Scheduled Maintenance
We have scheduled some maintenance on Saturday 4th of May 2024 starting from 10AM CEST and could last for 2 hours. During this maintenance we are expecting our website to be unavailable or not fully functional.
OTIS WORLDWIDE CORP (OTIS)
US68902V1070 - Common Stock
Taking everything into account, OTIS scores 5 out of 10 in our fundamental rating. OTIS was compared to 132 industry peers in the Machinery industry. While OTIS has a great profitability rating, there are some minor 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.
OTIS had a positive operating cash flow in the past year.
OTIS had positive earnings in each of the past 5 years.
In the past 5 years OTIS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of OTIS (14.58%) is better than 93.80% of its industry peers.
The Return On Invested Capital of OTIS (48.22%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OTIS is significantly above the industry average of 10.72%.
The 3 year average ROIC (40.28%) for OTIS is below the current ROIC(48.22%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.58% | ||
| ROE | N/A | ||
| ROIC | 48.22% |
ROA(3y)12.27%
ROA(5y)11.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.28%
ROIC(5y)36.18%
1.3 Margins
OTIS has a better Profit Margin (9.99%) than 75.19% of its industry peers.
In the last couple of years the Profit Margin of OTIS has grown nicely.
The Operating Margin of OTIS (16.01%) is better than 79.84% of its industry peers.
In the last couple of years the Operating Margin of OTIS has grown nicely.
OTIS has a Gross Margin (29.55%) which is in line with its industry peers.
OTIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 16.01% | ||
| PM (TTM) | 9.99% | ||
| GM | 29.55% |
OM growth 3Y3.3%
OM growth 5Y1.64%
PM growth 3Y11.69%
PM growth 5Y4.03%
GM growth 3Y-0.13%
GM growth 5Y0.45%
2. Health
2.1 Basic Checks
OTIS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
OTIS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, OTIS has less shares outstanding
Compared to 1 year ago, OTIS has an improved debt to assets ratio.
2.2 Solvency
OTIS has an Altman-Z score of 3.46. This indicates that OTIS is financially healthy and has little risk of bankruptcy at the moment.
OTIS has a Altman-Z score (3.46) which is comparable to the rest of the industry.
OTIS has a debt to FCF ratio of 5.00. This is a neutral value as OTIS would need 5.00 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.00, OTIS is in line with its industry, outperforming 54.26% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5 | ||
| Altman-Z | 3.46 |
ROIC/WACC5.65
WACC8.53%
2.3 Liquidity
A Current Ratio of 0.97 indicates that OTIS may have some problems paying its short term obligations.
OTIS has a Current ratio of 0.97. This is amonst the worse of the industry: OTIS underperforms 89.92% of its industry peers.
OTIS has a Quick Ratio of 0.97. 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 Quick ratio (0.88) than 70.54% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.88 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.77% over the past year.
OTIS shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 6.98% yearly.
Looking at the last year, OTIS shows a small growth in Revenue. The Revenue has grown by 5.02% in the last year.
OTIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.93% yearly.
EPS 1Y (TTM)12.77%
EPS 3Y12.14%
EPS 5Y6.98%
EPS growth Q2Q10%
Revenue 1Y (TTM)5.02%
Revenue growth 3Y3.66%
Revenue growth 5Y1.93%
Revenue growth Q2Q2.72%
3.2 Future
Based on estimates for the next years, OTIS will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.20% on average per year.
The Revenue is expected to grow by 3.79% on average over the next years.
EPS Next Y11.31%
EPS Next 2Y10.55%
EPS Next 3Y10.23%
EPS Next 5Y10.2%
Revenue Next Year3.79%
Revenue Next 2Y3.74%
Revenue Next 3Y3.73%
Revenue Next 5Y3.79%
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 accelerating.
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 25.45, which means the current valuation is very expensive for OTIS.
OTIS's Price/Earnings is on the same level as the industry average.
OTIS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.28.
The Price/Forward Earnings ratio is 21.29, which indicates a rather expensive current valuation of OTIS.
The rest of the industry has a similar Price/Forward Earnings ratio as OTIS.
OTIS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 21.29 |
4.2 Price Multiples
OTIS's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. OTIS is more expensive than 60.47% of the companies in the same industry.
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 | 27.06 | ||
| EV/EBITDA | 17.37 |
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 excellent profitability rating of OTIS may justify a higher PE ratio.
PEG (NY)2.25
PEG (5Y)3.65
EPS Next 2Y10.55%
EPS Next 3Y10.23%
5. Dividend
5.1 Amount
OTIS has a Yearly Dividend Yield of 1.71%.
Compared to an average industry Dividend Yield of 1.73, OTIS pays a better dividend. On top of this OTIS pays more dividend than 82.17% of the companies listed in the same industry.
OTIS's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
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 Years3
Div Non Decr Years3
5.3 Sustainability
39.01% of the earnings are spent on dividend by OTIS. This is a low number and sustainable payout ratio.
DP39.01%
EPS Next 2Y10.55%
EPS Next 3Y10.23%
OTIS WORLDWIDE CORP
NYSE:OTIS (5/3/2024, 7:10:43 PM)
After market: 92.12 0 (0%)92.12
+0.35 (+0.38%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap37.23B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.71% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 21.29 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.25
PEG (5Y)3.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.58% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 16.01% | ||
| PM (TTM) | 9.99% | ||
| GM | 29.55% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.46
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.97 | ||
| Quick Ratio | 0.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)12.77%
EPS 3Y12.14%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.31%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)5.02%
Revenue growth 3Y3.66%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y