OTIS WORLDWIDE CORP (OTIS) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:OTIS - US68902V1070 - Common Stock
88.85 USD
+0.28 (+0.32%)
88.85 USD
0 (0%)
Overall OTIS gets a fundamental rating of 5 out of 10. We evaluated OTIS against 130 industry peers in the Machinery industry. OTIS has an excellent profitability rating, 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
OTIS had positive earnings in the past year.
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 90.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 49.12%, OTIS belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
OTIS had an Average Return On Invested Capital over the past 3 years of 50.77%. This is significantly above the industry average of 10.35%.
| 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
OTIS's Profit Margin of 9.41% is fine compared to the rest of the industry. OTIS outperforms 70.77% of its industry peers.
In the last couple of years the Profit Margin of OTIS has grown nicely.
With an excellent Operating Margin value of 17.53%, OTIS belongs to the best of the industry, outperforming 82.31% of the companies in the same industry.
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 47.69% 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.
OTIS has less shares outstanding than it did 1 year ago.
OTIS has less shares outstanding than it did 5 years ago.
OTIS has a worse debt/assets ratio than last year.
2.2 Solvency
OTIS has an Altman-Z score of 3.28. This indicates that OTIS is financially healthy and has little risk of bankruptcy at the moment.
OTIS's Altman-Z score of 3.28 is in line compared to the rest of the industry. OTIS outperforms 57.69% 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 has a Debt to FCF ratio (6.11) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 6.11 | ||
| Altman-Z | 3.28 |
ROIC/WACC5.61
WACC8.75%
2.3 Liquidity
A Current Ratio of 0.94 indicates that OTIS may have some problems paying its short term obligations.
OTIS's Current ratio of 0.94 is on the low side compared to the rest of the industry. OTIS is outperformed by 88.46% 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 73.85% 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%.
The Earnings Per Share has been growing by 9.53% on average over the past years. This is quite good.
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 10.94% on average over the next years. This is quite good.
The Revenue is expected to grow by 4.26% on average over the next years.
EPS Next Y7.05%
EPS Next 2Y8.92%
EPS Next 3Y9.24%
EPS Next 5Y10.94%
Revenue Next Year2.18%
Revenue Next 2Y3.49%
Revenue Next 3Y3.88%
Revenue Next 5Y4.26%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
OTIS is valuated rather expensively with a Price/Earnings ratio of 22.49.
OTIS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.31. OTIS is around the same levels.
The Price/Forward Earnings ratio is 19.56, which indicates a rather expensive current valuation of OTIS.
Compared to the rest of the industry, the Price/Forward Earnings ratio of OTIS is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 36.59. OTIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 19.56 |
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 | 26.36 | ||
| EV/EBITDA | 15.51 |
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.
The decent profitability rating of OTIS may justify a higher PE ratio.
PEG (NY)3.19
PEG (5Y)2.36
EPS Next 2Y8.92%
EPS Next 3Y9.24%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.93%, OTIS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.97, OTIS pays a better dividend. On top of this OTIS pays more dividend than 82.31% of the companies listed in the same industry.
Compared to an average S&P500 Dividend Yield of 2.40, OTIS has a dividend comparable with the average S&P500 company.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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 47.44% of its income as dividend. This is a bit on the high side, but may be sustainable.
DP47.44%
EPS Next 2Y8.92%
EPS Next 3Y9.24%
88.85
+0.28 (+0.32%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners92.21%
Inst Owner Change-1.22%
Ins Owners0.1%
Ins Owner Change3.14%
Market Cap34.87B
Revenue(TTM)14.31B
Net Income(TTM)1.35B
Analysts71.82
Price Target104.16 (17.23%)
Short Float %1.83%
Short Ratio2.92
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.93% |
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)4.19%
PT rev (3m)3.71%
EPS NQ rev (1m)-2.07%
EPS NQ rev (3m)-2.51%
EPS NY rev (1m)0.06%
EPS NY rev (3m)0.31%
Revenue NQ rev (1m)0.15%
Revenue NQ rev (3m)-0.53%
Revenue NY rev (1m)0.23%
Revenue NY rev (3m)0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 22.49 | ||
| Fwd PE | 19.56 | ||
| P/S | 2.44 | ||
| P/FCF | 26.36 | ||
| P/OCF | 23.74 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 15.51 |
EPS(TTM)3.95
EY4.45%
EPS(NY)4.54
Fwd EY5.11%
FCF(TTM)3.37
FCFY3.79%
OCF(TTM)3.74
OCFY4.21%
SpS36.46
BVpS-13.81
TBVpS-19.03
PEG (NY)3.19
PEG (5Y)2.36
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 | 3.28 |
F-Score6
WACC8.75%
ROIC/WACC5.61
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 Y7.05%
EPS Next 2Y8.92%
EPS Next 3Y9.24%
EPS Next 5Y10.94%
Revenue 1Y (TTM)0.73%
Revenue growth 3Y-0.09%
Revenue growth 5Y1.68%
Sales Q2Q%4%
Revenue Next Year2.18%
Revenue Next 2Y3.49%
Revenue Next 3Y3.88%
Revenue Next 5Y4.26%
EBIT growth 1Y10.39%
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 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 22.49 and the Price/Book (PB) ratio is -6.43.
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 7.05% in the next year.