Otter Tail Corp. (OTTR) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

The AES Corp.

Portland General Electric Co.

Otter Tail Corp.

Pinnacle West Capital Corp.

IDACORP, Inc.

OGE Energy Corp.

PNM Resources, Inc.

Avangrid, Inc.

Ormat Technologies, Inc.

Black Hills Corp.

NRG Energy, Inc.

Why is Otter Tail Corp. ?

Company has a low Debt to Equity ratio (avg) at times

Healthy long term growth as Operating profit has grown by an annual rate 21.32%

Flat results in Jun 25

OPERATING CASH FLOW(Y) Lowest at USD 388.65 MM
ROCE(HY) Lowest at 17.13%
RAW MATERIAL COST(Y) Grown by 9.03% (YoY)

With ROCE of 14.89%, it has a fair valuation with a 1.61 Enterprise value to Capital Employed

The stock is trading at a discount compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -0.22%, its profits have fallen by -3.2%

High Institutional Holdings at 69.21%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
Their stake has increased by 0.6% over the previous quarter.

Below par performance in long term as well as near term

Along with generating -0.22% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Otter Tail Corp. should be less than 10%
Overall Portfolio exposure to Power should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Otter Tail Corp. for you?

Low Risk, Low Return

Absolute

Risk Adjusted

Volatility

Otter Tail Corp.

2.3%

-0.22

24.62%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

8.51%

EBIT Growth (5y)

21.32%

EBIT to Interest (avg)

8.29

Debt to EBITDA (avg)

2.13

Net Debt to Equity (avg)

0.45

Sales to Capital Employed (avg)

0.55

Tax Ratio

16.29%

Dividend Payout Ratio

26.08%

Pledged Shares

Institutional Holding

69.21%

ROCE (avg)

15.08%

ROE (avg)

18.35%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.88

EV to EBIT

10.81

EV to EBITDA

8.32

EV to Capital Employed

1.61

EV to Sales

3.03

PEG Ratio

Dividend Yield

2.56%

ROCE (Latest)

14.89%

ROE (Latest)

17.24%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Bullish

Sideways

Moving Averages

Bullish (Daily)

KST

Mildly Bearish

Bearish

Dow Theory

Mildly Bearish

OBV

No Trend

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

DEBT-EQUITY RATIO (HY)

Lowest at 41.48 %

DIVIDEND PER SHARE(HY)

Highest at USD 7.04

CASH AND EQV(HY)

Highest at USD 592.06 MM

-6What is not working for the Company

OPERATING CASH FLOW(Y)

Lowest at USD 388.65 MM

ROCE(HY)

Lowest at 17.13%

RAW MATERIAL COST(Y)

Grown by 9.03% (YoY

INVENTORY TURNOVER RATIO(HY)

Lowest at 5.99 times

Here's what is working for Otter Tail Corp.

Debt-Equity Ratio

Lowest at 41.48 % and Grown

In each half year in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Dividend per share

Highest at USD 7.04 and Grown

In each year in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Cash and Eqv

Highest at USD 592.06 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Depreciation

Highest at USD 29.45 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Otter Tail Corp.

Operating Cash Flow

Lowest at USD 388.65 MM

in the last three years

MOJO Watch

The company's cash revenues from business operations are falling

Operating Cash Flows (USD MM)

Inventory Turnover Ratio

Lowest at 5.99 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Raw Material Cost

Grown by 9.03% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has deteriorated; this may lead to a fall in profit margin

Raw Material Cost as a percentage of Sales