Allete Valuation

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ALE -- USA Stock  

Report: 6th of August 2020  

What is the value of Allete today? Allete Net Cash Flow or Change in Cash and Cash Equivalents is expected to increase significantly based on the last few years of reporting. The past year's Net Cash Flow or Change in Cash and Cash Equivalents was at 13.5 Million. The current year Net Cash Flow Business Acquisitions and Disposals is expected to grow to about 333.3 M, whereas Cash and Equivalents Turnover is expected to decline to 16.25. Allete Inc shows a prevailing Real Value of $54.97 per share. The current price of the firm is $56.05. At this time, the firm appears to be fairly valued. Our model approximates the value of Allete Inc from analyzing the firm fundamentals such as profit margin of 15.18 %, current valuation of 4.5 B, and return on equity of 7.85 % as well as examining its technical indicators and Probability Of Bankruptcy. In general, we favor to go long with undervalued instruments and to trade away overvalued instruments since at some point asset prices and their ongoing real values will blend.

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Allete Valuation Module provides a unique way to ballpark how much the company is worth today. It is done using both, our quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as Allete's management style, its c-level domain expertise and tenure, its overall leadership history as well as current capital structure, and future earnings potential.
Fairly Valued
Today
56.05
2nd of July 2020
54.97
Real Value
58.20
Upside
Allete is very steady asset. Calculation of real value of Allete Inc is based on 3 months time horizon. Increasing Allete Inc time horizon generally increases accuracy of value calculation and significantly improves predictive power of the methodology used.
Earnings
Estimates (1)
LowProjected EPSHigh
3.363.363.36
Details
Hype
Prediction
LowEstimated ValueHigh
52.2955.5258.75
Details
Analysts
Consensus (5)
LowTarget PriceHigh
57.0064.0074.00
Details

  Allete Investments

Allete Valuation Drivers Correlation

Many accounts on the financial statements of Allete Inc are highly interrelated and sometimes correlated. Consequently, when conducting Allete's valuation analysis, one should examine all of the accounts reported to obtain a complete picture of its financial situation. We provide a unique feature to present a conventional correlation table purposely composed against different valuation-related drivers of Allete
Click cells to compare fundamentals   View All Correlations

Allete Market Cap

Allete Inc is rated below average in market capitalization category among related companies. Market capitalization of Utilities?Diversified industry is presently estimated at about 133.89 Billion. Allete holds roughly 2.72 Billion in market capitalization claiming about 2.03% of Utilities?Diversified industry.
Capitalization  Revenue  Valuation  Total debt  Workforce

Allete Valuation Ratios as Compared to Competition

Comparative valuation techniques use various fundamental indicators to help in determining Allete's current stock value. Our valuation model uses many indicators to compare Allete value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Allete competition to find correlations between indicators driving Allete's intrinsic value. More Info.
Allete Inc is rated below average in beta category among related companies. It is rated below average in price to earning category among related companies reporting about  45.42  of Price to Earning per Beta. . Allete Price to Book Value is expected to slightly increase based on the last few years of reporting. The past year's Price to Book Value was at 1.88. The current year Earnings before Tax is expected to grow to about 180.4 M, whereas Earnings Before Interest Taxes and Depreciation Amortization EBITDA are expected to decline to about 431.7 M.

About Allete Valuation

The Macroaxis Equity Valuation Mechanism determines the current worth of Allete Inc on a weekly bases. We use both absolute as well as relative valuation methodologies to arrive at the intrinsic value of Allete Inc. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Allete Inc based exclusively on its fundamental and basic technical indicators. By analyzing Allete's financials, quarterly and monthly indicators, and its related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Allete's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Allete. We calculate exposure to Allete's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Allete's related companies.
Last ReportedProjected for 2020
Gross Profit 381,800,000  384,463,158 
Profit Margin 0.15  0.14 
The company operates through Regulated Operations, ALLETE Clean Energy, and Corporate and Other segments. ALLETE, Inc. was founded in 1906 and is headquartered in Duluth, Minnesota. Allete operates under UtilitiesDiversified classification in the United States and is traded on BATS Exchange. It employs 1328 people.

Allete Dividends Analysis For Valuation

Allete Dividends per Basic Common Share is expected to slightly increase based on the last few years of reporting. The past year's Dividends per Basic Common Share was at 2.35. Allete Price to Earnings Ratio are expected to increase based on the last few years of reporting. The past year's Price to Earnings Ratio were at 22.61. The current year Earnings before Tax is expected to grow to about 180.4 M, whereas Earnings per Basic Share are expected to decline to 3.54.
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions(121,400,000) (130,984,211) 
Dividend Yield 0.0261  0.0298 
Dividends per Basic Common Share 2.35  2.38 
There are various types of dividends Allete can pay to its shareholders, and the actual value of the dividend is determined on a per-share basis. It is to be paid equally to all of Allete shareholders on a specific date, known as the payable date. The cash dividend is the most common type of dividend payment - it is the payment of actual cash from Allete Inc directly to its shareholders. There are other types of dividends that companies can issue, such as stock dividends or asset dividends. When Allete pays a dividend, it has no impact on its enterprise value. It does, however, lowers the Equity Value of Allete by the value of the dividends paid out.

Allete Valuation Growth Rates

Growth stocks usually refer to those companies expected to grow sales and earnings faster than the market average. Growth stocks typically don't pay dividends, often look expensive, and usually trading at a high P/E ratio. Nevertheless, such valuations could be relatively cheap if the company continues to grow, which will drive the share price up. However, since most investors are paying a high price for a growth stock, based on expectations, if those expectations are not fully realized, growth stocks can see dramatic declines. Note, investing in growth stocks can be very risky. If the company such as Allete does not do well, investors take a loss on the stock when it is time to sell. Also, because growth stocks typically do not pay dividends, the only opportunity an investor has to make money on their investment is when they eventually sell their shares.
Quick Ratio0.27
Earnings Quarterly Growth-6.00%
Revenue Growth-12.80%
Payout Ratio68.00%
Enterprise Value To Ebitda11.41
Earnings Growth-6.30%
Enterprise Value To Revenue3.77

Allete Current Valuation Indicators

Valuation refers to the process of determining the present value of Allete Inc and all of its assets. It can be calculated using a number of techniques. As many analysts who try to value Allete we look at many different elements of the entity such as Allete's management, its prospective future earnings, the current market value of the company's assets, as well as its capital structure formation.
Book Value per Share
Enterprise Value over EBIT
Enterprise Value over EBITDA
Price to Book Value
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