On a scale of 0 to 100, Allete holds a
performance score of 6. The firm shows a Beta (market volatility) of 0.0723, which signifies not very significant fluctuations relative to the market. Let's try to break down what Allete's beta means in this case. As returns on the market increase, Allete returns are expected to increase less than the market. However, during the bear market, the loss on holding Allete will be expected to be smaller as well. Although it is extremely important to respect
Allete Inc historical returns, it is better to be realistic regarding the information on equity current trending patterns. The philosophy towards foreseeing
future performance of any stock is to evaluate the business as a whole together with its past performance, including all
available fundamental and
technical indicators. By analyzing
Allete Inc technical indicators, you can presently evaluate if the expected return of 0.22% will be sustainable into the future. Please makes use of Allete Inc
jensen alpha,
potential upside,
accumulation distribution, as well as the
relationship between the
treynor ratio and
expected short fall to make a quick decision on whether Allete
price patterns will revert.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Allete income statement, its balance sheet, and the statement of cash flows. Potential Allete investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Allete investors may use each financial statement separately, they are all related. The changes in Allete's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Allete's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Allete
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Allete performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Allete shares is the value that is considered the true value of the share. If
the intrinsic value of Allete is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Allete. Please read more on our
fundamental analysis page.
How effective is Allete in utilizing its assets?
Allete Inc reports assets on its Balance Sheet. It represents the amount of Allete resources that either has an existing economic value or will provide some form of benefits in the future. By effectively utilizing its assets, Allete aims to generate revenue, control costs, drive operational efficiency, and enhance profitability. Optimizing asset utilization helps maximize shareholder value and maintain a competitive position in the Electric Utilities space. To get a better handle on how balance sheet or income statements item affect Allete volatility, please check the breakdown of all its
fundamentals.
Are Allete Earnings Expected to grow?
The
future earnings power of Allete involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Allete factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Allete
stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Allete
expected earnings.
And What about dividends?
A dividend is the distribution of a portion of Allete earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Allete dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Allete one year expected dividend income is about USD1.79 per share.
At present, Allete's
Dividend Payout Ratio is projected to increase slightly based on the last few years of reporting.
Investing in dividend-paying stocks, such as Allete Inc is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Allete must own a stock before its ex-dividend date to receive its next dividend.
This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Allete. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.
Allete Gross Profit
Allete Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Allete previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Allete Gross Profit growth over the last 10 years. Please check Allete's
gross profit and other
fundamental indicators for more details.
An Additional Perspective On Allete Inc
Many companies such as Allete have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Allete is distributed among investors.
Ownership Allocation
Allete holds a total of fifty-one million seven hundred ninety thousand
outstanding shares. The majority of Allete Inc
outstanding shares are owned by
other corporate entities. These outside corporations are usually referred to as non-private investors looking to acquire positions in Allete Inc to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Allete. Please pay attention to any change in the institutional holdings of Allete Inc as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| Retail Investors25.22% | | Institutions74.35% |
| Retail Investors | 25.22 |
| Insiders | 0.43 |
| Institutions | 74.35 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Allete has an asset utilization ratio of 24.31 percent. This indicates that the company is making $0.24 for each dollar of assets. An increasing asset utilization means that Allete Inc is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets | 319.63 Million | 5.84 |
| Assets Non Current | 4.91 Billion | 89.66 |
| Goodwill | 237.35 Million | 4.34 |
| Tax Assets | 9.13 Million | 0.17 |
Will Allete latest dip continue?
The standard deviation is down to 2.56 as of today. Allete Inc currently demonstrates below-verage downside deviation. It has Information Ratio of -0.02 and Jensen Alpha of 0.12. However, we do advice investors to further question Allete Inc expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.
Our Final Takeaway
Although few other entities in the utilities—diversified industry are either recovering or due for a correction, Allete may not be performing as strong as the other in terms of long-term growth potentials. All things considered, as of the 5th of August 2020, we believe Allete is currently
fairly valued. It barely shadows the market and projects
below average chance of distress in the next two years. Our ongoing 30 days buy-or-sell advice on the firm is
Cautious Hold.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Allete Inc. Please refer to our
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