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GuruFocus Financial Strength Rank measures how strong a company’s financial situation is. It is based on these factors

1. The debt burden that the company has as measured by its Interest coverage (current year).
2. Debt to revenue ratio. The lower, the better
3. Altman Z-score.

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

Financial Strength : 7/10

vs
industry
vs
history
Cash to Debt 0.04
ALE's Cash to Debt is ranked lower than
85% of the 587 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 0.26 vs. ALE: 0.04 )
Ranked among companies with meaningful Cash to Debt only.
ALE' s 10-Year Cash to Debt Range
Min: 0.01  Med: 0.14 Max: 0.76
Current: 0.04
0.01
0.76
Equity to Asset 0.38
ALE's Equity to Asset is ranked higher than
56% of the 578 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 0.35 vs. ALE: 0.38 )
Ranked among companies with meaningful Equity to Asset only.
ALE' s 10-Year Equity to Asset Range
Min: 0.29  Med: 0.38 Max: 0.47
Current: 0.38
0.29
0.47
Interest Coverage 3.45
ALE's Interest Coverage is ranked lower than
61% of the 306 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 4.36 vs. ALE: 3.45 )
Ranked among companies with meaningful Interest Coverage only.
ALE' s 10-Year Interest Coverage Range
Min: 1.59  Med: 3.27 Max: 5.43
Current: 3.45
1.59
5.43
F-Score: 6
Z-Score: 1.08
WACC vs ROIC
7.93%
5.73%
WACC
ROIC
GuruFocus Profitability Rank ranks how profitable a company is and how likely the company’s business will stay that way. It is based on these factors:

1. Operating Margin
2. Trend of the Operating Margin (5-year average). The company with an uptrend profit margin has a higher rank.
••3. Consistency of the profitability
4. Piotroski F-Score
5. Predictability Rank•

The maximum rank is 10. A rank of 7 or higher means a higher profitability and may stay that way. A rank of 3 or lower indicates that the company has had trouble to make a profit.

Profitability Rank is not directly related to the Financial Strength Rank. But if a company is consistently profitable, its financial strength will be stronger.

Profitability & Growth : 7/10

vs
industry
vs
history
Operating margin (%) 17.03
ALE's Operating margin (%) is ranked higher than
65% of the 601 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 11.99 vs. ALE: 17.03 )
Ranked among companies with meaningful Operating margin (%) only.
ALE' s 10-Year Operating margin (%) Range
Min: 6.12  Med: 15.88 Max: 19.56
Current: 17.03
6.12
19.56
Net-margin (%) 11.19
ALE's Net-margin (%) is ranked higher than
66% of the 602 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 7.26 vs. ALE: 11.19 )
Ranked among companies with meaningful Net-margin (%) only.
ALE' s 10-Year Net-margin (%) Range
Min: 1.8  Med: 10.03 Max: 35.84
Current: 11.19
1.8
35.84
ROE (%) 8.45
ALE's ROE (%) is ranked lower than
52% of the 598 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 8.81 vs. ALE: 8.45 )
Ranked among companies with meaningful ROE (%) only.
ALE' s 10-Year ROE (%) Range
Min: 2.16  Med: 10.48 Max: 17.56
Current: 8.45
2.16
17.56
ROA (%) 3.17
ALE's ROA (%) is ranked higher than
52% of the 613 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 2.99 vs. ALE: 3.17 )
Ranked among companies with meaningful ROA (%) only.
ALE' s 10-Year ROA (%) Range
Min: 0.94  Med: 3.58 Max: 7.57
Current: 3.17
0.94
7.57
ROC (Joel Greenblatt) (%) 7.32
ALE's ROC (Joel Greenblatt) (%) is ranked lower than
61% of the 609 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 9.20 vs. ALE: 7.32 )
Ranked among companies with meaningful ROC (Joel Greenblatt) (%) only.
ALE' s 10-Year ROC (Joel Greenblatt) (%) Range
Min: 4.34  Med: 13.18 Max: 26.17
Current: 7.32
4.34
26.17
Revenue Growth (3Y)(%) 0.20
ALE's Revenue Growth (3Y)(%) is ranked lower than
69% of the 508 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 3.40 vs. ALE: 0.20 )
Ranked among companies with meaningful Revenue Growth (3Y)(%) only.
ALE' s 10-Year Revenue Growth (3Y)(%) Range
Min: -61.3  Med: 0.50 Max: 110.9
Current: 0.2
-61.3
110.9
EBITDA Growth (3Y)(%) 3.30
ALE's EBITDA Growth (3Y)(%) is ranked higher than
55% of the 476 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 2.10 vs. ALE: 3.30 )
Ranked among companies with meaningful EBITDA Growth (3Y)(%) only.
ALE' s 10-Year EBITDA Growth (3Y)(%) Range
Min: 0  Med: 1.50 Max: 66.1
Current: 3.3
0
66.1
EPS Growth (3Y)(%) 3.10
ALE's EPS Growth (3Y)(%) is ranked lower than
51% of the 439 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 3.60 vs. ALE: 3.10 )
Ranked among companies with meaningful EPS Growth (3Y)(%) only.
ALE' s 10-Year EPS Growth (3Y)(%) Range
Min: -47.3  Med: -0.30 Max: 63.9
Current: 3.1
-47.3
63.9
» ALE's 10-Y Financials

Financials


Revenue & Net Income
Cash & Debt
Oprt. Cash Flow & Free Cash Flow

» Details

Guru Trades

Q3 2014

ALE Guru Trades in Q3 2014

Paul Tudor Jones 20,404 sh (+69.54%)
Bernard Horn 70,200 sh (+39.84%)
Bill Frels 273,849 sh (+16.47%)
John Keeley 882,123 sh (-0.61%)
Mario Gabelli 31,050 sh (-3.12%)
Chuck Royce 178,347 sh (-6.16%)
Jim Simons 160,699 sh (-42.81%)
» More
Q4 2014

ALE Guru Trades in Q4 2014

Mario Gabelli 31,050 sh (unchged)
Bernard Horn 70,200 sh (unchged)
Paul Tudor Jones Sold Out
John Keeley 873,358 sh (-0.99%)
Chuck Royce 175,747 sh (-1.46%)
Bill Frels 265,761 sh (-2.95%)
Jim Simons 9,899 sh (-93.84%)
» More
Q1 2015

ALE Guru Trades in Q1 2015

Paul Tudor Jones 12,733 sh (New)
David Dreman 174,998 sh (New)
Jim Simons 39,899 sh (+303.06%)
Bill Frels 291,417 sh (+9.65%)
Mario Gabelli 31,050 sh (unchged)
Bernard Horn 70,200 sh (unchged)
Chuck Royce 170,647 sh (-2.90%)
John Keeley 829,675 sh (-5.00%)
» More
Q2 2015

ALE Guru Trades in Q2 2015

Jim Simons 120,199 sh (+201.26%)
David Dreman 190,508 sh (+8.86%)
Bill Frels 302,457 sh (+3.79%)
Bernard Horn 70,200 sh (unchged)
Chuck Royce 170,647 sh (unchged)
Paul Tudor Jones Sold Out
John Keeley 771,393 sh (-7.02%)
Mario Gabelli 8,050 sh (-74.07%)
» More
» Details

Insider Trades

Latest Guru Trades with ALE

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Guru Investment Theses on ALLETE Inc

Bernard Horn Comments on Allete - Mar 16, 2015

Allete (ALE)’s third quarter earnings were up, due to cost recovery revenue related to wind energy expansion and retrofit of an electric unit. In addition to capital expenditure projects coming to fruition, the company announced strong demand from its important industrial customers in the region.

From Bernard Horn (Trades, Portfolio)’s Polaris Global Value Fund Q4 2014 Shareholder Letter.

Check out Bernard Horn latest stock trades

Top Ranked Articles about ALLETE Inc

Stocks Guru Investors Are Buying in the Worst-Performing Sector - Utilities
Value investors often like to find gems among lackluster sectors. In 2015, the most floundering is Utilities. According to Morningstar, these stocks have gained 0.33% year-to-date, far below the next lowest performing, Energy, which gained 6.36%. Read more...
David Dreman Reinvests in Two Former Holdings in First Quarter
David Dreman (Trades, Portfolio), founder, chairman and CIO of Dreman Value Management, has a reputation for being a contrarian investor who takes a low P/E approach to his stock choices. He believes markets are not perfectly efficient and that investor actions are influenced by behavioral psychology. Read more...
Bernard Horn Comments on Allete
Allete (ALE)’s third quarter earnings were up, due to cost recovery revenue related to wind energy expansion and retrofit of an electric unit. In addition to capital expenditure projects coming to fruition, the company announced strong demand from its important industrial customers in the region. Read more...

Ratios

vs
industry
vs
history
P/E(ttm) 15.90
ALE's P/E(ttm) is ranked higher than
51% of the 493 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 17.20 vs. ALE: 15.90 )
Ranked among companies with meaningful P/E(ttm) only.
ALE' s 10-Year P/E(ttm) Range
Min: 9.19  Med: 16.55 Max: 727.14
Current: 15.9
9.19
727.14
Forward P/E 13.61
ALE's Forward P/E is ranked higher than
52% of the 250 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 14.64 vs. ALE: 13.61 )
Ranked among companies with meaningful Forward P/E only.
N/A
PE(NRI) 16.90
ALE's PE(NRI) is ranked higher than
51% of the 492 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 17.00 vs. ALE: 16.90 )
Ranked among companies with meaningful PE(NRI) only.
ALE' s 10-Year PE(NRI) Range
Min: 9.48  Med: 16.74 Max: 152.7
Current: 16.9
9.48
152.7
P/B 1.31
ALE's P/B is ranked higher than
54% of the 581 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.53 vs. ALE: 1.31 )
Ranked among companies with meaningful P/B only.
ALE' s 10-Year P/B Range
Min: 0.94  Med: 1.49 Max: 2.63
Current: 1.31
0.94
2.63
P/S 1.79
ALE's P/S is ranked lower than
62% of the 595 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.35 vs. ALE: 1.79 )
Ranked among companies with meaningful P/S only.
ALE' s 10-Year P/S Range
Min: 0.91  Med: 1.62 Max: 2.2
Current: 1.79
0.91
2.2
POCF 6.76
ALE's POCF is ranked higher than
51% of the 470 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 7.41 vs. ALE: 6.76 )
Ranked among companies with meaningful POCF only.
ALE' s 10-Year POCF Range
Min: 5.04  Med: 7.83 Max: 24.39
Current: 6.76
5.04
24.39
EV-to-EBIT 15.75
ALE's EV-to-EBIT is ranked lower than
61% of the 516 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 14.35 vs. ALE: 15.75 )
Ranked among companies with meaningful EV-to-EBIT only.
ALE' s 10-Year EV-to-EBIT Range
Min: -23.2  Med: 15.30 Max: 74.9
Current: 15.75
-23.2
74.9
PEG 3.02
ALE's PEG is ranked lower than
57% of the 243 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 2.44 vs. ALE: 3.02 )
Ranked among companies with meaningful PEG only.
ALE' s 10-Year PEG Range
Min: 0.82  Med: 4.32 Max: 26.85
Current: 3.02
0.82
26.85
Shiller P/E 17.89
ALE's Shiller P/E is ranked higher than
50% of the 350 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 18.99 vs. ALE: 17.89 )
Ranked among companies with meaningful Shiller P/E only.
ALE' s 10-Year Shiller P/E Range
Min: 6.12  Med: 13.38 Max: 22.84
Current: 17.89
6.12
22.84
Current Ratio 0.82
ALE's Current Ratio is ranked lower than
71% of the 594 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.10 vs. ALE: 0.82 )
Ranked among companies with meaningful Current Ratio only.
ALE' s 10-Year Current Ratio Range
Min: 0.73  Med: 1.34 Max: 3.75
Current: 0.82
0.73
3.75
Quick Ratio 0.56
ALE's Quick Ratio is ranked lower than
80% of the 594 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.01 vs. ALE: 0.56 )
Ranked among companies with meaningful Quick Ratio only.
ALE' s 10-Year Quick Ratio Range
Min: 0.43  Med: 1.23 Max: 3.28
Current: 0.56
0.43
3.28
Days Inventory 70.71
ALE's Days Inventory is ranked lower than
83% of the 537 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 22.09 vs. ALE: 70.71 )
Ranked among companies with meaningful Days Inventory only.
ALE' s 10-Year Days Inventory Range
Min: 39.29  Med: 49.57 Max: 82.12
Current: 70.71
39.29
82.12
Days Sales Outstanding 31.01
ALE's Days Sales Outstanding is ranked higher than
73% of the 476 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 45.90 vs. ALE: 31.01 )
Ranked among companies with meaningful Days Sales Outstanding only.
ALE' s 10-Year Days Sales Outstanding Range
Min: 31.34  Med: 42.34 Max: 218.21
Current: 31.01
31.34
218.21

Dividend & Buy Back

vs
industry
vs
history
Dividend Yield 4.21
ALE's Dividend Yield is ranked higher than
52% of the 866 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 3.72 vs. ALE: 4.21 )
Ranked among companies with meaningful Dividend Yield only.
ALE' s 10-Year Dividend Yield Range
Min: 2.66  Med: 4.16 Max: 10.68
Current: 4.21
2.66
10.68
Dividend Payout 0.67
ALE's Dividend Payout is ranked lower than
63% of the 550 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 9999.00 vs. ALE: 0.67 )
Ranked among companies with meaningful Dividend Payout only.
ALE' s 10-Year Dividend Payout Range
Min: 0.29  Med: 0.70 Max: 13.37
Current: 0.67
0.29
13.37
Dividend growth (3y) 3.30
ALE's Dividend growth (3y) is ranked higher than
52% of the 309 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 3.10 vs. ALE: 3.30 )
Ranked among companies with meaningful Dividend growth (3y) only.
ALE' s 10-Year Dividend growth (3y) Range
Min: -27.7  Med: 1.60 Max: 11.4
Current: 3.3
-27.7
11.4
Yield on cost (5-Year) 4.71
ALE's Yield on cost (5-Year) is ranked higher than
53% of the 868 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 4.26 vs. ALE: 4.71 )
Ranked among companies with meaningful Yield on cost (5-Year) only.
ALE' s 10-Year Yield on cost (5-Year) Range
Min: 2.98  Med: 4.66 Max: 11.97
Current: 4.71
2.98
11.97
Share Buyback Rate -6.80
ALE's Share Buyback Rate is ranked lower than
72% of the 344 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: -2.00 vs. ALE: -6.80 )
Ranked among companies with meaningful Share Buyback Rate only.
ALE' s 10-Year Share Buyback Rate Range
Min: 50.1  Med: -5.10 Max: -112.7
Current: -6.8

Valuation & Return

vs
industry
vs
history
Price/Tangible Book 1.49
ALE's Price/Tangible Book is ranked higher than
58% of the 531 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.83 vs. ALE: 1.49 )
Ranked among companies with meaningful Price/Tangible Book only.
ALE' s 10-Year Price/Tangible Book Range
Min: 0.69  Med: 1.34 Max: 2.6
Current: 1.49
0.69
2.6
Price/Projected FCF 6.51
ALE's Price/Projected FCF is ranked lower than
91% of the 300 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.56 vs. ALE: 6.51 )
Ranked among companies with meaningful Price/Projected FCF only.
ALE' s 10-Year Price/Projected FCF Range
Min: 0.37  Med: 0.93 Max: 170.75
Current: 6.51
0.37
170.75
Price/Median PS Value 1.11
ALE's Price/Median PS Value is ranked lower than
64% of the 544 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.02 vs. ALE: 1.11 )
Ranked among companies with meaningful Price/Median PS Value only.
ALE' s 10-Year Price/Median PS Value Range
Min: 0.24  Med: 0.84 Max: 1.29
Current: 1.11
0.24
1.29
Price/Graham Number 1.06
ALE's Price/Graham Number is ranked higher than
55% of the 420 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 1.18 vs. ALE: 1.06 )
Ranked among companies with meaningful Price/Graham Number only.
ALE' s 10-Year Price/Graham Number Range
Min: 0.38  Med: 0.95 Max: 5.6
Current: 1.06
0.38
5.6
Earnings Yield (Greenblatt) (%) 6.31
ALE's Earnings Yield (Greenblatt) (%) is ranked lower than
52% of the 603 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 6.30 vs. ALE: 6.31 )
Ranked among companies with meaningful Earnings Yield (Greenblatt) (%) only.
ALE' s 10-Year Earnings Yield (Greenblatt) (%) Range
Min: 1.3  Med: 6.50 Max: 9.6
Current: 6.31
1.3
9.6
Forward Rate of Return (Yacktman) (%) -2.03
ALE's Forward Rate of Return (Yacktman) (%) is ranked lower than
69% of the 368 Companies
in the Global Utilities - Regulated Electric industry.

( Industry Median: 2.75 vs. ALE: -2.03 )
Ranked among companies with meaningful Forward Rate of Return (Yacktman) (%) only.
ALE' s 10-Year Forward Rate of Return (Yacktman) (%) Range
Min: -24.3  Med: -4.10 Max: 9.8
Current: -2.03
-24.3
9.8

Analyst Estimate

Dec15 Dec16 Dec17
EPS($) 3.32 3.50 3.75
EPS without NRI($) 3.32 3.50 3.75

Business Description

Industry: Utilities - Regulated » Utilities - Regulated Electric
Compare:WR, EE, ENI, DTE, DUK » details
Traded in other countries:AEBA.Germany,
ALLETE Inc a Minnesota corporation was incorporated in 1906. The Company, together with its subsidiaries is engaged in the generation, transmission and distribution of electric power in the United States. Its business segments comprises of Regulated Operations and Investments and Other. Regulated Operations includes the Company's regulated utilities, Minnesota Power and SWL&P, as well as its investment in ATC, a Wisconsin-based utility that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota and Illinois. Minnesota Power provides regulated utility electric service in northeastern Minnesota to approximately 144,000 retail customers. Minnesota Power's non-affiliated municipal customers consist of 16municipalities in Minnesota and 1 private utility in Wisconsin. SWL&P, a wholly-owned subsidiary of the Company, is also a private utility in Wisconsin and a customer of Minnesota Power. SWL&P provides regulated electric, natural gas and water service in northwestern Wisconsin to approximately 15,000 electric customers, 12,000 natural gas customers and 10,000 water customers. Its regulated utility operations include retail and wholesale activities under the jurisdiction of state and federal regulatory authorities. Investments and Other is comprised of BNI Coal, the Company's coal mining operations in North Dakota, and ALLETE Properties, its Florida real estate business. This segment also includes emerging technology investments, a small amount of non-rate base generation, approximately 6,100 acres of land for sale in Minnesota, and earnings on cash and short-term investments. The Company's businesses are subject to regulation of environmental matters by federal, state and local authorities.
» More Articles for ALE

Headlines

Articles On GuruFocus.com
Stocks Guru Investors Are Buying in the Worst-Performing Sector - Utilities Jun 24 2015 
David Dreman Reinvests in Two Former Holdings in First Quarter May 29 2015 
Bernard Horn Comments on Allete Mar 16 2015 
My 3 Favorite Stocks with Dividend Growth from Last Week Jan 27 2013 
12 Best Dividend Paying Utilities To Consider Sep 08 2012 
Investing in Central Utility Stocks - Do Today’s Valuations Make Sense? Part 3 Aug 06 2012 
Allete Inc. Reports Operating Results (10-Q) Oct 29 2010 
ALLETE Reports Second Quarter Earnings Aug 05 2009 
ALLETE, Inc. Reports 2008 Earnings of $2.82 Per Share Feb 13 2009 
Busy Week for Dividend Increases Jan 26 2009 

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10-Q for ALLETE, Inc. Aug 06 2015
ALLETE Lags Earnings Estimates, Tops Revenues; View Up - Analyst Blog Aug 05 2015
Edited Transcript of ALE earnings conference call or presentation 4-Aug-15 2:00pm GMT Aug 04 2015
ALLETE Inc Earnings Call scheduled for 10:00 am ET today Aug 04 2015
Allete misses 2Q profit forecasts Aug 04 2015
Allete misses 2Q profit forecasts Aug 04 2015
ALLETE, Inc. quarterly earnings increase from a year ago Aug 04 2015
ALLETE, Inc. Quarterly Earnings Increase from a Year Ago Aug 04 2015
ALLETE INC Files SEC form 10-Q, Quarterly Report Aug 04 2015
Q2 2015 ALLETE Inc Earnings Release - Before Market Open Aug 04 2015
ALLETE INC Files SEC form 8-K, Other Events Aug 03 2015
ALLETE Board of Directors declares dividend on common stock Jul 31 2015
ALLETE Board of Directors Declares Dividend on Common Stock Jul 31 2015

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