Otter Tail Corp

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OTTR : NASDAQ : Utilities
$39.7 | %
Today's Range: 39.6 - 39.903
Avg. Daily Volume: 111800.0
05/26/17 - 4:00 PM ET

Financial Analysis


OTTER TAIL CORP's gross profit margin for the first quarter of its fiscal year 2017 has increased when compared to the same period a year ago. The company has grown sales and net income during the past quarter when compared with the same quarter a year ago, however, it was unable to keep up with the growth of the average competitor within its industry. OTTER TAIL CORP has very weak liquidity. Currently, the Quick Ratio is 0.38 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.

During the same period, stockholders' equity ("net worth") has increased by 10.65% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)214.12206.24
EBITDA ($mil)50.6645.87
EBIT ($mil)32.827.58
Net Income ($mil)19.5914.52


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)0.00.0
Total Assets ($mil)1930.711833.36
Total Debt ($mil)594.74589.19
Equity ($mil)679.12613.72


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin23.6622.24
EBITDA Margin23.6522.23
Operating Margin15.3213.37
Sales Turnover0.420.43
Return on Assets3.493.05
Return on Equity9.879.66
Debt Q1 FY17 Q1 FY16
Current Ratio0.930.9
Debt/Capital0.470.49
Interest Expense7.467.99
Interest Coverage4.43.45


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)39.4738.07
Div / share0.320.31
EPS0.490.38
Book value / share17.2116.12
Institutional Own % n/a n/a
Avg Daily Volume111240.0108367.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 21.09 for the Electric Utilities industry and a discount compared to the S&P 500 average of 25.54. Conducting a second comparison, its price-to-book ratio of 2.32 indicates a discount versus the S&P 500 average of 3.06 and a premium versus the industry average of 2.00. The price-to-sales ratio is below both the S&P 500 average and 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 23.17 Peers 21.09   OTTR 9.73 Peers 8.58

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.

 

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 21.60 Peers 18.22   OTTR 3.71 Peers 1.83

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 2.32 Peers 2.00   OTTR 9.55 Peers -10.72

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 1.94 Peers 2.34   OTTR 3.60 Peers 10.56

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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