Otter Tail Corp

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OTTR : NASDAQ : Utilities
$34.60 -0.12 | -0.35%
Today's Range: 34.28 - 34.73
Avg. Daily Volume: 130,500
07/27/16 - 4:00 PM ET

Financial Analysis


OTTER TAIL CORP's gross profit margin for the first quarter of its fiscal year 2016 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased. OTTER TAIL CORP has very weak liquidity. Currently, the Quick Ratio is 0.35 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.68% 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 FY16 Q1 FY15
Net Sales ($mil)206.24202.84
EBITDA ($mil)45.8739.56
EBIT ($mil)27.5825.03
Net Income ($mil)14.5217.94


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)0.00.16
Total Assets ($mil)1833.361815.18
Total Debt ($mil)589.19547.29
Equity ($mil)613.72586.27


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin22.2419.5
EBITDA Margin22.2319.5
Operating Margin13.3712.34
Sales Turnover0.430.43
Return on Assets3.052.98
Return on Equity9.668.33
Debt Q1 FY16 Q1 FY15
Current Ratio0.91.41
Debt/Capital0.490.48
Interest Expense7.997.74
Interest Coverage3.453.23


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)38.0737.42
Div / share0.310.31
EPS0.380.37
Book value / share16.1215.67
Institutional Own % n/a n/a
Avg Daily Volume125565.0114374.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.19 for the Electric Utilities industry and a discount compared to the S&P 500 average of 25.05. Conducting a second comparison, its price-to-book ratio of 2.14 indicates a discount versus the S&P 500 average of 2.81 and a premium versus the industry average of 1.93. 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 21.94 Peers 22.19   OTTR 8.76 Peers 8.25

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 21.53 Peers 17.73   OTTR 8.57 Peers 4.07

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 2.14 Peers 1.93   OTTR 18.93 Peers 12.85

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 1.67 Peers 2.35   OTTR -0.50 Peers -5.23

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 significant 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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