Otter Story

OTTR -- USA Stock

USD 41.37 0.53 1.26%

Macroaxis Story

While many traders are getting carried away by overanalyzing utilities space, it is reasonable to sum up Otter Tail. We will evaluate if Otter Tail shares are reasonably priced going into March. Is Otter Tail current valuation justified? We will cover the entity valuation to give you a better outlook on taking a position in the stock.

Published over a week ago

View all stories for Otter Tail | View All Stories

Is Otter Tail outlook positive for March 2021?

The company currently holds 833.45 M in liabilities with Debt to Equity (D/E) ratio of 0.98, which is about average as compared to similar companies. Otter Tail has a current ratio of 0.9, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Otter Tail has performance score of 1 on a scale of 0 to 100. The company holds a Beta of 1.5784, which implies a somewhat significant risk relative to the market. Let's try to break down what Otter's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Otter Tail will likely underperform. Although it is extremely important to respect Otter Tail current trending patterns, it is better to be realistic regarding the information on equity existing price patterns. The philosophy towards forecasting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By analyzing Otter Tail technical indicators, you can presently evaluate if the expected return of 0.0226% will be sustainable into the future. Otter Tail right now holds a risk of 1.61%. Please check Otter Tail information ratio and downside variance to decide if Otter Tail will be following its historical price patterns.

We determine the current worth of Otter Tail Corp using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Otter Tail Corp based exclusively on its fundamental and basic technical indicators. By analyzing Otter Tail's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Otter Tail's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Otter Tail. We calculate exposure to Otter Tail's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Otter Tail's related companies.

Otter Tail Corp Investment Alerts

Otter investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Otter Tail Corp performance across your portfolios.Please check all investment alerts for Otter

Otter Tail Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Otter value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Otter Tail competition to find correlations between indicators driving the intrinsic value of Otter.

How Otter utilizes its cash?

To perform a cash flow analysis of Otter Tail, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Otter Tail is receiving and how much cash it distributes out in a given period. The Otter Tail cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.

Otter Tail Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Otter Tail reported last year Net Cash Flow from Operations of 166.53 Million

A Deeper Perspective

The latest indifference towards the small price fluctuations of Otter Tail may encourage retail investors to take a closer look at the company as it is trading at a share price of 42.17 on very low momentum in trading volume. The company executives did not add any value to Otter Tail investors in January. However, most investors can still diversify their portfolios with Otter Tail to hedge their inherited risk against high-volatility market scenarios. The stock standard deviation of daily returns for 30 days investing horizon is currently 1.61. The below-average Stock volatility is a good sign for longer-term investment options and for buy-and-hold investors.

Margins Breakdown

Otter profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Otter Tail itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Otter Tail profit margins.

6.72

Profit Margin

11.67

Operating Margin

18.98

EBITDA Margin

	Operating Margin	11.67
	EBITDA Margin	18.98
	Gross Margin	20.45
	Profit Margin	6.72

Otter Tail Earnings Before Interest Taxes and Depreciation Amortization EBITDA is increasing over the last 8 years. The latest value of Otter Tail Earnings Before Interest Taxes and Depreciation Amortization EBITDA is 171,421,442. Further, Otter Tail Average Assets is increasing over the last 8 years. The previous year's value of Otter Tail Average Assets was 2,364,871,145.

Otter Tail has a fair chance to close above $41 mark in March

Otter Tail latest coefficient of variation advances over 5516.17. Otter Tail has relatively low volatility with skewness of -0.3 and kurtosis of 1.3. However, we advise all investors to independently investigate Otter Tail to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

Our Conclusion on Otter Tail

While some other entities in the utilities?diversified industry are either recovering or due for a correction, Otter Tail may not be performing as strong as the other in terms of long-term growth potentials. With an optimistic outlook on your 30 days horizon, it may be a good time to take over new shares of Otter or increase your existing holdings in the Stock as it seems the potential growth has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Otter Tail.

About Contributor

Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management. View Profile

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Otter Tail Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

Would you like to provide feedback on the content of this article?

You can get in touch with us directly or send us a quick note via email to editors@macroaxis.com

Macroaxis helps investors of all levels and skills to maximize the upside of all their holdings and minimize the risk associated with market volatility, economic swings, and company-specific events. View terms and conditions

Feedback Blog

Made with optimal in San Francisco

2021 Macroaxis LLC