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Upturn AI SWOT - About
ALE 
Allete Inc (ALE)
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Upturn Advisory Summary
06/30/2025: ALE (1-star) is currently NOT-A-BUY. Pass it for now.
Upturn Star Rating
Not Recommended Performance
These Stocks/ETFs, based on Upturn Advisory, consistently fall short of market performance, signaling caution before investing.
Number of Analysts
3 Analysts rated it
Very few follow this stock; limited insights, higher-risk early investing.
1 Year Target Price $69
1 Year Target Price $69
| 1 | Strong Buy |
| 0 | Buy |
| 2 | Hold |
| 0 | Sell |
| 0 | Strong Sell |
Analysis of Past Performance
Type Stock | Historic Profit 17.04% | Avg. Invested days 89 | Today’s Advisory PASS |
Upturn Star Rating | Upturn Advisory Performance  3.0 | Stock Returns Performance  2.0 |
| Profits based on simulation | Last Close 06/30/2025 |
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.71B USD | Price to earnings Ratio 20.02 | 1Y Target Price 69 |
Price to earnings Ratio 20.02 | 1Y Target Price 69 | ||
Volume (30-day avg) 3 | Beta 0.78 | 52 Weeks Range 58.88 - 66.40 | Updated Date 07/1/2025 |
52 Weeks Range 58.88 - 66.40 | Updated Date 07/1/2025 | ||
Dividends yield (FY) 4.57% | Basic EPS (TTM) 3.2 |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Earnings Date
Report Date - | When - | Estimate - | Actual - |
Profitability
Profit Margin 12.1% | Operating Margin (TTM) 13.69% |
Management Effectiveness
Return on Assets (TTM) 1.64% | Return on Equity (TTM) 3.51% |
Valuation
Trailing PE 20.02 | Forward PE 17.64 | Enterprise Value 5548741434 | Price to Sales(TTM) 2.43 |
Enterprise Value 5548741434 | Price to Sales(TTM) 2.43 | ||
Enterprise Value to Revenue 3.63 | Enterprise Value to EBITDA 11.25 | Shares Outstanding 57963800 | Shares Floating 57759779 |
Shares Outstanding 57963800 | Shares Floating 57759779 | ||
Percent Insiders 0.31 | Percent Institutions 74.67 |
Analyst Ratings
Rating 1 | Target Price 69 | Buy - | Strong Buy 1 |
Buy - | Strong Buy 1 | ||
Hold 2 | Sell - | Strong Sell - | |
Strong Sell - |
Upturn AI SWOT
Allete Inc
Company Overview
History and Background
Allete Inc. (ALE) was founded in 1900 as Minnesota Power, a public utility. It has evolved into an energy company with investments in regulated utilities, renewable energy, and energy solutions. Significant milestones include expansion into renewable energy and strategic acquisitions.
Core Business Areas
- Regulated Operations: Provides regulated electric and water services in northeastern Minnesota and northwestern Wisconsin.
- ALLETE Clean Energy: Develops, acquires, and operates clean and renewable energy projects across the United States.
- Corporate and Other: Includes corporate support functions, investments, and other business activities.
Leadership and Structure
Allete is led by Bethany Owen, as CEO and President. The organizational structure consists of various departments overseeing regulated operations, clean energy, and corporate functions, reporting to a board of directors.
Top Products and Market Share
Key Offerings
- Electric Service: Provides electricity to residential, commercial, and industrial customers in its service territory. The market share depends on the specific service area; Allete is a dominant provider in northeastern Minnesota. Competitors include other regional utilities and alternative energy providers.
- Renewable Energy: Develops and operates wind, solar, and other renewable energy projects, selling power through long-term contracts. Specific market share data is project-dependent and varies by region. Competitors include NextEra Energy Resources, Avangrid Renewables, and Invenergy.
- Water Services: Provides water service through its utility division. Specific revenue is not often broken out individually as it is considered part of regulated operations.
Market Dynamics
Industry Overview
The energy industry is undergoing a transition toward renewable energy sources, driven by environmental regulations, technological advancements, and changing consumer preferences.
Positioning
Allete is positioned as a diversified energy company with a focus on regulated utilities and renewable energy development. Its competitive advantages include its established infrastructure, expertise in renewable energy, and strong customer relationships.
Total Addressable Market (TAM)
The total addressable market for electric utilities in the US is estimated to be hundreds of billions of dollars annually. The renewable energy market is expected to grow significantly in the coming decades. Allete is positioned to capitalize on both markets.
Upturn SWOT Analysis
Strengths
- Regulated Utility Operations provide stable cash flow
- Growing Renewable Energy Portfolio
- Experienced Management Team
- Strong Customer Relationships in Regulated Service Areas
Weaknesses
- Dependence on Regulatory Approvals
- Exposure to Commodity Price Volatility
- Capital Intensive Business
- Geographic Concentration in Midwest
Opportunities
- Expansion of Renewable Energy Projects
- Infrastructure Modernization and Upgrades
- Strategic Acquisitions
- Government Incentives and Tax Credits for Renewable Energy
Threats
- Increased Competition from Other Energy Providers
- Changes in Environmental Regulations
- Economic Downturns Affecting Energy Demand
- Cybersecurity Risks
Competitors and Market Share
Key Competitors
- Xcel Energy (XEL)
- Alliant Energy (LNT)
- Edison International (EIX)
Competitive Landscape
ALLETE faces competition from larger utilities and renewable energy developers. Its strengths include its regional presence and focus on renewable energy. Weaknesses include its smaller size compared to larger competitors.
Major Acquisitions
U.S. Water Services
- Year: 2019
- Acquisition Price (USD millions): 173
- Strategic Rationale: Expanded Allete's presence in the water services market and provided synergies with its existing energy operations.
Growth Trajectory and Initiatives
Historical Growth: Historical growth has been driven by regulated operations and expansion of renewable energy projects.
Future Projections: Future growth depends on renewable energy development and regulatory outcomes. Analyst estimates can be found on financial websites.
Recent Initiatives: Recent initiatives include investments in renewable energy projects and infrastructure upgrades.
Summary
Allete Inc. is a diversified energy company with a strong presence in regulated utilities and a growing renewable energy portfolio. Its stable regulated operations provide a solid foundation, while its investments in renewable energy position it for future growth. Challenges include regulatory risks, competition, and economic factors. Investors should note the dividend payout history and strong leadership team driving growth strategies for Allete Inc. Allete needs to be aware of market risks from larger players, however, their market expansion is promising.
Peer Comparison
Sources and Disclaimers
Data Sources:
- Company Filings (10-K, 10-Q), Investor Presentations, Financial News Outlets (Yahoo Finance, Bloomberg, Reuters), Analyst Reports
Disclaimers:
The information provided is for informational purposes only and should not be considered financial advice. Investment decisions should be based on thorough research and consultation with a qualified financial advisor. Market share data is approximate and may vary depending on the source.
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
About Allete Inc
Exchange NYSE | Headquaters Duluth, MN, United States | ||
IPO Launch date 1973-05-03 | Chair, CEO & President Ms. Bethany M. Owen | ||
Sector Utilities | Industry Utilities - Diversified | Full time employees 1595 | Website https://www.allete.com |
Full time employees 1595 | Website https://www.allete.com | ||
ALLETE, Inc. operates as an energy company. The company operates in two segments, Regulated Operations and ALLETE Clean Energy. It generates electricity from coal-fired, biomass co-fired/natural gas, hydro, wind, and solar. The company also provides regulated utility electric services in northeastern Minnesota to approximately 150,000 retail customers and 14 non-affiliated municipal customers in Minnesota; and regulated utility electric, natural gas, and water services in northwestern Wisconsin to approximately 15,000 electric customers, 13,000 natural gas customers, and 10,000 water customers. In addition, it owns and maintains electric transmission assets in Wisconsin, Michigan, Minnesota, and Illinois. Further, the company focuses on acquiring, developing, and operating clean and renewable energy projects; and owns, develops, and operates approximately 1,600 megawatts of wind energy generation facility, as well as involved in the coal mining operations in North Dakota and real estate investment activities in Florida. It owns and operates 154 substations with a total capacity of 10,647 megavolt-amperes. The company serves taconite mining, paper, pulp and secondary wood products, pipeline, and other industries. The company was formerly known as Minnesota Power, Inc. and changed its name to ALLETE, Inc. in May 2001. ALLETE, Inc. was incorporated in 1906 and is headquartered in Duluth, Minnesota.
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