Otter Tail Corporation

Valuation Analysis

About the Company

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, ho

Otter Tail Corporation Stock at a Glance

Otter Tail Corporation (OTTR) is currently trading at $89.59 with a market capitalization of $3.8B. The trailing P/E ratio stands at 13.45x, with a forward P/E of 16.84x. The 52-week range spans from $74.15 to $92.24; the current price is 2.9% below the yearly high. Year-over-year revenue growth stands at +2.9%. The net profit margin stands at 21.34%.

💰 Dividend

Otter Tail Corporation pays an annual dividend of $2.21 per share, representing a yield of 2.47%. The payout ratio stands at 32.32%.

📊 Analyst Rating

2 analysts rate Otter Tail Corporation (OTTR) on consensus: Hold. The average price target is $90.50, implying +1.02% from the current price. Analyst price targets range from $86.00 to $95.00.

Otter Tail Corporation: The Investment Case in Detail

Otter Tail Corporation (OTTR) operates in the Industrials — specifically Conglomerates — and is headquartered in United States. Below is a structured read of the investment case built directly from the latest fundamentals, valuation multiples, analyst positioning and smart-money flows. Each section translates raw numbers into the investment logic they imply, so you can decide whether the risk/reward fits your portfolio.

The Bull Case

The combination of a 43.08% gross margin and 24.69% operating margin shows the business converts revenue into profit efficiently — a hallmark of competitive moat. Our valuation screen flags the stock as undervalued relative to its fundamentals — multiples are running below where the cash flow profile would normally justify.

The Bear Case

Revenue growth has slowed to just 2.9%, which is below nominal GDP — the business is no longer outgrowing the broader economy. Short interest sits at 18.43% of float — a meaningful contingent of professionals is positioned for the share to fall, which deserves attention even if their thesis may turn out to be wrong.

Valuation in Context

The EV/EBITDA multiple of 9.85x is below the historical equity-market average — strategic acquirers would find the cash-flow profile attractive at this level.

Investment Thesis: Strengths & Weaknesses

Technical Snapshot

Price trades above both the 50- and 200-day moving averages, with 50d above 200d — a classic bullish setup (golden-cross alignment).

Risk Profile

The data points to relatively defensive market behavior, elevated short interest (18.43%).

Trading Data

💵 Dividend Info

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