Otter Tail Corporation (OTTR) Stock

Otter Tail Corporation (OTTR) is a Utilities stock trading at $90.87 (as of 2026-08-21), with a market capitalization of $3.82B and a trailing P/E of 13.6. Figures are sourced from first-party U.S. SEC EDGAR filings and market data.

Otter Tail Corporation and its subsidiaries operate electric utility and manufacturing businesses in the United States. The Electric segment generates and sells power in Minnesota, North Dakota, and South Dakota, serving residential, industrial, and other commercial customers, while the Manufacturing segment produces metal and plastic-related components and packaging for industrial and other end markets.

Understand Otter Tail Corporation: how it makes money

Otter Tail Corporation produces and sells electricity as a utility, and it also operates manufacturing and plastic pipe businesses, earning money primarily through selling electric energy and related services plus contract manufacturing and plastic pipe sales.

The profit model is structurally split between regulated electric utility operations (selling and delivering electricity under a rate and grid system) and non-utility manufacturing and plastics contract sales, so performance is driven by how electric service revenue and production costs move, plus the results of contract-based manufacturing and plastic pipe activity.

Business quality (Solid): Business model and operating drivers are clear from the described Electric, Manufacturing, and plastic pipe operations, but the provided segment revenue figures do not cleanly reconcile to the stated total revenue for the latest quarter, so a precise revenue split by reportable segment is not possible from the given data.

Valuation: At 14× earnings, OTTR trades 38% below the Utilities average (22×). Note: one-time items can distort reported P/E.

Bull case

Scaled utility customer base: The Electric segment serves approximately 133,000 residential, industrial, and other commercial customers.
Diverse generation mix for the electric business: Electric generation uses coal, wind and hydro, and natural gas, which can broaden the sources of electricity the company can supply.
Second line of business beyond electricity: The company also operates manufacturing and plastic pipe businesses, providing another source of business activity beyond the electric utility.

Bear case

Utility economics can be sensitive to operating inputs and regulation: Because the Electric segment produces, transmits, distributes, and sells electric energy, results can be affected by changes in electricity production inputs (including coal, wind and hydro, and natural gas) and by how utility rates and grid participation play out.
Contract and cycle exposure in non-utility operations: Manufacturing and plastic pipe activity is described as contract-related, which can introduce variability versus more steady utility service, depending on customer demand and contract execution.

Valuation — source: SEC EDGAR (first-party)
Price	$90.87
Market Cap	$3.82B
P/E Ratio	13.6
EV / EBITDA	9.9
Price / Book	2.00
Price / Sales	2.92
FCF Yield	0.0%
DCF Value (model)	$138.90
DCF Upside vs Price	52.9%

Profitability & Growth — source: SEC EDGAR
Revenue (TTM)	$1.30B
Net Margin	21.2%
Revenue Growth (YoY)	1.6%
EPS Growth (YoY)	6.1%
FCF Growth (YoY)	518.4%

Financial Health — source: SEC EDGAR
Altman Z-Score	2.27 (grey)

Valuation vs Sector & Industry
Stock P/E	13.6
Sector P/E (Utilities)	20.8
Industry P/E (Utilities)	20.1
vs Sector	-34.7%
vs Industry	-32.2%

Smart-Money Activity — SEC Form 4 / 13F / Congressional disclosures
Top Institutional Holder	BlackRock, Inc. ($563.87M)
Institutional Holders Tracked	10

Company
Sector	Utilities
Industry	Utilities
CEO	Charles S. MacFarlane
Employees	2,133
Country	US
IPO Date	1990-03-26

Related Companies (Business model: Regulated Utility (Electric / Gas); 8 closest by market cap; US-domiciled)

Data as of 2026-08-21.

Figures sourced from U.S. Securities and Exchange Commission (SEC EDGAR) filings and market data. Not personalized investment advice.