Otter Tail Corp

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OTTR : NASDAQ : Utilities
$42.95 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 78300.0
09/20/17 - 4:00 PM ET

Financial Analysis


OTTER TAIL CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. 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 has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.90% 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 FY17 Q2 FY16
Net Sales ($mil)212.09203.48
EBITDA ($mil)47.545.61
EBIT ($mil)29.5927.08
Net Income ($mil)16.7815.68


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)0.00.0
Total Assets ($mil)1944.061861.9
Total Debt ($mil)590.7595.58
Equity ($mil)686.4636.11


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin22.422.41
EBITDA Margin22.3922.41
Operating Margin13.9513.31
Sales Turnover0.420.43
Return on Assets3.523.23
Return on Equity9.949.62
Debt Q2 FY17 Q2 FY16
Current Ratio0.930.92
Debt/Capital0.460.48
Interest Expense7.537.98
Interest Coverage3.933.4


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)39.5638.7
Div / share0.320.31
EPS0.430.41
Book value / share17.3516.44
Institutional Own % n/a n/a
Avg Daily Volume81787.0113759.0

Valuation


BUY. OTTER TAIL CORP's P/E ratio indicates a discount compared to an average of 27.92 for the Electric Utilities industry and a value on par with the S&P 500 average of 24.88. Conducting a second comparison, its price-to-book ratio of 2.45 indicates a discount versus the S&P 500 average of 3.10 and a premium versus the industry average of 2.04. The current price-to-sales ratio is similar to the S&P 500 average, but it is 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 24.48 Peers 27.92   OTTR 10.03 Peers 8.86

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 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 23.28 Peers 19.36   OTTR 2.45 Peers 2.26

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.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
OTTR 2.45 Peers 2.04   OTTR 7.40 Peers -4.09

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 2.05 Peers 2.37   OTTR 2.69 Peers 14.17

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

OTTR significantly trails its peers on the basis of sales growth

 

 

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