Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. ALLETE's
Operating Income
for the
three
months ended in Sep. 2025 was €25 Mil. ALLETE's Interest Expense for the
three
months ended in Sep. 2025 was €-22 Mil.
ALLETE's interest coverage for the quarter that ended in Sep. 2025 was 1.16.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for ALLETE's Interest Coverage or its related term are showing as below:
FRA:AEBA'
s Interest Coverage Range Over the Past 10 Years
Min: 1.52 Med: 2.54 Max: 3.81
Current: 1.52
FRA:AEBA's Interest Coverage is not ranked
in the Utilities - Regulated industry.
Industry Median: 3.78
vs FRA:AEBA: 1.52
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
ALLETE Interest Coverage Related Terms
ALLETE Interest Coverage Historical Data
* Premium members only.
The historical data trend for ALLETE's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
FRA:AEBA vs SRE, AES: Interest Coverage Comparison
For the Utilities - Diversified subindustry, ALLETE's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
ALLETE Interest Coverage vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, ALLETE's Interest Coverage distribution charts can be found below:
* The bar in red indicates where ALLETE's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
ALLETE (FRA:AEBA) has a Interest Coverage of 1.16 as of Sep. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ALLETE and its competitors. This is 54% below median its historical median of 2.54. Over the past decade, ALLETE's Interest Coverage has ranged from 1.52 to 3.81.
Is ALLETE's Interest Coverage too high?
ALLETE's current Interest Coverage of 1.16 is 54% below median its 10-year median of 2.54. Over the past 10 years, this metric has ranged from a low of 1.52 to a high of 3.81. The Utilities - Regulated industry median Interest Coverage is 3.78. ALLETE's value of 1.16 is 69.3% below this industry median. Overall, ALLETE has a GF Score™ of 26/100, reflecting its overall financial health beyond just this single metric.
How does ALLETE's Interest Coverage compare to SRE and AES?
ALLETE's Interest Coverage of 1.16 can be compared against companies in the Utilities - Regulated industry. The industry median Interest Coverage is 3.78. ALLETE's value of 1.16 is 69.3% below this benchmark. Historically, ALLETE's own Interest Coverage has ranged from 1.52 to 3.81 over the past decade. While the company's 10-year median is 2.54 vs. the industry median of 3.78, ALLETE has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Utilities - Regulated company?
The median Interest Coverage among Utilities - Regulated companies is 3.78, based on 449 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ALLETE's current Interest Coverage of 1.16 is 69.3% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on ALLETE and its competitors. For the Utilities - Regulated industry, the median Interest Coverage is 3.78 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALLETE's current Interest Coverage is 1.16, which is 54% below median its own 10-year median of 2.54. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is ALLETE stock overvalued right now?
ALLETE (FRA:AEBA) has a current Interest Coverage of 1.16. The stock's GF Value™ is €51.55, compared to a current price of €57.50 — trading 11.5% above its estimated fair value. The current Interest Coverage is 1.16, which is 54% below median its 10-year median of 2.54 and 69.3% below the Utilities - Regulated industry median of 3.78. ALLETE's overall GF Score™ is 26/100 with 11 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For ALLETE (FRA:AEBA), the current Interest Coverage is 1.16 as of Sep. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is ALLETE (FRA:AEBA) Overvalued in 2026?
Based on GuruFocus' analysis, ALLETE stock appears to be overvalued.
The current stock price of €57.50 is trading 11.5% above its estimated GF Value™ of €51.55.
Key valuation signals for FRA:AEBA:
Interest Coverage: 1.16 (54% below median its 10-year median of 2.54)
GF Value™: €51.55 vs. price of €57.50 (11.5% above fair value)
Industry Position: 69.3% below the Utilities - Regulated median
No single metric tells the full story. See the FRA:AEBA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
ALLETE Inc provides competitively-priced energy in America's Upper Midwest region and invests in transmission infrastructure and other energy-centric businesses. The company has two reportable segments. The first segment is Regulated Operations, which includes the company's regulated utilities, Minnesota Power and SWL&P, as well as its investment in ATC. ATC is a regulated utility based in Wisconsin that owns and maintains electric transmission assets in parts of Wisconsin, Michigan, Minnesota, and Illinois. The second segment is ALLETE Clean Energy, which focuses on developing, acquiring, and operating clean and renewable energy projects.
26GF Score
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