Fact based stock research
ALLETE (NYSE:ALE)

US0185223007

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

(NEW) 360° View - the ultimate rating with all financial and non-financial indicators.

ALLETE stock research in summary

allete.com

ANALYSIS: With an Obermatt Combined Rank of 90 (better than 90% compared with investment alternatives), ALLETE (Electric Utilities, USA) shares have much better financial characteristics than comparable stocks. Shares of ALLETE are a good value (attractively priced) with a consolidated Value Rank of 75 (better than 75% of alternatives), are safely financed (Safety Rank of 84, which means low debt burdens), but show below-average growth (Growth Rank of 39). ...read more

RECOMMENDATION: A Combined Rank of 90, is a strong buy recommendation based on ALLETE's financial characteristics. As the company ALLETE's key financial metrics exhibit good value (Obermatt Value Rank of 75) but low growth (Obermatt Growth Rank of 39) while being safely financed (Obermatt Safety Rank of 84), it may be a safer investment because companies with low debt can better withstand times of crises. Yet the good value, better than 75% of comparable companies, may also indicate that the company's future is challenging. If you believe that low growth is temporary or just due to a specific current event, you may conclude that the good value of the stock provides an attractive investment opportunity and the downside is limited due to below-average financing risks. Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	75
Growth Rank	39
Safety Rank	84
Combined Rank	90

Country	USA
Industry	Electric Utilities
Index	Low Emissions, Dividends USA, Diversity USA, Wind Energy, S&P MIDCAP
Size class	Small

This stock has achievements: Top 10 Stock.

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: ALLETE

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	89	68	71	75
GROWTH
GROWTH	9	91	13	39
SAFETY
SAFETY	48	80	81	84
SENTIMENT
SENTIMENT	67	60	33	^new
360° VIEW
360° VIEW	59	98	48	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 31-Mar-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better ALLETE is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	89	68	71	75
GROWTH
GROWTH	9	91	13	39
SAFETY
SAFETY	48	80	81	84
COMBINED
COMBINED	54	100	63	90

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of ALLETE the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 75 (better than 75% compared with alternatives) for 2025, ALLETE shares are significantly less expensive than comparable stocks. The Value Rank is based on consolidating four value indicators that are all above average for ALLETE. Price-to-Sales is 54 which means that the stock price compared with what market professionals expect for future sales is lower than for 54% of comparable companies, indicating a good value for ALLETE's revenue size. The same is valid for expected Price-to-Profits, more favorable than for 69% of alternatives, and this is also true for the Price-to-Book capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 80. Compared with other companies in the same industry, dividend yields of ALLETE are expected to be higher than for 74% of all competitors (a Dividend Yield rank of 74). ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 75, is a buy recommendation based on ALLETE's stock price compared with the company's operational size and dividend yields. Since all value metrics are above the industry average, there is no objection to investing in ALLETE based on its detailed value metrics. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	58	43	53	54
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	87	65	61	69
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	79	82	80	80
DIVIDEND YIELD
DIVIDEND YIELD	67	62	69	74
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	89	68	71	75

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of ALLETE; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 39 (better than 39% compared with alternatives), ALLETE shows a below-average growth dynamic in its industry. There is limited momentum in this company. The Growth Rank is based on consolidating four value indicators, with three out of four indicators below average for ALLETE. Only Capital Growth has a good rank of 98, which means that currently professionals expect the company to grow its invested capital more than 23% of its competitors. The other three indicators are pointing South: Sales Growth has a rank of 5 which means that currently professionals expect the company to grow less than 95% of its competitors. Profit Growth with a rank of 23 and Stock Returns with a rank of 39 are also low (below 61% of alternative investments). ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 39, is a hold recommendation for growth and momentum investors. The good news from the invested capital side is surprising. A company with disappointing revenues, profits, and disappointed shareholders typically doesn't invest above average. Overall, the growth momentum for ALLETE is thus negative. As it is intriguing to see that company executives are optimistic about their investment policy, it is worthwhile looking into the details of the capital investment projects. They may indicate future growth and profits and thus if accompanied by a good value, a sign of good timing to invest in the stock. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case, especially since the growth performance is limited here. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	77	12	1	5
PROFIT GROWTH
PROFIT GROWTH	16	88	17	23
CAPITAL GROWTH
CAPITAL GROWTH	17	98	57	98
STOCK RETURNS
STOCK RETURNS	23	79	45	39
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	9	91	13	39

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of ALLETE.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 84 (better than 84% compared with alternatives) for 2025, the company ALLETE has safe financing practices, which means that their overall debt burden is low. This doesn't mean that the business of ALLETE is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators where two out of three are above average for ALLETE.Leverage is at 98, meaning the company has a below-average debt-to-equity ratio. It has less debt than 98% of its competitors.Refinancing is at a rank of 86, meaning that the portion of the debt that is about to be refinanced is below average. It has less debt in the refinancing stage than 86% of its competitors. Liquidity is at 22, meaning that the company generates less profit to service its debt than 78% of its competitors. This indicates that the company is on the riskier side regarding debt service. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 84 (better than 84% compared with alternatives), ALLETE has a financing structure that is significantly safer than that of its competitors. Low leverage and low refinancing risk mean a safer financing situation. However, low liquidity means that current company cash flows are low in relation to the level of debt. This is a sign of caution in case it is expected for profits to remain low. Investors should compare Obermatt’s Value, Growth, and Sentiment Ranks before deciding. They may also want to investigate why cash flows are expected to be low, making debt service for ALLETE more challenging. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	94	96	97	98
REFINANCING
REFINANCING	24	88	81	86
LIQUIDITY
LIQUIDITY	25	16	25	22
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	48	80	81	84

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of ALLETE and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	15	38	^new
OPINIONS CHANGE
OPINIONS CHANGE	79	72	23	^new
PRO HOLDINGS
PRO HOLDINGS	35	44	9	^new
MARKET PULSE
MARKET PULSE	92	95	94	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	67	60	33	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for ALLETE.
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