OTIS Stock Overview
Otis Worldwide Corporation manufactures, installs, and services elevators and escalators in the United States, China, and internationally.
Otis Worldwide Competitors
Price History & Performance
|Historical stock prices|
|Current Share Price||US$83.11|
|52 Week High||US$92.84|
|52 Week Low||US$61.28|
|1 Month Change||-2.51%|
|3 Month Change||-2.94%|
|1 Year Change||28.10%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||83.67%|
Recent News & Updates
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...
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.
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.
|OTIS||US Machinery||US Market|
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.
|OTIS Average Weekly Movement||3.1%|
|Machinery Industry Average Movement||5.1%|
|Market Average Movement||6.7%|
|10% most volatile stocks in US Market||15.5%|
|10% least volatile stocks in US Market||2.4%|
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
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
|OTIS fundamental statistics|
Is OTIS overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|OTIS income statement (TTM)|
|Cost of Revenue||US$10.06b|
Last Reported Earnings
Sep 30, 2021
Next Earnings Date
Jan 31, 2022
|Earnings per share (EPS)||2.86|
|Net Profit Margin||8.55%|
How did OTIS perform over the long term?See historical performance and comparison
1.2%Current Dividend Yield
Is Otis Worldwide undervalued compared to its fair value and its price relative to the market?
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.
How is Otis Worldwide forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
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
How has Otis Worldwide performed over the past 5 years?
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.
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).
What is Otis Worldwide current dividend yield, its reliability and sustainability?
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).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Judy Marks (57 yo)
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.
Experienced Management: OTIS's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.
Experienced Board: OTIS's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Otis Worldwide Corporation's employee growth, exchange listings and data sources
- 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
- Otis Worldwide Corporation
- One Carrier Place
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/01/22 23:26|
|End of Day Share Price||2022/01/21 00:00|
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.