Jan -24 - ALLETE Senior Vice President & Chief Financial Officer Steven W. Morris to Retire Mid-Year as Part of a Planned Transition
- Dec -19 - ALLETE receives FERC approval for proposed transaction with Canada Pension Plan Investment Board and Global Infrastructure Partners
- Dec -09 - Puget Sound Energy signs on to largest share of North Plains Connector transmission project
- Nov -19 - ALLETE Clean Energy has fully recontracted Armenia Mountain Wind
- Oct -30 - ALLETE, Inc. reports third quarter 2024 earnings
- Oct -29 - ALLETE Clean Energy Announces Sale of Wisconsin Wind Site
- Oct -25 - ALLETE Board of Directors declares dividend on common stock
- Oct -17 - New Energy Equity completes development of 14 Public Storage projects in Minnesota
- Oct -04 - ALLETE to Announce Third Quarter Financial Results October 30
- Sep -23 - Minnesota Power plans two large solar projects in northern Minnesota as part of its EnergyForward strategy for carbon-free energy
- Sep -17 - New Energy Equity achieves Gold Certification for advancements on DEIJ issues
- Aug -06 - ALLETE applauds $700 million federal grant for Montana and North Plains Connector transmission project
- Aug -01 - ALLETE, Inc. reports second quarter 2024 earnings
- Jul -27 - ALE INVESTIGATION: The M&A Class Action Firm Continues to Investigate the Merger and August 21, 2024 Shareholder Vote of ALLETE, Inc.
- Jul -26 - CORRECTING and REPLACING ALLETE Board of Directors Declares Dividend on Common Stock
- Jul -23 - URGENT UPDATE: The M&A Class Action Firm Investigates Merger and Looming Vote on August 21, 2024, of ALLETE, Inc. - ALE
- Jul -20 - URGENT UPDATE: The M&A Class Action Firm Investigates Merger and Looming Vote on August 21, 2024, of ALLETE, Inc. - ALE
- Jul -19 - URGENT UPDATE: The M&A Class Action Firm Investigates Merger and Looming Vote on August 21, 2024, of ALLETE, Inc. - ALE
- Jun -26 - SHAREHOLDER INVESTIGATION: The M&A Class Action Firm Investigates Merger of AdTheorent Holding Company, Inc. – ADTH
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> Regulated Operations
Expected Growth : 2.5 %
What the company do ?
Regulated Operations from ALLETE, Inc. refers to the company's utility segment, Minnesota Power, which provides electric service to customers in northeastern Minnesota.
Why we expect these perspectives ?
ALLETE's Regulated Operations segment growth of 2.5% is driven by increasing electricity demand from industrial and commercial customers, rate base growth from infrastructure investments, and favorable weather patterns. Additionally, the segment benefits from a constructive regulatory environment, allowing for timely recovery of costs and investments.
Segment n°2 -> ALLETE Clean Energy
Expected Growth : 4.0 %
What the company do ?
ALLETE Clean Energy, a subsidiary of ALLETE, Inc., develops and operates renewable energy projects, focusing on wind, solar, and biomass energy solutions.
Why we expect these perspectives ?
ALLETE Clean Energy's 4.0% growth is driven by increasing demand for renewable energy, strategic acquisitions, and expansion of wind energy projects. Additionally, favorable government policies and incentives for clean energy, coupled with declining renewable energy costs, contribute to the segment's growth.
Segment n°3 -> Corporate and Other
Expected Growth : 1.5 %
What the company do ?
Corporate and Other from ALLETE, Inc. refers to the unallocated corporate expenses, interest income, and other miscellaneous items not attributed to specific business segments.
Why we expect these perspectives ?
ALLETE's Corporate and Other segment growth of 1.5% is driven by increasing transmission and distribution investments, strategic acquisitions, and cost savings initiatives. Additionally, the company's focus on renewable energy and grid modernization efforts contribute to growth. Furthermore, ALLETE's diversified business model and strong financial position enable the company to invest in growth opportunities and drive long-term value creation.
Allete, Inc. Products
| Product Range | What is it ? |
|---|---|
| Electricity | Generation, transmission, and distribution of electricity to residential, commercial, and industrial customers in Minnesota, North Dakota, and Wisconsin. |
| Real Estate | Development and management of commercial and industrial properties, including industrial parks, office buildings, and retail centers. |
| Energy Infrastructure and Services | Construction, operation, and maintenance of energy infrastructure, including transmission lines, substations, and distribution systems. |
| Renewable Energy | Development and operation of wind, solar, and hydroelectric power generation facilities. |
ALLETE, Inc.'s Porter Forces
Threat Of Substitutes
ALLETE, Inc. operates in the utility industry, which has a moderate threat of substitutes. While there are alternative energy sources, such as solar and wind power, they are not yet widely adopted and are often more expensive than traditional energy sources.
Bargaining Power Of Customers
ALLETE, Inc. serves a diverse customer base, including residential, commercial, and industrial customers. However, the company's customers have limited bargaining power due to the lack of alternative energy providers in the region.
Bargaining Power Of Suppliers
ALLETE, Inc. relies on a few large suppliers for fuel and other essential materials. While the company has some bargaining power due to its size, the suppliers also have some leverage due to the specialized nature of their products.
Threat Of New Entrants
The utility industry has high barriers to entry, including significant capital requirements and regulatory hurdles. As a result, the threat of new entrants is low, and ALLETE, Inc. faces limited competition from new market entrants.
Intensity Of Rivalry
ALLETE, Inc. operates in a moderately competitive industry, with a few large players competing for market share. While the company faces some competition, the industry's regulatory framework and high barriers to entry limit the intensity of rivalry.
Strength
Weaknesses
Opportunities
Threats
Capital Structure
| Value | |
|---|---|
| Debt Weight | 38.97% |
| Debt Cost | 5.18% |
| Equity Weight | 61.03% |
| Equity Cost | 7.66% |
| WACC | 6.69% |
| Leverage | 63.86% |
ALLETE, Inc. : Quality Control
ALLETE, Inc. passed 5 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| NWE | NorthWestern Corporation, doing business as NorthWestern Energy, provides electricity and natural gas to residential, commercial, and various industrial customers. The company operates through Electric and Natural Gas segments. It generates, … |
| AVA | Avista Corporation, together with its subsidiaries, operates as an electric and natural gas utility company. It operates in two segments, Avista Utilities and AEL&P. The Avista Utilities segment provides electric … |
| AES | The AES Corporation operates as a diversified power generation and utility company. It owns and/or operates power plants to generate and sell power to customers, such as utilities, industrial users, … |
| BKH | Black Hills Corporation, through its subsidiaries, operates as an electric and natural gas utility company in the United States. It operates in two segments, Electric Utilities and Gas Utilities. The … |
| OTTR | Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. The company's Electric segment produces, transmits, distributes, and sells electric … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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NorthWestern
A-Score
1-Year Total Return ->
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Avista
A-Score
1-Year Total Return ->
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Black Hills
A-Score
1-Year Total Return ->
4
ALLETE
A-Score
1-Year Total Return ->
5
Otter Tail
A-Score
1-Year Total Return ->
6
