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OTIS

S&P 500
Neutral · 54/100

Otis Worldwide

Industrials
Industrial Machinery & Supplies & Components

$72.48

1.1%

Updated Today 7:15 PM ET

Price — Past Year

▼ Down 23.4% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$28.11B

P/E

18.54x

Forward P/E (est.)

18.75x

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

Technical Analysis (Educational)
Research

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 $72.48, below its 50-day average ($74.77) and 200-day average ($84.88). Price below both averages is a downtrend — momentum is against buyers for now.

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 56 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 $1.40 (~1.9% 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 $69.16 (support) and sellers near $74.19 (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 1.9× the 20-day average — heavier than usual, which adds conviction to the move. 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.

Business Overview
Research

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 $28.11B.

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.

Revenue Growth
Research

4Y CAGR

0.2%

Revenue moved from $14.30B in 2021 to $14.43B in 2025, a 0.2% compound annual growth rate. The most recent year was roughly flat (3.3%) year over year. Slower, mature growth is common for established businesses.

Profitability
Research

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.

Debt Analysis
Research

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.

Cash Flow Analysis
Research

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.

Valuation Analysis
Research

P/E

18.54x

P/S

1.91x

P/B

EV / EBITDA

15.14x

OTIS trades at 18.5x trailing earnings (about 18.7x 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.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
18.5xFair
Forward P/E
18.7xFair
P/S ratio
1.9xFair
Revenue growth
3.3%Weak
EPS growth
-1.1%Weak
Gross margin
30.4%Weak
Net margin
10.1%Strong
ROE
14.9%Average

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How OTIS stacks up against its Industrials peers — valuation, profitability, and growth versus the sector median.

In the Industrials sector (80 S&P 500 companies), OTIS ranks #31 of 80 by our overall rating. It trades at a discount versus the sector on earnings (18.5x P/E vs. 30x median) with a lower return on equity (14.9% vs. 24.7%) and slower revenue growth (3.3% vs. 5.0%).

P/E vs sector

18.5x

median 30x

ROE vs sector

14.9%

median 24.7%

Growth vs sector

3.3%

median 5.0%

Sector rank

#31

of 80 by rating

CompanyP/ERev Gr.Rating
OTISThis stock18.5x3.3%Neutral· 54
HUBB30.6x7.2%Neutral· 56
XYL26.7x5.7%Neutral· 47
DOV27.4x4.0%Neutral· 44
IR50.8x6.9%Weak· 33
SNA19.4x4.2%Favorable· 61
FTV34.2x-23.4%Weak· 36
IEX32.7x7.5%Neutral· 51
Industrials median30x5.0%52/100

Valuation vs. quality map

sector medianHUBBXYLDOVIRSNAFTVIEXOTISP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Industrials companies by sub-industry and size. Sector median is across all 80 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$47.96$82.84

vs. $72.48 today · expected CAGR -8%3%

Metric20262027202820292030
Revenue$14.86B$15.31B$15.77B$16.24B$16.73B
Net income$1.49B$1.53B$1.58B$1.62B$1.67B
EPS$3.87$3.99$4.11$4.23$4.36
Share price (low)$42.61$43.89$45.21$46.56$47.96
Share price (high)$73.60$75.81$78.08$80.42$82.84
CAGR (low–high)-41% / 2%-22% / 2%-15% / 3%-10% / 3%-8% / 3%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

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.
Bear Case

The case against OTIS:

  • Like any single stock, it is exposed to competition, the economic cycle, and shifts in its end markets.
Key Risks
Research

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

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 18.5x earnings, which our model scores Neutral (54/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

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.