Otis Worldwide Corp (OTIS) stock analysis

P/E below its 5-year median

Otis Worldwide's P/E of 19.3 is below its own 5-year median of 26.0.

P/E below the industry

Otis Worldwide's P/E of 19.3 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 32.5.

EV/EBITDA below its 5-year median

Otis Worldwide's EV/EBITDA of 14.9 is below its 5-year median of 18.5.

P/S below the industry

Otis Worldwide's price-to-sales of 1.95 is below the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of 3.12 (book value is negative, so we use sales).

Trading below fair value

The share price of $77.50 is below our fair value estimate of $102.27.

Margin of safety over 20%

The price is 24.2% below fair value, more than the 20% cushion we look for.

Revenue growing under 10% a year

Revenue grew 1.8% a year over the last three fiscal years, short of the 10% we look for.

EPS growing under 10% a year

Diluted EPS grew 5.7% a year over the last three fiscal years.

Earnings growth accelerating

Net income grew 15.5% over the last twelve months, against a 5-year average of 8.8% a year.

Growing slower than the industry

Revenue grew 5.8% over the last twelve months; the Electronic and Other Electrical Equipment and Components, except Computer Equipment median is 12.4%.

Guidance lowered

Otis Worldwide lowered its full year Adjusted operating profit outlook on Jul 22, 2026.

Gross margin trend

This company does not report gross profit.

Return on equity

Needs positive equity and five years of results.

Return on capital over 10%

Return on invested capital was 93.6%, above the 10% that usually covers the cost of capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 8.8% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 10.3% over the last twelve months, against a 5-year average of 9.8%.

Net margin above the industry

Otis Worldwide's net margin of 10.3% is above the Electronic and Other Electrical Equipment and Components, except Computer Equipment median of -0.2%.

Debt level

Needs debt and equity figures.

Debt trend

Needs a balance sheet from five years ago with positive equity.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 22.2% of total debt.

Interest well covered

Operating income covers interest expense 9.6 times.

Short-term assets don't cover short-term debts

Current assets are 0.86 times current liabilities.

Bankruptcy risk in the grey zone

The Altman Z-score is 2.99; above 3 is the safe zone and below 1.8 the distress zone.

Pays a dividend

Otis Worldwide paid dividends worth 2.2% of the share price over the last twelve months.

Yield below Treasuries

The 2.2% yield is below the 4.4% on a 1-year Treasury.

Yield below the top quarter

The top quarter of US dividend payers yield 3.8% or more; Otis Worldwide yields 2.2%.

Dividend not cut

The dividend per share has not fallen by more than 10% in any of the last 8 fiscal years.

Covered by earnings

Dividends take 42.5% of net income.

Covered by free cash flow

Dividends take 39.6% of free cash flow.