ALLETE (FRA:AEBA) ROCE %: 2.41% (As of Sep. 2025)

What is ALLETE ROCE %?

ALLETE FRA:AEBA 26 ROCE % is 2.41% as of Sep. 2025. GuruFocus rates FRA:AEBA with a GF Score™ of 26/100 and a GF Value™ of €51.55. The stock has 11 warning signs investors should review.

ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. ALLETE's annualized ROCE % for the quarter that ended in Sep. 2025 was 2.41%.

ALLETE (FRA:AEBA) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

ALLETE ROCE % Related Terms

ALLETE ROCE % Historical Data

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The historical data trend for ALLETE's ROCE % 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.

ALLETE ROCE % Chart

ALLETE Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

ROCE %

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3.39

3.24

3.01

4.57

3.36

ALLETE Quarterly Data
	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25
ROCE %	Get a 7-Day Free Trial															3.45	3.20	3.90	1.73	2.41

26GF Score

ALLETE Inc FRA:AEBA

ROCE % is just one metric. See GF Score™, valuation, warning signs, and more.

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ALLETE ROCE % Calculation

ALLETE's annualized ROCE % for the fiscal year that ended in Dec. 2024 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Dec. 2024 )		(A: Dec. 2023 )		(A: Dec. 2024 )
	=	198.736	/	( ( (6103.919 - 346.259)	+	(6450.357 - 386.011) )	/ 2 )
	=	198.736	/	( (5757.66	+	6064.346)	/ 2 )
	=	198.736	/	5911.003
	=	3.36 %

ALLETE's ROCE % of for the quarter that ended in Sep. 2025 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Sep. 2025 )		(Q: Jun. 2025 )		(Q: Sep. 2025 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Sep. 2025 )		(Q: Jun. 2025 )		(Q: Sep. 2025 )
	=	138.024	/	( ( (5993.744 - 292.959)	+	(6094.271 - 352.046) )	/ 2 )
	=	138.024	/	( ( 5700.785	+	5742.225 )	/ 2 )
	=	138.024	/	5721.505
	=	2.41 %

(1) Note: The EBIT data used here is four times the quarterly (Sep. 2025) EBIT data.

Frequently Asked Questions Learn more about ROCE % →

What does a ROCE % of 2.41% mean?

ALLETE (FRA:AEBA) has a ROCE % of 2.41% as of Sep. 2025.

Is ALLETE's ROCE % too high?

ALLETE's current ROCE % is 2.41%. The Utilities - Regulated industry median ROCE % is 6.95. ALLETE's value of 2.41% is 65.3% 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 ROCE % compare to SRE and AES?

ALLETE's ROCE % of 2.41% can be compared against companies in the Utilities - Regulated industry. The industry median ROCE % is 6.95. ALLETE's value of 2.41% is 65.3% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.

What is a good ROCE % for an Utilities - Regulated company?

The median ROCE % among Utilities - Regulated companies is 6.95, based on 505 companies in the industry. Companies in the top quartile (top 25%) have a ROCE % significantly above this median, while those in the bottom quartile fall well below. However, ROCE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ALLETE's current ROCE % of 2.41% is 65.3% 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 ROCE % mean?

A high ROCE % can signal that a stock is expensive relative to its fundamentals. For the Utilities - Regulated industry, the median ROCE % is 6.95 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALLETE's current ROCE % is 2.41%. 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 ROCE % of 2.41%. 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 ROCE % is 2.41% and 65.3% below the Utilities - Regulated industry median of 6.95. 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 ROCE % calculated?

ROCE % is calculated from a company's financial statements. For ALLETE (FRA:AEBA), the current ROCE % is 2.41% 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:

ROCE %: 2.41%
GF Value™: €51.55 vs. price of €57.50 (11.5% above fair value)
GF Score™: 26/100 with 11 warning signs
Industry Position: 65.3% 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 Business Description

Industry Utilities Utilities - Regulated

Comparable Companies XTER:MVV1 FRA:WWG HAM:XX1 XMAD:IBE ADX:TAQA MIL:ENEL XPAR:ENGI SRE XTER:EOAN XTER:RWE DFM:DEWA SAU:2082 LSE:SSE XTER:EBK XLIS:EDP TSX:BIP.UN ASX:ORG TSE:9502 AES MIL:A2A

Address 30 West Superior Street, Duluth, MN, USA, 55802-2093

Website https://www.allete.com

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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€57.50

Price

€51.55

GF Value

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