(OTTR) Otter Tail - Ratings and Ratios

Otter Tail Corporation is a diversified company operating in the United States, with a presence in the electric utility, manufacturing, and plastic pipe industries. The companys Electric segment is a regulated utility that generates, transmits, and distributes electricity to residential, commercial, and industrial customers in Minnesota, North Dakota, and South Dakota, leveraging a mix of coal, fuel oil, solar, wind, and natural gas power sources. The Manufacturing segment produces a range of products, including machined metal parts, plastic containers, and material handling components, serving various end-markets such as recreational vehicles, lawn and garden, agricultural, construction, and industrial equipment. Meanwhile, the Plastics segment manufactures polyvinyl chloride (PVC) pipes for various applications, including municipal water, wastewater, and storm drainage systems, as well as for the horticulture, medical, and life sciences industries.

With a history dating back to 1907, Otter Tail Corporation has evolved from its origins as Otter Tail Power Company to become a multi-faceted conglomerate. The companys diversified business model and geographic presence provide a relatively stable foundation, although its performance is still subject to various market and regulatory factors. As a participant in the Midcontinent Independent System Operator (MISO) markets, Otter Tails Electric segment is exposed to wholesale electricity prices, which can be volatile. The companys manufacturing and plastics businesses, on the other hand, are influenced by demand from their respective end-markets, which can be cyclical.

Analyzing the available and , we can observe that Otter Tail Corporations stock has been trading near its 52-week average, with a current price of $79.59. The stocks short-term moving averages (SMA20 and SMA50) are relatively close to the current price, indicating a stable trend. The companys market capitalization stands at approximately $3.23 billion, with a forward price-to-earnings ratio of 12.02, suggesting moderate growth expectations. Return on Equity (RoE) is around 17.95%, indicating a relatively healthy profitability profile. Based on these inputs, a potential forecast could be that Otter Tail Corporations stock may continue to trade within a narrow range in the short term, potentially oscillating between $77 and $82, as the companys diversified business model and relatively stable earnings profile may not warrant significant price movements. However, a breakout above $82 or below $77 could signal a new trend, potentially driven by changes in the companys fundamental performance or shifts in market sentiment.