Is ALE a high-quality business?

AlphaMadera's AlphaQuality grade scores ALLETE, Inc. on six pillars — profitability, capital efficiency, balance-sheet strength, growth durability, cash generation, and shareholder yield. The composite letter grade reflects how ALE compares to a Buffett-style quality bar.

What is ALLETE, Inc.'s AlphaQuality grade?

AlphaQuality assigns a letter grade (A through F) to ALE based on a six-pillar quantitative model. The live page shows the composite grade plus each pillar's individual score with the underlying metrics.

What makes ALE a quality stock?

AlphaQuality looks at return on capital, free-cash-flow margins, debt-to-equity, revenue stability, dividend and buyback policy, and operating-margin trend. Stocks scoring well across all six pillars earn higher grades — the methodology favors compounders over cyclicals.

ALE - ALLETE, Inc.

Price: -- -- | CONSENSUS: Hold DETAILS | PRICE TARGET: $58.00 DETAILS

AlphaQuality

Quantitative six-pillar business-quality grade

Stable Earnings Power

AlphaQuality — archetype-weighted quantitative grade

D 35.6 / 100 composite

Composite Grade

Composite of six pillars weighted for stable earnings power businesses. Purely quantitative — no stock price or analyst input.

Profitability

Weight: 20%

D- 31.3

5yr Avg ROIC 4.3% 31/100
Operating Margin Trend -0.59 pp/yr 31/100

Capital Efficiency

Weight: 15%

D 36.6

5yr Avg ROE 6.7% 44/100
5yr Share-Count CAGR 2.7% 23/100

Growth Quality

Weight: 15%

C- 49.0

5yr Revenue CAGR 7.0% 70/100
5yr EPS CAGR -2.0% 16/100
Revenue-Growth Years (5) 3/5 60/100

Cash Generation

Weight: 15%

F 0.0

5yr FCF Margin -5.4% 0/100
5yr FCF/NI Conversion -0.36x 0/100

Balance Sheet

Weight: 20%

D- 32.8

Net Debt / EBITDA 3.61x 38/100
Interest Coverage (EBIT/Int) 2.55x 37/100
Altman Z-Score 1.13 18/100

Stability

Weight: 15%

B- 65.5

EPS Volatility (σ/μ) 0.12 83/100
Piotroski F-Score 4 44/100
Negative-Revenue Years (5) 2/5 60/100

1 of 2 gurus held; 1 new buy.

Holders: 1 -1
Avg Δ position: —
New buys: 1
Full exits: 0

Greenblatt new

How this is calculated

AlphaQuality grades six pillars from 0-100 and weights each by archetype:

Profitability (20%) — 5yr Avg ROIC, Operating Margin Trend
Capital Efficiency (15%) — 5yr Avg ROE, 5yr Share-Count CAGR
Growth Quality (15%) — 5yr Revenue CAGR, 5yr EPS CAGR, Revenue-Growth Years (5)
Cash Generation (15%) — 5yr FCF Margin, 5yr FCF/NI Conversion
Balance Sheet (20%) — Net Debt / EBITDA, Interest Coverage (EBIT/Int), Altman Z-Score
Stability (15%) — EPS Volatility (σ/μ), Piotroski F-Score, Negative-Revenue Years (5)

We deliberately ignore stock price, analyst targets, and consensus ratings so the grade is suitable for backtesting forward returns. A minimum of 5 fiscal years of audited statements is required; distressed and highly leveraged infrastructure businesses are declared ungradable rather than forced into a numeric score.