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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

OTISIndustryMarket
7 Day0.5%1.1%1.3%
30 Day6.2%2.3%5.1%
90 Day8.7%13.3%8.9%
1 Year58.5%56.5%93.2%88.6%56.6%53.8%
3 Yearn/a61.7%50.2%64.4%53.6%
5 Yearn/a158.7%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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/19 22:39
End of Day Share Price2021/04/19 00:00
Earnings2020/12/31
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.