Otter TailOTTR +0.58%83 Gross Margin % is 40.76% as of Mar. 2026, which is 18% above its 10-year median of 34.68. GuruFocus rates OTTR with a GF Score™ of 83/100 and a GF Value™ of $79.82 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 511 Conglomerates companies, Otter Tail ranks better than 79.65% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Otter Tail's Gross Profit for the
three
months ended in Mar. 2026 was $141 Mil. Otter Tail's Revenue for the
three
months ended in Mar. 2026 was $347 Mil. Therefore, Otter Tail's Gross Margin % for the quarter that ended in Mar. 2026 was 40.76%.
The historical rank and industry rank for Otter Tail's Gross Margin % or its related term are showing as below:
OTTR'
s Gross Margin % Range Over the Past 10 Years
Min: 29.59 Med: 34.68 Max: 43.82
Current: 43.08
During the past 13 years, the highestGross Margin % of Otter Tail was 43.82%. The lowest was 29.59%. And the median was 34.68%.
OTTR's Gross Margin % is ranked better than 79.65% of 511
companies
in the Conglomerates industry
Industry Median: 25.96
vs OTTR: 43.08
Otter Tail had a gross margin of 40.76% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Otter Tail was 5.60% per year.
Otter Tail (NAS:OTTR) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Otter Tail had a gross margin of 40.76% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Otter Tail Gross Margin % Related Terms
Otter Tail Gross Margin % Historical Data
* Premium members only.
The historical data trend for Otter Tail's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Conglomerates subindustry, Otter Tail's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Otter Tail Gross Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Otter Tail's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Otter Tail's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Otter Tail (OTTR) has a Gross Margin % of 40.76% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Otter Tail and its competitors. This is 18% above median its historical median of 34.68. Over the past decade, Otter Tail's Gross Margin % has ranged from 29.59 to 43.82. According to the industry distribution chart, Otter Tail ranks #104 out of 511 companies in the Conglomerates industry, placing it in the top 20.4%.
Is Otter Tail's Gross Margin % too high?
Otter Tail's current Gross Margin % of 40.76% is 18% above median its 10-year median of 34.68. Over the past 10 years, this metric has ranged from a low of 29.59 to a high of 43.82. The Conglomerates industry median Gross Margin % is 25.96. Otter Tail's value of 40.76% is 57% above this industry median. Based on the distribution chart, Otter Tail ranks #104 out of 511 companies in the Conglomerates industry, which is in the top quartile — a strong position relative to peers. Overall, Otter Tail has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Otter Tail's Gross Margin % compare to SEB and TTI?
According to the Conglomerates industry distribution chart, Otter Tail ranks #104 out of 511 companies for Gross Margin %. This places Otter Tail in the top 20% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 25.96. Otter Tail's value of 40.76% is 57% above this benchmark. Historically, Otter Tail's own Gross Margin % has ranged from 29.59 to 43.82 over the past decade. While the company's 10-year median is 34.68 vs. the industry median of 25.96, Otter Tail has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Conglomerates company?
The median Gross Margin % among Conglomerates companies is 25.96, based on 511 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Otter Tail's current Gross Margin % of 40.76% is 57% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Otter Tail and its competitors. For the Conglomerates industry, the median Gross Margin % is 25.96 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otter Tail's current Gross Margin % is 40.76%, which is 18% above median its own 10-year median of 34.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otter Tail stock overvalued right now?
Based on GuruFocus' analysis, Otter Tail (OTTR) is currently considered Modestly Overvalued. The stock's GF Value™ is $79.82, compared to a current price of $90.62 — trading 13.5% above its estimated fair value. The current Gross Margin % is 40.76%, which is 18% above median its 10-year median of 34.68 and 57% above the Conglomerates industry median of 25.96. Otter Tail's overall GF Score™ is 83/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Otter Tail (OTTR), the current Gross Margin % is 40.76% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Otter Tail (OTTR) Overvalued in 2026?
Based on GuruFocus' analysis, Otter Tail stock appears to be overvalued.
The current stock price of $90.62 is trading 13.5% above its estimated GF Value™ of $79.82.
GuruFocus considers Otter Tail to be Modestly Overvalued.
Key valuation signals for OTTR:
Gross Margin %: 40.76% (18% above median its 10-year median of 34.68)
GF Value™: $79.82 vs. price of $90.62 (13.5% above fair value)
Industry Position: 57% above the Conglomerates median (#104 of 511)
No single metric tells the full story. See the OTTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Otter Tail Corp is a U.S. energy company that operates in the electric (produces and sells electricity), manufacturing (fabricates metal components), and plastics segments (pipes for water uses). The company conducts its operations and acquires the majority of its revenue in the U.S. in the states of Minnesota, South Dakota, and North Dakota. The majority of the company's revenue is derived from the Electric segment and commercial customers, although it generates revenue from residential and industrial customers, as well.
83GF Score
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