OTTER TAIL CORP (OTTR) Stock Fundamental Analysis
NASDAQ:OTTR - Nasdaq - US6896481032 - Common Stock - Currency: USD
OTTR gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 47 industry peers in the Electric Utilities industry. Both the health and profitability get an excellent rating, making OTTR a very profitable company, without any liquidiy or solvency issues. OTTR is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
OTTR had positive earnings in the past year.
In the past year OTTR had a positive cash flow from operations.
Each year in the past 5 years OTTR has been profitable.
Each year in the past 5 years OTTR had a positive operating cash flow.
1.2 Ratios
OTTR has a better Return On Assets (7.99%) than 91.49% of its industry peers.
OTTR has a Return On Equity of 17.20%. This is amongst the best in the industry. OTTR outperforms 87.23% of its industry peers.
With an excellent Return On Invested Capital value of 8.59%, OTTR belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
OTTR had an Average Return On Invested Capital over the past 3 years of 10.41%. This is significantly below the industry average of 38.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 17.2% | ||
| ROIC | 8.59% |
ROA(3y)9.04%
ROA(5y)7.45%
ROE(3y)20.6%
ROE(5y)18.13%
ROIC(3y)10.41%
ROIC(5y)8.99%
1.3 Margins
The Profit Margin of OTTR (22.37%) is better than 93.62% of its industry peers.
OTTR's Profit Margin has improved in the last couple of years.
OTTR has a Operating Margin of 27.96%. This is amongst the best in the industry. OTTR outperforms 89.36% of its industry peers.
In the last couple of years the Operating Margin of OTTR has grown nicely.
OTTR has a Gross Margin (62.59%) which is in line with its industry peers.
OTTR's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.96% | ||
| PM (TTM) | 22.37% | ||
| GM | 62.59% |
OM growth 3Y11.06%
OM growth 5Y14.27%
PM growth 3Y15.35%
PM growth 5Y19.15%
GM growth 3Y5.29%
GM growth 5Y3.21%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OTTR is still creating some value.
The number of shares outstanding for OTTR has been increased compared to 1 year ago.
Compared to 5 years ago, OTTR has more shares outstanding
The debt/assets ratio for OTTR has been reduced compared to a year ago.
2.2 Solvency
OTTR has an Altman-Z score of 2.23. This is not the best score and indicates that OTTR is in the grey zone with still only limited risk for bankruptcy at the moment.
With an excellent Altman-Z score value of 2.23, OTTR belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
OTTR has a debt to FCF ratio of 13.55. This is a negative value and a sign of low solvency as OTTR would need 13.55 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 13.55, OTTR belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
OTTR has a Debt/Equity ratio of 0.61. This is a neutral value indicating OTTR is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, OTTR is in the better half of the industry, outperforming 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 13.55 | ||
| Altman-Z | 2.23 |
ROIC/WACC0.97
WACC8.82%
2.3 Liquidity
OTTR has a Current Ratio of 2.62. This indicates that OTTR is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 2.62, OTTR belongs to the best of the industry, outperforming 97.87% of the companies in the same industry.
OTTR has a Quick Ratio of 2.03. This indicates that OTTR is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of OTTR (2.03) is better than 91.49% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
OTTR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -3.57%.
Measured over the past years, OTTR shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.89% on average per year.
Looking at the last year, OTTR shows a decrease in Revenue. The Revenue has decreased by -2.68% in the last year.
The Revenue has been growing slightly by 7.67% on average over the past years.
EPS 1Y (TTM)-3.57%
EPS 3Y19.23%
EPS 5Y26.89%
EPS Q2Q%-8.47%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y3.59%
Revenue growth 5Y7.67%
Sales Q2Q%-2.8%
3.2 Future
Based on estimates for the next years, OTTR will show a decrease in Earnings Per Share. The EPS will decrease by -8.05% on average per year.
OTTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.01% yearly.
EPS Next Y-12.61%
EPS Next 2Y-11.71%
EPS Next 3Y-10.23%
EPS Next 5Y-8.05%
Revenue Next Year-2.48%
Revenue Next 2Y1.16%
Revenue Next 3Y0.56%
Revenue Next 5Y2.01%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 11.35 indicates a reasonable valuation of OTTR.
Based on the Price/Earnings ratio, OTTR is valued a bit cheaper than the industry average as 68.09% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 27.28. OTTR is valued rather cheaply when compared to this.
The Price/Forward Earnings ratio is 14.26, which indicates a correct valuation of OTTR.
61.70% of the companies in the same industry are more expensive than OTTR, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, OTTR is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 14.26 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OTTR is valued a bit cheaper than the industry average as 72.34% of the companies are valued more expensively.
OTTR's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. OTTR is cheaper than 76.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.99 | ||
| EV/EBITDA | 8.41 |
4.3 Compensation for Growth
The excellent profitability rating of OTTR may justify a higher PE ratio.
A cheap valuation may be justified as OTTR's earnings are expected to decrease with -10.23% in the coming years.
PEG (NY)N/A
PEG (5Y)0.42
EPS Next 2Y-11.71%
EPS Next 3Y-10.23%
5. Dividend
5.1 Amount
OTTR has a Yearly Dividend Yield of 2.67%.
OTTR's Dividend Yield is slightly below the industry average, which is at 3.67.
Compared to an average S&P500 Dividend Yield of 2.42, OTTR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
5.2 History
The dividend of OTTR is nicely growing with an annual growth rate of 6.09%!
OTTR has been paying a dividend for at least 10 years, so it has a reliable track record.
OTTR has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)6.09%
Div Incr Years11
Div Non Decr Years34
5.3 Sustainability
OTTR pays out 27.32% of its income as dividend. This is a sustainable payout ratio.
DP27.32%
EPS Next 2Y-11.71%
EPS Next 3Y-10.23%
79.69
+0.27 (+0.34%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners66.74%
Inst Owner Change0.49%
Ins Owners1.03%
Ins Owner Change6.53%
Market Cap3.34B
Analysts80
Price Target84.66 (6.24%)
Short Float %10.91%
Short Ratio21.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend1.87
Dividend Growth(5Y)6.09%
DP27.32%
Div Incr Years11
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.04%
Min EPS beat(2)0.25%
Max EPS beat(2)3.83%
EPS beat(4)4
Avg EPS beat(4)6.1%
Min EPS beat(4)0.25%
Max EPS beat(4)19.76%
EPS beat(8)8
Avg EPS beat(8)14.48%
EPS beat(12)12
Avg EPS beat(12)17.86%
EPS beat(16)16
Avg EPS beat(16)22.06%
Revenue beat(2)0
Avg Revenue beat(2)-5.51%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)-5.43%
Revenue beat(4)0
Avg Revenue beat(4)-7.97%
Min Revenue beat(4)-12.13%
Max Revenue beat(4)-5.43%
Revenue beat(8)2
Avg Revenue beat(8)-4.11%
Revenue beat(12)5
Avg Revenue beat(12)-0.95%
Revenue beat(16)8
Avg Revenue beat(16)1.61%
PT rev (1m)1.22%
PT rev (3m)1.22%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)1.2%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-4.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.35 | ||
| Fwd PE | 14.26 | ||
| P/S | 2.53 | ||
| P/FCF | 42.99 | ||
| P/OCF | 7.94 | ||
| P/B | 1.94 | ||
| P/tB | 1.99 | ||
| EV/EBITDA | 8.41 |
EPS(TTM)7.02
EY8.81%
EPS(NY)5.59
Fwd EY7.01%
FCF(TTM)1.85
FCFY2.33%
OCF(TTM)10.03
OCFY12.59%
SpS31.52
BVpS40.99
TBVpS39.96
PEG (NY)N/A
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 17.2% | ||
| ROCE | 10.71% | ||
| ROIC | 8.59% | ||
| ROICexc | 9.35% | ||
| ROICexgc | 9.48% | ||
| OM | 27.96% | ||
| PM (TTM) | 22.37% | ||
| GM | 62.59% | ||
| FCFM | 5.88% |
ROA(3y)9.04%
ROA(5y)7.45%
ROE(3y)20.6%
ROE(5y)18.13%
ROIC(3y)10.41%
ROIC(5y)8.99%
ROICexc(3y)11.17%
ROICexc(5y)9.44%
ROICexgc(3y)11.35%
ROICexgc(5y)9.61%
ROCE(3y)12.97%
ROCE(5y)11.27%
ROICexcg growth 3Y6.09%
ROICexcg growth 5Y13.12%
ROICexc growth 3Y6.27%
ROICexc growth 5Y13.34%
OM growth 3Y11.06%
OM growth 5Y14.27%
PM growth 3Y15.35%
PM growth 5Y19.15%
GM growth 3Y5.29%
GM growth 5Y3.21%
F-Score5
Asset Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 13.55 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 309.78% | ||
| Cap/Sales | 25.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.58% | ||
| Profit Quality | 26.29% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 2.23 |
F-Score5
WACC8.82%
ROIC/WACC0.97
Cap/Depr(3y)270.9%
Cap/Depr(5y)290.77%
Cap/Sales(3y)19.99%
Cap/Sales(5y)23.21%
Profit Quality(3y)49.29%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-3.57%
EPS 3Y19.23%
EPS 5Y26.89%
EPS Q2Q%-8.47%
EPS Next Y-12.61%
EPS Next 2Y-11.71%
EPS Next 3Y-10.23%
EPS Next 5Y-8.05%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y3.59%
Revenue growth 5Y7.67%
Sales Q2Q%-2.8%
Revenue Next Year-2.48%
Revenue Next 2Y1.16%
Revenue Next 3Y0.56%
Revenue Next 5Y2.01%
EBIT growth 1Y-5.86%
EBIT growth 3Y15.05%
EBIT growth 5Y23.03%
EBIT Next Year24.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-51.15%
FCF growth 3Y16.57%
FCF growth 5YN/A
OCF growth 1Y5.2%
OCF growth 3Y25.11%
OCF growth 5Y19.6%