Alaska Department of Revenue Demonstrates Confidence in Otter Tail Co. with Recent Acquisition
July 6, 2023
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Otter Tail ($NASDAQ:OTTR) Co. is a diversified American corporation that produces a variety of goods and services, including electricity, plastics, and medical products. Recently, the State of Alaska Department of Revenue has demonstrated confidence in Otter Tail Co. by acquiring a new stake in the company. The acquisition by the Alaska Department of Revenue is a major endorsement for Otter Tail Co., as it demonstrates their trust in the organization’s ability to continue to generate profits and provide value for shareholders. It is also an indication of Otter Tail Co.’s commitment to staying ahead of the competition in a rapidly evolving marketplace.
The Department of Revenue’s decision underscores their belief that the company has the potential to increase its market share and continue to build its presence in the Alaska economy. The organization’s portfolio of products and services continues to expand, and its financial outlook is strong. This new stake further bolsters the company’s already impressive structure, as well as its reputation as a reliable and trustworthy source for investors nationwide.
Earnings
According to the company’s earning report for FY2023 Q1 as of March 31 2021, OTTER TAIL earned 261.71M USD in total revenue and 30.33M USD in net income. This represents a 30.2% decrease in total revenue and a 57.9% decrease in net income compared to the previous year. In the last 3 years, OTTER TAIL’s total revenue has reached an impressive 339.08M USD.
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 |
| 1.42k | 274.66 | 19.3% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Otter Tail. More…
| Operations | Investing | Financing |
| 399.45 | -244 | -52.74 |
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 |
| 2.99k | 1.72k | 28.44 |
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 |
| 16.2% | 40.4% | 26.7% |
| FCF Margin | ROE | ROA |
| 11.2% | 19.2% | 8.0% |
Price History
The stock opened at $78.5 and closed at $78.6, a slight decrease of 0.4% from its prior closing price of 78.9. This acquisition is a strong statement from the Alaska Department of Revenue that they have faith in the company’s potential to grow and generate returns on their investment. It also serves as an indicator of optimism from institutional investors, giving confidence to individual investors who may be considering buying shares of OTTER TAIL. Live Quote…
Analysis
At GoodWhale, we conducted a thorough analysis of OTTER TAIL‘s wellbeing. From our Risk Rating, we can confidently say that OTTER TAIL is a low risk investment from both a financial and business perspective. However, our analysis did detect one risk warning in the company’s income sheet. If you’re interested in learning more about this warning, please register with us to check it out! More…
Peers
In the electric utility industry, there is intense competition between Otter Tail Corp and its competitors: NextEra Energy Inc, DTE Energy Co, Exelon Corp. These companies are all vying for market share in the electric utility industry.
– NextEra Energy Inc ($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 are closely monitoring the recent acquisition of Otter Tail Co by the State of Alaska Department of Revenue. Analysts are looking into the potential of the company’s investment prospects, particularly in light of the state’s sizable stake. Factors such as the company’s financial performance, competitive position, management team, and operational efficiency are being closely evaluated. Furthermore, investors are paying close attention to the potential risks and rewards associated with the acquisition.
Given the high demand for investments in the region, Otter Tail Co is likely to experience an increased level of trading activity. It remains to be seen whether or not the state’s acquisition will prove to be a successful investment for Alaska.
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