Otter Tail Corporation
Otter Tail Corporation Fundamental Analysis
Otter Tail Corporation (OTTR) shows moderate financial fundamentals with a PE ratio of 12.96, profit margin of 21.16%, and ROE of 15.36%. The company generates $1.3B in annual revenue with weak year-over-year growth of -1.38%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 56.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze OTTR's fundamental strength across five key dimensions:
Efficiency Score
WeakOTTR struggles to generate sufficient returns from assets.
Valuation Score
ExcellentOTTR trades at attractive valuation levels.
Growth Score
WeakOTTR faces weak or negative growth trends.
Financial Health Score
ExcellentOTTR maintains a strong and stable balance sheet.
Profitability Score
ExcellentOTTR achieves industry-leading margins.
Key Financial Metrics
Is OTTR Expensive or Cheap?
P/E Ratio
OTTR trades at 12.96 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, OTTR's PEG of -12.35 indicates potential undervaluation.
Price to Book
The market values Otter Tail Corporation at 1.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.95 times EBITDA. This is generally considered low.
How Well Does OTTR Make Money?
Net Profit Margin
For every $100 in sales, Otter Tail Corporation keeps $21.16 as profit after all expenses.
Operating Margin
Core operations generate 26.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.36 in profit for every $100 of shareholder equity.
ROA
Otter Tail Corporation generates $6.96 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Otter Tail Corporation generates strong operating cash flow of $386.69M, reflecting robust business health.
Free Cash Flow
Otter Tail Corporation produces free cash flow of $98.10M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $2.34 in free cash annually.
FCF Yield
OTTR converts 2.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
12.96
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-12.35
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.75
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.59
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.28
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.15
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.10
vs 25 benchmark
How OTTR Stacks Against Its Sector Peers
| Metric | OTTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 12.96 | 19.75 | Better (Cheaper) |
| ROE | 15.36% | 920.00% | Weak |
| Net Margin | 21.16% | 8803.00% | Weak |
| Debt/Equity | 0.59 | 1.80 | Strong (Low Leverage) |
| Current Ratio | 2.28 | 1.53 | Strong Liquidity |
| ROA | 6.96% | -6162.00% (disorted) | Weak |
OTTR outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Otter Tail Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
37.58%
Industry Style: Defensive, Dividend, Income
High GrowthEPS CAGR
230.25%
Industry Style: Defensive, Dividend, Income
High GrowthFCF CAGR
132.62%
Industry Style: Defensive, Dividend, Income
High Growth