Otter Tail Corp

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OTTR : NASDAQ : Utilities
$34.43 -0.47 | -1.30%
Today's Range: 34.46 - 35.47
Avg. Daily Volume: 97,700
09/30/16 - 1:55 PM ET

Financial Analysis


OTTER TAIL CORP's gross profit margin for the second quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. OTTER TAIL CORP has very weak liquidity. Currently, the Quick Ratio is 0.37 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity decreased from the same period a year ago, despite already having very weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 7.86% from the same quarter last year. The key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the near future.

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Income Statement Q2 FY16 Q2 FY15
Net Sales ($mil)203.48188.15
EBITDA ($mil)45.6139.46
EBIT ($mil)27.0824.8
Net Income ($mil)15.6811.44


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)0.00.0
Total Assets ($mil)1861.91811.38
Total Debt ($mil)595.58541.63
Equity ($mil)636.11589.71


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin22.4120.97
EBITDA Margin22.4120.97
Operating Margin13.3113.18
Sales Turnover0.430.43
Return on Assets3.233.07
Return on Equity9.629.26
Debt Q2 FY16 Q2 FY15
Current Ratio0.921.33
Debt/Capital0.480.48
Interest Expense7.987.7
Interest Coverage3.43.22


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)38.737.57
Div / share0.310.31
EPS0.410.36
Book value / share16.4415.7
Institutional Own % n/a n/a
Avg Daily Volume106011.0121853.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 25.94 for the Electric Utilities industry and a discount compared to the S&P 500 average of 25.19. Conducting a second comparison, its price-to-book ratio of 2.21 indicates a discount versus the S&P 500 average of 2.82 and a premium versus the industry average of 1.84. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. The valuation analysis reveals that, OTTER TAIL CORP seems to be trading at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
OTTR 22.44 Peers 25.94   OTTR 9.96 Peers 7.68

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

OTTR is trading at a discount to its peers.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

OTTR is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
OTTR 22.73 Peers 17.77   OTTR 8.77 Peers 5.75

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

OTTR is trading at a significant premium to its peers.

 

Premium. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

OTTR trades at a significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
OTTR 2.21 Peers 1.84   OTTR 10.20 Peers -4.40

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

OTTR is trading at a premium to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

OTTR is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
OTTR 1.76 Peers 2.33   OTTR 2.25 Peers -4.83

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

OTTR is trading at a discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

OTTR has a sales growth rate that significantly exceeds its peers.

 

 

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