Otis Worldwide (OTIS)
NYSE:OTIS
Top Page
Otis Worldwide
(NYSE:OTIS)
Select Model
Select Model
Rating:64Neutral
Price Target:
$83.00
ā²(3.81% Upside)
Action:UpgradedDate:01/29/26
The score is driven primarily by durable profitability and strong, consistent free cash flow plus constructive 2026 guidance led by service/modernization. These positives are weighed down by elevated financial risk from high debt and negative equity, with technicals and valuation both reading as neutral-to-slightly-cautious.
Positive Factors
Free Cash Flow & Cash Generation
Consistent, high free cash flow (~$1.6B in 2025) underpins durable financial flexibility: it funds dividends, buybacks and targeted M&A while supporting reinvestment in service and modernization programs. Strong cash conversion also validates reported earnings quality and funds long-term strategic initiatives.
Negative Factors
High Leverage & Negative Equity
Elevated debt (~$8.8B) paired with persistently negative shareholdersā equity materially weakens financial flexibility. High leverage raises interest and refinancing risk, constrains balance-sheet actions in downturns, and limits the pace of deleveraging even given solid cash generation.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow & Cash Generation
Consistent, high free cash flow (~$1.6B in 2025) underpins durable financial flexibility: it funds dividends, buybacks and targeted M&A while supporting reinvestment in service and modernization programs. Strong cash conversion also validates reported earnings quality and funds long-term strategic initiatives.
Read all positive factors
Otis Worldwide (OTIS) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$31.08B
Dividend Yield1.88%
Average Volume (3M)3.55M
Price to Earnings (P/E)24.8
Beta (1Y)0.57
Revenue Growth0.73%
EPS Growth-15.57%
CountryUS
Employees72,000
SectorIndustrials
Sector Strength72
IndustryIndustrial - Machinery
Share Statistics
EPS (TTM)1.03
Shares Outstanding388,720,760
10 Day Avg. Volume2,433,633
30 Day Avg. Volume3,549,000
Financial Highlights & Ratios
PEG Ratio-1.79
Price to Book (P/B)-6.38
Price to Sales (P/S)2.38
P/FCF Ratio23.81
Enterprise Value/Market Cap1.25
Enterprise Value/Revenue2.69
Enterprise Value/Gross Profit8.88
Enterprise Value/Ebitda16.82
Forecast
1Y Price Target
$97.86Price Target Upside22.40% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)4.29
Revenue Forecast (FY)$15.10B
Otis Worldwide Business Overview & Revenue Model
Company Description
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, manufact...
How the Company Makes Money
Otis primarily makes money through two major revenue streams: (1) equipment sales and installation, and (2) service. Equipment revenue is generated from selling and installing new elevators, escalators, and moving walkways on customer construction...
Otis Worldwide Key Performance Indicators (KPIs)
Any
Remaining Performance Obligations
Indicates the total value of contracted work that has yet to be completed, providing a glimpse into future revenue streams and business stability.
Indicates the total value of contracted work that has yet to be completed, providing a glimpse into future revenue streams and business stability.
Data provided by:
The Fly
The FlyOtis Worldwide Earnings Call Summary
Earnings Call Date:Jan 28, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 22, 2026
Earnings Call Sentiment Positive
The call highlighted strong service-driven performance, record cash generation, accelerating modernization demand and meaningful product and connectivity progress. These positives are tempered by persistent weakness and structural churn in China, near-term new equipment headwinds and some tariff/interest pressures. Management provided constructive 2026 guidance (mid-to-high single digit EPS growth, $15.0ā$15.3B sales range, $1.6ā$1.7B free cash flow) while retaining a conservative tone. On balance, operational momentum, strong cash flow and backlog growth outweigh the regional and equipment-related challenges.Positive Updates
Record Quarterly and Annual Free Cash Flow
Q4 adjusted free cash flow was a record $817 million; full-year adjusted free cash flow was approximately $1.6 billion, supporting $1.5 billion returned to shareholders in 2025.
Negative Updates
New Equipment Sales Weakness and Margin Pressure
Q4 new equipment organic sales declined 6%; new equipment operating profit fell $15 million at constant currency and new equipment margin contracted ~110 basis points to 3.6%. New equipment backlog grew only 2% year-over-year (excluding China +9%).
Read all updates
Q4-2025 Updates
Positive
Negative
Record Quarterly and Annual Free Cash Flow
Q4 adjusted free cash flow was a record $817 million; full-year adjusted free cash flow was approximately $1.6 billion, supporting $1.5 billion returned to shareholders in 2025.
Read all positive updates
Company Guidance
Otis guided 2026 for organic sales growth of lowā to midāsingle digits (total net sales $15.0ā$15.3B), driven by service (service organic growth midā to highāsingle digits, Q1 service organic ā6%) while new equipment is expected to be down lowāsingleādigits to flat; management expects a oneātoātwoāpoint improvement in service growth vs. 2025, modernization revenue āin the teensā on strong backlog (modernization backlog +30% YoY) and repair accelerating (targeting >10% repair growth). Financials: constantācurrency service operating profit to increase by ~$200M YoY, adjusted EPS to grow midā to highāsingle digits (Q1 EPS ~flat), adjusted free cash flow $1.6ā$1.7B, dividend payout target ~40% and ~$800M of share repurchases. Management noted China should moderate (market down ~8% in 2026, weighing earlyāyear sales) and emphasized continued margin and productivity gains from the service flywheel.Otis Worldwide Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
34
Negative
Cash Flow
76
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.43B | 14.26B | 14.21B | 13.69B | 14.30B |
| Gross Profit | 4.37B | 4.26B | 4.19B | 3.92B | 4.19B |
| EBITDA | 2.31B | 2.23B | 2.44B | 2.26B | 2.31B |
| Net Income | 1.38B | 1.65B | 1.41B | 1.25B | 1.25B |
Balance Sheet | |||||
| Total Assets | 10.65B | 11.32B | 10.12B | 9.82B | 12.28B |
| Cash, Cash Equivalents and Short-Term Investments | 1.10B | 2.30B | 1.27B | 1.19B | 1.56B |
| Total Debt | 8.75B | 8.74B | 7.31B | 7.21B | 7.79B |
| Total Liabilities | 15.92B | 16.04B | 14.84B | 14.48B | 15.26B |
| Stockholders Equity | -5.39B | -4.85B | -4.92B | -4.87B | -3.63B |
Cash Flow | |||||
| Free Cash Flow | 1.44B | 1.44B | 1.49B | 1.45B | 1.59B |
| Operating Cash Flow | 1.60B | 1.56B | 1.63B | 1.56B | 1.75B |
| Investing Cash Flow | -406.00M | -239.00M | -183.00M | -33.00M | -89.00M |
| Financing Cash Flow | -2.42B | -234.00M | -1.35B | -3.65B | 58.00M |
Otis Worldwide Technical Analysis
Neutral
79.95
Price Trends
85.39
Negative
86.70
Negative
88.45
Negative
Market Momentum
-1.85
Negative
45.49
Neutral
87.96
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTIS, the sentiment is Neutral. The current price of 79.95 is above the 20-day moving average (MA) of 79.19, below the 50-day MA of 85.39, and below the 200-day MA of 88.45, indicating a neutral trend. The MACD of -1.85 indicates Negative momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 87.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for OTIS.
Otis Worldwide Risk Analysis
Otis Worldwide disclosed 27 risk factors in its most recent earnings report. Otis Worldwide reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Otis Worldwide Peers Comparison
UnderperformOutperform
Sector (63)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $124.23B | 32.82 | 25.65% | 0.79% | 0.22% | 26.66% | |
72 Outperform | $77.96B | 23.48 | 95.18% | 2.43% | -0.41% | -10.88% | |
70 Outperform | $33.44B | 54.24 | 5.70% | 0.10% | 4.20% | -34.47% | |
69 Neutral | $80.84B | 30.81 | 11.60% | 1.58% | 2.97% | 18.14% | |
68 Neutral | $44.49B | 35.94 | 27.69% | 1.33% | 0.98% | -7.51% | |
64 Neutral | $31.08B | 24.85 | -25.98% | 1.88% | 0.73% | -15.57% | |
63 Neutral | $10.79B | 15.43 | 7.44% | 2.01% | 2.89% | -14.66% |
* Industrials Sector Average
OTIS
Otis Worldwide
79.95
-16.78
-17.35%
EMR
Emerson Electric Company
143.77
44.38
44.66%
ITW
Illinois Tool Works
270.52
42.73
18.76%
PH
Parker Hannifin
984.23
419.84
74.39%
ROK
Rockwell Automation
396.00
166.11
72.25%
IR
Ingersoll Rand
85.38
12.08
16.48%
Otis Worldwide Corporate Events
Business Operations and StrategyExecutive/Board Changes
Otis Worldwide Appoints Enrique MiƱarro Viseras as COO
Positive
Jan 20, 2026
On January 13, 2026, Otis Worldwide’s board appointed Enrique Miñarro Viseras as Chief Operating Officer, effective January 16, 2026, following his tenure as President of Otis EMEA and later Otis EMEA Latin America since October 2023 a...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.