Allete Stock Analysis, Valuation (NYSE:ALE)

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$78.96 $0.33 (0.42%) ALE stock closing price Aug 17, 2018 (Closing)

View the Allete stock analysis video on Amigobulls. This is our analyst opinion covering the buy and sell arguments for ALE stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

ALLETE Inc Stock Rating 2.8/5

Amigobulls ALE stock analysis uses latest quarter 2018 Q2 financial data like Allete revenue growth, profit margins and cash flows. We compare Allete valuation with its sector peers to gauge relative attractiveness of ALE stock. Our Allete stock rating is based on company's fundamentals like balance sheet risk and cash flow position.

Should you buy ALE stock?

  • LTM Net margins were good at 12% for Allete.
  • With a debt/equity ratio of 0.72, Allete is comparatively less leveraged than its peers in the Utilities sector.
  • The operating cash flow looks good at 2.3355 times the net income.
  • The company has a good Free Cash Flow (FCF) margin of 8.1.

Should you sell ALE stock?

  • Allete sales shrank by -2.6% year-over-year in 2018-06.
  • Trading at a PE ratio of 24.2, ALE stock is overvalued in comparison to sector average multiple of 20.
  • The company is trading at a price to sales multiple of 2.9, which is overvalued in comparison to the Utilities sector average multiple of 2.1.

Comments on this video and Allete stock

Amigobulls Allete stock analysis helps investors in understanding how the company's fundamentals have performed in the last few quarters. Company's fundamentals remain one of the key driver of ALE stock and helps investors in making good buy and sell decision.

Allete revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Along with fundamentals, investors can utilize technical analysis to get a better idea about the price trend of Allete stock.