Otter TailOTTR -0.68%83 Return-on-Tangible-Equity is 15.76% as of Mar. 2026, which is 11% above its 10-year median of 14.23. 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 549 Conglomerates companies, Otter Tail ranks better than 76.5% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Otter Tail's annualized net income for the quarter that ended in Mar. 2026 was $290 Mil. Otter Tail's average shareholder tangible equity for the quarter that ended in Mar. 2026 was $1,843 Mil. Therefore, Otter Tail's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 15.76%.
The historical rank and industry rank for Otter Tail's Return-on-Tangible-Equity or its related term are showing as below:
OTTR'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 10.68 Med: 14.23 Max: 26.86
Current: 15.79
During the past 13 years, Otter Tail's highest Return-on-Tangible-Equity was 26.86%. The lowest was 10.68%. And the median was 14.23%.
OTTR's Return-on-Tangible-Equity is ranked better than 76.5% of 549
companies
in the Conglomerates industry
Industry Median: 7.44
vs OTTR: 15.79
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Otter Tail Return-on-Tangible-Equity Related Terms
Otter Tail Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Otter Tail's Return-on-Tangible-Equity 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.
OTTR vs SEB, TTI, DLX: Return-on-Tangible-Equity Comparison
For the Conglomerates subindustry, Otter Tail's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Otter Tail's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Otter Tail's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.76% mean?
Otter Tail (OTTR) has a Return-on-Tangible-Equity of 15.76% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Otter Tail and its competitors. This is 11% above median its historical median of 14.23. Over the past decade, Otter Tail's Return-on-Tangible-Equity has ranged from 10.68 to 26.86. According to the industry distribution chart, Otter Tail ranks #129 out of 549 companies in the Conglomerates industry, placing it in the top 23.5%.
Is Otter Tail's Return-on-Tangible-Equity too high?
Otter Tail's current Return-on-Tangible-Equity of 15.76% is 11% above median its 10-year median of 14.23. Over the past 10 years, this metric has ranged from a low of 10.68 to a high of 26.86. The Conglomerates industry median Return-on-Tangible-Equity is 7.44. Otter Tail's value of 15.76% is 111.8% above this industry median. Based on the distribution chart, Otter Tail ranks #129 out of 549 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 Return-on-Tangible-Equity compare to SEB and TTI?
According to the Conglomerates industry distribution chart, Otter Tail ranks #129 out of 549 companies for Return-on-Tangible-Equity. This places Otter Tail in the top 24% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 7.44. Otter Tail's value of 15.76% is 111.8% above this benchmark. Historically, Otter Tail's own Return-on-Tangible-Equity has ranged from 10.68 to 26.86 over the past decade. While the company's 10-year median is 14.23 vs. the industry median of 7.44, 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 Return-on-Tangible-Equity for a Conglomerates company?
The median Return-on-Tangible-Equity among Conglomerates companies is 7.44, based on 549 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Otter Tail's current Return-on-Tangible-Equity of 15.76% is 111.8% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Otter Tail and its competitors. For the Conglomerates industry, the median Return-on-Tangible-Equity is 7.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otter Tail's current Return-on-Tangible-Equity is 15.76%, which is 11% above median its own 10-year median of 14.23. 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 $90.18 — trading 13% above its estimated fair value. The current Return-on-Tangible-Equity is 15.76%, which is 11% above median its 10-year median of 14.23 and 111.8% above the Conglomerates industry median of 7.44. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Otter Tail (OTTR), the current Return-on-Tangible-Equity is 15.76% 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 $90.18 is trading 13% above its estimated GF Value™ of $79.82.
GuruFocus considers Otter Tail to be Modestly Overvalued.
Key valuation signals for OTTR:
Return-on-Tangible-Equity: 15.76% (11% above median its 10-year median of 14.23)
GF Value™: $79.82 vs. price of $90.18 (13% above fair value)
Industry Position: 111.8% above the Conglomerates median (#129 of 549)
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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