Otter Tail Corp

Utilities
Electric Utilities: Central
www.ottertail.com

Earnings Score
Moat Score
Safety Score
Final Score

Market Cap $3.24B
PE 11
Debt $1.01B
Cash $280.02M
EV $3.98B
FCF $91.74M

Earnings

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Sales & Net Margins

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Earnings	$304.58M
EBIT	$391.79M
ROE	19%
ROA	11%
FCF	$91.74M
Equity	$1.63B
Growth Stability	100%
PE	10.65
PEG	0.27
PB	1.99
P/FCF	35.36
P/S	2.41
Price/Cash	0.09
Debt/Equity	0.62
Debt/FCF	11.06
Net Margins	24%
Gross Margins	67%
Op. Margins	29%
Earnings CAGR	25%
Sales Growth YoY	-6%
Sales Growth QoQ	-1%
Sales CAGR	8%
FCF CAGR	14%
Equity CAGR	11%
Earnings Stability	0.89
Earnings Growth YoY	-7%
Earnings Growth QoQ	-2%
Earnings CAGR 5Y	39%

Sales CAGR 5Y	13%
FCF CAGR 5Y	2%
Equity CAGR 5Y	18%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
FCF CAGR 3Y	3%
Equity CAGR 3Y	19%
Market Cap	$3.24B
Revenue	$1.35B
Dividend Yield	2%
Payout Ratio	25%
Assets	$3.57B
Total Debt	$1.01B
Cash	$280.02M
Shares Outstanding	41.76M
EV	3.98B
Earnings Score	95%
Moat Score	94%
Safety Score	76%
Final Score	89%
Working Capital	350.72M
Current Ratio	2.17
Gross Profit	$899.89M
Shares Growth 3y	0%
Equity Growth QoQ	4%
Equity Growth YoY	16%

Assets & ROA

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Stockholders Equity & ROE

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Otter Tail Corp is a U.S. energy company that primarily operates in the electric (produces and sells electricity), manufacturing (fabricates metal components), and plastics segments (pipes for water uses). The company primarily conducts its operations and acquires the majority of its revenue in the U.S. in the states of Minnesota, South Dakota, and North Dakota, but also generates some revenue from its operations in Mexico, Canada, and Panama. The majority of the company's revenue is derived from the Electric segment and from commercial customers, although it generates revenue from residential and industrial customers, as well.

SEC Filings

Direct access to Otter Tail Corp (OTTR) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Otter Tail Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Otter Tail Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 25%

Stability 89%

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Otter Tail Corp Discounted Cash Flow

Fully customizable DCF calculator online for Otter Tail Corp.

Years

Calculation mode

= $2.4B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$92M	$104M	$119M	$135M	$154M	$176M	$200M	$228M	$259M	$295M	$336M	$3.4B
DCF		$95M	$98M	$102M	$105M	$109M	$113M	$117M	$121M	$125M	$130M	$1.3B
Value	$2.4B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	7%	8%	8%	9%	9%	9%	11%	15%	19%	22%	24%
ROA	-	6%	6%	6%	6%	6%	6%	9%	14%	12%	11%
ROE	-	10%	9%	10%	11%	11%	11%	18%	23%	20%	19%

Good Net Margins (24.03%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-20.29	255.84	14.87	16.07	-31.28	-5.68	14.44	3.83	7.74	11.06
Debt over Equity	0.89	0.96	0.87	0.87	0.84	0.89	1.04	0.87	0.69	0.63	0.62
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Bad Debt/FCF ratio (11.06)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (0.62)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	-2%	3%	6%	8%	0%	-3%	34%	23%	-8%	13%
Earnings YoY growth	-	3%	5%	16%	14%	5%	10%	84%	61%	4%	39%
Equity YoY growth	-	6%	11%	4%	5%	7%	11%	14%	23%	19%	18%
FCF YoY growth	-	-25%	-108%	2K%	-7%	-159%	615%	-137%	267%	-46%	2%