Otis Worldwide
Market Cap
US$30.3b
Last Updated
2021/04/19 22:39 UTC
Data Sources
Company Financials +
Executive Summary
Otis Worldwide Corporation manufactures, installs, and services elevators and escalators in the United States, China, and internationally. More Details
Snowflake Analysis
Imperfect balance sheet unattractive dividend payer.
Similar Companies
Share Price & News
How has Otis Worldwide's share price performed over time and what events caused price changes?
Latest Share Price and Events
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.
Market Performance
7 Day Return
0.5%
OTIS
1.1%
US Machinery
1.3%
US Market
1 Year Return
56.5%
OTIS
88.6%
US Machinery
53.8%
US Market
Return vs Industry: OTIS underperformed the US Machinery industry which returned 88.6% over the past year.
Return vs Market: OTIS matched the US Market which returned 53.8% over the past year.
Shareholder returns
| OTIS | Industry | Market | |
|---|---|---|---|
| 7 Day | 0.5% | 1.1% | 1.3% |
| 30 Day | 6.2% | 2.3% | 5.1% |
| 90 Day | 8.7% | 13.3% | 8.9% |
| 1 Year | 58.5%56.5% | 93.2%88.6% | 56.6%53.8% |
| 3 Year | n/a | 61.7%50.2% | 64.4%53.6% |
| 5 Year | n/a | 158.7%132.4% | 120.4%95.7% |
Long-Term Price Volatility Vs. Market
How volatile is Otis Worldwide's share price compared to the market and industry in the last 5 years?
Simply Wall St News
6 days ago | Simply Wall St
A Look At The Intrinsic Value Of Otis Worldwide Corporation (NYSE:OTIS)3 weeks ago | Simply Wall St
Did Otis Worldwide's (NYSE:OTIS) Share Price Deserve to Gain 51%?1 month ago | Simply Wall St
Should Otis Worldwide Corporation (NYSE:OTIS) Be Part Of Your Dividend Portfolio?Valuation
Is Otis Worldwide undervalued compared to its fair value and its price relative to the market?
33.96x
Price to Earnings (PE) ratio
Share Price vs. Fair Value
Below Fair Value: OTIS ($70.58) is trading above our estimate of fair value ($59.23)
Significantly Below Fair Value: OTIS is trading above our estimate of fair value.
Price To Earnings Ratio
PE vs Industry: OTIS is good value based on its PE Ratio (33.7x) compared to the US Machinery industry average (35.8x).
PE vs Market: OTIS is poor value based on its PE Ratio (33.7x) compared to the US market (22.4x).
Price to Earnings Growth Ratio
PEG Ratio: OTIS is poor value based on its PEG Ratio (5.6x)
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 10 analysts?
6.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OTIS's forecast earnings growth (6% per year) is above the savings rate (2%).
Earnings vs Market: OTIS's earnings (6% per year) are forecast to grow slower than the US market (17.9% per year).
High Growth Earnings: OTIS's earnings are forecast to grow, but not significantly.
Revenue vs Market: OTIS's revenue (3.7% per year) is forecast to grow slower than the US market (9.3% per year).
High Growth Revenue: OTIS's revenue (3.7% 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?
-18.7%
Last years earnings growth
Earnings and Revenue History
Quality Earnings: OTIS has high quality earnings.
Growing Profit Margin: OTIS's current net profit margins (7.1%) are lower than last year (8.5%).
Past Earnings Growth Analysis
Earnings Trend: Insufficient data to determine if OTIS's year-on-year earnings growth rate was positive over the past 5 years.
Accelerating Growth: OTIS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: OTIS had negative earnings growth (-18.7%) over the past year, making it difficult to compare to the Machinery industry average (-14.7%).
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 (24.8%).
Interest Coverage: OTIS's interest payments on its debt are well covered by EBIT (15.3x coverage).
Balance Sheet
Dividend
What is Otis Worldwide current dividend yield, its reliability and sustainability?
1.13%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OTIS's dividend (1.13%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.24%).
High Dividend: OTIS's dividend (1.13%) is low compared to the top 25% of dividend payers in the US market (3.46%).
Stability and Growth of Payments
Stable Dividend: Too early to tell whether OTIS's dividend payments have been stable as they only just started paying a dividend.
Growing Dividend: Too early to tell if OTIS's dividend payments are increasing as they only just started paying a dividend.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (28.7%), 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 (32.8% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.0yrs
Average management tenure
CEO
Judy Marks (56 yo)
1
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 ($USD11.16M).
Compensation vs Earnings: Judy's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: OTIS's management team is not considered experienced ( 1 years average tenure), which suggests a new team.
Board Members
Experienced Board: OTIS's board of directors are not considered experienced ( 1 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: OTIS insiders have only sold shares 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 company bio, 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
- Market Cap: US$30.334b
- Shares outstanding: 429.78m
- Website: https://www.otis.com
Number of Employees
Location
- Otis Worldwide Corporation
- One Carrier Place
- Farmington
- Connecticut
- 6032
- United States
Listings
Biography
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 Servi...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/19 22:39 |
| End of Day Share Price | 2021/04/19 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.