In 2002, Otter Tail made $1.79 per share in profits on behalf of its owners. For those of you unfamiliar with the company, it is a small, $1 billion-sized northern electric company with 2,300 employees. It has 130,000 costumers, and provides power to half of Minnesota and a little less than half of North Dakota. It has a small footprint in South Dakota as well. The earnings don’t grow all that much, as the company spends about 13% of its revenues on fuel costs alone. Plus, it has an extensive dividend commitment that prevents the company from retaining profits and growing significantly over the long term.
In fact, profits haven’t grown at all since 2002, as it only makes $1.75 per share in profits over the course of 2014. From a growth in business perspective, it has treaded water these past twelve years—in fact, it’s actually making a little bit … Read the rest of this article!