Otter Tail Corporation (OTTR)
UndervaluedFundamental
68
Price
$88.04
Market Cap
$3.70B
Part 1 · What the company is worth
Overview
Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. It operates through three segments: Electric, Manufacturing, and Plastics. The Electric segment generates, purchases, transmissions, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator markets. This segment generates electricity through coal, fuel oil, solar, wind, and natural gas for residential, commercial, and industrial customers. Its Manufacturing segment engages in metal fabrication services for custom machine parts and metal components and manufacturing thermoformed plastic products for use in the agriculture, construction, horticulture, industrial, lawn and garden, recreational vehicle, and other end markets. These businesses have manufacturing facilities in Georgia, Illinois, and Minnesota and sell products primarily in the United States. The Plastics segment manufactures polyvinyl chloride pipes for municipal water, rural water, wastewater, storm drainage and water reclamation system, and other uses for customers in the horticulture, medical and life sciences, industrial, recreation, and electronics industries. This segment markets its products through independent sales representatives, company salespersons, and customer service representatives. Otter Tail Corporation was incorporated in 1907 and is headquartered in Fergus Falls, Minnesota.
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Direct competitors
Who this company fights with for the same customers
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No competitor list for this company yet.
Balance Sheet & Liquidity
Revenue
$1.32B
Trailing 12 months (through 6/30/2026)
Net Income
$195M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$98M
Total Equity
$1.86B
Total Liabilities
$2.10B
Current Ratio
1.71
Interest Coverage
4.55
Debt/EBITDA
2.76
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$147.31
Current Price
$88.04
Margin of Safety
+40.2%
Fair Value Range
$95.75 - $198.87
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
19.02
ROE
14.8%
P/B Ratio
1.97
P/FCF
37.75
Gross Margin
-
ROIC
4.7%
Profitability Radar
Value Creation (Economic Moat)
ROIC
4.7%
WACC
6.7%
ROIC − WACC
-2.0 pp
ROIC is below the cost of capital — the company is destroying value for every dollar invested.
Fundamental Analysis Criteria
Passed (17)
- EPS shows upward trend
- EPS CAGR 11.13%
- Price CAGR 8.13%
- P/B Ratio 1.97
- Debt/Equity ratio
- Operating Margin 17.1%
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- Low reliance on intangibles
- ROE 10.4%
- Earnings Surprise avg 4.3%
- PEG Ratio 0.84
- Earnings Quality (OCF/NI) 2.10
- Share Dilution 0.1%
- Piotroski F-Score 6/9
Failed (8)
- ROIC 4.7%
- P/FCF 37.75
- Positive Free Cash Flow
- Price below Graham Number
- DCF valuation (Overvalued)
- Revenue Growth 5Y 4.9%
- Analyst Consensus 0% Buy
- Net Margin Trend 14.8% vs 21.8%
Unavailable (3)
- Gross Margin NaN%
- Dividend Payout NaN%
- CapEx intensity
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Charles S. MacFarlane | CEO & Director | 60 |
| Mr. Timothy J. Rogelstad | President | 58 |
| Ms. Jennifer O. Smestad Esq. | Senior VP, General Counsel & Corporate Secretary | 54 |
| Mr. Todd R. Wahlund | Senior Vice President | 54 |
| Mr. John S. Abbott | Senior Vice President of Manufacturing Platform | 66 |
| Mr. Tyler Nelson | VP & Chief Financial Officer | - |
| Ms. Beth Eiken | Manager of Investor Relations | - |
| Ms. Stephanie A. Hoff | Director of Corporate Communications | - |
| Mr. Paul L. Knutson | Vice President of Human Resources | - |
Audit Risk
5
Board Risk
1
Compensation Risk
1
Shareholder Rights Risk
5
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-02-18
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-08-05
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-09-01
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for OTTR, sourced from Markets Gazette.