OTTER TAIL CORP (OTTR) Stock Fundamental Analysis
USA - NASDAQ:OTTR - US6896481032 - Common Stock
79.66 USD
-0.98 (-1.22%)
79.66 USD
0 (0%)
Taking everything into account, OTTR scores 6 out of 10 in our fundamental rating. OTTR was compared to 47 industry peers in the Electric Utilities industry. OTTR has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. OTTR has a valuation in line with the averages, but on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year OTTR was profitable.
In the past year OTTR had a positive cash flow from operations.
OTTR had positive earnings in each of the past 5 years.
In the past 5 years OTTR always reported a positive cash flow from operatings.
1.2 Ratios
OTTR has a better Return On Assets (7.60%) than 93.62% of its industry peers.
Looking at the Return On Equity, with a value of 16.13%, OTTR belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
OTTR has a better Return On Invested Capital (8.15%) than 93.62% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OTTR is significantly above the industry average of 5.01%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 16.13% | ||
| ROIC | 8.15% |
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
With an excellent Profit Margin value of 21.82%, OTTR belongs to the best of the industry, outperforming 91.49% of the companies in the same industry.
OTTR's Profit Margin has improved in the last couple of years.
OTTR has a Operating Margin of 27.13%. This is amongst the best in the industry. OTTR outperforms 91.49% of its industry peers.
In the last couple of years the Operating Margin of OTTR has grown nicely.
The Gross Margin of OTTR (62.68%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of OTTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 27.13% | ||
| PM (TTM) | 21.82% | ||
| GM | 62.68% |
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.
OTTR has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, OTTR has more shares outstanding
Compared to 1 year ago, OTTR has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 2.25 indicates that OTTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
OTTR has a Altman-Z score of 2.25. This is amongst the best in the industry. OTTR outperforms 89.36% of its industry peers.
OTTR has a debt to FCF ratio of 12.84. This is a negative value and a sign of low solvency as OTTR would need 12.84 years to pay back of all of its debts.
OTTR has a better Debt to FCF ratio (12.84) than 80.85% of its industry peers.
OTTR has a Debt/Equity ratio of 0.59. This is a neutral value indicating OTTR is somewhat dependend on debt financing.
OTTR has a Debt to Equity ratio of 0.59. This is amongst the best in the industry. OTTR outperforms 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 2.25 |
ROIC/WACC1.08
WACC7.55%
2.3 Liquidity
A Current Ratio of 3.31 indicates that OTTR has no problem at all paying its short term obligations.
OTTR has a Current ratio of 3.31. This is amongst the best in the industry. OTTR outperforms 97.87% of its industry peers.
OTTR has a Quick Ratio of 2.57. This indicates that OTTR is financially healthy and has no problem in meeting its short term obligations.
OTTR's Quick ratio of 2.57 is amongst the best of the industry. OTTR outperforms 97.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
The earnings per share for OTTR have decreased by -8.11% in the last year.
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.
The Revenue has decreased by -3.69% in the past year.
Measured over the past years, OTTR shows a small growth in Revenue. The Revenue has been growing by 7.67% on average per year.
EPS 1Y (TTM)-8.11%
EPS 3Y19.23%
EPS 5Y26.89%
EPS Q2Q%-10.63%
Revenue 1Y (TTM)-3.69%
Revenue growth 3Y3.59%
Revenue growth 5Y7.67%
Sales Q2Q%-2.71%
3.2 Future
Based on estimates for the next years, OTTR will show a decrease in Earnings Per Share. The EPS will decrease by -7.85% on average per year.
Based on estimates for the next years, OTTR will show a small growth in Revenue. The Revenue will grow by 2.37% on average per year.
EPS Next Y-6.88%
EPS Next 2Y-7.58%
EPS Next 3Y-9.11%
EPS Next 5Y-7.85%
Revenue Next Year-1.9%
Revenue Next 2Y1.34%
Revenue Next 3Y0.87%
Revenue Next 5Y2.37%
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
The Price/Earnings ratio is 11.71, which indicates a very decent valuation of OTTR.
Compared to the rest of the industry, the Price/Earnings ratio of OTTR indicates a somewhat cheap valuation: OTTR is cheaper than 70.21% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of OTTR to the average of the S&P500 Index (27.86), we can say OTTR is valued rather cheaply.
Based on the Price/Forward Earnings ratio of 13.01, the valuation of OTTR can be described as correct.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OTTR indicates a somewhat cheap valuation: OTTR is cheaper than 63.83% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.29. OTTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 13.01 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OTTR indicates a somewhat cheap valuation: OTTR is cheaper than 72.34% of the companies listed in the same industry.
76.60% of the companies in the same industry are more expensive than OTTR, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.07 | ||
| EV/EBITDA | 8.77 |
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 -9.11% in the coming years.
PEG (NY)N/A
PEG (5Y)0.44
EPS Next 2Y-7.58%
EPS Next 3Y-9.11%
5. Dividend
5.1 Amount
OTTR has a Yearly Dividend Yield of 2.55%. Purely for dividend investing, there may be better candidates out there.
OTTR's Dividend Yield is slightly below the industry average, which is at 3.80.
Compared to an average S&P500 Dividend Yield of 2.41, OTTR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
5.2 History
The dividend of OTTR is nicely growing with an annual growth rate of 6.09%!
OTTR has paid a dividend for at least 10 years, which is a reliable track record.
OTTR has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)6.09%
Div Incr Years11
Div Non Decr Years34
5.3 Sustainability
29.06% of the earnings are spent on dividend by OTTR. This is a low number and sustainable payout ratio.
DP29.06%
EPS Next 2Y-7.58%
EPS Next 3Y-9.11%
79.66
-0.98 (-1.22%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners67.11%
Inst Owner Change0.06%
Ins Owners1.03%
Ins Owner Change1.7%
Market Cap3.34B
Analysts80
Price Target84.66 (6.28%)
Short Float %11.24%
Short Ratio22.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.55% |
Yearly Dividend1.87
Dividend Growth(5Y)6.09%
DP29.06%
Div Incr Years11
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)4.53%
Min EPS beat(2)3.83%
Max EPS beat(2)5.22%
EPS beat(4)4
Avg EPS beat(4)2.47%
Min EPS beat(4)0.25%
Max EPS beat(4)5.22%
EPS beat(8)8
Avg EPS beat(8)11.13%
EPS beat(12)12
Avg EPS beat(12)15.8%
EPS beat(16)16
Avg EPS beat(16)17.11%
Revenue beat(2)1
Avg Revenue beat(2)-2.61%
Min Revenue beat(2)-5.43%
Max Revenue beat(2)0.21%
Revenue beat(4)1
Avg Revenue beat(4)-5.73%
Min Revenue beat(4)-12.13%
Max Revenue beat(4)0.21%
Revenue beat(8)2
Avg Revenue beat(8)-4.3%
Revenue beat(12)5
Avg Revenue beat(12)-2.3%
Revenue beat(16)8
Avg Revenue beat(16)0.06%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.72%
EPS NY rev (1m)4.41%
EPS NY rev (3m)6.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 13.01 | ||
| P/S | 2.55 | ||
| P/FCF | 41.07 | ||
| P/OCF | 8.59 | ||
| P/B | 1.88 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 8.77 |
EPS(TTM)6.8
EY8.54%
EPS(NY)6.12
Fwd EY7.69%
FCF(TTM)1.94
FCFY2.43%
OCF(TTM)9.27
OCFY11.64%
SpS31.29
BVpS42.34
TBVpS41.32
PEG (NY)N/A
PEG (5Y)0.44
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.6% | ||
| ROE | 16.13% | ||
| ROCE | 9.99% | ||
| ROIC | 8.15% | ||
| ROICexc | 8.92% | ||
| ROICexgc | 9.04% | ||
| OM | 27.13% | ||
| PM (TTM) | 21.82% | ||
| GM | 62.68% | ||
| FCFM | 6.2% |
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 Turnover0.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 12.84 | ||
| Debt/EBITDA | 2.22 | ||
| Cap/Depr | 271.01% | ||
| Cap/Sales | 23.44% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 82.83% | ||
| Profit Quality | 28.41% | ||
| Current Ratio | 3.31 | ||
| Quick Ratio | 2.57 | ||
| Altman-Z | 2.25 |
F-Score5
WACC7.55%
ROIC/WACC1.08
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)-8.11%
EPS 3Y19.23%
EPS 5Y26.89%
EPS Q2Q%-10.63%
EPS Next Y-6.88%
EPS Next 2Y-7.58%
EPS Next 3Y-9.11%
EPS Next 5Y-7.85%
Revenue 1Y (TTM)-3.69%
Revenue growth 3Y3.59%
Revenue growth 5Y7.67%
Sales Q2Q%-2.71%
Revenue Next Year-1.9%
Revenue Next 2Y1.34%
Revenue Next 3Y0.87%
Revenue Next 5Y2.37%
EBIT growth 1Y-10.39%
EBIT growth 3Y15.05%
EBIT growth 5Y23.03%
EBIT Next Year31.67%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-44.48%
FCF growth 3Y16.57%
FCF growth 5YN/A
OCF growth 1Y-2.4%
OCF growth 3Y25.11%
OCF growth 5Y19.6%