Operating Margin % is calculated as Operating Income divided by its Revenue. ALLETE's Operating Income for the
three
months ended in Sep. 2025 was €25 Mil. ALLETE's Revenue for the
three
months ended in Sep. 2025 was €320 Mil. Therefore, ALLETE's Operating Margin % for the quarter that ended in Sep. 2025 was 7.89%.
Warning Sign:
ALLETE Inc operating margin has been in a 5-year decline. The average rate of decline per year is -7.5%.
The historical rank and industry rank for ALLETE's Operating Margin % or its related term are showing as below:
FRA:AEBA'
s Operating Margin % Range Over the Past 10 Years
Min: 8.54 Med: 13.1 Max: 16.62
Current: 9.25
FRA:AEBA's Operating Margin % is not ranked
in the Utilities - Regulated industry.
Industry Median: 14.97
vs FRA:AEBA: 9.25
ALLETE's 5-Year Average Operating Margin % Growth Rate was -7.50% per year.
ALLETE's Operating Income for the
three
months ended in Sep. 2025 was €25 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Sep. 2025 was €126 Mil.
ALLETE (FRA:AEBA) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
ALLETE Operating Margin % Related Terms
ALLETE Operating Margin % Historical Data
* Premium members only.
The historical data trend for ALLETE's Operating Margin % 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.
FRA:AEBA vs SRE, AES: Operating Margin % Comparison
For the Utilities - Diversified subindustry, ALLETE's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, ALLETE's Operating Margin % distribution charts can be found below:
* The bar in red indicates where ALLETE's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
ALLETE's Operating Margin % for the fiscal year that ended in Dec. 2024 is calculated as
* 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 Operating Margin % of 7.89% as of Sep. 2025. Operating margin is the ratio of total operating income to net sales. View historical data on ALLETE and its competitors. This is 40% below median its historical median of 13.10. Over the past decade, ALLETE's Operating Margin % has ranged from 8.54 to 16.62.
Is ALLETE's Operating Margin % too high?
ALLETE's current Operating Margin % of 7.89% is 40% below median its 10-year median of 13.10. Over the past 10 years, this metric has ranged from a low of 8.54 to a high of 16.62. The Utilities - Regulated industry median Operating Margin % is 14.97. ALLETE's value of 7.89% is 47.3% 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 Operating Margin % compare to SRE and AES?
ALLETE's Operating Margin % of 7.89% can be compared against companies in the Utilities - Regulated industry. The industry median Operating Margin % is 14.97. ALLETE's value of 7.89% is 47.3% below this benchmark. Historically, ALLETE's own Operating Margin % has ranged from 8.54 to 16.62 over the past decade. While the company's 10-year median is 13.10 vs. the industry median of 14.97, 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 Operating Margin % for an Utilities - Regulated company?
The median Operating Margin % among Utilities - Regulated companies is 14.97, based on 499 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ALLETE's current Operating Margin % of 7.89% is 47.3% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on ALLETE and its competitors. For the Utilities - Regulated industry, the median Operating Margin % is 14.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALLETE's current Operating Margin % is 7.89%, which is 40% below median its own 10-year median of 13.10. 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 Operating Margin % of 7.89%. 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 Operating Margin % is 7.89%, which is 40% below median its 10-year median of 13.10 and 47.3% below the Utilities - Regulated industry median of 14.97. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For ALLETE (FRA:AEBA), the current Operating Margin % is 7.89% 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:
Operating Margin %: 7.89% (40% below median its 10-year median of 13.10)
GF Value™: €51.55 vs. price of €57.50 (11.5% above fair value)
Industry Position: 47.3% 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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