Latest Ratios: P/E Ratio 21.9x · EV/EBITDA 13.0x · ROE 5.3%. (1995–2024 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.9B | $3.7B | $3.5B | $3.6B | $3.5B | $3.2B | $4.2B | $3.9B | $3.8B | $3.2B | $2.5B |
| Enterprise Value | $5.7B | $5.5B | $5.2B | $5.5B | $5.4B | $5.0B | $5.8B | $5.3B | $5.2B | $4.7B | $4.0B |
| P/E Ratio → | 21.89 | 20.89 | 14.21 | 19.08 | 20.59 | 18.45 | 22.61 | 22.55 | 22.00 | 20.44 | 17.41 |
| P/S Ratio | 2.58 | 2.45 | 1.87 | 2.30 | 2.45 | 2.75 | 3.38 | 2.62 | 2.67 | 2.37 | 1.66 |
| P/B Ratio | 1.16 | 1.10 | 1.03 | 1.08 | 1.18 | 1.15 | 1.80 | 1.82 | 1.83 | 1.68 | 1.35 |
| P/FCF | 38.60 | 36.65 | 11.18 | — | — | — | — | 32.52 | 19.51 | 47.85 | — |
| P/OCF | 8.63 | 8.19 | 6.00 | 16.32 | 13.22 | 10.72 | 16.82 | 9.06 | 9.41 | 9.57 | 7.23 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.60 | 2.79 | 3.51 | 3.83 | 4.27 | 4.65 | 3.56 | 3.66 | 3.51 | 2.66 |
| EV / EBITDA | 13.01 | 12.56 | 12.10 | 14.63 | 14.18 | 13.53 | 15.10 | 13.19 | 12.77 | 11.51 | 9.37 |
| EV / EBIT | 35.62 | 26.44 | 18.20 | 31.42 | 30.18 | 26.58 | 23.65 | 23.58 | 20.46 | 19.14 | 17.05 |
| EV / FCF | — | 53.85 | 16.67 | — | — | — | — | 44.25 | 26.72 | 70.87 | — |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 32.5% | 32.5% | 26.1% | 28.4% | 32.0% | 36.3% | 35.1% | 30.9% | 32.4% | 34.1% | 31.5% |
| Operating Margin | 10.5% | 10.5% | 9.6% | 8.5% | 10.7% | 12.9% | 14.5% | 13.3% | 16.1% | 15.9% | 16.9% |
| Net Profit Margin | 11.7% | 11.7% | 13.1% | 12.1% | 11.9% | 14.9% | 15.0% | 11.6% | 12.1% | 11.6% | 9.5% |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 5.3% | 5.3% | 7.3% | 6.0% | 5.9% | 6.8% | 8.3% | 8.2% | 8.7% | 8.4% | 8.2% |
| ROA | 2.4% | 2.4% | 3.3% | 2.6% | 2.4% | 2.7% | 3.1% | 3.0% | 3.0% | 2.8% | 2.9% |
| ROIC | 2.3% | 2.3% | 2.6% | 2.0% | 2.4% | 2.7% | 3.6% | 4.2% | 5.0% | 4.7% | 6.1% |
| ROCE | 2.3% | 2.3% | 2.6% | 2.0% | 2.3% | 2.5% | 3.2% | 3.7% | 4.3% | 4.1% | 5.5% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.53 | 0.53 | 0.53 | 0.58 | 0.68 | 0.65 | 0.70 | 0.69 | 0.73 | 0.82 | 0.87 |
| Debt / EBITDA | 4.13 | 4.13 | 4.16 | 5.14 | 5.21 | 4.93 | 4.30 | 3.67 | 3.70 | 3.81 | 3.78 |
| Net Debt / Equity | — | 0.52 | 0.51 | 0.57 | 0.66 | 0.63 | 0.67 | 0.66 | 0.68 | 0.81 | 0.82 |
| Net Debt / EBITDA | 4.01 | 4.01 | 3.99 | 5.04 | 5.09 | 4.81 | 4.11 | 3.50 | 3.45 | 3.74 | 3.54 |
| Debt / FCF | — | 17.20 | 5.49 | — | — | — | — | 11.73 | 7.21 | 23.02 | — |
| Interest Coverage | 2.55 | 2.55 | 3.56 | 2.33 | 2.60 | 2.86 | 3.76 | 3.34 | 3.79 | 3.50 | 3.57 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 1.08 | 1.08 | 1.24 | 1.00 | 0.54 | 0.55 | 0.53 | 0.83 | 1.05 | 0.74 | 1.35 |
| Quick Ratio | 0.69 | 0.69 | 0.78 | 0.37 | 0.36 | 0.39 | 0.39 | 0.61 | 0.77 | 0.48 | 0.92 |
| Cash Ratio | 0.13 | 0.13 | 0.20 | 0.05 | 0.08 | 0.10 | 0.14 | 0.17 | 0.29 | 0.07 | 0.37 |
| Asset Turnover | — | 0.21 | 0.26 | 0.21 | 0.20 | 0.17 | 0.20 | 0.26 | 0.25 | 0.24 | 0.27 |
| Inventory Turnover | 6.68 | 6.68 | 7.92 | 2.47 | 9.88 | 10.03 | 11.06 | 11.95 | 10.01 | 8.48 | 8.69 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 4.1% | 4.3% | 4.4% | 4.0% | 3.8% | 4.0% | 2.9% | 2.9% | 2.9% | 3.2% | 4.0% |
| Payout Ratio | 90.8% | 90.8% | 62.9% | 77.1% | 78.0% | 73.6% | 65.4% | 66.1% | 63.1% | 66.1% | 69.4% |
| Metric | TTM | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 | FY 2015 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.6% | 4.8% | 7.0% | 5.2% | 4.9% | 5.4% | 4.4% | 4.4% | 4.5% | 4.9% | 5.7% |
| FCF Yield | 2.6% | 2.7% | 8.9% | — | — | — | — | 3.1% | 5.1% | 2.1% | — |
| Buyback Yield | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Total Shareholder Yield | 4.1% | 4.3% | 4.4% | 4.0% | 3.8% | 4.0% | 2.9% | 2.9% | 2.9% | 3.2% | 4.0% |
| Shares Outstanding | — | $58M | $57M | $56M | $53M | $52M | $52M | $52M | $51M | $50M | $48M |
Pending acquisition execution risk
According to recent market data, ALLETE's forward P/E of 16.60x and dividend yield of 4.1% are increasingly decoupled from historical utility norms, as the pending $6.2 billion take-private acquisition by CPPIB and GIP effectively caps public market upside and shifts investor focus toward deal closing certainty.
The current valuation reflects a transition from a fundamental growth play to a merger-arbitrage scenario. Investors should monitor the spread between the current price and the acquisition offer, as traditional utility valuation metrics like P/E are no longer the primary drivers of the stock's price action.
Based on quarterly financial data, the company's earned ROE has languished at levels below 1.0% in recent periods, which suggests a significant disconnect between authorized regulatory returns and the actual profitability achieved during this intensive capital expenditure cycle in the Minnesota service territory.
This persistent gap between allowed and earned ROE indicates that regulatory lag is likely eroding the company's earnings power. The inability to translate rate base growth into meaningful ROE expansion warrants further investigation into the effectiveness of current cost recovery mechanisms and the impact of non-regulated segment volatility.
As reported in recent financial statements, the debt-to-capital ratio has climbed to 0.40, reflecting the heavy financing requirements of the EnergyForward transition and suggesting that the company's balance sheet flexibility is becoming increasingly constrained as it approaches the final stages of its public listing.
The interest coverage ratio of 1.58x highlights a tightening margin of safety, which may limit the company's ability to absorb further operational shocks. Investors should monitor whether the current leverage profile remains within the parameters acceptable to regulators and the incoming private equity owners.
According to the provided quarterly data, the dividend payout ratio has spiked to 156.5% in 2025Q3, signaling that the current dividend is being funded through external financing rather than organic cash flow, which raises questions about the long-term sustainability of the payout under the current capital-intensive strategy.
The reliance on external capital to maintain dividend payments is a precarious position for a regulated utility. This trend suggests that the company is prioritizing shareholder returns at the expense of its internal funding capacity, a strategy that may be unsustainable without a significant improvement in operating cash flow.
As noted in financial analysis, the P/E ratio is the most commonly misapplied metric for ALLETE, as it fails to account for the distortive impact of non-recurring project gains and regulatory accounting adjustments that frequently mask the underlying earnings power of the regulated utility segment.
Investors should instead focus on the relationship between rate base growth and authorized ROE, as these are the true determinants of long-term value. Relying on P/E ratios in a period of heavy capital investment and pending acquisition leads to a fundamental misunderstanding of the company's actual cash-generating potential.
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Quick answers to the most common questions about buying ALE stock.
ALLETE, Inc.'s current P/E ratio is 21.9x. The historical average is 16.9x. This places it at the 80th percentile of its historical range.
ALLETE, Inc.'s current EV/EBITDA is 13.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.2x.
ALLETE, Inc.'s return on equity (ROE) is 5.3%. The historical average is 9.2%.
Based on historical data, ALLETE, Inc. is trading at a P/E of 21.9x. This is at the 80th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
ALLETE, Inc.'s current dividend yield is 4.15% with a payout ratio of 90.8%.
ALLETE, Inc. has 32.5% gross margin and 10.5% operating margin. Operating margin between 10-20% is typical for established companies.
ALLETE, Inc.'s Debt/EBITDA ratio is 4.1x, indicating high leverage. A ratio above 4x may signal elevated financial risk.