Otter Tail Corporation Fundamental Analysis (NASDAQ: OTTR)
Otter Tail Corporation (NASDAQ: OTTR) shows moderate financial fundamentals with a PE ratio of 19.47, profit margin of 14.83%, and ROE of 10.43%. The company generates $1.3B in annual revenue with weak year-over-year growth of -1.99%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
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
WeakOTTR struggles to sustain strong margins.
Key Financial Metrics
Is OTTR Expensive or Cheap?
P/E Ratio
OTTR trades at 19.47 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OTTR's PEG of -0.61 indicates potential undervaluation.
Price to Book
The market values Otter Tail Corporation at 2.03 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.51 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 $14.83 as profit after all expenses.
Operating Margin
Core operations generate 17.13 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.43 in profit for every $100 of shareholder equity.
ROA
Otter Tail Corporation generates $4.54 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 $409.85M, reflecting robust business health.
Free Cash Flow
Otter Tail Corporation generates weak or negative free cash flow of $-79.37M, restricting financial flexibility.
FCF Per Share
Each share generates $-1.89 in free cash annually.
FCF Yield
OTTR converts -2.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.47
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.03
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.90
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.67
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.71
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.10
vs 25 benchmark
ROA
Return on assets percentage
0.05
vs 25 benchmark
ROCE
Return on capital employed
0.06
vs 25 benchmark
How OTTR Stacks Against Its Sector Peers
| Metric | OTTR Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.47 | 29.88 | Better (Cheaper) |
| ROE | 10.43% | 1106.00% | Weak |
| Net Margin | 14.83% | -24767.00% (disorted) | Strong |
| Debt/Equity | 0.67 | 0.94 | Strong (Low Leverage) |
| Current Ratio | 1.71 | 21.64 | Neutral |
| ROA | 4.54% | -1320894.00% (disorted) | Weak |
OTTR outperforms its industry in 3 out of 6 key metrics, particularly excelling in Net Margin, 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
42.47%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
179.90%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
77.12%
Industry Style: Cyclical, Value, Infrastructure
High Growth