OTIS WORLDWIDE CORP (OTIS) Stock Fundamental Analysis
NYSE:OTIS - New York Stock Exchange, Inc. - US68902V1070 - Common Stock - Currency: USD
Taking everything into account, OTIS scores 5 out of 10 in our fundamental rating. OTIS was compared to 128 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
In the past year OTIS was profitable.
In the past year OTIS had a positive cash flow from operations.
OTIS had positive earnings in each of the past 5 years.
Each year in the past 5 years OTIS had a positive operating cash flow.
1.2 Ratios
OTIS has a better Return On Assets (13.73%) than 92.19% of its industry peers.
OTIS has a better Return On Invested Capital (40.85%) than 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 10.31%.
The last Return On Invested Capital (40.85%) 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 | 13.73% | ||
| ROE | N/A | ||
| ROIC | 40.85% |
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 has a better Profit Margin (10.83%) than 75.00% of its industry peers.
OTIS's Profit Margin has improved in the last couple of years.
The Operating Margin of OTIS (12.07%) is better than 61.72% of its industry peers.
In the last couple of years the Operating Margin of OTIS has grown nicely.
OTIS has a Gross Margin (29.84%) which 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 | 12.07% | ||
| PM (TTM) | 10.83% | ||
| GM | 29.84% |
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
OTIS has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, OTIS has less shares outstanding
The number of shares outstanding for OTIS has been reduced compared to 5 years ago.
OTIS has a worse debt/assets ratio than last year.
2.2 Solvency
OTIS has an Altman-Z score of 3.04. This indicates that OTIS is financially healthy and has little risk of bankruptcy at the moment.
OTIS has a Altman-Z score (3.04) which is in line with its industry peers.
OTIS has a debt to FCF ratio of 5.79. This is a neutral value as OTIS would need 5.79 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 5.79, OTIS is in line with its industry, outperforming 50.78% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.79 | ||
| Altman-Z | 3.04 |
ROIC/WACC4.14
WACC9.87%
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's Current ratio of 0.94 is on the low side compared to the rest of the industry. OTIS is outperformed by 89.84% 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 0.87, OTIS is doing worse than 70.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
OTIS shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 6.91%.
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 -0.88% 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)6.91%
EPS 3Y8.48%
EPS 5Y9.53%
EPS Q2Q%4.55%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y-0.09%
Revenue growth 5Y1.68%
Sales Q2Q%-2.53%
3.2 Future
OTIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.53% yearly.
Based on estimates for the next years, OTIS will show a small growth in Revenue. The Revenue will grow by 2.84% on average per year.
EPS Next Y6.58%
EPS Next 2Y9.05%
EPS Next 3Y9.23%
EPS Next 5Y9.53%
Revenue Next Year2.83%
Revenue Next 2Y3.58%
Revenue Next 3Y3.89%
Revenue Next 5Y2.84%
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
With a Price/Earnings ratio of 25.23, OTIS can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as OTIS.
Compared to an average S&P500 Price/Earnings ratio of 26.60, OTIS is valued at the same level.
With a Price/Forward Earnings ratio of 21.44, OTIS is valued on the expensive side.
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 22.43, OTIS is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 21.44 |
4.2 Price Multiples
68.75% of the companies in the same industry are cheaper than OTIS, based on the Enterprise Value to EBITDA ratio.
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 | 26.52 | ||
| EV/EBITDA | 23.92 |
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)3.83
PEG (5Y)2.65
EPS Next 2Y9.05%
EPS Next 3Y9.23%
5. Dividend
5.1 Amount
OTIS has a Yearly Dividend Yield of 1.72%. Purely for dividend investing, there may be better candidates out there.
OTIS's Dividend Yield is a higher than the industry average which is at 1.83.
Compared to the average S&P500 Dividend Yield of 2.36, OTIS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
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
40.59% of the earnings are spent on dividend by OTIS. This is a bit on the high side, but may be sustainable.
DP40.59%
EPS Next 2Y9.05%
EPS Next 3Y9.23%
NYSE:OTIS (5/21/2025, 3:48:07 PM)
97.645
-0.56 (-0.58%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners93.98%
Inst Owner Change-1.75%
Ins Owners0.12%
Ins Owner Change5.65%
Market Cap38.54B
Analysts67.62
Price Target100.42 (2.84%)
Short Float %1.52%
Short Ratio2.03
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.72% |
Yearly Dividend1.51
Dividend Growth(5Y)N/A
DP40.59%
Div Incr Years4
Div Non Decr Years4
Ex-Date
Surprises & Revisions
EPS beat(2)0
Avg EPS beat(2)-2.58%
Min EPS beat(2)-4.23%
Max EPS beat(2)-0.93%
EPS beat(4)1
Avg EPS beat(4)-1.64%
Min EPS beat(4)-4.23%
Max EPS beat(4)1.27%
EPS beat(8)3
Avg EPS beat(8)0.44%
EPS beat(12)6
Avg EPS beat(12)1.21%
EPS beat(16)10
Avg EPS beat(16)2.02%
Revenue beat(2)0
Avg Revenue beat(2)-1.62%
Min Revenue beat(2)-2.5%
Max Revenue beat(2)-0.73%
Revenue beat(4)0
Avg Revenue beat(4)-2.89%
Min Revenue beat(4)-5.29%
Max Revenue beat(4)-0.73%
Revenue beat(8)1
Avg Revenue beat(8)-1.85%
Revenue beat(12)2
Avg Revenue beat(12)-1.89%
Revenue beat(16)4
Avg Revenue beat(16)-1.38%
PT rev (1m)-1.42%
PT rev (3m)-2%
EPS NQ rev (1m)-2.93%
EPS NQ rev (3m)-1.7%
EPS NY rev (1m)-1.49%
EPS NY rev (3m)-1.35%
Revenue NQ rev (1m)2.24%
Revenue NQ rev (3m)2.85%
Revenue NY rev (1m)1.11%
Revenue NY rev (3m)0.71%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.23 | ||
| Fwd PE | 21.44 | ||
| P/S | 2.72 | ||
| P/FCF | 26.52 | ||
| P/OCF | 24.36 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 23.92 |
EPS(TTM)3.87
EY3.96%
EPS(NY)4.55
Fwd EY4.66%
FCF(TTM)3.68
FCFY3.77%
OCF(TTM)4.01
OCFY4.1%
SpS35.91
BVpS-12.99
TBVpS-17.84
PEG (NY)3.83
PEG (5Y)2.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.73% | ||
| ROE | N/A | ||
| ROCE | 52.07% | ||
| ROIC | 40.85% | ||
| ROICexc | 96.49% | ||
| ROICexgc | N/A | ||
| OM | 12.07% | ||
| PM (TTM) | 10.83% | ||
| GM | 29.84% | ||
| FCFM | 10.25% |
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%
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-Score6
Asset Turnover1.27
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.79 | ||
| Debt/EBITDA | 3.68 | ||
| Cap/Depr | 72.07% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 83.7% | ||
| Profit Quality | 94.66% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 3.04 |
F-Score6
WACC9.87%
ROIC/WACC4.14
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)6.91%
EPS 3Y8.48%
EPS 5Y9.53%
EPS Q2Q%4.55%
EPS Next Y6.58%
EPS Next 2Y9.05%
EPS Next 3Y9.23%
EPS Next 5Y9.53%
Revenue 1Y (TTM)-0.88%
Revenue growth 3Y-0.09%
Revenue growth 5Y1.68%
Sales Q2Q%-2.53%
Revenue Next Year2.83%
Revenue Next 2Y3.58%
Revenue Next 3Y3.89%
Revenue Next 5Y2.84%
EBIT growth 1Y-25.28%
EBIT growth 3Y1.44%
EBIT growth 5Y3.66%
EBIT Next Year11.05%
EBIT Next 3Y9.16%
EBIT Next 5Y8.33%
FCF growth 1Y18.71%
FCF growth 3Y-3.4%
FCF growth 5Y1.65%
OCF growth 1Y18.59%
OCF growth 3Y-3.7%
OCF growth 5Y1.25%