Last Updated: 13 Nov 2024
Executive Summary
Otter Tail Corporation (OTTR) is a leading provider of electrical services, manufacturing, and plastic piping solutions in the United States. With a market capitalization of $3.41 billion, the company has a strong financial position and a history of consistent growth. The latest stock price of $79.86 is within its 52-week range of $72.94 to $100.30.
Company Overview
Otter Tail Corporation was founded in 1907 and is headquartered in Fergus Falls, Minnesota. The company operates through three segments: Electric Services, Manufacturing, and Plastics. The Electric Services segment provides electricity to customers in Minnesota, North Dakota, and South Dakota. The Manufacturing segment produces electrical equipment and components, including transformers and switchgear. The Plastics segment manufactures and distributes plastic piping systems for various applications.
Fundamental Analysis
Otter Tail Corporation has a strong financial track record. The company's revenue has grown steadily over the past five years, reaching $1.34 billion in the trailing twelve months (TTM). The company's net income has also increased, reaching $227 million in the TTM. The company has a solid balance sheet with low debt and ample liquidity.
The company's key financial ratios are as follows:
Price-to-Earnings (PE) Ratio: 11.25
Price-to-Book (PB) Ratio: 2.085
Price-to-Sales (PS) Ratio: 2.538
Dividend Yield: 0.023%
Technical Analysis
The technical analysis of Otter Tail Corporation's stock indicates a positive trend. The 50-day moving average is above the 200-day moving average, and the stock price is trading above both moving averages. The relative strength index (RSI) is in the neutral range, indicating that the stock is not overbought or oversold.
Short Term Outlook
In the short term, Otter Tail Corporation's stock is expected to continue its positive trend. The company's strong financial performance and positive analyst sentiment are likely to support the stock price. The stock is currently trading at a discount to its analyst target price of $81, which provides potential upside for investors.
Long Term Outlook
In the long term, Otter Tail Corporation is well-positioned for growth. The company's focus on renewable energy and its strong customer base in the Midwest provide a solid foundation for future growth. The company's expansion into new markets and its commitment to innovation are also expected to contribute to long-term growth.
Analyst Recommendations
Analysts are generally positive on Otter Tail Corporation's stock. Three analysts have a "Hold" rating on the stock, while one analyst has a "Strong Sell" rating. The average analyst target price is $81, implying a potential upside of 1.6% from the current price.
