Otter TailSTU:OT4 +0.65%84 Operating Margin % is 24.56% as of Mar. 2026, which is 31% above its 10-year median of 18.74. GuruFocus rates STU:OT4 with a GF Score™ of 84/100 and a GF Value™ of €70.19. The stock has 6 warning signs investors should review. Among 545 Conglomerates companies, Otter Tail ranks better than 92.66% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Otter Tail's Operating Income for the
three
months ended in Mar. 2026 was €74 Mil. Otter Tail's Revenue for the
three
months ended in Mar. 2026 was €300 Mil. Therefore, Otter Tail's Operating Margin % for the quarter that ended in Mar. 2026 was 24.56%.
Good Sign:
Otter Tail Corp operating margin is expanding. Margin expansion is usually a good sign.
The historical rank and industry rank for Otter Tail's Operating Margin % or its related term are showing as below:
STU:OT4'
s Operating Margin % Range Over the Past 10 Years
Min: 14.12 Med: 18.74 Max: 28.58
Current: 26.41
STU:OT4's Operating Margin % is ranked better than 92.66% of 545
companies
in the Conglomerates industry
Industry Median: 5.93
vs STU:OT4: 26.41
Otter Tail's 5-Year Average Operating Margin % Growth Rate was 10.00% per year.
Otter Tail's Operating Income for the
three
months ended in Mar. 2026 was €74 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €298 Mil.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Otter Tail Operating Margin % Related Terms
Otter Tail Operating Margin % Historical Data
* Premium members only.
The historical data trend for Otter Tail's Operating 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.
STU:OT4 vs SEB, TTI, DLX: Operating Margin % Comparison
For the Conglomerates subindustry, Otter Tail's Operating Margin %, along with its competitors' market caps and Operating 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 Operating Margin % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Otter Tail's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Otter Tail's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Otter Tail's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Otter Tail (STU:OT4) has a Operating Margin % of 24.56% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Otter Tail and its competitors. This is 31% above median its historical median of 18.74. Over the past decade, Otter Tail's Operating Margin % has ranged from 14.12 to 28.58. According to the industry distribution chart, Otter Tail ranks #40 out of 545 companies in the Conglomerates industry, placing it in the top 7.3%.
Is Otter Tail's Operating Margin % too high?
Otter Tail's current Operating Margin % of 24.56% is 31% above median its 10-year median of 18.74. Over the past 10 years, this metric has ranged from a low of 14.12 to a high of 28.58. The Conglomerates industry median Operating Margin % is 5.93. Otter Tail's value of 24.56% is 314.2% above this industry median. Based on the distribution chart, Otter Tail ranks #40 out of 545 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 84/100, reflecting its overall financial health beyond just this single metric.
How does Otter Tail's Operating Margin % compare to SEB and TTI?
According to the Conglomerates industry distribution chart, Otter Tail ranks #40 out of 545 companies for Operating Margin %. This places Otter Tail in the top 7% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 5.93. Otter Tail's value of 24.56% is 314.2% above this benchmark. Historically, Otter Tail's own Operating Margin % has ranged from 14.12 to 28.58 over the past decade. While the company's 10-year median is 18.74 vs. the industry median of 5.93, 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 Operating Margin % for a Conglomerates company?
The median Operating Margin % among Conglomerates companies is 5.93, based on 545 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Otter Tail's current Operating Margin % of 24.56% is 314.2% 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Otter Tail and its competitors. For the Conglomerates industry, the median Operating Margin % is 5.93 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otter Tail's current Operating Margin % is 24.56%, which is 31% above median its own 10-year median of 18.74. 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?
Otter Tail (STU:OT4) has a current Operating Margin % of 24.56%. The stock's GF Value™ is €70.19, compared to a current price of €77.50 — trading 10.4% above its estimated fair value. The current Operating Margin % is 24.56%, which is 31% above median its 10-year median of 18.74 and 314.2% above the Conglomerates industry median of 5.93. Otter Tail's overall GF Score™ is 84/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Otter Tail (STU:OT4), the current Operating Margin % is 24.56% 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 (STU:OT4) Overvalued in 2026?
Based on GuruFocus' analysis, Otter Tail stock appears to be overvalued.
The current stock price of €77.50 is trading 10.4% above its estimated GF Value™ of €70.19.
Key valuation signals for STU:OT4:
Operating Margin %: 24.56% (31% above median its 10-year median of 18.74)
GF Value™: €70.19 vs. price of €77.50 (10.4% above fair value)
Industry Position: 314.2% above the Conglomerates median (#40 of 545)
No single metric tells the full story. See the STU:OT4 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.
84GF Score
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