Allete Stock Buy Hold or Sell Recommendation

ALE
 Stock
  

USD 63.31  1.13  1.82%   

Considering the 90-day investment horizon and your above-average risk tolerance, our recommendation regarding Allete Inc is 'Strong Hold'. Macroaxis provides Allete buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding Allete positions. The advice algorithm takes into account all of Allete's available fundamental, technical, and predictive indicators you will find on this site.
  
The advice is provided from Allete's buy-and-hold perspective. Please continue to Allete Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Allete and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Allete Inc.

Execute Allete Buy or Sell Advice

The Allete recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Allete Inc. Macroaxis does not own or have any residual interests in Allete Inc or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Allete's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell AlleteBuy Allete
Strong Hold

Volatility

Very steadyDetails

Hype Condition

StaleDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Below AverageDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

HoldDetails

Financial Strenth (F Score)

StrongDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Allete Inc has a Risk Adjusted Performance of 0.1111, Jensen Alpha of 0.0848, Total Risk Alpha of 0.0347, Sortino Ratio of 0.0288 and Treynor Ratio of 0.2536
Macroaxis provides unbiased investment recommendation on Allete Inc that should be used to complement current analysts and expert consensus on Allete Inc. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Allete is not overpriced, please confirm all Allete Inc fundamentals, including its gross profit, debt to equity, and the relationship between the price to book and cash and equivalents . Given that Allete Inc has a price to earning of 21.24 X, we suggest you to validate Allete Inc market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Allete Trading Alerts and Improvement Suggestions

The company has 1.96 B in debt with debt to equity (D/E) ratio of 0.62, which is OK given its current industry classification. Allete Inc has a current ratio of 0.84, suggesting that it has not enough short term capital to pay financial commitments when the payables are due. Debt can assist Allete until it has trouble settling it off, either with new capital or with free cash flow. So, Allete's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Allete Inc sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Allete to invest in growth at high rates of return. When we think about Allete's use of debt, we should always consider it together with cash and equity.
Allete Inc has a strong financial position based on the latest SEC filings
Over 75.0% of Allete shares are held by institutions such as insurance companies
Latest headline from MacroaxisInsider: Allete exotic insider transaction detected

Allete current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Allete analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Allete analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price66.50
Target Median Price65.00
Target High Price83.00
Recommendation Mean2.90
Number Of Analyst Opinions6
Target Low Price60.00
Average Consensus Hold
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Allete Returns Distribution Density

The distribution of Allete's historical returns is an attempt to chart the future uncertainty of Allete's future price movements. The chart of the probability distribution of Allete stock daily returns describes the distribution of returns around its average expected value. We use Allete Inc price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Allete returns is essential to provide solid investment advice for Allete stock.
Mean Return0.13Value At Risk-2
Potential Upside2.23Standard Deviation1.46
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Allete historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Allete Cash Flow Accounts

201720182019202020212022 (projected)
Capital Expenditure(208.5 M)(312.4 M)(597.1 M)(717.8 M)(473.3 M)(510.67 M)
Depreciation Amortization and Accretion171.9 M200.1 M200.6 M217.7 M231.6 M217.81 M
Net Cash Flow or Change in Cash and Cash Equivalents71.8 M(31.1 M)13.5 M(27.3 M)(17.5 M)(17.96 M)
Net Cash Flow Business Acquisitions and Disposals(334.9 M)(5.8 M)(18.5 M)268.6 M308.89 M333.28 M
Issuance Purchase of Equity Shares86 M20.3 M1.9 M18.1 M69.9 M67.53 M
Issuance Repayment of Debt Securities(58.1 M)(19.9 M)129.7 M183.8 M180.1 M152.18 M
Payment of Dividends and Other Cash Distributions(108.7 M)(115 M)(121.4 M)(128.2 M)(131.9 M)(142.31 M)
Net Cash Flow from Financing(102.1 M)(115.2 M)109.3 M485.7 M204.2 M181.7 M
Net Cash Flow from Investing(229 M)(347.2 M)(342.7 M)(812.8 M)(485.2 M)(523.51 M)
Net Cash Flow Investment Acquisitions and Disposals(6.3 M)(42.3 M)(29.7 M)(95 M)(14.8 M)(15.97 M)
Net Cash Flow from Operations402.9 M431.3 M246.9 M299.8 M263.5 M312.89 M
Share Based Compensation6.6 M6.8 M6.3 M6.1 M5.9 M6.53 M

Allete Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Allete or Utilities sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Allete stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Allete stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
0.08
β
Beta against DOW0.47
σ
Overall volatility
1.41
Ir
Information ratio 0.0319

Allete Volatility Alert

Allete Inc has relatively low volatility with skewness of -0.62 and kurtosis of 2.27. However, we advise all investors to independently investigate Allete Inc to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Allete's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Allete's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Allete Implied Volatility

Allete's implied volatility" href="/stock-options/ALE/Allete-Inc">Allete's implied volatility exposes the market's sentiment of Allete Inc stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Allete's implied volatility" href="/stock-options/ALE/Allete-Inc">Allete's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Allete stock will not fluctuate a lot when Allete's options" href="/stock-options/ALE/Allete-Inc">Allete's options are near their expiration.

Allete Fundamentals Vs Peers

Comparing Allete's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Allete's direct or indirect competition across all of the common fundamentals between Allete and the related equities. This way, we can detect undervalued stocks with similar characteristics as Allete or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Allete's fundamental indicators could also be used in its relative valuation, which is a method of valuing Allete by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Allete to competition
FundamentalsAlletePeer Average
Return On Equity4.70 %(0.31) %
Return On Asset1.65 %(0.14) %
Profit Margin12.55 %(1.27) %
Operating Margin27.53 %(5.51) %
Current Valuation5.91 B16.62 B
Shares Outstanding52.57 M571.82 M
Shares Owned by Insiders0.40 %10.09 %
Shares Owned by Institutions75.42 %39.21 %
Number of Shares Shorted1.73 M4.71 M
Price to Earning21.24 X28.72 X
Price to Book1.41 X9.51 X
Price to Sales2.25 X11.42 X
Revenue1.46 B9.43 B
Gross Profit453.5 M27.38 B
EBITDA402.9 M3.9 B
Net Income183.7 M570.98 M
Cash and Equivalents60.1 M2.7 B
Cash per Share1.13 X5.01 X
Total Debt1.96 B5.32 B
Debt to Equity0.62 %48.70 %
Current Ratio0.86 X2.16 X
Book Value Per Share44.51 X1.93 K
Cash Flow from Operations170.2 M971.22 M
Short Ratio4.64 X4.00 X
Earnings Per Share2.94 X3.12 X
Price to Earnings To Growth1.89 X4.89 X
Number of Employees1.35 K18.84 K
Beta0.6-0.15
Market Capitalization3.29 B19.03 B
Total Asset4.89 B29.47 B
Retained Earnings755.04 M9.33 B
Working Capital96.2 M1.48 B
Current Asset371 M9.34 B
   Allete exotic insider transaction detected [view details]

About Allete Buy or Sell Advice

When is the right time to buy or sell Allete Inc? Buying financial instruments such as Allete Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Allete investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2019 2020 2021 2022 (projected)
Receivables96.4 M111.9 M123.7 M110.91 M
Inventories72.8 M74.2 M97.7 M86.06 M

Use Investing Ideas to Build Portfolios

In addition to having Allete in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

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Healthcare
Healthcare Theme
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Healthcare theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Healthcare Theme or any other thematic opportunities.
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Please continue to Allete Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Allete Inc information on this page should be used as a complementary analysis to other Allete's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Crypto Correlations module to use cryptocurrency correlation module to diversify your cryptocurrency portfolio across multiple coins.

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When running Allete Inc price analysis, check to measure Allete's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Allete is operating at the current time. Most of Allete's value examination focuses on studying past and present price action to predict the probability of Allete's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Allete's price. Additionally, you may evaluate how the addition of Allete to your portfolios can decrease your overall portfolio volatility.
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Is Allete's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Allete. If investors know Allete will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Allete listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.26
Market Capitalization
3.6 B
Quarterly Revenue Growth YOY
0.11
Return On Assets
0.0149
Return On Equity
0.0452
The market value of Allete Inc is measured differently than its book value, which is the value of Allete that is recorded on the company's balance sheet. Investors also form their own opinion of Allete's value that differs from its market value or its book value, called intrinsic value, which is Allete's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Allete's market value can be influenced by many factors that don't directly affect Allete's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Allete's value and its price as these two are different measures arrived at by different means. Investors typically determine Allete value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Allete's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.