Otis Worldwide (OTIS) AI Stock Analysis

• Market Cap: $39.27B
• Dividend Yield: 1.68%
• Average Volume (3M): 2.19M
• Price to Earnings (P/E): 26.1
• Beta (1Y): 0.59
• Revenue Growth: -0.88%
• EPS Growth: 9.98%
• Country: US
• Employees: 72,000
• Sector: Industrials
• Sector Strength: 86
• Industry: Industrial - Machinery
• EPS (TTM): 0.92
• Shares Outstanding: 394,676,600
• 10 Day Avg. Volume: 2,540,416
• 30 Day Avg. Volume: 2,185,125
• PEG Ratio: 10.91
• Price to Book (P/B): -6.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 22.76
• Enterprise Value/Market Cap: 0.48
• Enterprise Value/Revenue: 0.33
• Enterprise Value/Gross Profit: 4.42
• Enterprise Value/Ebitda: 2.09
• 1Y Price Target: $99.20
• Price Target Upside: -0.31% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 5

• Rating: 69 Neutral
• Price Target: $104.00 ▲(4.51%Upside)

Otis Worldwide's strong financial performance, particularly in cash flow and service-driven growth, supports a positive outlook. The high leverage and negative equity on the balance sheet are key risks. Technical indicators show a lack of momentum, and the valuation suggests a premium price. Despite challenges in new equipment sales, the company's strategic focus on services and modernization positions it well for future growth.

Positive Factors

Modernization

Modernization orders in the Service segment rose by 18%, indicating a robust demand for updated services.

Orders

Americas Q4 orders increased by 15%, showcasing strong growth despite challenging market conditions.

Negative Factors

Earnings

OTIS reported a Q4 EPS that fell short of both Mse and Cons estimates, reflecting weaker than expected financial performance.

Operating Profit

Operating profit was 3% below expectations due to softer Service margins, impacting overall profitability.

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, 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. The Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. It had a network of approximately 34,000 service mechanics operating approximately 1,400 branches and offices. The company was founded in 1853 and is headquartered in Farmington, Connecticut.

How the Company Makes Money

Otis Worldwide generates revenue primarily through the sale and installation of elevators, escalators, and related equipment, as well as through the provision of maintenance and repair services. A significant portion of the company's earnings comes from service contracts and modernization projects, which involve upgrading existing systems to improve performance and safety. Otis maintains long-term relationships with building owners, developers, and construction companies, ensuring a steady stream of recurring revenue from maintenance and service agreements. The company's partnerships with key players in the real estate and construction industries also contribute to its financial success by facilitating access to large-scale projects and enhancing its market reach.

Otis Worldwide Financial Statement Overview

Summary

Otis Worldwide exhibits strong cash flow and profitability but faces concerns due to negative equity and high leverage. The income statement is robust, with healthy margins, while the balance sheet's negative equity suggests financial risks. Cash flow management is a strong point, providing stability.

Income Statement

Otis Worldwide demonstrates stable revenue with moderate growth over the years. The gross profit margin for the TTM is approximately 46.43%, and the net profit margin stands at around 10.83%, indicating solid profitability. However, there is a slight decline in revenue compared to the previous year, which is a minor concern. EBIT and EBITDA margins are healthy at 13.26% and 14.55% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet reveals a negative stockholders' equity, suggesting high leverage which could be a risk factor. The debt-to-equity ratio is not calculable due to negative equity, yet the equity ratio is negative as well, indicating financial instability. While the company manages its liabilities, the high debt levels are a potential concern.

Cash Flow

The company shows a strong cash flow with positive free cash flow and a healthy operating cash flow to net income ratio. Free cash flow growth is stable, providing a good cushion for financial operations. However, fluctuations in financing cash flow suggest potential volatility in financial strategies.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	14.17B	14.26B	14.21B	13.69B	14.30B	12.76B
Gross Profit	4.23B	4.26B	4.19B	3.92B	4.19B	3.78B
EBITDA	2.10B	2.22B	2.37B	2.22B	2.31B	1.83B
Net Income	1.53B	1.65B	1.41B	1.25B	1.25B	906.00M
Balance Sheet
Total Assets	11.18B	11.32B	10.12B	9.82B	12.28B	10.71B
Cash, Cash Equivalents and Short-Term Investments	1.92B	2.30B	1.27B	1.19B	1.56B	1.78B
Total Debt	8.72B	8.74B	7.31B	7.08B	7.61B	6.33B
Total Liabilities	16.17B	16.04B	14.84B	14.48B	15.26B	13.91B
Stockholders Equity	-5.13B	-4.85B	-4.92B	-4.87B	-3.63B	-3.83B
Cash Flow
Free Cash Flow	1.45B	1.44B	1.49B	1.45B	1.59B	1.30B
Operating Cash Flow	1.58B	1.56B	1.63B	1.56B	1.75B	1.48B
Investing Cash Flow	-317.00M	-164.00M	-183.00M	-33.00M	-89.00M	-353.00M
Financing Cash Flow	-199.00M	-309.00M	-1.35B	-3.65B	58.00M	-844.00M

Otis Worldwide Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 99.51
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OTIS, the sentiment is Positive. The current price of 99.51 is above the 20-day moving average (MA) of 96.78, above the 50-day MA of 96.27, and above the 200-day MA of 97.60, indicating a bullish trend. The MACD of 0.86 indicates Negative momentum. The RSI at 60.57 is Neutral, neither overbought nor oversold. The STOCH value of 84.88 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OTIS.

Otis Worldwide Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
WAB	81 Outperform	$36.60B	33.52	10.62%	0.47%	5.21%	24.15%
CARR	81 Outperform	$64.86B	17.36	25.69%	1.20%	0.14%	202.13%
EMR	76 Outperform	$78.61B	33.36	9.82%	1.53%	6.49%	24.14%
OTIS	69 Neutral	$39.27B	26.10	-33.93%	1.68%	-0.88%	9.98%
ROK	69 Neutral	$39.12B	43.70	25.86%	1.53%	-11.19%	-22.50%
IR	68 Neutral	$34.92B	42.79	8.09%	0.09%	5.27%	0.61%
Sector *	67 Neutral	€8.39B	18.63	6.19%	2.67%	2.39%	-39.55%

Otis Worldwide Corporate Events

Otis Worldwide Holds Annual Shareholders Meeting

On May 15, 2025, Otis Worldwide Corporation held its Annual Meeting of Shareholders, where key decisions were made. The election of directors for the upcoming term was confirmed, while a proposal for executive compensation was not approved. Additionally, PricewaterhouseCoopers LLP was appointed as the independent auditor for 2025, and a proposal on political contributions reporting was rejected.

The most recent analyst rating on (OTIS) stock is a Sell with a $94.00 price target. To see the full list of analyst forecasts on Otis Worldwide stock, see the OTIS Stock Forecast page.