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ALLETE, Inc. (NYSE:ALE) is a stock with outstanding fundamental characteristics. When we build an investment case, we need to look at the stock with a holistic perspective. In the case of ALE, it is a financially-sound , dividend-paying company with an impressive history of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on ALLETE here.
Established dividend payer with proven track record
ALE delivered a bottom-line expansion of 11% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, ALE also outperformed its industry, which delivered a growth of 9.7%. This is an optimistic signal for the future. ALE's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. ALE's has produced operating cash levels of 0.25x total debt over the past year, which implies that ALE's management has put its borrowings into good use by generating enough cash to cover a sufficient portion of borrowings.
For those seeking income streams from their portfolio, ALE is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 2.7%.
For ALLETE, there are three key aspects you should look at:
- Future Outlook: What are well-informed industry analysts predicting for ALE’s future growth? Take a look at our free research report of analyst consensus for ALE’s outlook.
- Valuation: What is ALE worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether ALE is currently mispriced by the market.
- Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of ALE? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.