OTIS WORLDWIDE CORP (OTIS) Stock Fundamental Analysis
NYSE:OTIS - US68902V1070 - Common Stock
88.58 USD
+1.01 (+1.15%)
88.55 USD
-0.03 (-0.03%)
Taking everything into account, OTIS scores 5 out of 10 in our fundamental rating. OTIS was compared to 127 industry peers in the Machinery industry. OTIS scores excellent on profitability, but there are concerns on its financial health. While showing a medium growth rate, OTIS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year OTIS was profitable.
In the past year OTIS had a positive cash flow from operations.
Each year in the past 5 years OTIS has been profitable.
Each year in the past 5 years OTIS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of OTIS (14.42%) is better than 92.91% of its industry peers.
Looking at the Return On Invested Capital, with a value of 44.94%, OTIS belongs to the top of the industry, outperforming 99.21% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for OTIS is significantly above the industry average of 10.54%.
The last Return On Invested Capital (44.94%) for OTIS is well below the 3 year average (50.77%), which needs to be investigated, but indicates that OTIS had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.42% | ||
| ROE | N/A | ||
| ROIC | 44.94% |
ROA(3y)13.73%
ROA(5y)11.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)50.77%
ROIC(5y)42.31%
1.3 Margins
With a decent Profit Margin value of 10.68%, OTIS is doing good in the industry, outperforming 72.44% of the companies in the same industry.
OTIS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 15.09%, OTIS is in the better half of the industry, outperforming 71.65% of the companies in the same industry.
OTIS's Operating Margin has improved in the last couple of years.
The Gross Margin of OTIS (29.93%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of OTIS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.09% | ||
| PM (TTM) | 10.68% | ||
| GM | 29.93% |
OM growth 3Y1.53%
OM growth 5Y1.94%
PM growth 3Y9.8%
PM growth 5Y6.28%
GM growth 3Y0.59%
GM growth 5Y0.47%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OTIS is creating value.
Compared to 1 year ago, OTIS has less shares outstanding
Compared to 5 years ago, OTIS has less shares outstanding
Compared to 1 year ago, OTIS has a worse debt to assets ratio.
2.2 Solvency
OTIS has an Altman-Z score of 3.14. This indicates that OTIS is financially healthy and has little risk of bankruptcy at the moment.
OTIS has a Altman-Z score (3.14) which is in line with its industry peers.
OTIS has a debt to FCF ratio of 5.75. This is a neutral value as OTIS would need 5.75 years to pay back of all of its debts.
With a Debt to FCF ratio value of 5.75, OTIS perfoms like the industry average, outperforming 44.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.75 | ||
| Altman-Z | 3.14 |
ROIC/WACC4.85
WACC9.27%
2.3 Liquidity
OTIS has a Current Ratio of 0.88. This is a bad value and indicates that OTIS is not financially healthy enough and could expect problems in meeting its short term obligations.
OTIS has a worse Current ratio (0.88) than 92.91% of its industry peers.
OTIS has a Quick Ratio of 0.88. This is a bad value and indicates that OTIS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.80, OTIS is doing worse than 76.38% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.8 |
3. Growth
3.1 Past
OTIS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 2.66%.
Measured over the past years, OTIS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 9.53% on average per year.
Looking at the last year, OTIS shows a decrease in Revenue. The Revenue has decreased by -0.09% in the last year.
Measured over the past years, OTIS shows a small growth in Revenue. The Revenue has been growing by 1.68% on average per year.
EPS 1Y (TTM)2.66%
EPS 3Y8.48%
EPS 5Y9.53%
EPS Q2Q%-0.94%
Revenue 1Y (TTM)-0.09%
Revenue growth 3Y-0.09%
Revenue growth 5Y1.68%
Sales Q2Q%-0.17%
3.2 Future
The Earnings Per Share is expected to grow by 10.03% on average over the next years. This is quite good.
OTIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.01% yearly.
EPS Next Y7.12%
EPS Next 2Y9.3%
EPS Next 3Y9.23%
EPS Next 5Y10.03%
Revenue Next Year2.09%
Revenue Next 2Y3.24%
Revenue Next 3Y3.65%
Revenue Next 5Y4.01%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 22.95, OTIS is valued on the expensive side.
OTIS's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of OTIS to the average of the S&P500 Index (27.24), we can say OTIS is valued inline with the index average.
OTIS is valuated rather expensively with a Price/Forward Earnings ratio of 19.36.
OTIS's Price/Forward Earnings is on the same level as the industry average.
OTIS is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.82, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.95 | ||
| Fwd PE | 19.36 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OTIS.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OTIS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.79 | ||
| EV/EBITDA | 17.63 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OTIS does not grow enough to justify the current Price/Earnings ratio.
OTIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.22
PEG (5Y)2.41
EPS Next 2Y9.3%
EPS Next 3Y9.23%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.92%, OTIS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.86, OTIS pays a better dividend. On top of this OTIS pays more dividend than 84.25% of the companies listed in the same industry.
OTIS's Dividend Yield is comparable with the S&P500 average which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
5.2 History
OTIS has been paying a dividend for over 5 years, so it has already some track record.
OTIS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
OTIS pays out 41.64% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP41.64%
EPS Next 2Y9.3%
EPS Next 3Y9.23%
88.58
+1.01 (+1.15%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners94.3%
Inst Owner Change-2.05%
Ins Owners0.09%
Ins Owner Change0.8%
Market Cap34.77B
Analysts70
Price Target100.43 (13.38%)
Short Float %1.62%
Short Ratio2.14
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.92% |
Yearly Dividend1.51
Dividend Growth(5Y)N/A
DP41.64%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.45%
Min EPS beat(2)-0.93%
Max EPS beat(2)0.04%
EPS beat(4)1
Avg EPS beat(4)-1.95%
Min EPS beat(4)-4.23%
Max EPS beat(4)0.04%
EPS beat(8)3
Avg EPS beat(8)-0.14%
EPS beat(12)6
Avg EPS beat(12)0.58%
EPS beat(16)10
Avg EPS beat(16)1.51%
Revenue beat(2)0
Avg Revenue beat(2)-3.7%
Min Revenue beat(2)-4.89%
Max Revenue beat(2)-2.5%
Revenue beat(4)0
Avg Revenue beat(4)-2.79%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)-0.73%
Revenue beat(8)0
Avg Revenue beat(8)-2.69%
Revenue beat(12)2
Avg Revenue beat(12)-1.93%
Revenue beat(16)3
Avg Revenue beat(16)-2%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)-5.05%
EPS NQ rev (3m)-3.6%
EPS NY rev (1m)0%
EPS NY rev (3m)0.5%
Revenue NQ rev (1m)-2.23%
Revenue NQ rev (3m)2.39%
Revenue NY rev (1m)-0.99%
Revenue NY rev (3m)-0.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.95 | ||
| Fwd PE | 19.36 | ||
| P/S | 2.45 | ||
| P/FCF | 25.79 | ||
| P/OCF | 23.35 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.63 |
EPS(TTM)3.86
EY4.36%
EPS(NY)4.58
Fwd EY5.17%
FCF(TTM)3.43
FCFY3.88%
OCF(TTM)3.79
OCFY4.28%
SpS36.1
BVpS-13.67
TBVpS-18.93
PEG (NY)3.22
PEG (5Y)2.41
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.42% | ||
| ROE | N/A | ||
| ROCE | 65.8% | ||
| ROIC | 44.94% | ||
| ROICexc | 54.95% | ||
| ROICexgc | 165.62% | ||
| OM | 15.09% | ||
| PM (TTM) | 10.68% | ||
| GM | 29.93% | ||
| FCFM | 9.51% |
ROA(3y)13.73%
ROA(5y)11.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)50.77%
ROIC(5y)42.31%
ROICexc(3y)99.77%
ROICexc(5y)77.41%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)64.95%
ROCE(5y)55.23%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y52.37%
ROICexc growth 5Y21.37%
OM growth 3Y1.53%
OM growth 5Y1.94%
PM growth 3Y9.8%
PM growth 5Y6.28%
GM growth 3Y0.59%
GM growth 5Y0.47%
F-Score5
Asset Turnover1.35
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.75 | ||
| Debt/EBITDA | 3.28 | ||
| Cap/Depr | 77.47% | ||
| Cap/Sales | 1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 64.18% | ||
| Profit Quality | 89.09% | ||
| Current Ratio | 0.88 | ||
| Quick Ratio | 0.8 | ||
| Altman-Z | 3.14 |
F-Score5
WACC9.27%
ROIC/WACC4.85
Cap/Depr(3y)67.11%
Cap/Depr(5y)74.8%
Cap/Sales(3y)0.9%
Cap/Sales(5y)1.04%
Profit Quality(3y)102.86%
Profit Quality(5y)115.93%
High Growth Momentum
Growth
EPS 1Y (TTM)2.66%
EPS 3Y8.48%
EPS 5Y9.53%
EPS Q2Q%-0.94%
EPS Next Y7.12%
EPS Next 2Y9.3%
EPS Next 3Y9.23%
EPS Next 5Y10.03%
Revenue 1Y (TTM)-0.09%
Revenue growth 3Y-0.09%
Revenue growth 5Y1.68%
Sales Q2Q%-0.17%
Revenue Next Year2.09%
Revenue Next 2Y3.24%
Revenue Next 3Y3.65%
Revenue Next 5Y4.01%
EBIT growth 1Y-6.02%
EBIT growth 3Y1.44%
EBIT growth 5Y3.66%
EBIT Next Year9.73%
EBIT Next 3Y8.84%
EBIT Next 5Y11.11%
FCF growth 1Y3.14%
FCF growth 3Y-3.4%
FCF growth 5Y1.65%
OCF growth 1Y4.34%
OCF growth 3Y-3.7%
OCF growth 5Y1.25%