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OTIS

Otis Worldwide NYSE:OTIS Stock Report

Last Price

US$65.78

Market Cap

US$27.6b

7D

-3.0%

1Y

-22.5%

Updated

25 Sep, 2022

Data

Company Financials +
OTIS fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance3/6
Financial Health2/6
Dividends3/6

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

Summary of all time highs, changes and price drops for Otis Worldwide
Historical stock prices
Current Share PriceUS$65.78
52 Week HighUS$88.22
52 Week LowUS$64.76
Beta0.77
1 Month Change-12.56%
3 Month Change-5.92%
1 Year Change-22.48%
3 Year Changen/a
5 Year Changen/a
Change since IPO45.37%

Recent News & Updates

Aug 29
Otis Worldwide Corporation's (NYSE:OTIS) Intrinsic Value Is Potentially 27% Above Its Share Price

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...

Aug 29

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.

Shareholder Returns

OTISUS MachineryUS Market
7D-3.0%-5.4%-5.2%
1Y-22.5%-19.5%-23.0%

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.

Price Volatility

Is OTIS's price volatile compared to industry and market?
OTIS volatility
OTIS Average Weekly Movement3.4%
Machinery Industry Average Movement5.3%
Market Average Movement6.9%
10% most volatile stocks in US Market15.8%
10% least volatile stocks in US Market2.8%

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

FoundedEmployeesCEOWebsite
185370,000Judy Markshttps://www.otis.com

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

How do Otis Worldwide's earnings and revenue compare to its market cap?
OTIS fundamental statistics
Market CapUS$27.64b
Earnings (TTM)US$1.24b
Revenue (TTM)US$14.09b

22.2x

P/E Ratio

2.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
OTIS income statement (TTM)
RevenueUS$14.09b
Cost of RevenueUS$10.00b
Gross ProfitUS$4.09b
Other ExpensesUS$2.84b
EarningsUS$1.24b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.96
Gross Margin29.01%
Net Profit Margin8.83%
Debt/Equity Ratio-140.6%

How did OTIS perform over the long term?

See historical performance and comparison

Dividends

1.8%

Current Dividend Yield

34%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is OTIS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

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

  • Analyst Forecast

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.

OTIS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2.4x
Enterprise Value/EBITDA14.5x
PEG Ratio2.5x

Price to Earnings Ratio vs Peers

How does OTIS's PE Ratio compare to its peers?

OTIS PE Ratio vs Peers
The above table shows the PE ratio for OTIS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average26x
PH Parker-Hannifin
23.9x18.3%US$31.4b
FTV Fortive
32.3x15.6%US$21.3b
IR Ingersoll Rand
33.2x18.1%US$17.8b
DOV Dover
14.7x6.5%US$16.8b
OTIS Otis Worldwide
22.2x8.7%US$27.6b

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.

OTIS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio22.2x
Fair PE Ratio22.2x

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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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.7%

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


Discover growth companies

Past Performance

How has Otis Worldwide performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


10.6%

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.


Discover strong past performing companies

Financial Health

How is Otis Worldwide's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

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).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


1.76%

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.


Discover strong dividend paying companies

Management

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

2.4yrs

Average management tenure


CEO

Judy Marks (58 yo)

2.42yrs

Tenure

US$13,770,306

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, 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.


Leadership Team

Experienced Management: OTIS's management team is considered experienced (2.4 years average tenure).


Board Members

Experienced Board: OTIS's board of directors are not considered experienced ( 2.4 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

NYSE:OTIS Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
08 Aug 22SellUS$237,172Michael RyanIndividual2,983US$79.51
02 Aug 22SellUS$45,554Rahul GhaiIndividual585US$77.87
29 Jul 22SellUS$867,367Nora LaFreniereIndividual11,332US$76.54

Ownership Breakdown

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


Top Shareholders

Top 25 shareholders own 51.6% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
9.42%
The Vanguard Group, Inc.
39,570,876$2.6b1.13%0.06%
8.51%
BlackRock, Inc.
35,781,471$2.4b5.6%0.06%
3.84%
State Street Global Advisors, Inc.
16,150,042$1.1b-2.45%0.06%
2.47%
Fiera Capital Corporation
10,382,608$683.0m3.56%0.94%
2.41%
Massachusetts Financial Services Company
10,125,675$666.1m-3.22%0.17%
2.34%
AllianceBernstein L.P.
9,836,416$647.0m9.47%0.26%
2.29%
Morgan Stanley Investment Management Inc.
9,603,223$631.7m-1.31%0.48%
2.28%
Geode Capital Management, LLC
9,579,652$630.1m3.59%0.08%
1.52%
Capital Research and Management Company
6,386,516$420.1m-10.62%0.03%
1.49%
BLS Capital
6,272,715$412.6m0%9.47%
1.27%
Dodge & Cox
5,345,522$351.6m0%0.2%
1.26%
J.P. Morgan Asset Management, Inc.
5,295,021$348.3m10.85%0.06%
1.15%
Wellington Management Group LLP
4,848,589$318.9m14.85%0.06%
1.13%
Northern Trust Global Investments
4,739,526$311.8m-0.05%0.06%
1.09%
Invesco Ltd.
4,583,715$301.5m1.81%0.1%
1.05%
Boston Partners Global Investors, Inc.
4,410,653$290.1m10.66%0.24%
0.99%
BNY Mellon Asset Management
4,145,084$272.7m4.45%0.06%
0.95%
FMR LLC
4,009,534$263.7m-25.52%0.02%
0.95%
Lazard Asset Management LLC
3,983,133$262.0m2.22%0.25%
0.92%
Norges Bank Investment Management
3,849,548$253.2m0%0.03%
0.9%
T. Rowe Price Group, Inc.
3,798,975$249.9m-4.14%0.03%
0.88%
Goldman Sachs Asset Management, L.P.
3,709,763$244.0m10.16%0.1%
0.86%
Sarasin & Partners LLP
3,621,344$238.2m-2.27%1.66%
0.83%
AKO Capital LLP
3,498,532$230.1m-10.05%3.27%
0.79%
CIBC Private Wealth Advisors, Inc.
3,325,835$218.8m1.1%0.57%

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$27.643b
  • Shares outstanding: 420.23m
  • Website: https://www.otis.com

Number of Employees


Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OTIS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNMar 2020
OTISNYSE (New York Stock Exchange)YesCommon StockUSUSDMar 2020
4PGDB (Deutsche Boerse AG)YesCommon StockDEEURMar 2020
OTISWBAG (Wiener Boerse AG)YesCommon StockATEURMar 2020
O1TI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 10 REPR 1 COM NPVBRBRLOct 2020

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.