OTTR

Otter Tail Corporation

Industrial/Transportation, Energy


Presented:08/12/2024
Price:$87.62
Cap:$3.66B
Current Price:$78.62
Cap:$3.29B

Presented

Date08/12/2024
Price$87.62
Market Cap$3.66B
Ent Value$4.41B
P/E Ratio11.91x
Book Value$37.44
Div Yield2.05%
Shares O/S41.83M
Ave Daily Vol198,862
Short Int9.99%

Current

Price$78.62
Market Cap$3.29B
Otter Tail Corp. is a holding company, which engages in the energy, infrastructure, and production businesses. It operates through the following segments: Electric, Manufacturing, and Plastics. The Electric segment is involved in the generation, purchase, transmission, distribution, and sale of electric energy in western Minnesota, eastern North Dakota, and northeastern South Dakota. The Manufacturing segment consists of businesses in the manufacturing arena, including contract machining, metal parts stamping, fabrication, and painting, and the production of plastic thermoformed horticultural containers, life science and industrial packaging, material handling components, and extruded raw material stock. The Plastics segment offers businesses that produce polyvinyl chloride pipes at plants in North Dakota and Arizona. The company was founded in 1907 and is headquartered in Fergus Falls, MN.

Publicly traded companies mentioned herein: Atkore Inc (ATKR), Otter Tail Corp (OTTR)

Highlights

The presenter is short shares of Otter Tail Corp (OTTR), believing that the company’s PVC products will decline following the commodity price, and that a recent anonymous short report alleging tacit collusion from industry participants could be damaging to the business. He suggests there is significant downside potential given 71% of its net income contribution is from PVC piping, which could decrease towards its historical levels around 15%-25% and could fall as low as 10% of current net income if it returns to its historical dollar contribution.

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Idea Discussion

Commentor 1 - 2 weeks ago

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