Otter Tail vs TXNM Energy
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KIRA’s take AI analyst
I put Otter Tail and TXNM Energy side by side, using each one’s latest annual report. Here is what stands out:
- TXNM Energy is the larger business, with $2.2B of revenue in fiscal 2025 against $1.3B for Otter Tail, about 1.7 times as much.
- TXNM Energy grew revenue faster (9.9%, against −2.3%).
- Otter Tail kept more of each dollar of sales as operating profit (26.6% operating margin, against 20.4%).
- Otter Tail turned more of its sales into free cash flow (7.5% FCF margin, against −28.2%).
- Otter Tail earned a higher return on the capital invested in it (12.3%, against 4.8%).
- Investors pay more for each dollar of TXNM Energy’s earnings: a P/E of 44.2x against 19.5x for Otter Tail.
Who comes out ahead
Of the 10 measures where higher (or lower) is clearly better, how many each company leads.
Otter Tail
OTTR
8/10
5-year growthOperating marginNet marginFCF marginReturn on capitalReturn on equityNet debt / EBITDAShare count change
TXNM Energy
TXNM
2/10
Revenue growthPiotroski F-score
Side by side
Best in the row
| Latest fiscal year | OTTR FY25 | TXNM FY25 |
|---|---|---|
| Size | ||
| Market cap | $3.8B | $6.6B |
| Revenue | $1.3B | $2.2B |
| Free cash flow | $97.9M | −$611M |
| Net income | $276M | $170M |
| Growth | ||
| Revenue growth | −2.3% | 9.9% |
| 5-year growth | 8.0% | 7.3% |
| Share count change | 0.1% | 13.0% |
| Profitability | ||
| Gross margin | — | — |
| Operating margin | 26.6% | 20.4% |
| Net margin | 21.2% | 7.8% |
| FCF margin | 7.5% | −28.2% |
| Return on capital | 12.3% | 4.8% |
| Return on equity | 15.6% | 5.7% |
| Balance sheet | ||
| Net debt | $583M | $5.6B |
| Net debt / EBITDA | 1.3x | 6.1x |
| Dividends and buybacks | $88.1M | $175M |
| Valuation & quality | ||
| P/E | 19.5x | 44.2x |
| Piotroski F-score | 5 | 6 |
Ten years
Revenue
Operating margin
Free cash flow
Return on capital
Each company's latest fiscal year; fiscal years end in different months. The best value in each row is highlighted where higher (or lower) is clearly better. Not investment advice.