Investors Should Consider Adding Otter Tail to Their Radar
January 17, 2023
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Otter Tail Intrinsic Value – Otter Tail ($NASDAQ:OTTR) Corporation is an American public utility holding company headquartered in Fergus Falls, Minnesota. It owns utilities and other businesses in Minnesota, North Dakota, South Dakota, and Wisconsin that generate, transmit, and distribute electricity, as well as manufacture and sell components for electric motors.
However, some investors are beginning to speculate that the stock could be poised for a rebound in the near future. For starters, Otter Tail Corporation has made a number of strategic moves in recent months that could lead to long-term growth. The company has invested heavily in renewable energy, including solar and wind, and has also acquired a number of businesses that provide a range of services from engineering to construction to maintenance. These investments have put the company in a favorable position to benefit from the increasing demand for clean energy sources.
In addition, the company has a strong balance sheet with no long-term debt, which provides it with financial stability and flexibility to make investments. All things considered, Otter Tail Corporation appears to be an attractive investment opportunity for those looking for exposure to the utility sector. The company’s strategic investments and strong balance sheet make it an attractive option for long-term investors looking for both growth and income. With its current stock price trading at a discount to its historical average, investors should consider adding Otter Tail to their radar.
Stock Price
On Thursday, OTTER TAIL stock opened at $63.4 and closed at $63.1, up by 0.1% from its prior closing price of 63.0. This small gain in the market has made it an attractive option for investors who want to diversify their portfolio and capitalize on potential gains. Its diversified base of businesses provides investors with a unique opportunity to diversify their investments and benefit from potential growth. In addition to its diversified portfolio, OTTER TAIL has a strong balance sheet and a track record of delivering consistent returns to shareholders. This makes it an attractive option for those looking to add a reliable dividend-paying stock to their portfolio. Finally, OTTER TAIL’s commitment to innovation and growth makes it an attractive long-term investment.
The company has invested heavily in research and development, as well as in capital expenditures, which have allowed it to stay ahead of the competition. This makes it an ideal choice for investors looking to capitalize on the potential growth of a strong company. In conclusion, OTTER TAIL is an attractive option for investors who are looking to diversify their investments and benefit from potential gains. With its diversified portfolio, strong balance sheet, and commitment to innovation, it is well worth considering adding this stock to your radar. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Otter Tail. More…
| Total Revenues | Net Income | Net Margin |
| 1.49k | 293.8 | 19.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Otter Tail. More…
| Operations | Investing | Financing |
| 364.46 | -181.98 | -110.77 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Otter Tail. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 2.9k | 1.71k | 26.82 |
Key Ratios Snapshot
Some of the financial key ratios for Otter Tail are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 17.3% | 47.4% | 27.3% |
| FCF Margin | ROE | ROA |
| 12.5% | 22.1% | 8.8% |
VI Analysis – Otter Tail Intrinsic Value Calculator
Otter Tail Corporation is a diversified company which has long been a staple of the American economy. Its operations span across various sectors, including energy, healthcare, industrial, electronics, and manufacturing. Its fundamentals and long-term potential are evidenced by its high levels of profitability and low debt-to-equity ratio. According to Value Investing (VI) app, Otter Tail’s intrinsic value is estimated to be around $69.9 per share. With the stock currently trading at $63.1, it is undervalued by around 10%. This presents an opportunity for investors to capitalize on the potential upside to the stock price when it reaches its intrinsic value. Despite this, investors should always exercise caution when considering investing in any company, as there are no guarantees of success. An analysis of the company’s financials and potential risks should be taken into account prior to an investment decision being made. More…
VI Peers
In the electric utility industry, there is intense competition between Otter Tail Corp and its competitors: NextEra Energy Inc, DTE Energy Co, Exelon Corp. These companies are all vying for market share in the electric utility industry.
– NextEra Energy Inc ($NYSE:NEE)
NextEra Energy Inc is a clean energy company with a market cap of 156.59B as of 2022. The company has a Return on Equity of 6.09%. NextEra Energy Inc is the world’s largest generator of renewable energy from the wind and sun. The company also owns Florida Power & Light Company, one of the nation’s largest electric utilities.
– DTE Energy Co ($NYSE:DTE)
DTE Energy Co is a publicly traded energy company headquartered in Detroit, Michigan. The company is involved in the generation, transmission, and distribution of electricity and natural gas. As of 2022, the company had a market capitalization of 21.77 billion dollars and a return on equity of 12.47%. The company is the largest provider of electricity and natural gas in Michigan, serving over 3 million customers.
– Exelon Corp ($NASDAQ:EXC)
Exelon Corp is a publicly traded company with a market capitalization of $36.95 billion as of 2022. The company has a return on equity of 11.0%. Exelon Corp is engaged in the generation, transmission, and distribution of electricity and natural gas. The company operates through four business segments: Exelon Generation, Exelon Utilities, Exelon Business Services, and Exelon Transmission.
Summary
Investors should consider adding Otter Tail to their watchlist. The company is a diversified, publicly traded organization with strong financials and a track record of consistent growth. It operates in multiple industries, including energy, healthcare and manufacturing, and offers a variety of products and services to customers. Its balance sheet is strong and its cash flow is healthy, providing potential investors with a secure investment opportunity.
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