OTTER TAIL CORP (OTTR)
US6896481032 - Common Stock
Taking everything into account, OTTR scores 6 out of 10 in our fundamental rating. OTTR was compared to 45 industry peers in the Electric Utilities industry. While OTTR belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. OTTR has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year OTTR was profitable.
OTTR had a positive operating cash flow in the past year.
OTTR had positive earnings in each of the past 5 years.
Each year in the past 5 years OTTR had a positive operating cash flow.
1.2 Ratios
The Return On Assets of OTTR (9.08%) is better than 100.00% of its industry peers.
Looking at the Return On Equity, with a value of 20.39%, OTTR belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
OTTR's Return On Invested Capital of 10.06% is amongst the best of the industry. OTTR outperforms 95.56% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OTTR is significantly above the industry average of 4.92%.
The 3 year average ROIC (9.97%) for OTTR is below the current ROIC(10.06%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.08% | ||
| ROE | 20.39% | ||
| ROIC | 10.06% |
ROA(3y)8.43%
ROA(5y)6.56%
ROE(3y)20.53%
ROE(5y)16.74%
ROIC(3y)9.97%
ROIC(5y)8.09%
1.3 Margins
OTTR's Profit Margin of 21.81% is amongst the best of the industry. OTTR outperforms 95.56% of its industry peers.
OTTR's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 28.01%, OTTR belongs to the top of the industry, outperforming 95.56% of the companies in the same industry.
In the last couple of years the Operating Margin of OTTR has grown nicely.
OTTR has a Gross Margin (60.54%) which is in line with its industry peers.
In the last couple of years the Gross Margin of OTTR has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 28.01% | ||
| PM (TTM) | 21.81% | ||
| GM | 60.54% |
OM growth 3Y19.01%
OM growth 5Y14.68%
PM growth 3Y26.49%
PM growth 5Y19.41%
GM growth 3Y2.59%
GM growth 5Y2.37%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OTTR is creating some value.
Compared to 1 year ago, OTTR has more shares outstanding
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
OTTR has an Altman-Z score of 2.53. 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.
The Altman-Z score of OTTR (2.53) is better than 93.33% of its industry peers.
OTTR has a debt to FCF ratio of 7.72. This is a slightly negative value and a sign of low solvency as OTTR would need 7.72 years to pay back of all of its debts.
OTTR has a better Debt to FCF ratio (7.72) than 91.11% of its industry peers.
A Debt/Equity ratio of 0.63 indicates that OTTR is somewhat dependend on debt financing.
OTTR has a Debt to Equity ratio of 0.63. This is amongst the best in the industry. OTTR outperforms 91.11% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | 7.72 | ||
| Altman-Z | 2.53 |
ROIC/WACC1.26
WACC7.97%
2.3 Liquidity
A Current Ratio of 1.84 indicates that OTTR should not have too much problems paying its short term obligations.
OTTR's Current ratio of 1.84 is amongst the best of the industry. OTTR outperforms 86.67% of its industry peers.
OTTR has a Quick Ratio of 1.36. This is a normal value and indicates that OTTR is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of OTTR (1.36) is better than 86.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.36 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 3.24% over the past year.
OTTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 27.72% yearly.
The Revenue has decreased by -7.60% in the past year.
OTTR shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 8.04% yearly.
EPS 1Y (TTM)3.24%
EPS 3Y44.09%
EPS 5Y27.72%
EPS growth Q2Q37%
Revenue 1Y (TTM)-7.6%
Revenue growth 3Y14.87%
Revenue growth 5Y8.04%
Revenue growth Q2Q4.28%
3.2 Future
The Earnings Per Share is expected to decrease by -9.75% on average over the next years.
OTTR is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 2.77% yearly.
EPS Next Y-22.8%
EPS Next 2Y-21.92%
EPS Next 3Y-17.6%
EPS Next 5Y-9.75%
Revenue Next Year2.24%
Revenue Next 2Y3.63%
Revenue Next 3Y3.02%
Revenue Next 5Y2.77%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 13.17, which indicates a correct valuation of OTTR.
71.11% of the companies in the same industry are more expensive than OTTR, based on the Price/Earnings ratio.
OTTR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.83.
Based on the Price/Forward Earnings ratio of 17.07, the valuation of OTTR can be described as rather expensive.
Based on the Price/Forward Earnings ratio, OTTR is valued a bit more expensive than 73.33% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.47, OTTR is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 17.07 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OTTR is valued a bit cheaper than 73.33% of the companies in the same industry.
OTTR's Price/Free Cash Flow ratio is rather cheap when compared to the industry. OTTR is cheaper than 86.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.83 | ||
| EV/EBITDA | 9.32 |
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 -17.60% in the coming years.
PEG (NY)N/A
PEG (5Y)0.48
EPS Next 2Y-21.92%
EPS Next 3Y-17.6%
5. Dividend
5.1 Amount
OTTR has a Yearly Dividend Yield of 2.02%.
OTTR's Dividend Yield is slightly below the industry average, which is at 3.99.
OTTR's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
5.2 History
The dividend of OTTR has a limited annual growth rate of 5.50%.
OTTR has been paying a dividend for at least 10 years, so it has 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)5.5%
Div Incr Years10
Div Non Decr Years19
5.3 Sustainability
OTTR pays out 24.83% of its income as dividend. This is a sustainable payout ratio.
DP24.83%
EPS Next 2Y-21.92%
EPS Next 3Y-17.6%
OTTER TAIL CORP
NASDAQ:OTTR (5/16/2024, 7:09:16 PM)
After market: 92.22 0 (0%)92.22
+0.21 (+0.23%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap3.85B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.02% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
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Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 13.17 | ||
| Fwd PE | 17.07 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)0.48
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.08% | ||
| ROE | 20.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 28.01% | ||
| PM (TTM) | 21.81% | ||
| GM | 60.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.42
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.84 | ||
| Quick Ratio | 1.36 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)3.24%
EPS 3Y44.09%
EPS 5Y
EPS growth Q2Q
EPS Next Y-22.8%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-7.6%
Revenue growth 3Y14.87%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y