Otter Tail Corporation Common Stock (OTTR)

FairStock Score: 58/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach Otter Tail as a regulated electric utility with industrial appendages. The Electric segment in Minnesota, North Dakota, and South Dakota probably gives it a modest moat, but manufacturing and plastics do not have the same regulated demand profile. The reported record is mixed. In fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $334.4M, but net income was -$7.6M and diluted EPS was -$0.18. That contrasts with fiscal Q1 2026, the quarter ended 2026-03-31, when net income was $72.6M and diluted EPS was $1.73. For FY2025, ended 2025-12-31, revenue was $1.3B, net income was $275.9M, and diluted EPS was $6.55, down from FY2024, ended 2024-12-31, when net income was $301.7M and diluted EPS was $7.17. So growth is not a straight line. FairStock's computed Lynch category is STALWART, citing 23.5% annual profit growth over five years and 8.1% revenue growth, but the latest quarter and trailing free cash flow of -$79.3M give me pause. Financial health is only fair: debt-to-equity 0.67, Piotroski 3/9, Altman Z 1.57. Returns are modest: ROE 10.69%, ROCE 5.14%. On valuation, at the 2026-10-13 close of $89.04, FairStock shows P/E 19.23, P/B 1.99, PEG 2.90, and Graham Number $68.24, leaving a -30.48% margin of safety, meaning the price is above that benchmark. The 2.59% dividend yield and 0.43 beta are defensive supports, but I would want evidence that the fiscal Q2 2026 loss is temporary and cash flow turns positive before calling this cheap.

In plain English: Otter Tail runs an electric utility and also makes products and plastic pipe. The utility side gives it steady demand, but the latest reported quarter showed a loss and the company is not generating extra cash right now. At the recent price of $89.04, the shares look more expensive than several basic value checks suggest.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K/A (period ended 2025-12-31) · FY2024 10-K/A (period ended 2024-12-31) · FY2023 10-K/A (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer