OTIS
Otis Worldwide
$74.60
▲ 1.0%Updated Aug 7, 11:30 AM ET
OTIS at a glance — five pillars scored 0–100 from real filed financials.
Overall: Neutral · 54/100. A wider, greener shape means more pillars look healthy. Dividends scores 0 when a company pays none — that is a choice, not a flaw.
▼ Down 23.4% over the last 12 months
Market Cap
$28.06B
P/E
18.88x
Forward P/E (est.)
19.09x
ROE
14.9%
Revenue Growth
3.3%
EPS Growth
-1.1%
Profit Margin
10.1%
FCF Yield
5.4%
Debt / Equity
0.02x
ROIC
89.0%
Interest Coverage
—
Current Ratio
0.84x
Dividend Yield
2.5%
Implied Growth (rev. DCF)
3.7%
Rating Score
54/100
Otis Worldwide (OTIS) is a large-cap company in the Industrial Machinery & Supplies & Components industry, part of the Industrials sector of the S&P 500, with a market value around $28.06B.
In its latest reported year it generated about $14.43B in revenue and $1.38B in net profit.
Our model rates OTIS Neutral (54/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.
Evidence of durable competitive advantage in the filed financials (8 years of history).
Some durable-advantage evidence, but not across the board — dig into which ingredient is weak and whether it's cyclical or structural.
14.7% average over the last 3 years
±0.7 pts around 14.3% across 8 years
grew in 5 of the last 7 year-over-year periods
positive in 8 of 8 years
89.0% latest fiscal year
A moat can't be proven by numbers alone — this scores the evidence a durable advantage leaves behind (pricing power, consistency, returns on capital), computed the same way for every stock. Pair it with the business overview before concluding anything.
Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what OTIS's chart says today, with each tool explained.
Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. OTIS trades near $74.60, around its 50-day average ($73.13) and 200-day average ($84.13). Price tangled in its moving averages means there is no clear trend — the stock is ranging.
Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 61 it is in neutral territory — neither stretched nor washed out.
MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently positive — short-term momentum is improving.
Volatility — ATR. Average True Range is the typical daily move. OTIS's is $1.70 (~2.3% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.
Support & resistance. Over the last month OTIS found buyers near $69.27 (support) and sellers near $75.29 (resistance); its 52-week range is $69.16–$101.42. A decisive break beyond either edge often marks the next move.
Volume. The latest session traded 0.8× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.
Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.
4Y CAGR
0.2%
Revenue moved from $12.91B in 2018 to $14.43B in 2025, a 1.6% compound annual growth rate. The most recent year was roughly flat (3.3%) year over year. Slower, mature growth is common for established businesses.
Gross Margin
30.4%
Operating Margin
14.8%
Net Margin
9.6%
ROE
14.9%
Otis Worldwide keeps about 10.1% of each sales dollar as net profit, with a 30.4% gross margin and 14.8% operating margin. Return on equity is 14.9% and return on invested capital about 89.0%. Margins are moderate — typical of a competitive but profitable business.
Total Debt
$7.57B
Net Debt
$6.74B
Net Debt / EBITDA
3.16x
Debt / Equity
0.02x
Leverage: debt-to-equity is 0.0x, with a current ratio of 0.8x. That is a conservative balance sheet — a cushion in downturns. It carries roughly $7.57B of total debt against $834.00M of cash.
Operating CF
$1.60B
Free Cash Flow
$1.44B
FCF Margin
10.0%
In the latest year Otis Worldwide produced about $1.60B of operating cash flow and $1.44B of free cash flow after capital spending. That is a free-cash-flow yield of about 5.4% on today's price. Strong cash generation funds dividends, buybacks, and reinvestment.
Can the payout survive a bad year? Scored from filed cash flow, earnings coverage, and the raise/cut record.
The payout is comfortably covered by cash the business actually generates, with a raise habit behind it.
Dividend yield
2.5%
Per share (latest FY)
$1.65
Total paid (latest FY)
$647.00M
History on record
6 years
dividend uses 45% of free cash flow
47% of net income paid out
total dividends increased 5 years in a row
no cuts in the last 6 years on record
Coverage uses the latest fiscal year as filed with the SEC; the streak counts total dollars paid (per-share figures can carry split artifacts). Educational information, not income advice.
P/E
18.88x
P/S
1.91x
P/B
—
EV / EBITDA
—
OTIS trades at 18.9x trailing earnings (about 19.1x on estimated forward earnings), 1.9x sales. Reverse-engineering today's price implies the market expects roughly 3.7% long-term free-cash-flow growth. That is a fairly typical valuation for a profitable company.
A two-stage discounted cash flow on real SEC-filed free cash flow — the intrinsic-value anchor professional analysts triangulate from.
DCF fair value / share
$62.24
Current price
$74.60
Starting FCF (latest 10-K)
$1.44B
Growth, years 1–5
3.3%
Fade to terminal, years 6–10
2.5%
Discount rate
9.0%
Cash flows grow at the stage-1 rate (trailing revenue growth, capped at 20%) for five years, fade to 2.5% by year 10, and continue at that rate forever (Gordon terminal value), all discounted at 9.0%. Small changes in assumptions move the result a lot — treat this as one reference point, not a target price. Educational only, not investment advice.
Where OTIS sits versus its Industrials sector peers in the S&P 500.
Bands show the middle half (25th–75th percentile) of the 144 Industrials companies in the S&P 500 — the peer-relative anchor professional comps analysis uses. Context only — not investment advice.
How OTIS stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.
In the Industrials sector (273 S&P 500 companies), OTIS ranks #51 of 273 by our overall rating. It trades at a discount versus the sector on earnings (18.9x P/E vs. 32x median) with a lower return on equity (14.9% vs. 18.1%) and slower revenue growth (3.3% vs. 6.0%).
P/E vs sector
18.9x
median 32x
ROE vs sector
14.9%
median 18.1%
Growth vs sector
3.3%
median 6.0%
Sector rank
#51
of 273 by rating
Valuation vs. quality map
The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.
Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 273 S&P 500 names in the sector. Educational, not a recommendation.
Project revenue → earnings → price. Edit the assumptions to build your own case.
2030 price target (Base Case)
$0.00 – $0.00
vs. $74.60 today · expected CAGR -8% – 3%
| Metric | 2026 | 2027 | 2028 | 2029 | 2030 |
|---|---|---|---|---|---|
| Revenue | $14.86B | $15.31B | $15.77B | $16.24B | $16.73B |
| Net income | $1.49B | $1.53B | $1.58B | $1.62B | $1.67B |
| EPS | $3.95 | $4.07 | $4.19 | $4.32 | $4.45 |
| Share price (low) | $43.46 | $44.76 | $46.11 | $47.49 | $48.92 |
| Share price (high) | $75.07 | $77.32 | $79.64 | $82.03 | $84.49 |
| CAGR (low–high) | -42% / 1% | -23% / 2% | -15% / 2% | -11% / 2% | -8% / 3% |
Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.
The case for OTIS:
- Healthy free-cash-flow yield (~5.4%) funds buybacks and dividends.
- A conservative balance sheet (debt/equity 0.0x) lowers risk.
- Pays a 2.5% dividend on top of any price gains.
The case against OTIS:
- Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.
On balance, the picture is mixed: Otis Worldwide is a large-cap industrials business growing at a mature pace, with modest profitability, and a sound balance sheet. It trades at 18.9x earnings, which our model scores Neutral (54/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.
Analyst Ratings
What 22 Wall Street analysts covering OTIS recommend (August 2026). Consensus is a useful sanity check — not a substitute for your own homework.
Analysts have turned more positive over the last three months (+7 pts of buy ratings).
Latest SEC Filings
OTIS's most recent filings, straight from SEC EDGAR. Annual and quarterly reports are the deep dives; 8-Ks flag material events the moment they happen.
In the Idea Lab
OTIS — frequently asked questions
Is OTIS a good stock to buy?
We don't give buy or sell advice. Our model rates Otis Worldwide Neutral (54/100) based on its growth, profitability, financial health, and valuation — use that as a research starting point and make your own decision.
What is OTIS's rating on The Stocks School?
Otis Worldwide currently scores 54/100 (Neutral) on our transparent model, which weighs real fundamentals: growth, margins, returns on capital, balance-sheet strength, and valuation.
How our ratings work →Where does OTIS's data come from?
Live price data plus real fundamentals and 5-year financials pulled directly from Otis Worldwide's SEC filings — refreshed automatically, not hand-entered.
How is the 5-year projection for OTIS calculated?
It's a scenario model: it grows revenue at an assumed rate, applies a profit margin and a valuation multiple, and shows the resulting share-price range. The assumptions are yours to change — it's a tool for thinking, not a prediction.
Is this OTIS analysis financial advice?
No. Everything on this page is educational research, not financial advice or a recommendation to buy or sell OTIS. Always do your own research and consider a licensed professional.
Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.
Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.