Otter Tail (OTTR) AI Stock Analysis

• Market Cap: $3.60B
• Dividend Yield: 2.49%
• Average Volume (3M): 199.42K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.51
• 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: 262,814
• 30 Day Avg. Volume: 199,424
• 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: 1.14
• 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): $1.30B

• Rating: 72 Outperform
• Price Target: $91.00 ▲(16.32% Upside)

Otter Tail's strong earnings call and attractive valuation are the most significant factors contributing to its score. Despite challenges in revenue and cash flow growth, the company's strategic investments and solid profitability support a positive outlook.

Positive Factors

Capital Investment Plans

The $1.9 billion capital investment plan is expected to drive a 10% CAGR in the rate base, enhancing long-term earnings growth and market position.

Strong Balance Sheet

A strong balance sheet with substantial cash reserves ensures financial stability and flexibility for future investments without needing external equity.

Electric Segment Growth

The electric segment's ability to translate rate base growth into EPS growth supports sustained profitability and competitive advantage in the utility sector.

Negative Factors

Plastics Segment Earnings Decline

Declining earnings in the Plastics segment due to lower sales prices could impact overall profitability and require strategic adjustments.

Manufacturing Segment Challenges

Ongoing demand challenges in the manufacturing segment could hinder revenue growth and require diversification or innovation to mitigate risks.

Legal and Regulatory Uncertainties

Legal and regulatory uncertainties pose risks to operations and financial performance, potentially leading to increased costs and strategic distractions.

Otter Tail Business Overview & Revenue Model

Company Description

Otter Tail Corporation (OTTR) is a diversified company based in Minnesota, primarily operating in the utility sector. The company provides electric and natural gas services through its regulated utility segment, Otter Tail Power Company, which serves customers across North Dakota, South Dakota, and Minnesota. Additionally, Otter Tail engages in manufacturing and construction services, producing a variety of products including plastic and metal components, as well as providing construction services for infrastructure projects. The company's diverse operations position it as a key player in both energy and manufacturing sectors.

How the Company Makes Money

Otter Tail generates revenue primarily through its regulated utility operations, which account for a significant portion of its income. The company earns money by charging customers for electricity and natural gas services, with rates regulated by state utility commissions. Additionally, Otter Tail's manufacturing and construction segments contribute to its revenue by providing specialized products and services to various industries. The company has established significant partnerships with local governments and private sector clients for infrastructure projects, enhancing its earnings potential. Overall, Otter Tail's revenue model is anchored in its ability to provide essential services while capitalizing on its diverse business operations.

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: Positive
• Last Price: 78.23
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTTR, the sentiment is Positive. The current price of 78.23 is below the 20-day moving average (MA) of 80.03, below the 50-day MA of 80.76, and below the 200-day MA of 79.13, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 74.38 is Negative, neither overbought nor oversold. The STOCH value of 97.91 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OTTR.

Otter Tail Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NWE	78 Outperform	$4.06B	18.73	7.62%	4.38%	4.90%	-4.42%
BKH	76 Outperform	$5.37B	17.95	7.90%	4.20%	7.03%	6.64%
OTTR	72 Outperform	$3.60B	12.97	16.10%	2.49%	-3.18%	-8.62%
ALE	68 Neutral	$3.91B	23.60	5.83%	4.29%	-4.30%	-8.49%
AVA	68 Neutral	$3.35B	17.48	7.31%	4.67%	2.14%	-6.51%
MGEE	67 Neutral	$3.04B	22.59	10.80%	2.17%	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 Corporation Reports Strong Q3 Earnings

Otter Tail Corporation, a diversified company with interests in electric utilities and manufacturing, has reported its third-quarter earnings for 2025, showcasing a robust financial performance and an optimistic outlook for the future. The company has raised its annual earnings guidance and long-term financial targets, reflecting strong performance particularly in its Plastics segment.

Otter Tail’s Earnings Call: Strong Performance and Strategic Growth

Otter Tail Corporation’s recent earnings call conveyed a positive sentiment, highlighting the company’s robust financial performance and strategic investment plans that have exceeded expectations. Despite facing challenges in its Plastics and Manufacturing segments and ongoing legal issues, the company remains optimistic about its future prospects.

Otter Tail Corporation Reports Strong Q2 Earnings

Otter Tail Corporation, a member of the S&P SmallCap 600 Index, operates in the electric utility and manufacturing sectors, with diversified interests that include a strong focus on electric and manufacturing platforms. The company is publicly traded on the Nasdaq under the symbol OTTR.

Otter Tail’s Earnings Call: Mixed Sentiments and Strategic Growth

The recent earnings call for Otter Tail Corporation presented a balanced sentiment, highlighting both significant achievements and notable challenges. The company exceeded financial expectations and increased its earnings guidance, while also securing regulatory approvals for growth initiatives. However, challenges such as severe weather impacts, declining earnings per share, and legislative uncertainties were also discussed, indicating a mixed outlook for the company.