Stock fact sheet · data as of
Otter Tail Corporation (OTTR): fair value, margin of safety and Wheel Score
Industrials · Conglomerates · United States · Defensive
Is OTTR undervalued?
OTTR closed at 89.66 on 16 Oct 2026, more than 30% above the GLS average fair value of 47.20. Only 1 of the 8 models that produced a value sit above the price. By our models the shares are priced well beyond what the filed earnings, cash flow and book value support; the Sunday Scan drops names like this at the "below fair value" rule.
There is a wide gap between GLS Growth (3.65) and DCF (91.78). When the models are this far apart the "fair value" is really a range, and the margin of safety above should be read with that range in mind.
The nightly engine files OTTR under Defensive: a low beta, a dividend and positive earnings.
Nine valuation models for OTTR
Each model turns the latest filed numbers into a value per share; the GLS fair value is the simple average of the ones that produce a positive number. The last two rows are shown for reference and never enter the average. The Quote page lets you switch any model off and add your own margin of safety.
| Model | Value | vs price | What it measures |
|---|---|---|---|
| DCF | 91.78 | +2% | Present value of the projected free cash flows, discounted at the cost of capital |
| Graham Number | 68.45 | -24% | The most a defensive investor pays for the earnings and book value per share |
| Graham Growth | 75.06 | -16% | Graham's growth formula: EPS × (8.5 + 2 × growth), adjusted for bond yields |
| Lynch | 18.61 | -79% | EPS × the earnings growth rate (PEG of 1), growth capped at 25% |
| GLS Growth | 3.65 | -96% | EPS compounded ten years at the blended growth rate, discounted back at 15% a year |
| 10 Cap | 35.14 | -61% | Owner's earnings (operating cash flow less maintenance capex) capitalised at 10% |
| Payback Time | - | - | Eight years of compounded free cash flow: the price at which the business pays for itself; no value tonight |
| DDM | 33.22 | -63% | Dividend discount model: next year's dividend ÷ (10% − 3% growth); needs a dividend |
| EPV | 51.69 | -42% | Earnings power value: current EPS capitalised at 9% with no growth |
| Zombie (liquidation) | -31.03 | -135% | Current assets less all liabilities, per share: the balance-sheet floor. Not in the average |
| Wall St target | 81.00 | -10% | Analysts' average 12-month price target. Not in the average |
Quality and financial health
Otter Tail Corporation scores 5 of 9 on the Piotroski F-score: a middling result that falls one point short of the Sunday Scan's "6 or more" rule. Some of the nine tests on profitability, leverage and efficiency are failed, so the accounts are worth a look before selling a put on the name. On durability OTTR scores 5.5/10 on the GLS Moat - a middle reading; the Scorecard on the Quote page's Financials tab shows which ten-year lines are steady and which are not.
Returns on capital are moderate - ROIC 9.3%, ROE 14.8%, ROA 7.0% - with debt at 0.59 times equity and negative free cash flow.
The dividend yield is 2.52% at a payout ratio of 47%; for a wheel trader holding assigned shares the dividend adds to the covered-call premium, and the ex-dividend date is worth knowing before a call is sold. Revenue comes mainly from Plastics 37%, Electric 36%, Manufacturing 27% (quarter Q2 FY2026).
Institutional ownership scores 9/10, insider activity 1/10 and Congressional trading 5/10 on the GLS smart-money scales.
| Piotroski F-score | 5 / 9 | ROIC | 9.3% |
|---|---|---|---|
| GLS Moat | 5.5 / 10 | ROE | 14.8% |
| Debt / equity | 0.59 | ROA | 7.0% |
| Free-cash-flow yield | -2.1% | Payout ratio | 47% |
| Institutions | 9 / 10 | Insiders · Congress | 1 · 5 / 10 |
Wheel Score 46: Weak
With a Wheel Score of 46 Otter Tail Corporation sits in the Weak band. The parts - Value 0/25, Health 11/20, Moat 8/15, Premium 15/20, Stability 12/20 - show where: Value (0/25) scores lowest.
Implied volatility is 30% on the near-the-money contracts 20-60 days out: some premium, but under the 35-60% range the Wheel Score pays full marks for (15 of 20 points). Chain open interest is thin - 468 contracts across every expiry - so fills at a fair price are not guaranteed; a 30-45-day put may not exist at a usable strike.
Volume runs at 180k shares a day on a market cap of $3.8B, with a beta of 0.45 - a low beta, so day-to-day moves are smaller than the market's; the Stability part of the Wheel Score gives that 12 of 20.
| Part | Points | From | |
|---|---|---|---|
| Value | 0 / 25 | -90% margin of safety | |
| Health | 11 / 20 | Piotroski 5/9 | |
| Moat | 8 / 15 | moat 5.5/10 | |
| Premium | 15 / 20 | implied volatility 30% | |
| Stability | 12 / 20 | 180k shares/day, $3.8B cap, beta 0.45 |
The Wheel Score ranks ~7,400 US stocks for selling cash-secured puts and covered calls; it is updated nightly and is not a recommendation. The walkthrough lesson shows how the score fits into a trade, start to finish.
Upcoming events
The next earnings report is due on 2 Nov 2026 (after the close), 17 days away; a 30-45-day put sold today would expire after it, which is worth weighing against the premium.
Earnings, dividend, IPO, split and economic calendars for the whole market, filterable to your watchlists.
Similar stocks in Conglomerates
The 12 companies below are the closest to Otter Tail Corporation by market cap within the Conglomerates industry, each with its own fact sheet; the Compare page puts up to eight of them side by side.
| Stock | Close | Fair value | MoS | Wheel | Mkt cap |
|---|---|---|---|---|---|
| SEB Seaboard Corporation | 4,033.82 | 3,722.62 | -8% | 39No options | $3.9B |
| GHC Graham Holdings Company | 1,198.75 | 2,824.58 | +58% | 39No options | $5.1B |
| BBUC Brookfield Business Corporation | 26.77 | 1,941.47 | +99% | 45Weak | $5.5B |
| VMI Valmont Industries, Inc. | 465.33 | 350.90 | -33% | 56Fair | $9.0B |
| CODI Compass Diversified | 10.62 | 23.94 | +56% | 45Weak | $799M |
| MATW Matthews International Corporation | 19.28 | 15.62 | -23% | 43Weak | $602M |
| TRC Tejon Ranch Co. | 16.21 | 3.50 | -363% | 47Weak | $438M |
| FBYD Falcon's Beyond Global, Inc. Class A Common Stock | 8.52 | - | - | 30No options | $418M |
| NNBR NN, Inc. | 3.49 | 5.46 | +36% | 45Weak | $327M |
| FIP FTAI Infrastructure Inc. | 2.56 | 1.77 | -45% | 25Weak | $302M |
| RCMT RCM Technologies, Inc. | 38.71 | 44.72 | +13% | 39No options | $275M |
| HON Honeywell International Inc. | 210.50 | 315.08 | +33% | 85Prime | $66.7B |
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Start free See the Sunday ScanQuestions about OTTR
Is OTTR undervalued right now?
No: at 89.66 the stock trades 90% above the GLS average fair value of 47.20 (data as of 16 Oct 2026), well beyond what trailing earnings, cash flow and book value support.
What is the Wheel Score of OTTR and what does it mean?
OTTR scores 46 out of 100 (Weak). The Wheel Score blends the margin of safety (25 points), Piotroski health (20), the GLS moat (15), the option premium on offer (20) and trading stability (20) into one number that ranks stocks for the wheel strategy - selling cash-secured puts, then covered calls if assigned. 80 and above is Prime, 65-79 Good, 50-64 Fair, under 50 Weak.
What is the GLS fair value for OTTR?
47.20 per share as of 16 Oct 2026 - the simple average of the 8 valuation models (out of nine: DCF, Graham Number, Graham Growth, Lynch, GLS Growth, 10 Cap, Payback Time, DDM and EPV) that produced a positive value. The models run every night on the latest filings; the Quote page lets you switch any of them off and add a margin of safety of your own.
When does Otter Tail Corporation report earnings next?
The next earnings report is due on 2 Nov 2026 (after the close), 17 days from the data date of 16 Oct 2026. The Calendars page lists every upcoming report with its time of day.
Does OTTR have listed options, and how liquid are they?
Yes. The nightly snapshot found 180 listed contracts with 468 open interest across all expiries and implied volatility of 30% on the near-the-money contracts. The Options scanner lists the cash-secured put and covered call set-ups with premium and annualised yield worked out.