OTTER TAIL CORP (OTTR) Stock Fundamental Analysis
NASDAQ:OTTR - Nasdaq - US6896481032 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to OTTR. 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 it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year OTTR was profitable.
OTTR had a positive operating cash flow in the past year.
In the past 5 years OTTR has always been profitable.
OTTR had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OTTR has a Return On Assets of 7.99%. This is amongst the best in the industry. OTTR outperforms 91.49% of its industry peers.
With an excellent Return On Equity value of 17.20%, OTTR belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
OTTR has a Return On Invested Capital of 8.59%. This is amongst the best in the industry. OTTR outperforms 89.36% of its industry peers.
OTTR had an Average Return On Invested Capital over the past 3 years of 10.41%. This is significantly below the industry average of 38.54%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 17.2% | ||
| ROIC | 8.59% |
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 22.37%, OTTR belongs to the best of the industry, outperforming 93.62% of the companies in the same industry.
In the last couple of years the Profit Margin of OTTR has grown nicely.
OTTR has a Operating Margin of 27.96%. This is amongst the best in the industry. OTTR outperforms 89.36% of its industry peers.
In the last couple of years the Operating Margin of OTTR has grown nicely.
OTTR has a Gross Margin (62.59%) which 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 | 27.96% | ||
| PM (TTM) | 22.37% | ||
| GM | 62.59% |
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
The debt/assets ratio for OTTR has been reduced compared to a year ago.
2.2 Solvency
OTTR has an Altman-Z score of 2.22. 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.
With an excellent Altman-Z score value of 2.22, OTTR belongs to the best of the industry, outperforming 89.36% of the companies in the same industry.
The Debt to FCF ratio of OTTR is 13.55, which is on the high side as it means it would take OTTR, 13.55 years of fcf income to pay off all of its debts.
OTTR has a better Debt to FCF ratio (13.55) than 80.85% of its industry peers.
OTTR has a Debt/Equity ratio of 0.61. This is a neutral value indicating OTTR is somewhat dependend on debt financing.
OTTR has a better Debt to Equity ratio (0.61) than 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 13.55 | ||
| Altman-Z | 2.22 |
ROIC/WACC0.97
WACC8.82%
2.3 Liquidity
A Current Ratio of 2.62 indicates that OTTR has no problem at all paying its short term obligations.
OTTR's Current ratio of 2.62 is amongst the best of the industry. OTTR outperforms 97.87% of its industry peers.
OTTR has a Quick Ratio of 2.03. This indicates that OTTR is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.03, OTTR belongs to the top of the industry, outperforming 91.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.03 |
3. Growth
3.1 Past
The earnings per share for OTTR have decreased by -3.57% in the last year.
The Earnings Per Share has been growing by 26.89% on average over the past years. This is a very strong growth
The Revenue has decreased by -2.68% in the past year.
The Revenue has been growing slightly by 7.67% on average over the past years.
EPS 1Y (TTM)-3.57%
EPS 3Y19.23%
EPS 5Y26.89%
EPS Q2Q%-8.47%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y3.59%
Revenue growth 5Y7.67%
Sales Q2Q%-2.8%
3.2 Future
OTTR is expected to show a decrease in Earnings Per Share. In the coming years, the EPS will decrease by -8.05% yearly.
The Revenue is expected to grow by 2.01% on average over the next years.
EPS Next Y-12.61%
EPS Next 2Y-11.71%
EPS Next 3Y-10.23%
EPS Next 5Y-8.05%
Revenue Next Year-2.48%
Revenue Next 2Y1.16%
Revenue Next 3Y0.56%
Revenue Next 5Y2.01%
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.
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
Based on the Price/Earnings ratio of 10.98, the valuation of OTTR can be described as reasonable.
Based on the Price/Earnings ratio, OTTR is valued a bit cheaper than 68.09% of the companies in the same industry.
OTTR's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.15.
A Price/Forward Earnings ratio of 13.79 indicates a correct valuation of OTTR.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OTTR indicates a somewhat cheap valuation: OTTR is cheaper than 61.70% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. OTTR is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 13.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OTTR is valued a bit cheaper than 72.34% of the companies 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 | 41.59 | ||
| EV/EBITDA | 8.34 |
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)0.41
EPS Next 2Y-11.71%
EPS Next 3Y-10.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.67%, OTTR has a reasonable but not impressive dividend return.
OTTR's Dividend Yield is slightly below the industry average, which is at 3.67.
OTTR's Dividend Yield is comparable with the S&P500 average which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
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
27.32% of the earnings are spent on dividend by OTTR. This is a low number and sustainable payout ratio.
DP27.32%
EPS Next 2Y-11.71%
EPS Next 3Y-10.23%
77.09
-1.46 (-1.86%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners66.74%
Inst Owner Change0.49%
Ins Owners1.03%
Ins Owner Change6.53%
Market Cap3.23B
Analysts80
Price Target84.66 (9.82%)
Short Float %10.66%
Short Ratio20.12
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.67% |
Yearly Dividend1.87
Dividend Growth(5Y)6.09%
DP27.32%
Div Incr Years11
Div Non Decr Years34
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.04%
Min EPS beat(2)0.25%
Max EPS beat(2)3.83%
EPS beat(4)4
Avg EPS beat(4)6.1%
Min EPS beat(4)0.25%
Max EPS beat(4)19.76%
EPS beat(8)8
Avg EPS beat(8)14.48%
EPS beat(12)12
Avg EPS beat(12)17.86%
EPS beat(16)16
Avg EPS beat(16)22.06%
Revenue beat(2)0
Avg Revenue beat(2)-5.51%
Min Revenue beat(2)-5.59%
Max Revenue beat(2)-5.43%
Revenue beat(4)0
Avg Revenue beat(4)-7.97%
Min Revenue beat(4)-12.13%
Max Revenue beat(4)-5.43%
Revenue beat(8)2
Avg Revenue beat(8)-4.11%
Revenue beat(12)5
Avg Revenue beat(12)-0.95%
Revenue beat(16)8
Avg Revenue beat(16)1.61%
PT rev (1m)1.22%
PT rev (3m)1.22%
EPS NQ rev (1m)0.42%
EPS NQ rev (3m)1.2%
EPS NY rev (1m)-0.43%
EPS NY rev (3m)-0.11%
Revenue NQ rev (1m)0.6%
Revenue NQ rev (3m)-3.69%
Revenue NY rev (1m)-0.82%
Revenue NY rev (3m)-4.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.98 | ||
| Fwd PE | 13.79 | ||
| P/S | 2.45 | ||
| P/FCF | 41.59 | ||
| P/OCF | 7.69 | ||
| P/B | 1.88 | ||
| P/tB | 1.93 | ||
| EV/EBITDA | 8.34 |
EPS(TTM)7.02
EY9.11%
EPS(NY)5.59
Fwd EY7.25%
FCF(TTM)1.85
FCFY2.4%
OCF(TTM)10.03
OCFY13.01%
SpS31.52
BVpS40.99
TBVpS39.96
PEG (NY)N/A
PEG (5Y)0.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 7.99% | ||
| ROE | 17.2% | ||
| ROCE | 10.71% | ||
| ROIC | 8.59% | ||
| ROICexc | 9.35% | ||
| ROICexgc | 9.48% | ||
| OM | 27.96% | ||
| PM (TTM) | 22.37% | ||
| GM | 62.59% | ||
| FCFM | 5.88% |
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 Turnover0.36
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 13.55 | ||
| Debt/EBITDA | 2.19 | ||
| Cap/Depr | 309.78% | ||
| Cap/Sales | 25.94% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 87.58% | ||
| Profit Quality | 26.29% | ||
| Current Ratio | 2.62 | ||
| Quick Ratio | 2.03 | ||
| Altman-Z | 2.22 |
F-Score5
WACC8.82%
ROIC/WACC0.97
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)-3.57%
EPS 3Y19.23%
EPS 5Y26.89%
EPS Q2Q%-8.47%
EPS Next Y-12.61%
EPS Next 2Y-11.71%
EPS Next 3Y-10.23%
EPS Next 5Y-8.05%
Revenue 1Y (TTM)-2.68%
Revenue growth 3Y3.59%
Revenue growth 5Y7.67%
Sales Q2Q%-2.8%
Revenue Next Year-2.48%
Revenue Next 2Y1.16%
Revenue Next 3Y0.56%
Revenue Next 5Y2.01%
EBIT growth 1Y-5.86%
EBIT growth 3Y15.05%
EBIT growth 5Y23.03%
EBIT Next Year24.3%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-51.15%
FCF growth 3Y16.57%
FCF growth 5YN/A
OCF growth 1Y5.2%
OCF growth 3Y25.11%
OCF growth 5Y19.6%