OTTR

Otter Tail Corporation

Fundamental data last updated:November 2, 2026

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company profile

SECTOR

Utilities

industry

Diversified Utilities

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. The company's Electric segment produces, transmits, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator, Inc. markets. This segment generates electricity through coal, wind and hydro, and natural gas. It serves approximately 133,000 residential, industrial, and other commercial customers. Its Manufacturing segment engages in the contract machining, metal parts stamping, fabrication and painting, and production of plastic thermoformed horticultural containers, life science and industrial packaging, and material handling components, and extruded raw material stock for recreational vehicle, agricultural, construction, lawn and garden, and industrial and energy equipment industries. It also manufactures clamshell packing, blister packs, returnable pallets, and handling trays for shipping and storing odd-shaped or difficult-to-handle parts for customers in the horticulture, medical and life sciences, industrial, recreation, and electronics industries. The company's Plastics segment manufactures polyvinyl chloride pipes for municipal water, rural water, wastewater, storm drainage and water reclamation system, and other uses. This segment markets its products to wholesalers and distributors through independent sales representatives, company salespersons, and customer service representatives. The company was formerly known as Otter Tail Power Company and changed its name to Otter Tail Corporation in 2001. Otter Tail Corporation was founded in 1907 and is headquartered in Fergus Falls, Minnesota.

 


VALUATION

P/E

13.04

Market Cap ($M USD)

$3.66B

Forward P/E

16.38

PEG

-0.80

PRICE TO SALES

2.79

PRICE TO BOOK

1.92

EV / EBITDA

9.48

5-Year Average P/E

Free Cash Flow Yield

0.05%

DCF Value

$91.35

Graham Number

$82.79

Price to FCF

2047.37

EV to FCF

2529.35

Earnings Yield

7.67%

FCF Yield

0.05%

DIVIDEND

Yield

2.53%

Annual Payout

$2.21

Payout Ratio

32.21%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$6.69

Next Year EPS Growth Estimate

$5.33

Next Year Revenue Growth Estimate

$1.54B

Return on Equity (ROE)

15.21%

FREE CASH FLOW

Operating Margin

26.41%

Debt-to-Equity

0.59

Piotroski F-Score

4

Altman Z-Score

2.13

Return on Invested Capital (ROIC)

9.22%

Current Ratio

2.04

Quick Ratio

1.64

Net Debt to EBITDA

1.81

Interest Coverage

7.18

Gross Profit margin

34.89%

FCF PER SHARE

$0.04

REVENUE PER SHARE

$31.35

Gainseekers Quantitative Analysis

Summary

The market seems to have misjudged Otter Tail Corporation’s valuation. Trading below its DCF Value and Graham Number, the stock appears undervalued. However, the Forward P/E of 16.52 suggests expectations of slower growth, aligning with the estimated EPS decline. The Altman Z-score of 2.13 indicates moderate financial health, while the Earnings Yield of 7.60% offers a decent return. Overall, the stock presents a mixed picture of value and caution.

AI Exposure / Tech Reliance

Operating in the utilities sector, Otter Tail Corporation is less exposed to rapid AI and tech shifts compared to tech-heavy industries. However, its diversified utilities model may benefit from smart grid technologies and energy efficiency advancements. The company's ability to adapt will depend on strategic investments in these areas.

The Bull Case

For the value-driven investor, Otter Tail Corporation offers compelling reasons to buy. With a robust ROIC of 9.22% and a healthy operating margin of 26.41%, the company demonstrates strong capital efficiency and pricing power. Despite a low FCF Yield, the Piotroski F-Score of 4 suggests some financial stability. These metrics indicate a company capable of generating consistent returns in a stable industry.

The Bear Case

Yet, the stock is not without its flaws. The Price to FCF ratio is an astronomical 2064.73, highlighting severe cash flow issues. Trading near its 52-week high, the stock appears technically overextended. Additionally, the EV to FCF ratio of 2546.71 underscores the company's struggle to convert earnings into free cash flow. These factors raise red flags about its long-term sustainability.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Hold

Average Analyst Price Target

$81.00

Institutional Ownership %

1-Year Beta

0.47

Insider Buying % (6 Mo)

Distance to 52-Week High

5.67%

Distance to 52-Week Low

15.05%

EARNINGS SURPRISE %

21.83%

50-DAY SMA

$88.08

200-DAY SMA

$84.61

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.