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3-Year Return on Invested Incremental Capital (3-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 3-year.
Otter Tail's 3-Year ROIIC % for the quarter that ended in Dec. 2025 was -1.92%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Otter Tail's 3-Year ROIIC % or its related term are showing as below:
OTTR's 3-Year ROIIC % is ranked worse than 61.65% of 532
companies
in the Conglomerates industry
Industry Median: 1.61
vs OTTR: -1.92
Otter Tail (NAS:OTTR) 3-Year ROIIC % Explanation
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Otter Tail 3-Year ROIIC % Related Terms
Otter Tail 3-Year ROIIC % Historical Data
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The historical data trend for Otter Tail's 3-Year ROIIC % 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 3-Year ROIIC %, along with its competitors' market caps and 3-Year ROIIC % 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 3-Year ROIIC % vs Conglomerates Industry
For the Conglomerates industry and Industrials sector, Otter Tail's 3-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Otter Tail's 3-Year ROIIC % 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.
** Annual data of NOPAT and Invested Capital was used to calculate 3-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Otter Tail (OTTR) has a 3-Year ROIIC % of -1.92 as of Dec. 2025. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Otter Tail and its competitors. According to the industry distribution chart, Otter Tail ranks #328 out of 532 companies in the Conglomerates industry, placing it in the top 61.7%.
Is Otter Tail's 3-Year ROIIC % too high?
Otter Tail's current 3-Year ROIIC % is -1.92. Based on the distribution chart, Otter Tail ranks #328 out of 532 companies in the Conglomerates industry, which is below the industry midpoint. 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 3-Year ROIIC % compare to SEB and TTI?
According to the Conglomerates industry distribution chart, Otter Tail ranks #328 out of 532 companies for 3-Year ROIIC %. This places Otter Tail in the lower half of its industry. The industry median 3-Year ROIIC % is 1.61. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 3-Year ROIIC % for a Conglomerates company?
The median 3-Year ROIIC % among Conglomerates companies is 1.61, based on 532 companies in the industry. Companies in the top quartile (top 25%) have a 3-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 3-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high 3-Year ROIIC % mean?
A high 3-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 3-Year ROIIC % measures the change in earnings as a percentage of change in investment over 3-year. View historical data on Otter Tail and its competitors. For the Conglomerates industry, the median 3-Year ROIIC % is 1.61 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otter Tail's current 3-Year ROIIC % is -1.92. 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 $93.26 — trading 16.8% above its estimated fair value. The current 3-Year ROIIC % is -1.92. Otter Tail's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 3-Year ROIIC % calculated?
3-Year ROIIC % is calculated from a company's financial statements. For Otter Tail (OTTR), the current 3-Year ROIIC % is -1.92 as of Dec. 2025. 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 $93.26 is trading 16.8% above its estimated GF Value™ of $79.82.
GuruFocus considers Otter Tail to be Modestly Overvalued.
Key valuation signals for OTTR:
3-Year ROIIC %: -1.92
GF Value™: $79.82 vs. price of $93.26 (16.8% above fair value)
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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