Otter Tail
Market Cap
US$2.2b
Last Updated
2021/08/03 23:37 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
Solid track record with excellent balance sheet and pays a dividend.
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 +/- 3% a week.
Volatility Over Time: OTTR's weekly volatility (3%) has been stable over the past year.
Market Performance
7 Day Return
6.1%
OTTR
0.2%
US Electric Utilities
0.9%
US Market
1 Year Return
37.7%
OTTR
11.8%
US Electric Utilities
34.7%
US Market
Return vs Industry: OTTR exceeded the US Electric Utilities industry which returned 12.2% over the past year.
Return vs Market: OTTR exceeded the US Market which returned 34.4% over the past year.
Shareholder returns
| OTTR | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.1% | 0.2% | 0.9% |
| 30 Day | 10.3% | 4.2% | 0.2% |
| 90 Day | 12.5% | 3.0% | 4.7% |
| 1 Year | 42.6%37.7% | 15.5%11.8% | 36.8%34.7% |
| 3 Year | 20.8%10.0% | 25.3%14.7% | 62.5%52.4% |
| 5 Year | 79.5%53.2% | 32.4%14.0% | 123.1%98.4% |
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
2 weeks ago | Simply Wall St
Is Otter Tail Corporation's (NASDAQ:OTTR) Latest Stock Performance Being Led By Its Strong Fundamentals?1 month ago | Simply Wall St
Here's Why I Think Otter Tail (NASDAQ:OTTR) Might Deserve Your Attention Today1 month ago | Simply Wall St
Estimating The Fair Value Of Otter Tail Corporation (NASDAQ:OTTR)Valuation
Is Otter Tail undervalued compared to its fair value and its price relative to the market?
13.49x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: OTTR ($53.37) is trading above our estimate of fair value ($44.42)
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 (13.5x) compared to the US Electric Utilities industry average (21.9x).
PE vs Market: OTTR is good value based on its PE Ratio (13.5x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: OTTR is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: OTTR is good value based on its PB Ratio (1.2x) compared to the US Electric Utilities industry average (2x).
Future Growth
How is Otter Tail forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?
3.2%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OTTR's forecast earnings growth (3.2% per year) is above the savings rate (2%).
Earnings vs Market: OTTR's earnings (3.2% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: OTTR's earnings are forecast to grow, but not significantly.
Revenue vs Market: OTTR's revenue (2% per year) is forecast to grow slower than the US market (9.2% per year).
High Growth Revenue: OTTR's revenue (2% 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 (11.2%).
Past Performance
How has Otter Tail performed over the past 5 years?
13.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OTTR has high quality earnings.
Growing Profit Margin: OTTR's current net profit margins (14.6%) are higher than last year (9.9%).
Past Earnings Growth Analysis
Earnings Trend: OTTR's earnings have grown by 13.1% per year over the past 5 years.
Accelerating Growth: OTTR's earnings growth over the past year (89.1%) exceeds its 5-year average (13.1% per year).
Earnings vs Industry: OTTR earnings growth over the past year (89.1%) exceeded the Electric Utilities industry 8.2%.
Return on Equity
High ROE: OTTR's Return on Equity (8.9%) is considered low.
Financial Health
How is Otter Tail's financial position?
Financial Position Analysis
Short Term Liabilities: OTTR's short term assets ($259.0M) exceed its short term liabilities ($29.1M).
Long Term Liabilities: OTTR's short term assets ($259.0M) do not cover its long term liabilities ($624.5M).
Debt to Equity History and Analysis
Debt Level: OTTR's debt to equity ratio (33%) is considered satisfactory.
Reducing Debt: OTTR's debt to equity ratio has reduced from 93.6% to 33% over the past 5 years.
Debt Coverage: OTTR's debt is well covered by operating cash flow (33%).
Interest Coverage: OTTR's interest payments on its debt are well covered by EBIT (6.4x coverage).
Balance Sheet
Dividend
What is Otter Tail current dividend yield, its reliability and sustainability?
2.92%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OTTR's dividend (2.92%) is higher than the bottom 25% of dividend payers in the US market (1.32%).
High Dividend: OTTR's dividend (2.92%) is low compared to the top 25% of dividend payers in the US market (3.57%).
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 reasonably low payout ratio (37.9%), OTTR's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: OTTR's dividends in 3 years are forecast to be covered by earnings (56.2% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.5yrs
Average management tenure
CEO
Chuck MacFarlane (56 yo)
6.33yrs
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 ($USD3.71M).
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 (6.5 years average tenure).
Board Members
Experienced Board: OTTR's board of directors are considered experienced (8.3 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.
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.8%.
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$2.217b
- Shares outstanding: 41.54m
- 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
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 | 2021/08/03 23:37 |
| End of Day Share Price | 2021/08/03 00:00 |
| Earnings | 2021/06/30 |
| 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.