OTIS WORLDWIDE CORP (OTIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OTIS - US68902V1070 - Common Stock
90.16 USD
-0.19 (-0.21%)
90.16 USD
0 (0%)
Overall OTIS gets a fundamental rating of 5 out of 10. We evaluated OTIS against 132 industry peers in the Machinery industry. While OTIS belongs to the best of the industry regarding profitability, there are concerns on its financial health. OTIS is quite expensive at the moment. It does show a decent growth rate.
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.
- In the past 5 years OTIS has always been profitable.
- In the past 5 years OTIS always reported a positive cash flow from operatings.
1.2 Ratios
- OTIS has a better Return On Assets (12.51%) than 88.64% of its industry peers.
- OTIS has a Return On Invested Capital of 49.12%. This is amongst the best in the industry. OTIS outperforms 100.00% of its industry peers.
- OTIS had an Average Return On Invested Capital over the past 3 years of 50.77%. This is significantly above the industry average of 10.24%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.51% | ||
| ROE | N/A | ||
| ROIC | 49.12% |
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
- The Profit Margin of OTIS (9.41%) is better than 70.45% of its industry peers.
- In the last couple of years the Profit Margin of OTIS has grown nicely.
- OTIS has a better Operating Margin (17.53%) than 82.58% of its industry peers.
- In the last couple of years the Operating Margin of OTIS has grown nicely.
- OTIS's Gross Margin of 30.01% is in line compared to the rest of the industry. OTIS outperforms 47.73% of its industry peers.
- OTIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 17.53% | ||
| PM (TTM) | 9.41% | ||
| GM | 30.01% |
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
- With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OTIS is creating value.
- The number of shares outstanding for OTIS has been reduced compared to 1 year ago.
- The number of shares outstanding for OTIS has been reduced compared to 5 years ago.
- The debt/assets ratio for OTIS is higher compared to a year ago.
2.2 Solvency
- An Altman-Z score of 3.29 indicates that OTIS is not in any danger for bankruptcy at the moment.
- OTIS has a Altman-Z score of 3.29. This is comparable to the rest of the industry: OTIS outperforms 55.30% of its industry peers.
- The Debt to FCF ratio of OTIS is 6.11, which is on the high side as it means it would take OTIS, 6.11 years of fcf income to pay off all of its debts.
- OTIS's Debt to FCF ratio of 6.11 is in line compared to the rest of the industry. OTIS outperforms 49.24% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.29 |
ROIC/WACC5.38
WACC9.13%
2.3 Liquidity
- OTIS has a Current Ratio of 0.94. 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 Current ratio of 0.94. This is amonst the worse of the industry: OTIS underperforms 88.64% of its industry peers.
- OTIS has a Quick Ratio of 0.94. 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 0.85, OTIS is doing worse than 74.24% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
- OTIS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 4.77%.
- OTIS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.53% yearly.
- OTIS shows a small growth in Revenue. In the last year, the Revenue has grown by 0.73%.
- The Revenue has been growing slightly by 1.68% on average over the past years.
EPS 1Y (TTM)4.77%
EPS 3Y8.48%
EPS 5Y9.53%
EPS Q2Q%9.38%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y-0.09%
Revenue growth 5Y1.68%
Sales Q2Q%4%
3.2 Future
- The Earnings Per Share is expected to grow by 10.10% on average over the next years. This is quite good.
- Based on estimates for the next years, OTIS will show a small growth in Revenue. The Revenue will grow by 4.26% on average per year.
EPS Next Y6.9%
EPS Next 2Y8.98%
EPS Next 3Y9.47%
EPS Next 5Y10.1%
Revenue Next Year1.88%
Revenue Next 2Y3.47%
Revenue Next 3Y3.95%
Revenue Next 5Y4.26%
3.3 Evolution
- When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
- 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
- The Price/Earnings ratio is 22.83, which indicates a rather expensive current valuation of OTIS.
- Based on the Price/Earnings ratio, OTIS is valued a bit cheaper than the industry average as 65.91% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 27.38, OTIS is valued at the same level.
- The Price/Forward Earnings ratio is 19.82, which indicates a rather expensive current valuation of OTIS.
- Based on the Price/Forward Earnings ratio, OTIS is valued a bit cheaper than the industry average as 62.12% of the companies are valued more expensively.
- When comparing the Price/Forward Earnings ratio of OTIS to the average of the S&P500 Index (24.29), we can say OTIS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 19.82 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OTIS is on the same level as its industry peers.
- The rest of the industry has a similar Price/Free Cash Flow ratio as OTIS.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.56 | ||
| EV/EBITDA | 15.65 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The decent profitability rating of OTIS may justify a higher PE ratio.
PEG (NY)3.31
PEG (5Y)2.39
EPS Next 2Y8.98%
EPS Next 3Y9.47%
5. Dividend
5.1 Amount
- OTIS has a Yearly Dividend Yield of 1.86%. Purely for dividend investing, there may be better candidates out there.
- Compared to an average industry Dividend Yield of 0.98, OTIS pays a better dividend. On top of this OTIS pays more dividend than 84.85% of the companies listed in the same industry.
- OTIS's Dividend Yield is comparable with the S&P500 average which is at 1.85.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
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
- 47.44% of the earnings are spent on dividend by OTIS. This is a bit on the high side, but may be sustainable.
DP47.44%
EPS Next 2Y8.98%
EPS Next 3Y9.47%
90.16
-0.19 (-0.21%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)01-28 2026-01-28/amc
Inst Owners91.66%
Inst Owner Change0.27%
Ins Owners0.1%
Ins Owner Change4.06%
Market Cap35.14B
Revenue(TTM)14.31B
Net Income(TTM)1.35B
Analysts72.73
Price Target105.65 (17.18%)
Short Float %1.86%
Short Ratio2.94
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.86% |
Yearly Dividend1.51
Dividend Growth(5Y)N/A
DP47.44%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)1.5%
Min EPS beat(2)0.04%
Max EPS beat(2)2.97%
EPS beat(4)2
Avg EPS beat(4)-0.54%
Min EPS beat(4)-4.23%
Max EPS beat(4)2.97%
EPS beat(8)3
Avg EPS beat(8)-0.61%
EPS beat(12)6
Avg EPS beat(12)0.81%
EPS beat(16)10
Avg EPS beat(16)1.49%
Revenue beat(2)0
Avg Revenue beat(2)-2.86%
Min Revenue beat(2)-4.89%
Max Revenue beat(2)-0.83%
Revenue beat(4)0
Avg Revenue beat(4)-2.24%
Min Revenue beat(4)-4.89%
Max Revenue beat(4)-0.73%
Revenue beat(8)0
Avg Revenue beat(8)-2.56%
Revenue beat(12)2
Avg Revenue beat(12)-1.63%
Revenue beat(16)2
Avg Revenue beat(16)-2.07%
PT rev (1m)1.43%
PT rev (3m)5.69%
EPS NQ rev (1m)-0.47%
EPS NQ rev (3m)-2.88%
EPS NY rev (1m)-1.17%
EPS NY rev (3m)-0.06%
Revenue NQ rev (1m)0.13%
Revenue NQ rev (3m)0.1%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)-0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.83 | ||
| Fwd PE | 19.82 | ||
| P/S | 2.46 | ||
| P/FCF | 26.56 | ||
| P/OCF | 23.92 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.65 |
EPS(TTM)3.95
EY4.38%
EPS(NY)4.55
Fwd EY5.05%
FCF(TTM)3.39
FCFY3.77%
OCF(TTM)3.77
OCFY4.18%
SpS36.72
BVpS-13.91
TBVpS-19.16
PEG (NY)3.31
PEG (5Y)2.39
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.51% | ||
| ROE | N/A | ||
| ROCE | 67.67% | ||
| ROIC | 49.12% | ||
| ROICexc | 61.96% | ||
| ROICexgc | 170.64% | ||
| OM | 17.53% | ||
| PM (TTM) | 9.41% | ||
| GM | 30.01% | ||
| FCFM | 9.25% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score6
Asset Turnover1.33
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Debt/EBITDA | 2.96 | ||
| Cap/Depr | 82.02% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 54.69% | ||
| Profit Quality | 98.22% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.29 |
F-Score6
WACC9.13%
ROIC/WACC5.38
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)4.77%
EPS 3Y8.48%
EPS 5Y9.53%
EPS Q2Q%9.38%
EPS Next Y6.9%
EPS Next 2Y8.98%
EPS Next 3Y9.47%
EPS Next 5Y10.1%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y-0.09%
Revenue growth 5Y1.68%
Sales Q2Q%4%
Revenue Next Year1.88%
Revenue Next 2Y3.47%
Revenue Next 3Y3.95%
Revenue Next 5Y4.26%
EBIT growth 1Y10.39%
EBIT growth 3Y1.44%
EBIT growth 5Y3.66%
EBIT Next Year9.73%
EBIT Next 3Y9.21%
EBIT Next 5Y11.11%
FCF growth 1Y-3.01%
FCF growth 3Y-3.4%
FCF growth 5Y1.65%
OCF growth 1Y-1.67%
OCF growth 3Y-3.7%
OCF growth 5Y1.25%
OTIS WORLDWIDE CORP / OTIS FAQ
Can you provide the ChartMill fundamental rating for OTIS WORLDWIDE CORP?
ChartMill assigns a fundamental rating of 5 / 10 to OTIS.
What is the valuation status for OTIS stock?
ChartMill assigns a valuation rating of 3 / 10 to OTIS WORLDWIDE CORP (OTIS). This can be considered as Overvalued.
What is the profitability of OTIS stock?
OTIS WORLDWIDE CORP (OTIS) has a profitability rating of 7 / 10.
Can you provide the PE and PB ratios for OTIS stock?
The Price/Earnings (PE) ratio for OTIS WORLDWIDE CORP (OTIS) is 22.83 and the Price/Book (PB) ratio is -6.48.
How financially healthy is OTIS WORLDWIDE CORP?
The financial health rating of OTIS WORLDWIDE CORP (OTIS) is 3 / 10.