Otter Tail
Market Cap
US$1.8b
Last Updated
2021/03/07 00:12 UTC
Data Sources
Company Financials +
Executive Summary
Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. More Details
Rewards
Risk Analysis
Snowflake Analysis
6 star dividend payer with solid track record.
Similar Companies
Share Price & News
How has Otter Tail's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: OTTR is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: OTTR's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
5.8%
OTTR
2.0%
US Electric Utilities
-0.4%
US Market
1 Year Return
-15.6%
OTTR
-11.6%
US Electric Utilities
36.2%
US Market
Return vs Industry: OTTR underperformed the US Electric Utilities industry which returned -11.6% over the past year.
Return vs Market: OTTR underperformed the US Market which returned 36.2% over the past year.
Shareholder returns
| OTTR | Industry | Market | |
|---|---|---|---|
| 7 Day | 5.8% | 2.0% | -0.4% |
| 30 Day | 3.4% | -6.9% | -2.3% |
| 90 Day | 3.9% | -3.8% | 5.0% |
| 1 Year | -12.5%-15.6% | -8.6%-11.6% | 39.1%36.2% |
| 3 Year | 12.5%2.6% | 22.1%11.8% | 48.4%39.0% |
| 5 Year | 80.0%53.3% | 27.1%8.9% | 116.6%92.4% |
Long-Term Price Volatility Vs. Market
How volatile is Otter Tail's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall St
A Look At The Fair Value Of Otter Tail Corporation (NASDAQ:OTTR)3 weeks ago | Simply Wall St
Shareholders Of Otter Tail (NASDAQ:OTTR) Must Be Happy With Their 83% Return1 month ago | Simply Wall St
Have Insiders Been Buying Otter Tail Corporation (NASDAQ:OTTR) Shares?Valuation
Is Otter Tail undervalued compared to its fair value and its price relative to the market?
18.21x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: OTTR ($42.87) is trading above our estimate of fair value ($39.67)
Significantly Below Fair Value: OTTR is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: OTTR is good value based on its PE Ratio (18.2x) compared to the US Electric Utilities industry average (19.8x).
PE vs Market: OTTR is good value based on its PE Ratio (18.2x) compared to the US market (21.5x).
Price to Earnings Growth Ratio
PEG Ratio: OTTR is poor value based on its PEG Ratio (3.4x)
Price to Book Ratio
PB vs Industry: OTTR is overvalued based on its PB Ratio (2x) compared to the US Electric Utilities industry average (1.8x).
Next Steps
Future Growth
How is Otter Tail forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
5.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OTTR's forecast earnings growth (5.4% per year) is above the savings rate (2%).
Earnings vs Market: OTTR's earnings (5.4% per year) are forecast to grow slower than the US market (19.2% per year).
High Growth Earnings: OTTR's earnings are forecast to grow, but not significantly.
Revenue vs Market: OTTR's revenue (4.5% per year) is forecast to grow slower than the US market (10% per year).
High Growth Revenue: OTTR's revenue (4.5% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: OTTR's Return on Equity is forecast to be low in 3 years time (11%).
Next Steps
Past Performance
How has Otter Tail performed over the past 5 years?
9.6%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OTTR has high quality earnings.
Growing Profit Margin: OTTR's current net profit margins (10.8%) are higher than last year (9.4%).
Past Earnings Growth Analysis
Earnings Trend: OTTR's earnings have grown by 9.6% per year over the past 5 years.
Accelerating Growth: OTTR's earnings growth over the past year (10.4%) exceeds its 5-year average (9.6% per year).
Earnings vs Industry: OTTR earnings growth over the past year (10.4%) exceeded the Electric Utilities industry -6.9%.
Return on Equity
High ROE: OTTR's Return on Equity (11%) is considered low.
Next Steps
Financial Health
How is Otter Tail's financial position?
Financial Position Analysis
Short Term Liabilities: OTTR's short term assets ($234.8M) do not cover its short term liabilities ($436.8M).
Long Term Liabilities: OTTR's short term assets ($234.8M) do not cover its long term liabilities ($1.3B).
Debt to Equity History and Analysis
Debt Level: OTTR's debt to equity ratio (97.1%) is considered high.
Reducing Debt: OTTR's debt to equity ratio has increased from 95.4% to 97.1% over the past 5 years.
Debt Coverage: OTTR's debt is well covered by operating cash flow (25.1%).
Interest Coverage: OTTR's interest payments on its debt are well covered by EBIT (4.2x coverage).
Balance Sheet
Next Steps
Dividend
What is Otter Tail current dividend yield, its reliability and sustainability?
3.64%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OTTR's dividend (3.64%) is higher than the bottom 25% of dividend payers in the US market (1.31%).
High Dividend: OTTR's dividend (3.64%) is in the top 25% of dividend payers in the US market (3.64%)
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.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (62.9%), OTTR's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: OTTR's dividends in 3 years are forecast to be covered by earnings (62.9% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.1yrs
Average management tenure
CEO
Chuck MacFarlane (55 yo)
5.92yrs
Tenure
US$5,126,043
Compensation
Mr. Charles S. MacFarlane, also known as Chuck, has been the Chief Executive Officer and Director of Otter Tail Corporation since April 13, 2015 and its President since April 14, 2014. Mr. MacFarlane serve...
CEO Compensation Analysis
Compensation vs Market: Chuck's total compensation ($USD5.13M) is above average for companies of similar size in the US market ($USD3.62M).
Compensation vs Earnings: Chuck's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.92yrs | US$5.13m | 0.50% $ 8.9m | |
| Senior VP & CFO | 19.92yrs | US$1.83m | 0.20% $ 3.6m | |
| VP, General Counsel & Corporate Secretary | 3.17yrs | US$1.30m | 0.010% $ 177.8k | |
| Senior VP of Electric Platform & President of Otter Tail Power Company | 6.92yrs | US$1.78m | 0.085% $ 1.5m | |
| Senior VP of Manufacturing Platform & President of Varistar | 6.08yrs | US$1.13m | 0.069% $ 1.2m | |
| Director of Corporate Communications | 2.92yrs | no data | no data | |
| Vice President of Human Resources | 8.5yrs | no data | 0.037% $ 655.6k | |
| Assistant Secretary | no data | no data | no data |
6.1yrs
Average Tenure
55yo
Average Age
Experienced Management: OTTR's management team is seasoned and experienced (6.1 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President | 5.92yrs | US$5.13m | 0.50% $ 8.9m | |
| Independent Chairman of the Board | 9.33yrs | US$229.52k | 0.16% $ 2.8m | |
| Independent Director | 7.58yrs | US$178.36k | 0.050% $ 897.4k | |
| Independent Director | 2.92yrs | US$159.61k | 0.016% $ 278.7k | |
| Independent Director | 13.92yrs | US$141.67k | 0.38% $ 6.8m | |
| Independent Director | 12.92yrs | US$172.74k | 0.10% $ 1.8m | |
| Independent Director | 18.17yrs | US$172.74k | 0.096% $ 1.7m | |
| Independent Director | 7.92yrs | US$159.61k | 0.044% $ 786.7k | |
| Independent Director | 6.92yrs | US$159.61k | 0.038% $ 668.8k |
7.9yrs
Average Tenure
65yo
Average Age
Experienced Board: OTTR's board of directors are considered experienced (7.9 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 been diluted in the past year, with total shares outstanding growing by 3.2%.
Top Shareholders
Company Information
Otter Tail Corporation's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Otter Tail Corporation
- Ticker: OTTR
- Exchange: NasdaqGS
- Founded: 1907
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: US$1.780b
- Shares outstanding: 41.51m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| OTTR | NasdaqGS (Nasdaq Global Select) | Yes | Common Shares | US | USD | Jan 1971 |
Biography
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, dis...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/03/07 00:12 |
| End of Day Share Price | 2021/03/05 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.