NASDAQ
OTTR
Last Price
US $89.66
KEY FIGURES
MKT CAP
$3.8B
EPS
TTM
$6.69
PEG
TTM
N/M
P/E
TTM
13.53x
P/S
TTM
2.92x
YIELD
2.43%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
15.21%
Return on equity
ROIC: 7.74%
Valuation History
13.5X
Price to Earnings
EV/EBITDA: 9.6X
Cash flow
Profit margin
7.94%
(FY vs FY)
EBITDA Y/Y
15.96%
(FY vs FY)
Cash flow Y/Y
-
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $89.66
—
Default assumptions
EBITDA Multiple
Fair Value
Market $89.66
-32.76%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Otter Tail Corporation cash flow to debt ratio of 34.97% indicates that the company generates enough cash to cover its debts. This level indicates strong financial health.
Financial stability - Healthy cash flow growth.
Otter Tail Corporation's free cash flow has increased 4.08% from $94.08M last year to $97.92M, signaling increasing performance
Financial risk - Healthy debt to equity ratio.
Otter Tail Corporation's debt to equity ratio is 0.63, which means that the company's assets are unhealthy financed, signaling financial risk. READ MORE: A ratio over 0.60 means the company finances its assets with debt, signaling financial risk. If ratio is negative, the company spent its own equity and risks bankruptcy
Financial risk - Healthy debt to equity ratio development.
Otter Tail Corporation's debt has increased relative to shareholder equity from 0.61 last year to 0.63 today, signaling weakened financials
Financial stability - Net debt/EBITDA.
Otter Tail Corporation has a net debt to EBITDA ratio of 1.47x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Otter Tail Corporation's interest coverage ratio of 7.18 indicates that earnings with good margin can cover interest payments on company debt
Financial risk - Profit margin growth.
Otter Tail Corporation's profit margin has decreased (-5.86%) in the last year from 22.67% to 21.34%, signaling decreasing performance
Financial stability - Short term assets vs short term liabilities.
Otter Tail Corporation's short-term assets of $799.73M exceed its short-term liabilities of $350.96M
Increasing performance - ROA.
Otter Tail Corporation's return on assets of 6.75% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Otter Tail Corporation's return on equity of 15.21%, is higher than 15.00%, indicating good performance
Increasing performance - Earnings quality.
Otter Tail Corporation's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation
Increasing performance - Earnings stability.
Otter Tail Corporation had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Otter Tail Corporation has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Otter Tail Corporation has a free cash flow yield of 2.57%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Decreasing performance - Healthy earnings growth.
Otter Tail Corporation's yearly earnings has decreased -8.54% since last year from $301.66M to $275.89M, signaling decreasing performance
Decreasing performance - Healthy revenue growth.
Otter Tail Corporation's yearly revenue has decreased -1.99% since last year from $1.33G to $1.30G, signaling decreasing performance
Increasing performance - ROIC.
ROIC 7.74% (Source: FMP key-metrics). In the 5–10% partial-credit band. Score: 1 of 2. This band sits within the typical US weighted-average cost of capital range. Methodology choice can change the conclusion: under FMP's invested-capital definition the company is at or near its cost of capital; under narrower operating-capital definitions the same company may score higher. Invested capital here includes equity, non-current liabilities, and short-term debt. Cash is not subtracted. See methodology.
Decreasing performance - 3-year revenue CAGR.
Otter Tail Corporation's 3-year revenue CAGR of -3.70% is negative, indicating declining revenue over the past 3 years
Decreasing performance - Revenue consistency.
Otter Tail Corporation had revenue growth in only 2.00 out of 5 years, indicating inconsistent revenue performance
Increasing performance - ROE consistency.
Otter Tail Corporation had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Otter Tail Corporation has insufficient data to evaluate this check.
Undervalued - Earnings yield.
Otter Tail Corporation has an earnings yield of 7.38%, which is above the 4.00% threshold, indicating the stock offers reasonable value relative to its earnings
Overvalued - EBITDA valuation.
Otter Tail Corporation is overvalued relative to its fair value price of 60.29 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Otter Tail Corporation has an EV/EBITDA ratio of 9.55x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Otter Tail Corporation has negative trailing-twelve-month earnings; this ratio is not meaningful and the check fails
Undervalued - P/B ratio.
Otter Tail Corporation has a price-to-book ratio of 1.99x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Otter Tail Corporation has a price-to-sales ratio of 2.90x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue