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$65.78|
|52 Week High||US$88.22|
|52 Week Low||US$64.76|
|1 Month Change||-12.56%|
|3 Month Change||-5.92%|
|1 Year Change||-22.48%|
|3 Year Change||n/a|
|5 Year Change||n/a|
|Change since IPO||45.37%|
Recent News & Updates
Otis Worldwide Corporation's (NYSE:OTIS) Intrinsic Value Is Potentially 27% Above Its Share Price
How far off is Otis Worldwide Corporation ( NYSE:OTIS ) from its intrinsic value? Using the most recent financial data...
Otis Worldwide: Shares Are Nearing An Inflection Point
Summary Otis Worldwide has started to show real signs of weakening on both its top and bottom lines, and management recently revised down their expectations for the year. Shares of the business have also seen nice upside and are now trading at lofty levels. If shares rise much more without a corresponding improvement to the firm's results, it could warrant downside moving forward.
|OTIS||US Machinery||US Market|
Return vs Industry: OTIS underperformed the US Machinery industry which returned -19.5% over the past year.
Return vs Market: OTIS matched the US Market which returned -23.1% over the past year.
|OTIS Average Weekly Movement||3.4%|
|Machinery Industry Average Movement||5.3%|
|Market Average Movement||6.9%|
|10% most volatile stocks in US Market||15.8%|
|10% least volatile stocks in US Market||2.8%|
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 in 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$10.00b|
Last Reported Earnings
Jun 30, 2022
Next Earnings Date
|Earnings per share (EPS)||2.96|
|Net Profit Margin||8.83%|
How did OTIS perform over the long term?See historical performance and comparison
1.8%Current Dividend Yield
Is OTIS undervalued compared to its fair value, analyst forecasts and its price relative to the market?
Valuation Score 4/6
Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Key Valuation Metric
Which metric is best to use when looking at relative valuation for OTIS?
Other financial metrics that can be useful for relative valuation.
|What is OTIS's n/a Ratio?|
Price to Earnings Ratio vs Peers
How does OTIS's PE Ratio compare to its peers?
|OTIS PE Ratio vs Peers|
|Company||PE||Estimated Growth||Market Cap|
IR Ingersoll Rand
OTIS Otis Worldwide
Price-To-Earnings vs Peers: OTIS is good value based on its Price-To-Earnings Ratio (22.2x) compared to the peer average (26x).
Price to Earnings Ratio vs Industry
How does OTIS's PE Ratio compare vs other companies in the US Machinery Industry?
Price-To-Earnings vs Industry: OTIS is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the US Machinery industry average (18.4x)
Price to Earnings Ratio vs Fair Ratio
What is OTIS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.
|Current PE Ratio||22.2x|
|Fair PE Ratio||22.2x|
Price-To-Earnings vs Fair Ratio: OTIS is expensive based on its Price-To-Earnings Ratio (22.2x) compared to the estimated Fair Price-To-Earnings Ratio (22.2x).
Share Price vs Fair Value
What is the Fair Price of OTIS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: OTIS ($65.78) is trading below our estimate of fair value ($96.1)
Significantly Below Fair Value: OTIS is trading below fair value by more than 20%.
Analyst Price Targets
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.
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How is Otis Worldwide forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
Future Growth Score1/6
Future Growth Score 1/6
Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: OTIS's forecast earnings growth (8.7% per year) is above the savings rate (1.9%).
Earnings vs Market: OTIS's earnings (8.7% per year) are forecast to grow slower than the US market (14.7% per year).
High Growth Earnings: OTIS's earnings are forecast to grow, but not significantly.
Revenue vs Market: OTIS's revenue (4% per year) is forecast to grow slower than the US market (7.6% per year).
High Growth Revenue: OTIS's revenue (4% 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
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How has Otis Worldwide performed over the past 5 years?
Past Performance Score3/6
Past Performance Score 3/6
Growing Profit Margin
Earnings vs Industry
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: OTIS has high quality earnings.
Growing Profit Margin: OTIS's current net profit margins (8.8%) are higher than last year (8.3%).
Past Earnings Growth Analysis
Earnings Trend: OTIS's earnings have grown by 10.6% per year over the past 5 years.
Accelerating Growth: OTIS's earnings growth over the past year (8.1%) is below its 5-year average (10.6% per year).
Earnings vs Industry: OTIS earnings growth over the past year (8.1%) underperformed the Machinery industry 9.4%.
Return on Equity
High ROE: OTIS's liabilities exceed its assets, so it is difficult to calculate its Return on Equity.
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How is Otis Worldwide's financial position?
Financial Health Score2/6
Financial Health Score 2/6
Short Term Liabilities
Long Term Liabilities
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 (22.3%).
Interest Coverage: OTIS's interest payments on its debt are well covered by EBIT (14.2x coverage).
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What is Otis Worldwide current dividend yield, its reliability and sustainability?
Dividend Score 3/6
Cash Flow Coverage
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: OTIS's dividend (1.76%) is higher than the bottom 25% of dividend payers in the US market (1.65%).
High Dividend: OTIS's dividend (1.76%) is low compared to the top 25% of dividend payers in the US market (4.57%).
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.
Earnings Payout to Shareholders
Earnings Coverage: With its reasonably low payout ratio (34.4%), OTIS's dividend payments are well covered by earnings.
Cash Payout to Shareholders
Cash Flow Coverage: With its reasonably low cash payout ratio (35.8%), OTIS's dividend payments are well covered by cash flows.
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How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Judy Marks (58 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, has been its Chair since...
CEO Compensation Analysis
Compensation vs Market: Judy's total compensation ($USD13.77M) is about average for companies of similar size in the US market ($USD13.05M).
Compensation vs Earnings: Judy's compensation has been consistent with company performance over the past year.
Experienced Management: OTIS's management team is considered experienced (2.4 years average tenure).
Experienced Board: OTIS's board of directors are not considered experienced ( 2.4 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: OTIS insiders have only sold shares in the past 3 months.
Recent Insider Transactions
|08 Aug 22||SellUS$237,172||Michael Ryan||Individual||2,983||US$79.51|
|02 Aug 22||SellUS$45,554||Rahul Ghai||Individual||585||US$77.87|
|29 Jul 22||SellUS$867,367||Nora LaFreniere||Individual||11,332||US$76.54|
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
|Ownership||Name||Shares||Current Value||Change %||Portfolio %|
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$27.643b
- Shares outstanding: 420.23m
- Website: https://www.otis.com
Number of Employees
- Otis Worldwide Corporation
- One Carrier Place
- United States
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|OTIS *||BMV (Bolsa Mexicana de Valores)||Yes||Common Stock||MX||MXN||Mar 2020|
|OTIS||NYSE (New York Stock Exchange)||Yes||Common Stock||US||USD||Mar 2020|
|4PG||DB (Deutsche Boerse AG)||Yes||Common Stock||DE||EUR||Mar 2020|
|OTIS||WBAG (Wiener Boerse AG)||Yes||Common Stock||AT||EUR||Mar 2020|
|O1TI34||BOVESPA (Bolsa de Valores de Sao Paulo)||BDR EACH 10 REPR 1 COM NPV||BR||BRL||Oct 2020|
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2022/09/25 00:00|
|End of Day Share Price||2022/09/23 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.