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OTTR

Otter Tail NasdaqGS:OTTR Stock Report

Last Price

US$64.52

Market Cap

US$2.7b

7D

2.5%

1Y

35.0%

Updated

26 May, 2022

Data

Company Financials +
OTTR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance6/6
Financial Health4/6
Dividends5/6

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

Summary of all time highs, changes and price drops for Otter Tail
Historical stock prices
Current Share PriceUS$64.52
52 Week HighUS$71.89
52 Week LowUS$47.24
Beta0.51
1 Month Change7.11%
3 Month Change2.71%
1 Year Change34.95%
3 Year Change30.82%
5 Year Change60.50%
Change since IPO432.12%

Recent News & Updates

May 11
Returns Are Gaining Momentum At Otter Tail (NASDAQ:OTTR)

Returns Are Gaining Momentum At Otter Tail (NASDAQ:OTTR)

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'd want to identify a...

Shareholder Returns

OTTRUS Electric UtilitiesUS Market
7D2.5%3.2%1.0%
1Y35.0%9.8%-15.1%

Return vs Industry: OTTR exceeded the US Electric Utilities industry which returned 9.8% over the past year.

Return vs Market: OTTR exceeded the US Market which returned -15.1% over the past year.

Price Volatility

Is OTTR's price volatile compared to industry and market?
OTTR volatility
OTTR Average Weekly Movement3.7%
Electric Utilities Industry Average Movement3.1%
Market Average Movement7.8%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market2.9%

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.

About the Company

FoundedEmployeesCEOWebsite
19072,487Chuck MacFarlanehttps://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

How do Otter Tail's earnings and revenue compare to its market cap?
OTTR fundamental statistics
Market CapUS$2.69b
Earnings (TTM)US$218.44m
Revenue (TTM)US$1.31b

12.3x

P/E Ratio

2.1x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OTTR income statement (TTM)
RevenueUS$1.31b
Cost of RevenueUS$826.82m
Gross ProfitUS$483.22m
Other ExpensesUS$264.77m
EarningsUS$218.44m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.25
Gross Margin36.89%
Net Profit Margin16.67%
Debt/Equity Ratio82.3%

How did OTTR perform over the long term?

See historical performance and comparison

Dividends

2.6%

Current Dividend Yield

30%

Payout Ratio

Valuation

Is Otter Tail undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


43.2%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: OTTR ($64.52) is trading below our estimate of fair value ($113.67)

Significantly Below Fair Value: OTTR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: OTTR is good value based on its Price-To-Earnings Ratio (12.3x) compared to the US Electric Utilities industry average (22x).

PE vs Market: OTTR is good value based on its Price-To-Earnings Ratio (12.3x) compared to the US market (15.2x).


Price to Earnings Growth Ratio

PEG Ratio: OTTR's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: OTTR is overvalued based on its Price-To-Book Ratio (2.6x) 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?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-6.4%

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 (-6.4% per year).

Earnings vs Market: OTTR's earnings are forecast to decline over the next 3 years (-6.4% 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 (-0.4% per year).

High Growth Revenue: OTTR's revenue is forecast to decline over the next 3 years (-0.4% 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%).


Past Performance

How has Otter Tail performed over the past 5 years?

Past Performance Score

6/6

Past Performance Score 6/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


19.7%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OTTR has high quality earnings.

Growing Profit Margin: OTTR's current net profit margins (16.7%) are higher than last year (11.1%).


Past Earnings Growth Analysis

Earnings Trend: OTTR's earnings have grown by 19.7% per year over the past 5 years.

Accelerating Growth: OTTR's earnings growth over the past year (114.3%) exceeds its 5-year average (19.7% per year).

Earnings vs Industry: OTTR earnings growth over the past year (114.3%) exceeded the Electric Utilities industry 9.5%.


Return on Equity

High ROE: OTTR's Return on Equity (20.9%) is considered high.


Financial Health

How is Otter Tail's financial position?

Financial Health Score

4/6

Financial 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 ($402.4M) exceed its short term liabilities ($373.2M).

Long Term Liabilities: OTTR's short term assets ($402.4M) do not cover its long term liabilities ($1.4B).


Debt to Equity History and Analysis

Debt Level: OTTR's net debt to equity ratio (82.2%) is considered high.

Reducing Debt: OTTR's debt to equity ratio has reduced from 87.6% to 82.3% over the past 5 years.

Debt Coverage: OTTR's debt is well covered by operating cash flow (30.3%).

Interest Coverage: OTTR's interest payments on its debt are well covered by EBIT (8.1x coverage).


Balance Sheet


Dividend

What is Otter Tail current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.56%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: OTTR's dividend (2.56%) is higher than the bottom 25% of dividend payers in the US market (1.54%).

High Dividend: OTTR's dividend (2.56%) is low compared to the top 25% of dividend payers in the US market (4.01%).


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 (30.1%), OTTR's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (61.9%), OTTR's dividend payments are covered by cash flows.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average management tenure


CEO

Chuck MacFarlane (56 yo)

8.08yrs

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 ($USD4.73M) is below average for companies of similar size in the US market ($USD6.86M).

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 (8.1 years average tenure).


Board Members

Experienced Board: OTTR's board of directors are considered experienced (9.1 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$2.686b
  • 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/26 00:00
End of Day Share Price2022/05/26 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.