Otter Tail Corp

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OTTR : NASDAQ : Utilities
$38.35 up 0.7 | 1.9%
Today's Range: 37.45 - 38.4
Avg. Daily Volume: 97900.0
03/27/17 - 11:23 AM ET

Financial Analysis


OTTER TAIL CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged 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 0.34 which clearly shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 10.75% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)196.64188.79
EBITDA ($mil)47.4745.79
EBIT ($mil)29.1629.76
Net Income ($mil)17.5114.58


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)0.00.0
Total Assets ($mil)1912.391820.9
Total Debt ($mil)581.43579.16
Equity ($mil)670.1605.02


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin24.1424.25
EBITDA Margin24.1424.25
Operating Margin14.8315.77
Sales Turnover0.420.43
Return on Assets3.253.25
Return on Equity9.259.68
Debt Q4 FY16 Q4 FY15
Current Ratio0.960.76
Debt/Capital0.460.49
Interest Expense7.897.99
Interest Coverage3.73.73


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)39.3537.86
Div / share0.310.31
EPS0.440.41
Book value / share17.0315.98
Institutional Own % n/a n/a
Avg Daily Volume96732.098450.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 22.15 for the Electric Utilities industry and a discount compared to the S&P 500 average of 26.33. Conducting a second comparison, its price-to-book ratio of 2.13 indicates a discount versus the S&P 500 average of 2.93 and a premium versus the industry average of 1.88. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. After reviewing these and other key valuation criteria, OTTER TAIL CORP proves to trade at a premium 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 22.58 Peers 22.15   OTTR 8.75 Peers 8.02

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

OTTR is trading at a valuation on par with its peers.

 

Average. 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 valuation on par 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 20.08 Peers 17.69   OTTR 3.29 Peers 2.09

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 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 2.13 Peers 1.88   OTTR 3.20 Peers -23.86

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 1.78 Peers 2.28   OTTR 3.04 Peers 11.77

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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