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OTIS

Otis WorldwideNYSE:OTIS Stock Report

Last Price

US$83.11

Market Cap

US$35.3b

7D

-1.3%

1Y

28.1%

Updated

22 Jan, 2022

Data

Company Financials +
OTIS fundamental analysis
Snowflake Score
Valuation1/6
Future Growth1/6
Past Performance5/6
Financial Health2/6
Dividends2/6

OTIS Stock Overview

Otis Worldwide Corporation manufactures, installs, and services elevators and escalators in the United States, China, and internationally.

Otis Worldwide Competitors

Hitachi

TSE:6501

JP¥6.1t

KONE Oyj

HLSE:KNEBV

€30.6b

Schindler Holding

SWX:SCHN

CHF24.6b

thyssenkrupp

XTRA:TKA

€5.9b

Price History & Performance

Summary of all time highs, changes and price drops for Otis Worldwide
Historical stock prices
Current Share PriceUS$83.11
52 Week HighUS$92.84
52 Week LowUS$61.28
Beta0
1 Month Change-2.51%
3 Month Change-2.94%
1 Year Change28.10%
3 Year Changen/a
5 Year Changen/a
Change since IPO83.67%

Recent News & Updates

Dec 25
A Look At The Fair Value Of Otis Worldwide Corporation (NYSE:OTIS)

A Look At The Fair Value Of Otis Worldwide Corporation (NYSE:OTIS)

Does the December share price for Otis Worldwide Corporation ( NYSE:OTIS ) reflect what it's really worth? Today, we...

Dec 14

Otis: Strong Q3 Results, China Slowing But Likely Just Temporarily

Otis has continued to do well operationally in Q3, with sales growing 8.1% and EBIT growing 10.3% organically; currency was a tailwind. 2021 outlook has been raised, with sales growth now expected to be 8.5-9.0% and EPS growth expected to be 17%. The implied P/E is 28.8x. Buying out minorities in Zardoya Otis, a subsidiary in Southern Europe, is expected to add a mid-single-digit percentage to EPS in 2023. The Chinese market is expected to be flat in 2022 but recover thereafter; a prolonged downturn will hurt, but China is less than 20% of EBIT. With shares at $85.38, we expect a total return of 58% (16.5% annualized) by 2024 year-end. Buy.

Oct 10

Otis Worldwide Stock: Buy The Dip For A Nearly Risk Free Retirement Portfolio

Otis Worldwide became public somewhat recently via the spin-off from United Technologies. The business is legendary, having been around since 1853, and remains very stable to this day. The company has one of the best moats ever, with many barriers to entry for competition and a dominant market position which will stand the test of time. Otis has earnings growth ahead, but China Evergrande may cause an economic slowdown. However, the moat of the business still makes it one of the safest stocks in the market. The stock is of a high caliber, and the recent dip presents a buying opportunity for long-term investors focused on diversifying a retirement portfolio.

Shareholder Returns

OTISUS MachineryUS Market
7D-1.3%-5.1%-6.1%
1Y28.1%4.6%4.2%

Return vs Industry: OTIS exceeded the US Machinery industry which returned 4.6% over the past year.

Return vs Market: OTIS exceeded the US Market which returned 4.2% over the past year.

Price Volatility

Is OTIS's price volatile compared to industry and market?
OTIS volatility
OTIS Average Weekly Movement3.1%
Machinery Industry Average Movement5.1%
Market Average Movement6.7%
10% most volatile stocks in US Market15.5%
10% least volatile stocks in US Market2.4%

Stable Share Price: OTIS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: OTIS's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
185369,000Judy Markshttps://www.otis.com

Otis Worldwide Corporation manufactures, installs, and services elevators and escalators in the United States, China, and internationally. The company operates through two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects.

Otis Worldwide Fundamentals Summary

How do Otis Worldwide's earnings and revenue compare to its market cap?
OTIS fundamental statistics
Market CapUS$35.30b
Earnings (TTM)US$1.22b
Revenue (TTM)US$14.22b

29.0x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OTIS income statement (TTM)
RevenueUS$14.22b
Cost of RevenueUS$10.06b
Gross ProfitUS$4.17b
ExpensesUS$2.95b
EarningsUS$1.22b

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

Jan 31, 2022

Earnings per share (EPS)2.86
Gross Margin29.29%
Net Profit Margin8.55%
Debt/Equity Ratio-170.0%

How did OTIS perform over the long term?

See historical performance and comparison

Dividends

1.2%

Current Dividend Yield

31%

Payout Ratio

Valuation

Is Otis Worldwide undervalued compared to its fair value and its price relative to the market?

16.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OTIS ($83.11) is trading below our estimate of fair value ($99.29)

Significantly Below Fair Value: OTIS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OTIS is poor value based on its PE Ratio (29x) compared to the US Machinery industry average (27.7x).

PE vs Market: OTIS is poor value based on its PE Ratio (29x) compared to the US market (16.5x).


Price to Earnings Growth Ratio

PEG Ratio: OTIS is poor value based on its PEG Ratio (3.1x)


Price to Book Ratio

PB vs Industry: OTIS has negative assets, so we can't compare its PB Ratio to the US Machinery industry average.


Future Growth

How is Otis Worldwide forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

9.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OTIS's forecast earnings growth (9.5% per year) is above the savings rate (2%).

Earnings vs Market: OTIS's earnings (9.5% per year) are forecast to grow slower than the US market (12.9% per year).

High Growth Earnings: OTIS's earnings are forecast to grow, but not significantly.

Revenue vs Market: OTIS's revenue (2.8% per year) is forecast to grow slower than the US market (9.1% per year).

High Growth Revenue: OTIS's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if OTIS's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Otis Worldwide performed over the past 5 years?

9.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OTIS has high quality earnings.

Growing Profit Margin: OTIS's current net profit margins (8.6%) are higher than last year (6.9%).


Past Earnings Growth Analysis

Earnings Trend: OTIS's earnings have grown by 9.5% per year over the past 5 years.

Accelerating Growth: OTIS's earnings growth over the past year (39.3%) exceeds its 5-year average (9.5% per year).

Earnings vs Industry: OTIS earnings growth over the past year (39.3%) exceeded the Machinery industry 34.4%.


Return on Equity

High ROE: OTIS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.


Financial Health

How is Otis Worldwide's financial position?


Financial Position Analysis

Short Term Liabilities: OTIS has negative shareholder equity, which is a more serious situation than short term assets not covering short term liabilities.

Long Term Liabilities: OTIS has negative shareholder equity, which is a more serious situation than short term assets not covering long term liabilities.


Debt to Equity History and Analysis

Debt Level: OTIS has negative shareholder equity, which is a more serious situation than a high debt level.

Reducing Debt: OTIS's has negative shareholder equity, so we do not need to check if its debt has reduced over time.

Debt Coverage: OTIS's debt is well covered by operating cash flow (32.4%).

Interest Coverage: OTIS's interest payments on its debt are well covered by EBIT (16.9x coverage).


Balance Sheet


Dividend

What is Otis Worldwide current dividend yield, its reliability and sustainability?

1.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: OTIS's dividend (1.16%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.37%).

High Dividend: OTIS's dividend (1.16%) is low compared to the top 25% of dividend payers in the US market (3.61%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, OTIS has been paying a dividend for less than 10 years.

Growing Dividend: OTIS's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.1%), OTIS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: OTIS's dividends in 3 years are forecast to be well covered by earnings (37.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Judy Marks (57 yo)

1.75yrs

Tenure

US$11,987,312

Compensation

Mrs. Judith F. Marks, also known as Judy, serves as President and Chief Executive Officer at Otis Worldwide Corporation (also known as Otis Elevator Company, Inc) since April 2020 and also serves as a Dire...


CEO Compensation Analysis

Compensation vs Market: Judy's total compensation ($USD11.99M) is about average for companies of similar size in the US market ($USD11.47M).

Compensation vs Earnings: Judy's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: OTIS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: OTIS's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Otis Worldwide Corporation's employee growth, exchange listings and data sources


Key Information

  • Name: Otis Worldwide Corporation
  • Ticker: OTIS
  • Exchange: NYSE
  • Founded: 1853
  • Industry: Industrial Machinery
  • Sector: Capital Goods
  • Implied Market Cap: US$35.303b
  • Shares outstanding: 424.77m
  • Website: https://www.otis.com

Number of Employees


Location

  • Otis Worldwide Corporation
  • One Carrier Place
  • Farmington
  • Connecticut
  • 6032
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/01/22 23:26
End of Day Share Price2022/01/21 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.