ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. ALLETE's annualized net income for the quarter that ended in Sep. 2025 was €92 Mil. ALLETE's average Total Stockholders Equity over the quarter that ended in Sep. 2025 was €2,456 Mil. Therefore, ALLETE's annualized ROE % for the quarter that ended in Sep. 2025 was 3.76%.
The historical rank and industry rank for ALLETE's ROE % or its related term are showing as below:
FRA:AEBA'
s ROE % Range Over the Past 10 Years
Min: 5.81 Med: 8.24 Max: 8.98
Current: 5.81
During the past 13 years, ALLETE's highest ROE % was 8.98%. The lowest was 5.81%. And the median was 8.24%.
FRA:AEBA's ROE % is not ranked
in the Utilities - Regulated industry.
Industry Median: 8.62
vs FRA:AEBA: 5.81
ALLETE (FRA:AEBA) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Sep. 2025) net income data. The Revenue data used here is four times the quarterly (Sep. 2025) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
ALLETE ROE % Related Terms
ALLETE ROE % Historical Data
* Premium members only.
The historical data trend for ALLETE's ROE % 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.
For the Utilities - Diversified subindustry, ALLETE's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, ALLETE's ROE % distribution charts can be found below:
* The bar in red indicates where ALLETE's ROE % falls into.
* 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.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Sep. 2025) net income data.
ROE % is displayed in the 30-year financial page.
ALLETE (FRA:AEBA) has a ROE % of 3.76% as of Sep. 2025. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on ALLETE and its competitors. This is 54% below median its historical median of 8.24. Over the past decade, ALLETE's ROE % has ranged from 5.81 to 8.98.
Is ALLETE's ROE % too high?
ALLETE's current ROE % of 3.76% is 54% below median its 10-year median of 8.24. Over the past 10 years, this metric has ranged from a low of 5.81 to a high of 8.98. The Utilities - Regulated industry median ROE % is 8.62. ALLETE's value of 3.76% is 56.4% 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 ROE % compare to SRE and AES?
ALLETE's ROE % of 3.76% can be compared against companies in the Utilities - Regulated industry. The industry median ROE % is 8.62. ALLETE's value of 3.76% is 56.4% below this benchmark. Historically, ALLETE's own ROE % has ranged from 5.81 to 8.98 over the past decade. While the company's 10-year median is 8.24 vs. the industry median of 8.62, 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 ROE % for an Utilities - Regulated company?
The median ROE % among Utilities - Regulated companies is 8.62, based on 503 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. ALLETE's current ROE % of 3.76% is 56.4% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on ALLETE and its competitors. For the Utilities - Regulated industry, the median ROE % is 8.62 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. ALLETE's current ROE % is 3.76%, which is 54% below median its own 10-year median of 8.24. 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 ROE % of 3.76%. 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 ROE % is 3.76%, which is 54% below median its 10-year median of 8.24 and 56.4% below the Utilities - Regulated industry median of 8.62. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For ALLETE (FRA:AEBA), the current ROE % is 3.76% 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:
ROE %: 3.76% (54% below median its 10-year median of 8.24)
GF Value™: €51.55 vs. price of €57.50 (11.5% above fair value)
Industry Position: 56.4% 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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