| Snowflake Score | |
|---|---|
| Valuation | 4/6 |
| Future Growth | 1/6 |
| Past Performance | 6/6 |
| Financial Health | 4/6 |
| Dividends | 5/6 |
OTTR Stock Overview
Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States.
Otter Tail Competitors
Price History & Performance
| Historical stock prices | |
|---|---|
| Current Share Price | US$80.99 |
| 52 Week High | US$82.46 |
| 52 Week Low | US$52.49 |
| Beta | 0.46 |
| 1 Month Change | 22.16% |
| 3 Month Change | 28.03% |
| 1 Year Change | 50.79% |
| 3 Year Change | 64.11% |
| 5 Year Change | 93.29% |
| Change since IPO | 567.96% |
Recent News & Updates
Otter Tail reports Q2 earnings beat; raises FY22 EPS guidance
Otter Tail press release (NASDAQ:OTTR): Q2 GAAP EPS of $2.05 beats by $0.54. Revenue of $400M (+40.1% Y/Y) beats by $63.13M. The corporation is increasing its 2022 diluted earnings per share guidance range to $6.83 to $7.13 from its previous range of $5.15 to $5.45 vs. consensus of $5.46. "Our 2021 earnings mix was 59% from our manufacturing platform and is now expected to be 73% for 2022. This change from our long term goal of 70% electric and 30% manufacturing platform has been driven by the plastics pipe business and the unique market conditions in 2021 and 2022. We currently expect to see elevated earnings from our manufacturing platform into 2023 with our earnings mix returning to 65% from our electric segment and 35% from our manufacturing platform beginning in 2024."
Shareholder Returns
| OTTR | US Electric Utilities | US Market | |
|---|---|---|---|
| 7D | -0.5% | 2.5% | 1.4% |
| 1Y | 50.8% | 8.4% | -8.4% |
Return vs Industry: OTTR exceeded the US Electric Utilities industry which returned 8.4% over the past year.
Return vs Market: OTTR exceeded the US Market which returned -8.4% over the past year.
Price Volatility
| OTTR volatility | |
|---|---|
| OTTR Average Weekly Movement | 4.8% |
| Electric Utilities Industry Average Movement | 3.4% |
| Market Average Movement | 7.6% |
| 10% most volatile stocks in US Market | 17.1% |
| 10% least volatile stocks in US Market | 3.1% |
Stable Share Price: OTTR is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: OTTR's weekly volatility (5%) has been stable over the past year.
About the Company
| Founded | Employees | CEO | Website |
|---|---|---|---|
| 1907 | 2,487 | Chuck MacFarlane | https://www.ottertail.com |
Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. The company’s Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator, Inc. markets. This segment generates electricity through coal, wind and hydro, and natural gas.
Otter Tail Fundamentals Summary
| OTTR fundamental statistics | |
|---|---|
| Market Cap | US$3.37b |
| Earnings (TTM) | US$262.31m |
| Revenue (TTM) | US$1.42b |
12.9x
P/E Ratio2.4x
P/S RatioIs OTTR overvalued?
See Fair Value and valuation analysisEarnings & Revenue
| OTTR income statement (TTM) | |
|---|---|
| Revenue | US$1.42b |
| Cost of Revenue | US$877.94m |
| Gross Profit | US$546.53m |
| Other Expenses | US$284.22m |
| Earnings | US$262.31m |
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
n/a
| Earnings per share (EPS) | 6.30 |
| Gross Margin | 38.37% |
| Net Profit Margin | 18.41% |
| Debt/Equity Ratio | 76.5% |
How did OTTR perform over the long term?
See historical performance and comparisonDividends
2.0%
Current Dividend Yield25%
Payout RatioValuation
Is OTTR undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score
4/6Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast
Key Valuation Metric
Which metric is best to use when looking at relative valuation for OTTR?
Other financial metrics that can be useful for relative valuation.
| What is OTTR's n/a Ratio? | |
|---|---|
| n/a Ratio | 0x |
| n/a | n/a |
| Market Cap | US$3.37b |
| Key Statistics | |
|---|---|
| Enterprise Value/Revenue | 2.9x |
| Enterprise Value/EBITDA | 9.1x |
| PEG Ratio | -0.8x |
Price to Earnings Ratio vs Peers
How does OTTR's PE Ratio compare to its peers?
| OTTR PE Ratio vs Peers |
|---|
| Company | PE | Estimated Growth | Market Cap |
|---|---|---|---|
| Peer Average | 23.9x | ||
PNM PNM Resources | 26.5x | 8.5% | US$4.1b |
ALE ALLETE | 18.7x | 8.6% | US$3.6b |
MGEE MGE Energy | 29.8x | 4.9% | US$3.1b |
POR Portland General Electric | 20.5x | 4.8% | US$4.9b |
OTTR Otter Tail | 12.9x | -16.4% | US$3.4b |
Price-To-Earnings vs Peers: OTTR is good value based on its Price-To-Earnings Ratio (12.9x) compared to the peer average (23.9x).
Price to Earnings Ratio vs Industry
How does OTTR's PE Ratio compare vs other companies in the US Electric Utilities Industry?
Price-To-Earnings vs Industry: OTTR is good value based on its Price-To-Earnings Ratio (12.9x) compared to the US Electric Utilities industry average (21.9x)
Price to Earnings Ratio vs Fair Ratio
What is OTTR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
| Fair Ratio | |
|---|---|
| Current PE Ratio | 12.9x |
| Fair PE Ratio | 14.6x |
Price-To-Earnings vs Fair Ratio: OTTR is good value based on its Price-To-Earnings Ratio (12.9x) compared to the estimated Fair Price-To-Earnings Ratio (14.6x).
Share Price vs Fair Value
What is the Fair Price of OTTR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: OTTR ($80.99) is trading below our estimate of fair value ($84.78)
Significantly Below Fair Value: OTTR is trading below fair value, but not by a significant amount.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is lower than the current share price.
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Future Growth
How is Otter Tail forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Future Growth Score
1/6Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE
-16.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OTTR's earnings are forecast to decline over the next 3 years (-16.4% per year).
Earnings vs Market: OTTR's earnings are forecast to decline over the next 3 years (-16.4% per year).
High Growth Earnings: OTTR's earnings are forecast to decline over the next 3 years.
Revenue vs Market: OTTR's revenue is expected to decline over the next 3 years (-4.7% per year).
High Growth Revenue: OTTR's revenue is forecast to decline over the next 3 years (-4.7% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OTTR's Return on Equity is forecast to be high in 3 years time (21.1%)
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Past Performance
How has Otter Tail performed over the past 5 years?
Past Performance Score
6/6Past Performance Score 6/6
Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE
24.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OTTR has high quality earnings.
Growing Profit Margin: OTTR's current net profit margins (18.4%) are higher than last year (12.6%).
Past Earnings Growth Analysis
Earnings Trend: OTTR's earnings have grown significantly by 24.2% per year over the past 5 years.
Accelerating Growth: OTTR's earnings growth over the past year (106.5%) exceeds its 5-year average (24.2% per year).
Earnings vs Industry: OTTR earnings growth over the past year (106.5%) exceeded the Electric Utilities industry 10.1%.
Return on Equity
High ROE: OTTR's Return on Equity (23.5%) is considered high.
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Financial Health
How is Otter Tail's financial position?
Financial Health Score
4/6Financial Health Score 4/6
Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage
Financial Position Analysis
Short Term Liabilities: OTTR's short term assets ($471.4M) exceed its short term liabilities ($288.2M).
Long Term Liabilities: OTTR's short term assets ($471.4M) do not cover its long term liabilities ($1.5B).
Debt to Equity History and Analysis
Debt Level: OTTR's net debt to equity ratio (70.9%) is considered high.
Reducing Debt: OTTR's debt to equity ratio has reduced from 86.1% to 76.5% over the past 5 years.
Debt Coverage: OTTR's debt is well covered by operating cash flow (39.6%).
Interest Coverage: OTTR's interest payments on its debt are well covered by EBIT (9.9x coverage).
Balance Sheet
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Dividend
What is Otter Tail current dividend yield, its reliability and sustainability?
Dividend Score
5/6Dividend Score 5/6
Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage
2.04%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OTTR's dividend (2.04%) is higher than the bottom 25% of dividend payers in the US market (1.47%).
High Dividend: OTTR's dividend (2.04%) is low compared to the top 25% of dividend payers in the US market (3.97%).
Stability and Growth of Payments
Stable Dividend: OTTR's dividends per share have been stable in the past 10 years.
Growing Dividend: OTTR's dividend payments have increased over the past 10 years.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (25.4%), OTTR's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (39.8%), OTTR's dividend payments are well covered by cash flows.
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Management
How experienced are the management team and are they aligned to shareholders interests?
8.3yrs
Average management tenure
CEO
Chuck MacFarlane (57 yo)
8.33yrs
Tenure
US$4,732,251
Compensation
Mr. Charles S. MacFarlane, also known as Chuck, has been the Chief Executive Officer and Director of Otter Tail Corporation since April 13, 2015 and its President since April 14, 2014. Mr. MacFarlane serve...
CEO Compensation Analysis
Compensation vs Market: Chuck's total compensation ($USD4.73M) is about average for companies of similar size in the US market ($USD6.61M).
Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.
Leadership Team
Experienced Management: OTTR's management team is seasoned and experienced (8.3 years average tenure).
Board Members
Experienced Board: OTTR's board of directors are considered experienced (9.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Otter Tail Corporation's employee growth, exchange listings and data sources
Key Information
- Name: Otter Tail Corporation
- Ticker: OTTR
- Exchange: NasdaqGS
- Founded: 1907
- Industry: Electric Utilities
- Sector: Utilities
- Implied Market Cap: US$3.372b
- Shares outstanding: 41.63m
- Website: https://www.ottertail.com
Number of Employees
Location
- Otter Tail Corporation
- 215 South Cascade Street
- P.O. Box 496
- Fergus Falls
- Minnesota
- 56538-0496
- United States
Listings
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2022/08/19 00:00 |
| End of Day Share Price | 2022/08/19 00:00 |
| Earnings | 2022/06/30 |
| Annual Earnings | 2021/12/31 |
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.