Latest Ratios: P/E Ratio 18.8x · EV/EBITDA 12.6x · ROE 15.6%. (1996–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.3B | $3.4B | $3.1B | $3.6B | $2.5B | $3.0B | $1.7B | $2.0B | $2.0B | $1.8B | $1.6B |
| Enterprise Value | $4.0B | $4.1B | $3.8B | $4.2B | $3.2B | $3.8B | $2.6B | $2.7B | $2.6B | $2.4B | $2.2B |
| P/E Ratio → | 18.77 | 12.34 | 10.30 | 12.14 | 8.66 | 16.88 | 18.21 | 23.64 | 24.10 | 24.42 | 25.34 |
| P/S Ratio | 2.51 | 2.61 | 2.33 | 2.65 | 1.69 | 2.50 | 1.96 | 2.23 | 2.16 | 2.08 | 1.97 |
| P/B Ratio | 1.77 | 1.83 | 1.86 | 2.48 | 2.02 | 3.01 | 2.00 | 2.62 | 2.72 | 2.54 | 2.36 |
| P/FCF | — | 34.76 | 33.02 | 30.44 | 11.28 | 50.27 | — | — | 52.08 | 43.45 | 742.94 |
| P/OCF | 8.53 | 8.82 | 6.86 | 8.83 | 6.32 | 12.92 | 8.22 | 11.07 | 13.80 | 10.18 | 9.67 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 3.16 | 2.87 | 3.15 | 2.17 | 3.21 | 2.91 | 2.99 | 2.82 | 2.77 | 2.68 |
| EV / EBITDA | 12.59 | 8.89 | 7.85 | 8.92 | 6.57 | 11.26 | 11.25 | 12.89 | 12.68 | 11.85 | 11.68 |
| EV / EBIT | 11.60 | 11.15 | 9.36 | 10.59 | 8.07 | 15.32 | 17.19 | 20.24 | 20.32 | 18.58 | 18.84 |
| EV / FCF | — | 42.09 | 40.66 | 36.19 | 14.55 | 64.64 | — | — | 68.07 | 57.88 | 1013.37 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 27.8% | 27.8% | 43.8% | 41.9% | 39.1% | 35.4% | 33.9% | 30.4% | 29.6% | 30.3% | 29.8% |
| Operating Margin | 26.5% | 26.5% | 28.6% | 28.0% | 26.7% | 20.9% | 16.6% | 14.7% | 14.1% | 14.9% | 13.8% |
| Net Profit Margin | 21.2% | 21.2% | 22.7% | 21.8% | 19.5% | 14.8% | 10.8% | 9.4% | 9.0% | 8.5% | 7.8% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 15.6% | 15.6% | 19.4% | 22.1% | 25.7% | 19.0% | 11.6% | 11.5% | 11.6% | 10.6% | 9.8% |
| ROA | 7.2% | 7.2% | 8.8% | 9.6% | 10.0% | 6.6% | 4.0% | 4.0% | 4.1% | 3.7% | 3.3% |
| ROIC | 10.4% | 10.4% | 12.7% | 14.0% | 15.5% | 10.5% | 6.9% | 7.2% | 7.4% | 7.5% | 7.3% |
| ROCE | 9.9% | 9.9% | 12.1% | 13.5% | 15.5% | 11.1% | 7.0% | 6.8% | 7.1% | 7.3% | 6.8% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.59 | 0.59 | 0.61 | 0.63 | 0.68 | 0.86 | 0.97 | 0.92 | 0.84 | 0.87 | 0.87 |
| Debt / EBITDA | 2.38 | 2.38 | 2.08 | 1.90 | 1.72 | 2.51 | 3.68 | 3.37 | 2.98 | 3.03 | 3.15 |
| Net Debt / Equity | — | 0.39 | 0.43 | 0.47 | 0.59 | 0.86 | 0.97 | 0.89 | 0.83 | 0.84 | 0.86 |
| Net Debt / EBITDA | 1.55 | 1.55 | 1.47 | 1.42 | 1.48 | 2.50 | 3.67 | 3.27 | 2.98 | 2.95 | 3.12 |
| Debt / FCF | — | 7.33 | 7.64 | 5.75 | 3.27 | 14.37 | — | — | 15.99 | 14.43 | 270.43 |
| Interest Coverage | 7.82 | 7.82 | 9.77 | 10.65 | 10.93 | 6.63 | 4.37 | 4.32 | 4.19 | 4.28 | 3.59 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.28 | 2.28 | 2.03 | 1.84 | 1.91 | 0.95 | 0.54 | 1.34 | 1.42 | 0.93 | 0.96 |
| Quick Ratio | 1.83 | 1.83 | 1.55 | 1.36 | 1.29 | 0.57 | 0.33 | 0.83 | 0.79 | 0.59 | 0.58 |
| Cash Ratio | 1.26 | 1.26 | 0.95 | 0.74 | 0.50 | 0.00 | 0.00 | 0.11 | 0.01 | 0.06 | — |
| Asset Turnover | — | 0.33 | 0.36 | 0.42 | 0.50 | 0.43 | 0.35 | 0.40 | 0.45 | 0.42 | 0.42 |
| Inventory Turnover | 5.94 | 5.94 | 5.02 | 5.24 | 6.10 | 5.20 | 6.38 | 6.54 | 6.07 | 6.73 | 6.74 |
| Days Sales Outstanding | — | — | — | — | — | — | — | — | — | — | — |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 2.7% | 2.6% | 2.5% | 2.0% | 2.8% | 2.2% | 3.5% | 2.7% | 2.7% | 2.9% | 3.1% |
| Payout Ratio | 31.9% | 31.9% | 25.9% | 24.8% | 24.2% | 36.7% | 62.9% | 64.2% | 64.6% | 69.9% | 77.4% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 5.3% | 8.1% | 9.7% | 8.2% | 11.5% | 5.9% | 5.5% | 4.2% | 4.1% | 4.1% | 3.9% |
| FCF Yield | — | 2.9% | 3.0% | 3.3% | 8.9% | 2.0% | — | — | 1.9% | 2.3% | 0.1% |
| Buyback Yield | 0.1% | 0.1% | 0.2% | 0.1% | 0.1% | 0.1% | 0.1% | 0.1% | 0.2% | 0.1% | 0.0% |
| Total Shareholder Yield | 2.8% | 2.7% | 2.7% | 2.1% | 2.9% | 2.2% | 3.6% | 2.9% | 2.8% | 3.0% | 3.1% |
| Shares Outstanding | — | $42M | $42M | $42M | $42M | $42M | $41M | $40M | $40M | $40M | $39M |
Includes 30+ ratios · 30 years · Updated daily
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10-year return with dividends reinvested.
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Quick answers to the most common questions about buying OTTR stock.
Otter Tail Corporation's current P/E ratio is 18.8x. The historical average is 19.9x. This places it at the 44th percentile of its historical range.
Otter Tail Corporation's current EV/EBITDA is 12.6x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 9.3x.
Otter Tail Corporation's return on equity (ROE) is 15.6%. The historical average is 11.7%.
Based on historical data, Otter Tail Corporation is trading at a P/E of 18.8x. This is at the 44th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
Otter Tail Corporation's current dividend yield is 2.67% with a payout ratio of 31.9%.
Otter Tail Corporation has 27.8% gross margin and 26.5% operating margin. Operating margin above 20% indicates strong pricing power and cost efficiency.
Otter Tail Corporation's Debt/EBITDA ratio is 2.4x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Plastics cyclicality masking utility earnings
Metrics are mathematically derived from official filings.
Utility Multiple Priced on Cyclical Earnings
Based on the supplied valuation metrics, OTTR trades at a trailing P/E of 11.98 and forward P/E of 12.91, with a 2.7% dividend yield, a discount to most peers that suggests the market is pricing in a normalization of Plastics-driven earnings.
The trailing P/E of 11.98 sits well below peers such as MGEE at 21.58 and BKH at 21.32, which may indicate that investors are not extending a full utility premium to a company whose recent earnings were lifted by cyclical Plastics margins. The 2.7% dividend yield is competitive but below AVA and NWE, implying the dividend is not the primary return driver the market is emphasizing. Investors should monitor whether the forward P/E rising modestly above trailing reflects expected earnings compression rather than growth.
Earned ROE Thin Against Utility Benchmarks
Reported ROE has ranged from 2.8% to 5.7% over the ten quarters, with the most recent quarter at 3.1%, which appears low relative to the 11.1% to 12.9% earned by MGEE and NWPX and warrants comparison against authorized returns.
The supplied ratio data does not include the regulatory authorized ROE, so the gap between earned and allowed returns cannot be confirmed from the provided figures. Reported ROE trending down from 5.7% in 2024Q2 to 3.1% in 2026Q3 may reflect a larger equity base from asset growth rather than lower absolute earnings. Investors should monitor whether the earned-to-allowed spread has narrowed as the regulated rate base expanded.
Operating Margin Swings Reflect Segment Mix
Operating margin peaked near 32% in 2024Q3 and compressed to 21.5% in 2026Q3, with a negative quarter at -7.2% in 2026Q2, suggesting the consolidated margin is driven more by non-utility cycles than by regulated cost recovery.
The swing from 32.4% operating margin in 2024Q2 to negative results in 2026Q2 indicates that consolidated profitability is sensitive to the Plastics and Manufacturing segments rather than steady utility cost recovery. Net margin compression from 25.4% to 18.6% likely reflects normalizing PVC spreads. The single negative quarter aligns with the reported EPS miss, though the cause is not confirmed by the supplied data and warrants further investigation.
Low Debt-to-Capital Masks Liability Growth
Debt-to-capital held between 0.36 and 0.40 across ten quarters while interest coverage moved from 11.55x to 5.87x, suggesting leverage is contained but debt service cushion has narrowed.
A debt-to-capital ratio near 0.39 is conservative for a utility, consistent with a disciplined balance sheet. However, interest coverage declining from 11.55x to 5.87x indicates earnings have shrunk relative to interest obligations even as debt ratios stayed flat. FFO-to-debt of 7.57% in the latest quarter, down from 13.48%, suggests cash-based credit metrics have weakened more than headline leverage implies.
P/E Misapplied Without Plastics Normalization
The consolidated P/E of 11.98 is most commonly misapplied to OTTR by treating it as a pure utility multiple, which obscures that cyclical Plastics earnings may inflate or distort the denominator, requiring a segment-adjusted earnings base instead.
Comparing OTTR's consolidated P/E to pure-play utilities like MGEE or AVA ignores that a portion of earnings comes from non-regulated, commodity-sensitive operations with different risk and multiple profiles. A normalized P/E using steady-state Electric segment earnings, adjusted for AFUDC and Plastics normalization, would better anchor valuation to the regulatory compact. Investors should monitor segment disclosures to construct this adjusted multiple before drawing conclusions from the headline ratio.