Allete Inc.
Find Ratings ReportsALLETE INC's gross profit margin for the fourth quarter of its fiscal year 2023 has increased when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its subsector. ALLETE INC has very weak liquidity. Currently, the Quick Ratio is 0.48 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.37% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.
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Income Statement | Q4 FY23 | Q4 FY22 |
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Net Sales ($mil) | 402.7 | 425.8 |
EBITDA ($mil) | 106.7 | 97.2 |
EBIT ($mil) | 43.1 | 36.4 |
Net Income ($mil) | 51.5 | 51.7 |
Balance Sheet | Q4 FY23 | Q4 FY22 |
---|---|---|
Cash & Equiv. ($mil) | 77.0 | 37.9 |
Total Assets ($mil) | 6656.4 | 6845.6 |
Total Debt ($mil) | 1804.0 | 1933.3 |
Equity ($mil) | 2809.6 | 2691.9 |
Profitability | Q4 FY23 | Q4 FY22 |
---|---|---|
Gross Profit Margin | 26.5 | 22.83 |
EBITDA Margin | 26.49 | 22.82 |
Operating Margin | 10.7 | 8.55 |
Sales Turnover | 0.28 | 0.23 |
Return on Assets | 3.71 | 2.76 |
Return on Equity | 8.79 | 7.03 |
Debt | Q4 FY23 | Q4 FY22 |
---|---|---|
Current Ratio | 1.24 | 1.0 |
Debt/Capital | 0.39 | 0.42 |
Interest Expense | 19.9 | 19.9 |
Interest Coverage | 2.17 | 1.83 |
Share Data | Q4 FY23 | Q4 FY22 |
---|---|---|
Shares outstanding (mil) | 57.56 | 57.24 |
Div / share | 0.68 | 0.65 |
EPS | 0.89 | 0.9 |
Book value / share | 48.81 | 47.03 |
Institutional Own % | n/a | n/a |
Avg Daily Volume | 307211.0 | 406235.0 |
BUY. This stock's P/E ratio indicates a discount compared to an average of 18.74 for the Utilities subsector and a significant discount compared to the S&P 500 average of 27.95. Conducting a second comparison, its price-to-book ratio of 1.18 indicates a significant discount versus the S&P 500 average of 4.68 and a discount versus the subsector average of 1.98. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. Upon assessment of these and other key valuation criteria, ALLETE INC proves to trade at a discount to investment alternatives.
Price/Earnings |
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Price/Cash Flow |
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ALE 13.35 | Peers 18.74 | ALE 5.65 | Peers 8.50 | |||||||||||||||||||||
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. ALE is trading at a significant discount to its peers. |
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures. ALE is trading at a significant discount to its peers. |
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Price/Projected Earnings |
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Price to Earnings/Growth |
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ALE 13.43 | Peers 14.78 | ALE NM | Peers 1.44 | |||||||||||||||||||||
Average. An average price-to-projected earnings ratio can signify an subsector neutral stock price and average future growth expectations. ALE is trading at a valuation on par with its peers. |
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples. ALE's negative PEG ratio makes this valuation measure meaningless. |
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Price/Book |
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Earnings Growth |
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ALE 1.18 | Peers 1.98 | ALE 26.47 | Peers 132.20 | |||||||||||||||||||||
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet. ALE is trading at a significant discount to its peers. |
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios. However, ALE is expected to significantly trail its peers on the basis of its earnings growth rate. |
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Price/Sales |
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Sales Growth |
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ALE 1.76 | Peers 2.49 | ALE 19.67 | Peers 1.95 | |||||||||||||||||||||
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales. ALE is trading at a significant discount to its subsector on this measurement. |
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share. ALE has a sales growth rate that significantly exceeds its peers. |
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