OTTER TAIL CORP (OTTR) Stock Fundamental Analysis
NASDAQ:OTTR - Nasdaq - US6896481032 - Common Stock - Currency: USD
Overall OTTR gets a fundamental rating of 6 out of 10. We evaluated OTTR against 47 industry peers in the Electric Utilities industry. OTTR gets an excellent profitability rating and is at the same time showing great financial health properties. OTTR is valued correctly, but it does not seem to be growing.
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.
OTTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 7.60%, OTTR belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
With an excellent Return On Equity value of 16.13%, OTTR belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
With an excellent Return On Invested Capital value of 8.15%, OTTR belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OTTR is significantly above the industry average of 5.09%.
| 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
OTTR's Profit Margin of 21.82% is amongst the best of the industry. OTTR outperforms 91.49% of its industry peers.
OTTR's Profit Margin has improved in the last couple of years.
The Operating Margin of OTTR (27.13%) is better than 89.36% of its industry peers.
OTTR's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 62.68%, OTTR is in line with its industry, outperforming 55.32% of the companies in the same industry.
OTTR's Gross Margin has improved in the last couple of years.
| 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
OTTR has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it 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 2.28. 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.
Looking at the Altman-Z score, with a value of 2.28, OTTR belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
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.
A Debt/Equity ratio of 0.59 indicates that OTTR is somewhat dependend on debt financing.
OTTR has a better Debt to Equity ratio (0.59) than 80.85% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | 12.84 | ||
| Altman-Z | 2.28 |
ROIC/WACC1.05
WACC7.78%
2.3 Liquidity
A Current Ratio of 3.31 indicates that OTTR has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.31, OTTR belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
A Quick Ratio of 2.57 indicates that OTTR has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.57, OTTR belongs to the top of the industry, outperforming 97.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
OTTR shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -8.11%.
OTTR shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 26.89% yearly.
OTTR shows a decrease in Revenue. In the last year, the revenue decreased by -3.69%.
The Revenue has been growing slightly by 7.67% on average over the past years.
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
The Earnings Per Share is expected to decrease by -8.13% on average over the next years.
Based on estimates for the next years, OTTR will show a small growth in Revenue. The Revenue will grow by 2.01% on average per year.
EPS Next Y-12.61%
EPS Next 2Y-11.71%
EPS Next 3Y-10.23%
EPS Next 5Y-8.13%
Revenue Next Year-2.48%
Revenue Next 2Y1.16%
Revenue Next 3Y0.53%
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.
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 12.41, which indicates a correct 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 65.96% of the companies listed in the same industry.
OTTR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.85.
With a Price/Forward Earnings ratio of 15.10, OTTR is valued correctly.
63.83% of the companies in the same industry are more expensive than OTTR, based on the Price/Forward Earnings ratio.
OTTR is valuated cheaply when we compare the Price/Forward Earnings ratio to 34.98, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 15.1 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OTTR is valued a bit cheaper than the industry average as 68.09% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OTTR indicates a somewhat cheap valuation: OTTR is cheaper than 76.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.51 | ||
| EV/EBITDA | 8.96 |
4.3 Compensation for Growth
OTTR has an outstanding profitability rating, which may justify a higher PE ratio.
OTTR's earnings are expected to decrease with -10.23% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.46
EPS Next 2Y-11.71%
EPS Next 3Y-10.23%
5. Dividend
5.1 Amount
OTTR has a Yearly Dividend Yield of 2.56%.
Compared to an average industry Dividend Yield of 3.46, OTTR is paying slightly less dividend.
Compared to an average S&P500 Dividend Yield of 2.36, OTTR has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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 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
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-11.71%
EPS Next 3Y-10.23%
84.42
+1.61 (+1.94%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners66.78%
Inst Owner Change-0.06%
Ins Owners1.03%
Ins Owner Change1.7%
Market Cap3.54B
Analysts80
Price Target84.66 (0.28%)
Short Float %11.24%
Short Ratio21.66
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.56% |
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)1.22%
EPS NQ rev (1m)0.31%
EPS NQ rev (3m)-1.23%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.43%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-4.26%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.82%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.41 | ||
| Fwd PE | 15.1 | ||
| P/S | 2.7 | ||
| P/FCF | 43.51 | ||
| P/OCF | 9.1 | ||
| P/B | 1.99 | ||
| P/tB | 2.04 | ||
| EV/EBITDA | 8.96 |
EPS(TTM)6.8
EY8.05%
EPS(NY)5.59
Fwd EY6.62%
FCF(TTM)1.94
FCFY2.3%
OCF(TTM)9.28
OCFY10.99%
SpS31.3
BVpS42.35
TBVpS41.33
PEG (NY)N/A
PEG (5Y)0.46
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 | 2.28 |
F-Score5
WACC7.78%
ROIC/WACC1.05
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-12.61%
EPS Next 2Y-11.71%
EPS Next 3Y-10.23%
EPS Next 5Y-8.13%
Revenue 1Y (TTM)-3.69%
Revenue growth 3Y3.59%
Revenue growth 5Y7.67%
Sales Q2Q%-2.71%
Revenue Next Year-2.48%
Revenue Next 2Y1.16%
Revenue Next 3Y0.53%
Revenue Next 5Y2.01%
EBIT growth 1Y-10.39%
EBIT growth 3Y15.05%
EBIT growth 5Y23.03%
EBIT Next Year24.3%
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%