Otter Tail (OTTR) AI Stock Analysis

• Market Cap: $3.47B
• Dividend Yield: 2.54%
• Average Volume (3M): 264.95K
• Price to Earnings (P/E): 12.5
• Beta (1Y): 0.50
• Revenue Growth: -3.18%
• EPS Growth: -8.62%
• Country: US
• Employees: 2,133
• Sector: Industrials
• Sector Strength: 72
• Industry: Diversified Utilities
• EPS (TTM): 1.86
• Shares Outstanding: 41,905,520
• 10 Day Avg. Volume: 364,154
• 30 Day Avg. Volume: 264,950
• PEG Ratio: 4.51
• Price to Book (P/B): 1.85
• Price to Sales (P/S): 2.32
• P/FCF Ratio: 32.79
• Enterprise Value/Market Cap: 1.19
• Enterprise Value/Revenue: 3.17
• Enterprise Value/Gross Profit: 7.38
• Enterprise Value/Ebitda: 8.49
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): 6.58
• Revenue Forecast (FY): $1.31B

• Rating: 77 Outperform
• Price Target: $96.00 ▲(22.72% Upside)

Otter Tail's overall stock score is driven by strong earnings call outcomes and positive technical indicators. While financial performance shows profitability, challenges in revenue and cash flow growth are noted. The valuation is attractive, and recent board changes are seen as beneficial for strategic direction.

Positive Factors

Capital Investment Plans

The significant capital investment plan is expected to yield a 10% CAGR in the rate base, supporting long-term growth and enhancing infrastructure.

Board Enhancements

The addition of experienced utility leaders to the board strengthens governance and strategic oversight, crucial for long-term corporate strategy execution.

Strong Balance Sheet

A strong balance sheet with substantial cash reserves enhances financial stability and flexibility, supporting future growth initiatives without immediate external financing.

Negative Factors

Revenue Growth Challenges

Negative revenue growth indicates potential challenges in expanding sales, which could impact long-term profitability and market position if not addressed.

Plastics Segment Decline

The decline in the Plastics segment earnings due to lower sales prices suggests ongoing market pressures, potentially affecting overall profitability.

Legal and Regulatory Uncertainties

Legal and regulatory uncertainties can lead to financial liabilities and operational disruptions, posing risks to long-term business stability and growth.

Otter Tail Business Overview & Revenue Model

Company Description

Otter Tail Corporation (OTTR) is a diversified holding company based in the United States, primarily engaged in the electric utility and manufacturing sectors. The company operates through two main segments: the Electric segment, which provides electricity to residential, commercial, and industrial customers, and the Manufacturing segment, which includes a range of operations such as custom manufacturing and production of specialty products. Otter Tail is known for its commitment to sustainable energy practices and is involved in renewable energy initiatives, enhancing its service offerings to customers and contributing to environmental goals.

How the Company Makes Money

Otter Tail generates revenue primarily through its Electric segment, which accounts for a significant portion of its income by charging customers for electricity usage. This revenue model includes residential, commercial, and industrial sales, with rates regulated by state utility commissions. Additionally, the company’s Manufacturing segment contributes to its earnings through the sale of custom manufactured products and services to various industries. Key revenue streams include long-term contracts with customers and participation in renewable energy projects, which can provide additional financial incentives. Partnerships with local governments and other organizations for infrastructure projects also play a role in enhancing revenue opportunities for Otter Tail.

Otter Tail Financial Statement Overview

Summary

Otter Tail shows strong profitability with a consistent net profit margin and solid cash flow to net income ratio. However, challenges include declining revenue and free cash flow growth.

Income Statement

Otter Tail's income statement shows strong profitability with a consistent net profit margin around 22% and an EBIT margin close to 30% in TTM. However, revenue growth has been negative recently, indicating potential challenges in expanding sales.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.59 in TTM, which is an improvement from previous years. Return on equity is solid at 16.8%, but the equity ratio suggests a moderate reliance on debt financing.

Cash Flow

Cash flow analysis reveals a decline in free cash flow growth, with a negative growth rate of -23.2% in TTM. The operating cash flow to net income ratio is strong at 1.91, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.30B	1.33B	1.35B	1.46B	1.20B	890.11M
Gross Profit	558.17M	583.10M	565.15M	570.50M	424.07M	302.01M
EBITDA	485.25M	515.83M	499.12M	486.15M	341.95M	232.54M
Net Income	278.97M	301.66M	294.19M	284.18M	176.77M	95.85M
Balance Sheet
Total Assets	3.84B	3.65B	3.24B	2.90B	2.75B	2.58B
Cash, Cash Equivalents and Short-Term Investments	379.66M	294.65M	230.37M	119.00M	1.54M	1.16M
Total Debt	1.04B	1.01B	905.48M	832.02M	855.16M	845.52M
Total Liabilities	2.01B	1.98B	1.80B	1.68B	1.76B	1.71B
Stockholders Equity	1.83B	1.67B	1.44B	1.22B	990.78M	870.97M
Cash Flow
Free Cash Flow	106.68M	94.08M	117.36M	218.18M	59.41M	-159.63M
Operating Cash Flow	418.90M	452.73M	404.50M	389.31M	231.24M	211.92M
Investing Cash Flow	-315.22M	-411.37M	-289.29M	-175.07M	-171.51M	-375.65M
Financing Cash Flow	-57.92M	22.92M	-3.83M	-96.78M	-59.36M	143.69M

Otter Tail Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 78.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTTR, the sentiment is Neutral. The current price of 78.23 is below the 20-day moving average (MA) of 82.91, below the 50-day MA of 81.21, and below the 200-day MA of 79.32, indicating a neutral trend. The MACD of 0.54 indicates Positive momentum. The RSI at 49.80 is Neutral, neither overbought nor oversold. The STOCH value of 20.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OTTR.

Otter Tail Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OTTR	77 Outperform	$3.47B	12.48	16.10%	2.54%	-3.18%	-8.62%
AVA	77 Outperform	$3.12B	16.32	7.31%	5.10%	2.14%	-6.51%
NWE	74 Outperform	$3.93B	18.25	7.62%	4.09%	4.90%	-4.42%
BKH	74 Outperform	$5.20B	17.44	7.90%	3.91%	7.03%	6.64%
ALE	68 Neutral	―	―	5.83%	4.26%	-4.30%	-8.49%
MGEE	67 Neutral	$2.86B	21.24	10.80%	2.36%	8.26%	12.47%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Otter Tail Corporate Events

Otter Tail adds experienced utility leaders to its board

On December 16–18, 2025, Otter Tail Corporation announced that longtime independent director Steven L. Fritze, who has served on the Board since 2013 and led the Audit Committee, will retire at the April 2026 Annual Meeting of Shareholders upon reaching the mandatory retirement age, and that Christopher B. Clark and Steve P. Rasche have been appointed to the Board effective January 1, 2026. Clark, the former president of Xcel Energy’s Northern States Power utility operations, and Rasche, the former chief financial officer of regional utility holding company Spire Inc., bring deep experience in regulated energy, utility finance and risk management; they will serve on key Board committees and receive compensation consistent with other non-employee directors, signaling Otter Tail’s intent to reinforce its governance, regulatory expertise and financial oversight as it advances its corporate strategy in the utility and manufacturing sectors.