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Otter Tail Corporation (OTTR) Fair Value & Analysis

Industrials · US · Market cap $3.8B

OT Otter Tail Corporation logo Otter Tail Corporation OTTR · US
Price$93.79
Fair Value$79.82
Upside-14.9%
Quality47/100
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Expensive Growth
Highly profitable · 21.3% net margin
Moderate debt · generates free cash flow
2.42% dividend yield
Mixed vs. peers (6/15)
Wide moat 67/100
Evidence: High Range $59.86 – $99.77 Share as image

Fair value as of: Jul 16, 2026

From 12 valuation models · updated 24 days ago

Share price +4.7% over the past month.

Below-average quality, and screening another 15% overvalued on our models.

What matters now

  • Solid but not exceptional quality (47/100) and above fair value, neither a clear bargain nor a standout compounder.
  • Our model range runs from $59.86 (bear) to $99.77 (bull), base $79.82. The closer the price sits to the lower half, the larger the margin of safety.
  • Quality 47/100 (below-average quality) with high evidence: the data supports the verdict.
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Price vs Fair Value (5 years)

$95.54 $41.29 Fair Value $79.82 May 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $41.29 – $95.54 · fair‑value band $59.86 – $99.77 · the $93.79 price screens above the $79.82 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

Otter Tail Corporation (OTTR) currently trades at $93.79, while our model-based Fair Value estimate is $79.82, implying the stock looks roughly 14.9% overvalued today. The Quality Score stands at 47/100 (below-average quality), in the Industrials sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, Otter Tail Corporation generated revenue of $1.3B at a net margin of 21.3%. Revenue grew 2.9% year over year. It earns a return on equity of 15.5%. Net debt stands at $718M. Fundamentals as of Jul 16, 2026

Our scenario range runs from $59.86 (bear case) to $99.77 (bull case); at $93.79, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades near its 52-week high and 29% above its 52-week low, currently above its 200-day average. For context, the median of 10 Industrials peers we cover trades at -14% fair-value upside, at -15%, OTTR screens richer than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model BearBaseBull Evidence
Highest evidence
Growth DCF $10.93 $20.82 $33.97 80
Residual Income $43.46 $55.38 $134.19 76
Rev-Margin DCF $27.40 $54.14 $83.27 74
All 12 models by family
DCF Models
Owner Earnings $12.38 $24.18 $40.68 31
5Y P/E Exit $44.25 $84.79 $126.18 38
10Y P/E Exit $30.99 $61.93 $98.29 35
Earnings-Based
Graham-Dodd $44.69 $116.56 $152.03 54
Dividend Discount
Gordon GGM $18.42 $35.58 $55.59 70
DDM Multi-Stage $18.42 $27.86 $37.57 61
Multiples
P/E Multiple $88.71 $118.28 $147.86 63
P/B Multiple $59.86 $79.82 $99.77 55
Asset-Based
NCAV (Graham) $22.17 $29.71 $44.34 50
Growth DCF
Growth DCF $10.93 $20.82 $33.97 80
Rev-Margin DCF $27.40 $54.14 $83.27 74
Economic Profit
Residual Income $43.46 $55.38 $134.19 76

Widest divergence: Earnings-Based ($116.56) versus Growth DCF ($20.82). Highest evidence: Growth DCF (80).

Key figures & financial health

Revenue (TTM) $1.3B
Revenue growth (YoY) +2.9%
Net margin 21.3%
Return on equity 15.5%
Free cash flow $97.9M FY2025
P/E ratio 13.4
More key figures
Operating margin 24.7%
EPS (TTM) $6.74
Dividend yield 2.4%
EPS growth (YoY) +6.8%
Net debt $718M FY2025

Figures from reported company fundamentals · as of Jul 16, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 48 · Market factors (momentum, volatility) 73

Profitability 45
Margins and returns on capital today
Quality Growth 20
Are margins and returns improving?
Cashflow 50
Earnings quality: real cash, not paper profit
Fin. Strength 57
Balance sheet, leverage, solvency risk
Investment 23
Disciplined investing over empire-building
Low Volatility 93
Calm price path (market factor)
Momentum 54
Price trend over the last 3–12 months (market factor)
52W Momentum 81
Distance to the 52-week high (market factor)
Net Issuance 80
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. It operates through three segments: Electric, Manufacturing, and Plastics.

Full company description

Otter Tail Corporation, together with its subsidiaries, engages in electric utility, manufacturing, and plastic pipe businesses in the United States. It operates through three segments: Electric, Manufacturing, and Plastics. The Electric segment generates, purchases, transmissions, distributes, and sells electric energy in Minnesota, North Dakota, and South Dakota; and operates as a participant in the Midcontinent Independent System Operator markets. This segment generates electricity through coal, fuel oil, solar, wind, and natural gas for residential, commercial, and industrial customers. Its Manufacturing segment engages in metal fabrication services for custom machine parts and metal components and manufacturing thermoformed plastic products for use in the agriculture, construction, horticulture, industrial, lawn and garden, recreational vehicle, and other end markets. These businesses have manufacturing facilities in Georgia, Illinois, and Minnesota and sell products primarily in the United States. The Plastics segment manufactures polyvinyl chloride pipes for municipal water, rural water, wastewater, storm drainage and water reclamation system, and other uses for customers in the horticulture, medical and life sciences, industrial, recreation, and electronics industries. This segment markets its products through independent sales representatives, company salespersons, and customer service representatives. Otter Tail Corporation was incorporated in 1907 and is headquartered in Fergus Falls, Minnesota.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Otter Tail Corporation reported revenue of $1.3B in FY2025 versus $1.2B in FY2021, a compound +2.2%/yr. Reported net income was $276M in FY2025, compounding +11.8%/yr from FY2021.

Growth Quality 60/100
The company is growing, but growth may require heavy reinvestment or weak cash conversion.
Latest Revenue (FY 2025)
$1.3B
Latest YoY
−2.0%
Avg. growth/yr (3Y)
−3.7%
Avg. growth/yr (5Y)
+7.9%
Avg. growth/yr (40Y)
+5.2%
Revenue +2.2%/yr
FY21 $1.2B
FY22 $1.5B
FY23 $1.3B
FY24 $1.3B
FY25 $1.3B
Net income +11.8%/yr
FY21 $177M
FY22 $284M
FY23 $294M
FY24 $302M
FY25 $276M

OTTR screens 15% overvalued. Compare with CITIC Limited →

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Cite: Fair Value Calculator (2026). "Otter Tail Corporation Fair Value". https://www.fairvalue-calculator.com/stock/OTTR

Recent news

External third-party headlines (Yahoo Finance, Reuters and others), not an editorial selection.

Peer Group

Conglomerates · 370 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 47 · Below median
Fair Value upside −15% · Below median
Return on equity (TTM) 15% · Top 25%
Return on assets 6% · Top 25%
Net margin (TTM) 21% · Top 25%
Operating margin (TTM) 25% · Top 25%
Revenue growth 3% · Below median
Dividend yield (TTM) 2.4% · Above median
Debt / equity 0.52× · Higher than median

Valuation Multiples vs Conglomerates median · lower = cheaper

P/E (TTM) 13.4× · Cheaper than median
P/B 2.03× · Pricier than 75% of peers
P/S (TTM) 2.88× · Pricier than 75% of peers
P/FCF 38.6× · Pricier than 75% of peers
EV/EBITDA 9.4× · Pricier than median
PEG 1.87× · Pricier than median

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 13 · sector 21
FUTURE 15 · sector 16
PAST 62 · sector 20
HEALTH 74 · sector 88
DIVIDEND 48 · sector 39

Insider activity: 40/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more Conglomerates stocks, each showing price versus our Fair Value estimate (as of Jul 16, 2026).

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SRF Limited SRF ₹2,875 ₹1,053 -63%
Empresas Copec S.A COPEC 6,330 CLP 10,879 CLP +72%
Posco International Corporation 047050 50,900 KRW 61,248 KRW +20%
Tube Investments of India Limited TIINDIA ₹2,940 ₹559.30 -81%
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Thermax Limited THERMAX ₹4,809 ₹1,087 -77%

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Frequently asked questions

Is Otter Tail Corporation (OTTR) overvalued or undervalued?
As of Jul 16, 2026, our model estimates a fair value of $79.82 versus a price of $93.79, about −15% (overvalued).
What is the fair value of OTTR?
Our model-based fair value for Otter Tail Corporation is $79.82 (as of Jul 16, 2026), built from audited fundamentals. The current price is $93.79.
What is the quality score of OTTR?
Otter Tail Corporation has a Quality Score of 47/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Otter Tail Corporation (OTTR)?
Otter Tail Corporation reported trailing-twelve-month revenue of about $1.3B (latest available figure, as of Jul 16, 2026).
What is the net profit margin of OTTR?
The net profit margin of Otter Tail Corporation is about 21.3%, meaning it keeps roughly 21.3% of revenue as net income. Based on the latest reported figures.
Does Otter Tail Corporation pay a dividend?
Otter Tail Corporation currently shows a dividend yield of about 2.51% relative to its recent price (as of Jul 16, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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