company background image
OTTR

Otter Tail NasdaqGS:OTTR Stock Report

Last Price

US$81.60

Market Cap

US$3.4b

7D

4.3%

1Y

51.6%

Updated

16 Aug, 2022

Data

Company Financials +
OTTR fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
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$81.60
52 Week HighUS$82.05
52 Week LowUS$52.49
Beta0.46
1 Month Change21.90%
3 Month Change26.96%
1 Year Change51.56%
3 Year Change60.19%
5 Year Change92.91%
Change since IPO572.99%

Recent News & Updates

Aug 02

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

OTTRUS Electric UtilitiesUS Market
7D4.3%4.0%3.6%
1Y51.6%8.3%-9.6%

Return vs Industry: OTTR exceeded the US Electric Utilities industry which returned 8.3% over the past year.

Return vs Market: OTTR exceeded the US Market which returned -9.6% over the past year.

Price Volatility

Is OTTR's price volatile compared to industry and market?
OTTR volatility
OTTR Average Weekly Movement4.9%
Electric Utilities Industry Average Movement3.4%
Market Average Movement7.7%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.2%

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

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$3.40b
Earnings (TTM)US$262.31m
Revenue (TTM)US$1.42b

13.0x

P/E Ratio

2.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OTTR income statement (TTM)
RevenueUS$1.42b
Cost of RevenueUS$877.94m
Gross ProfitUS$546.53m
Other ExpensesUS$284.22m
EarningsUS$262.31m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)6.30
Gross Margin38.37%
Net Profit Margin18.41%
Debt/Equity Ratio76.5%

How did OTTR perform over the long term?

See historical performance and comparison

Dividends

2.0%

Current Dividend Yield

25%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is OTTR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation 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.

OTTR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.9x
Enterprise Value/EBITDA9.1x
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
The above table shows the PE ratio for OTTR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average23.9x
PNM PNM Resources
26.6x8.5%US$4.1b
ALE ALLETE
18.8x8.6%US$3.6b
MGEE MGE Energy
29.8x4.9%US$3.1b
POR Portland General Electric
20.6x4.8%US$4.9b
OTTR Otter Tail
13x-16.4%US$3.4b

Price-To-Earnings vs Peers: OTTR is good value based on its Price-To-Earnings Ratio (13x) 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 (13x) 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.

OTTR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13x
Fair PE Ratio14.6x

Price-To-Earnings vs Fair Ratio: OTTR is good value based on its Price-To-Earnings Ratio (13x) 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 ($81.6) 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.


Discover undervalued companies

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

1/6

Future 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%)


Discover growth companies

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


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.


Discover strong past performing companies

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 ($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


Discover healthy companies

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

  • Cash Flow Coverage


2.02%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: OTTR's dividend (2.02%) is higher than the bottom 25% of dividend payers in the US market (1.47%).

High Dividend: OTTR's dividend (2.02%) is low compared to the top 25% of dividend payers in the US market (3.96%).


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.


Discover strong dividend paying companies

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 ($USD4.73M) is about average for companies of similar size in the US market ($USD6.57M).

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$3.397b
  • 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 Analysis2022/08/16 00:00
End of Day Share Price2022/08/16 00:00
Earnings2022/06/30
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.