OTTER TAIL CORP (OTTR) Stock Fundamental Analysis
USA - NASDAQ:OTTR - US6896481032 - Common Stock
78.55 USD
+0.15 (+0.19%)
78.55 USD
0 (0%)
Taking everything into account, OTTR scores 6 out of 10 in our fundamental rating. OTTR was compared to 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 has a valuation in line with the averages, but on the other hand it scores bad on growth.
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.
In the past 5 years OTTR always reported a positive cash flow from operatings.
1.2 Ratios
OTTR's Return On Assets of 7.60% is amongst the best of the industry. OTTR outperforms 93.62% of its industry peers.
Looking at the Return On Equity, with a value of 16.13%, OTTR belongs to the top of the industry, outperforming 89.36% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 8.15%, OTTR belongs to the top 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 4.90%.
| 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 has a better Profit Margin (21.82%) than 95.74% of its industry peers.
In the last couple of years the Profit Margin of OTTR has grown nicely.
The Operating Margin of OTTR (27.13%) is better than 91.49% of its industry peers.
In the last couple of years the Operating Margin of OTTR has grown nicely.
OTTR has a Gross Margin of 62.68%. This is comparable to the rest of the industry: OTTR outperforms 55.32% of its industry peers.
In the last couple of years the Gross Margin of OTTR has grown nicely.
| 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
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
OTTR has more shares outstanding than it did 5 years ago.
The debt/assets ratio for OTTR has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.22 indicates that OTTR is not a great score, but indicates only limited risk for bankruptcy at the moment.
OTTR's Altman-Z score of 2.22 is amongst the best of the industry. OTTR outperforms 89.36% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 12.84, OTTR belongs to the top of the industry, outperforming 80.85% of the companies in the same industry.
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 | 2.22 |
ROIC/WACC1.09
WACC7.46%
2.3 Liquidity
OTTR has a Current Ratio of 3.31. This indicates that OTTR is financially healthy and has no problem in meeting its short term obligations.
OTTR's Current ratio of 3.31 is amongst the best of the industry. OTTR outperforms 97.87% of its industry peers.
A Quick Ratio of 2.57 indicates that OTTR has no problem at all paying its short term obligations.
OTTR has a better Quick ratio (2.57) than 97.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.31 | ||
| Quick Ratio | 2.57 |
3. Growth
3.1 Past
The earnings per share for OTTR have decreased by -8.11% in the last year.
Measured over the past years, OTTR shows a very strong growth in Earnings Per Share. The EPS has been growing by 26.89% on average per year.
Looking at the last year, OTTR shows a decrease in Revenue. The Revenue has decreased by -3.69% in the last year.
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 -7.85% 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 2.37% yearly.
EPS Next Y-6.88%
EPS Next 2Y-7.58%
EPS Next 3Y-9.11%
EPS Next 5Y-7.85%
Revenue Next Year-1.9%
Revenue Next 2Y1.34%
Revenue Next 3Y0.87%
Revenue Next 5Y2.37%
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
OTTR is valuated reasonably with a Price/Earnings ratio of 11.55.
72.34% of the companies in the same industry are more expensive than OTTR, based on the Price/Earnings ratio.
OTTR is valuated cheaply when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
OTTR is valuated correctly with a Price/Forward Earnings ratio of 12.83.
OTTR's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. OTTR is cheaper than 68.09% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of OTTR to the average of the S&P500 Index (22.92), we can say OTTR is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 12.83 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OTTR indicates a somewhat cheap valuation: OTTR is cheaper than 74.47% of the companies listed in the same industry.
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 | 40.5 | ||
| EV/EBITDA | 8.57 |
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 -9.11% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.43
EPS Next 2Y-7.58%
EPS Next 3Y-9.11%
5. Dividend
5.1 Amount
OTTR has a Yearly Dividend Yield of 2.74%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.24, OTTR is paying slightly less dividend.
OTTR's Dividend Yield is comparable with the S&P500 average which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
5.2 History
On average, the dividend of OTTR grows each year by 6.09%, which is quite nice.
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
OTTR pays out 29.06% of its income as dividend. This is a sustainable payout ratio.
DP29.06%
EPS Next 2Y-7.58%
EPS Next 3Y-9.11%
78.55
+0.15 (+0.19%)
Chartmill FA Rating
GICS SectorUtilities
GICS IndustryGroupUtilities
GICS IndustryElectric Utilities
Earnings (Last)
Earnings (Next)
Inst Owners67.11%
Inst Owner Change0.05%
Ins Owners1.03%
Ins Owner Change0%
Market Cap3.29B
Revenue(TTM)1.31B
Net Income(TTM)286.16M
Analysts80
Price Target84.66 (7.78%)
Short Float %11.24%
Short Ratio22.69
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.74% |
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.72%
EPS NY rev (1m)4.41%
EPS NY rev (3m)6.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.75%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.55 | ||
| Fwd PE | 12.83 | ||
| P/S | 2.51 | ||
| P/FCF | 40.5 | ||
| P/OCF | 8.47 | ||
| P/B | 1.86 | ||
| P/tB | 1.9 | ||
| EV/EBITDA | 8.57 |
EPS(TTM)6.8
EY8.66%
EPS(NY)6.12
Fwd EY7.8%
FCF(TTM)1.94
FCFY2.47%
OCF(TTM)9.27
OCFY11.81%
SpS31.29
BVpS42.34
TBVpS41.32
PEG (NY)N/A
PEG (5Y)0.43
Graham Number80.49
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%
ROICexgc growth 3Y6.09%
ROICexgc 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 | 2.22 |
F-Score5
WACC7.46%
ROIC/WACC1.09
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-6.88%
EPS Next 2Y-7.58%
EPS Next 3Y-9.11%
EPS Next 5Y-7.85%
Revenue 1Y (TTM)-3.69%
Revenue growth 3Y3.59%
Revenue growth 5Y7.67%
Sales Q2Q%-2.71%
Revenue Next Year-1.9%
Revenue Next 2Y1.34%
Revenue Next 3Y0.87%
Revenue Next 5Y2.37%
EBIT growth 1Y-10.39%
EBIT growth 3Y15.05%
EBIT growth 5Y23.03%
EBIT Next Year31.67%
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%
OTTER TAIL CORP / OTTR FAQ
Can you provide the ChartMill fundamental rating for OTTER TAIL CORP?
ChartMill assigns a fundamental rating of 6 / 10 to OTTR.
What is the valuation status of OTTER TAIL CORP (OTTR) stock?
ChartMill assigns a valuation rating of 6 / 10 to OTTER TAIL CORP (OTTR). This can be considered as Fairly Valued.
How profitable is OTTER TAIL CORP (OTTR) stock?
OTTER TAIL CORP (OTTR) has a profitability rating of 9 / 10.
What are the PE and PB ratios of OTTER TAIL CORP (OTTR) stock?
The Price/Earnings (PE) ratio for OTTER TAIL CORP (OTTR) is 11.55 and the Price/Book (PB) ratio is 1.86.
How financially healthy is OTTER TAIL CORP?
The financial health rating of OTTER TAIL CORP (OTTR) is 7 / 10.