📊 OTTR Key Takeaways
Is Otter Tail Corp (OTTR) a Good Investment?
Despite strong operating margins (24.9%) and solid balance sheet metrics, Otter Tail Corp faces critical cash flow deterioration with negative free cash flow of -$114.7M annually. The company's capital expenditures ($185.3M) vastly exceed operating cash flow ($70.6M), requiring external financing to sustain operations. Low returns on equity (3.8%) and assets (1.7%) indicate capital is not generating sufficient returns to justify the investment rate.
Fundamentals are strong, with unusually high operating and net margins for a utility, robust ROE, and excellent interest coverage supported by modest leverage. Positive free cash flow after sizable capex and strong liquidity indicate capacity to fund growth and maintain shareholder returns, though sustainability depends on non-utility earnings and regulatory outcomes.
Why Buy Otter Tail Corp Stock? OTTR Key Strengths
- Strong operating margin of 24.9% and net margin of 21.2% demonstrate pricing power and operational efficiency in utility segment
- Conservative leverage with Debt/Equity ratio of 0.56x and strong interest coverage of 8.7x provides debt service cushion
- Adequate liquidity position with current ratio of 2.04x and $348.4M in cash reserves
- High profitability (26.6% operating, 21.2% net margin)
- Conservative leverage (0.52x D/E) with exceptional 35.1x interest coverage
- Solid cash generation (OCF ~$386M) and positive FCF despite heavy capex
OTTR Stock Risks: Otter Tail Corp Investment Risks
- Severely negative free cash flow of -$114.7M indicates company cannot fund operations and capex from internal cash generation
- Capital expenditures exceed operating cash flow by 162%, requiring continuous external financing or cash depletion
- Extremely low returns on capital (ROE 3.8%, ROA 1.7%) suggest invested capital is not generating adequate returns relative to deployment rate
- Non-utility/plastics cyclicality and commodity exposure may normalize margins
- Regulatory and rate-case outcomes could pressure allowed returns and recovery of capex
- Large ongoing capex for grid/renewables could compress near-term FCF if OCF moderates
Key Metrics to Watch
- Operating cash flow trend and sustainability relative to capital expenditure requirements
- Free cash flow trajectory and source of financing for capex shortfall (debt vs equity)
- Return on equity and return on assets improvements to justify ongoing investment levels
- Earnings mix and margin sustainability in non-utility/plastics segment
- Capex and rate base growth versus regulatory recovery/FCF conversion
Otter Tail Corp (OTTR) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.04x current ratio provides a solid financial cushion.
OTTR Profit Margin, ROE & Profitability Analysis
OTTR vs Utilities Sector: How Otter Tail Corp Compares
How Otter Tail Corp compares to Utilities sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Otter Tail Corp Stock Overvalued? OTTR Valuation Analysis 2026
Based on fundamental analysis, Otter Tail Corp has mixed fundamental signals relative to the Utilities sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Otter Tail Corp Balance Sheet: OTTR Debt, Cash & Liquidity
OTTR Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Otter Tail Corp's revenue has grown significantly by 13% over the 5-year period, indicating strong business expansion. The most recent EPS of $7.00 reflects profitable operations.
OTTR Revenue Growth, EPS Growth & YoY Performance
OTTR Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $337.4M | $68.1M | $1.62 |
| Q3 2025 | $325.6M | $78.3M | $1.86 |
| Q2 2025 | $333.0M | $77.7M | $1.85 |
| Q1 2025 | $337.4M | $68.1M | $1.62 |
| Q3 2024 | $338.0M | $85.5M | $2.03 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Otter Tail Corp Dividends, Buybacks & Capital Allocation
OTTR SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Otter Tail Corp (CIK: 0001466593)
📋 Recent SEC Filings
❓ Frequently Asked Questions about OTTR
What is the AI rating for OTTR?
Otter Tail Corp (OTTR) has a Combined AI Rating of HOLD from Claude (SELL) and ChatGPT (BUY) with 70% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OTTR's key strengths?
Claude: Strong operating margin of 24.9% and net margin of 21.2% demonstrate pricing power and operational efficiency in utility segment. Conservative leverage with Debt/Equity ratio of 0.56x and strong interest coverage of 8.7x provides debt service cushion. ChatGPT: High profitability (26.6% operating, 21.2% net margin). Conservative leverage (0.52x D/E) with exceptional 35.1x interest coverage.
What are the risks of investing in OTTR?
Claude: Severely negative free cash flow of -$114.7M indicates company cannot fund operations and capex from internal cash generation. Capital expenditures exceed operating cash flow by 162%, requiring continuous external financing or cash depletion. ChatGPT: Non-utility/plastics cyclicality and commodity exposure may normalize margins. Regulatory and rate-case outcomes could pressure allowed returns and recovery of capex.
What is OTTR's revenue and growth?
Otter Tail Corp reported revenue of $342.9M.
Does OTTR pay dividends?
Otter Tail Corp pays dividends, with $24.3M distributed to shareholders in the trailing twelve months.
Where can I find OTTR SEC filings?
Official SEC filings for Otter Tail Corp (CIK: 0001466593) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OTTR's EPS?
Otter Tail Corp has a diluted EPS of $1.73.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is OTTR a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Otter Tail Corp has a HOLD rating with 70% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is OTTR stock overvalued or undervalued?
Valuation metrics for OTTR: ROE of 3.8% (sector avg: 10%), net margin of 21.2% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy OTTR stock in 2026?
Our dual AI analysis gives Otter Tail Corp a combined HOLD rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is OTTR's free cash flow?
Otter Tail Corp's operating cash flow is $70.6M, with capital expenditures of $185.3M. FCF margin is -33.4%.
How does OTTR compare to other Utilities stocks?
Vs Utilities sector averages: Net margin 21.2% (avg: 12%), ROE 3.8% (avg: 10%), current ratio 2.04 (avg: 0.8).