OTIS WORLDWIDE CORP (OTIS) Stock Fundamental Analysis
USA - NYSE:OTIS - US68902V1070 - Common Stock
92.76 USD
+0.27 (+0.29%)
92.6362 USD
-0.12 (-0.13%)
We assign a fundamental rating of 5 out of 10 to OTIS. OTIS was compared to 130 industry peers in the Machinery industry. While OTIS has a great profitability rating, there are quite some 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.
Each year in the past 5 years OTIS has been profitable.
In the past 5 years OTIS always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of OTIS (12.51%) is better than 90.77% of its industry peers.
The Return On Invested Capital of OTIS (48.63%) 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 10.04%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.51% | ||
| ROE | N/A | ||
| ROIC | 48.63% |
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
OTIS's Profit Margin of 9.41% is fine compared to the rest of the industry. OTIS outperforms 70.00% of its industry peers.
OTIS's Profit Margin has improved in the last couple of years.
OTIS has a better Operating Margin (15.86%) than 75.38% of its industry peers.
OTIS's Operating Margin has improved in the last couple of years.
OTIS's Gross Margin of 30.01% is in line compared to the rest of the industry. OTIS outperforms 46.92% of its industry peers.
OTIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.86% | ||
| 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.
OTIS has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, OTIS has less shares outstanding
The debt/assets ratio for OTIS is higher compared to a year ago.
2.2 Solvency
OTIS has an Altman-Z score of 3.26. This indicates that OTIS is financially healthy and has little risk of bankruptcy at the moment.
OTIS has a Altman-Z score (3.26) which is comparable to the rest of the industry.
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.
Looking at the Debt to FCF ratio, with a value of 6.11, OTIS is in line with its industry, outperforming 46.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.26 |
ROIC/WACC5.42
WACC8.97%
2.3 Liquidity
A Current Ratio of 0.94 indicates that OTIS may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.94, OTIS is doing worse than 89.23% of the companies in the same industry.
A Quick Ratio of 0.85 indicates that OTIS may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.85, OTIS is doing worse than 73.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.85 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 4.77% over the past year.
OTIS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 9.53% yearly.
Looking at the last year, OTIS shows a small growth in Revenue. The Revenue has grown by 0.73% 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)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 10.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.01% on average over the next years.
EPS Next Y6.99%
EPS Next 2Y8.77%
EPS Next 3Y9.07%
EPS Next 5Y10.03%
Revenue Next Year1.94%
Revenue Next 2Y3.35%
Revenue Next 3Y3.71%
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 23.48, OTIS is valued on the expensive side.
The rest of the industry has a similar Price/Earnings ratio as OTIS.
OTIS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.11.
OTIS is valuated rather expensively with a Price/Forward Earnings ratio of 20.47.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OTIS is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, OTIS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 20.47 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as OTIS.
OTIS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.52 | ||
| EV/EBITDA | 17.83 |
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)3.36
PEG (5Y)2.46
EPS Next 2Y8.77%
EPS Next 3Y9.07%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.82%, OTIS has a reasonable but not impressive dividend return.
OTIS's Dividend Yield is rather good when compared to the industry average which is at 1.81. OTIS pays more dividend than 82.31% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.37, OTIS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
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 2Y8.77%
EPS Next 3Y9.07%
92.76
+0.27 (+0.29%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.21%
Inst Owner Change0.07%
Ins Owners0.1%
Ins Owner Change1.35%
Market Cap36.41B
Revenue(TTM)14.31B
Net Income(TTM)1.35B
Analysts70
Price Target102.55 (10.55%)
Short Float %1.68%
Short Ratio2.39
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.82% |
Yearly Dividend1.51
Dividend Growth(5Y)N/A
DP47.44%
Div Incr Years4
Div Non Decr Years4
Ex-Date
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)2.59%
PT rev (3m)-0.29%
EPS NQ rev (1m)-0.33%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)0.02%
EPS NY rev (3m)-0.12%
Revenue NQ rev (1m)-0.48%
Revenue NQ rev (3m)-0.68%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.48 | ||
| Fwd PE | 20.47 | ||
| P/S | 2.54 | ||
| P/FCF | 27.52 | ||
| P/OCF | 24.78 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 17.83 |
EPS(TTM)3.95
EY4.26%
EPS(NY)4.53
Fwd EY4.88%
FCF(TTM)3.37
FCFY3.63%
OCF(TTM)3.74
OCFY4.04%
SpS36.46
BVpS-13.81
TBVpS-19.03
PEG (NY)3.36
PEG (5Y)2.46
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 12.51% | ||
| ROE | N/A | ||
| ROCE | 61.25% | ||
| ROIC | 48.63% | ||
| ROICexc | 62.89% | ||
| ROICexgc | 220.07% | ||
| OM | 15.86% | ||
| 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 | 3.1 | ||
| Cap/Depr | 82.02% | ||
| Cap/Sales | 1.02% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.01% | ||
| Profit Quality | 98.22% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.85 | ||
| Altman-Z | 3.26 |
F-Score6
WACC8.97%
ROIC/WACC5.42
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 Y6.99%
EPS Next 2Y8.77%
EPS Next 3Y9.07%
EPS Next 5Y10.03%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y-0.09%
Revenue growth 5Y1.68%
Sales Q2Q%4%
Revenue Next Year1.94%
Revenue Next 2Y3.35%
Revenue Next 3Y3.71%
Revenue Next 5Y4.01%
EBIT growth 1Y-0.09%
EBIT growth 3Y1.44%
EBIT growth 5Y3.66%
EBIT Next Year9.31%
EBIT Next 3Y8.77%
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 of OTIS WORLDWIDE CORP (OTIS) stock?
ChartMill assigns a valuation rating of 2 / 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 23.48 and the Price/Book (PB) ratio is -6.71.
What is the earnings growth outlook for OTIS WORLDWIDE CORP?
The Earnings per Share (EPS) of OTIS WORLDWIDE CORP (OTIS) is expected to grow by 6.99% in the next year.