Otter Tail Corporation (OTTR) Valuation

Valuation

Model-based estimates, not advice. The DCF is the discounted-cash-flow value per share; compare it with the price, not as a target.

DCF fair value

+7.2%

$98.11

vs $91.51 price

Levered DCF

$98.01

After debt service

Piotroski score

5 / 9

Average

Altman Z-score

1.95

Grey zone

Rating

A-

Overall 4 / 5

Ratios by fiscal year

Margins and yields are shares of revenue, equity or price; multiples are ×.

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
P/E	12.26×	10.23×	12.04×	8.6×	16.77×	18.13×	23.42×	23.87×
P/B	1.82×	1.85×	2.45×	2.01×	2.99×	1.99×	2.61×	2.7×
P/S	2.59×	2.32×	2.62×	1.67×	2.48×	1.95×	2.22×	2.14×
EV / EBITDA	8.41×	7.37×	8.45×	6.49×	11.16×	11.09×	12.79×	12.74×
Gross margin	27.8%	43.8%	41.9%	39.1%	35.4%	33.9%	30.4%	29.6%
Operating margin	26.5%	28.6%	28.0%	26.7%	20.9%	16.6%	14.7%	14.1%
Net margin	21.2%	22.7%	21.8%	19.5%	14.8%	10.8%	9.4%	9.0%
Current ratio	2.28×	2.03×	1.84×	1.91×	0.95×	0.54×	1.34×	1.42×
Debt / equity	0.59×	0.61×	0.63×	0.68×	0.86×	0.97×	0.92×	0.84×
Interest coverage	7.32×	9.09×	10.03×	10.84×	6.61×	4.29×	4.29×	4.26×
Dividend yield	2.6%	2.5%	2.1%	2.8%	2.2%	3.5%	2.7%	2.7%
Payout ratio	31.9%	25.9%	24.8%	24.2%	36.7%	62.9%	64.2%	64.6%

Key metrics by fiscal year

Metric	FY2025	FY2024	FY2023	FY2022	FY2021	FY2020	FY2019	FY2018
Return on equity	14.8%	18.1%	20.4%	23.3%	17.8%	11.0%	11.1%	11.3%
Return on invested capital	7.9%	9.2%	10.1%	11.6%	8.3%	5.2%	5.4%	5.8%
Return on assets	7.0%	8.3%	9.1%	9.8%	6.4%	3.7%	3.8%	4.0%
Free cash flow yield	2.9%	3.0%	3.3%	8.9%	2.0%	-9.2%	-1.1%	1.9%
Earnings yield	8.2%	9.8%	8.3%	11.6%	6.0%	5.5%	4.3%	4.2%
Enterprise value	$4.1B	$3.8B	$4.2B	$3.2B	$3.8B	$2.6B	$2.7B	$2.6B
Net debt / EBITDA	1.47×	1.39×	1.35×	1.47×	2.5×	3.63×	3.26×	3.01×
Cash conversion cycle (days)	66	57	68	53	60	29	30	50