(OTIS) Otis Worldwide - Overview
Stock: Elevators, Escalators, Moving Walkways, Maintenance, Modernization
EPS (Earnings per Share)
Revenue
Dividends
| Dividend Yield | 1.77% |
| Yield on Cost 5y | 2.81% |
| Yield CAGR 5y | 15.72% |
| Payout Consistency | 100.0% |
| Payout Ratio | 33.1% |
| Risk 5d forecast | |
|---|---|
| Volatility | 18.8% |
| Relative Tail Risk | 4.30% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.40 |
| Alpha | -17.29 |
| Character TTM | |
|---|---|
| Beta | 0.423 |
| Beta Downside | 0.460 |
| Drawdowns 3y | |
|---|---|
| Max DD | 18.90% |
| CAGR/Max DD | 0.14 |
Description: OTIS Otis Worldwide January 28, 2026
Otis Worldwide Corp (OTIS) manufactures, installs, and services elevators, escalators, and moving walkways across the United States, China, and other global markets. The business is split into two segments: New Equipment, which designs, builds, and sells passenger and freight elevators and related infrastructure to developers and contractors; and Service, which provides ongoing maintenance, repairs, and modernization for the installed base.
In FY 2025 the company reported total revenue of $14.1 billion, with the Service segment contributing roughly 55 % of that total-a stable, high-margin cash flow source. Service backlog, a leading forward-looking metric, stood at $9.2 billion, up 7 % YoY, indicating strong demand for maintenance contracts and upgrades. The New Equipment segment grew 4 % YoY, driven primarily by modest rebounds in U.S. commercial construction and continued urbanization projects in China.
Key macro drivers include: (1) U.S. non-residential construction spending, which has risen 3 % year-over-year and underpins new-equipment orders; (2) the aging global elevator fleet-average age now exceeds 30 years-fueling service revenue growth; and (3) interest-rate volatility, which can suppress large-scale capital projects but has a limited effect on the recurring service business. A potential headwind is the slowdown in Chinese real-estate development, which could temper Otis’s growth in that market.
For a deeper quantitative dive, consult ValueRay’s detailed OTIS valuation model.
Piotroski VR‑10 (Strict, 0-10) 8.0
| Net Income: 1.38b TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.14 > 0.02 and ΔFCF/TA 0.86 > 1.0 |
| NWC/Revenue: -8.00% < 20% (prev -0.55%; Δ -7.45% < -1%) |
| CFO/TA 0.15 > 3% & CFO 1.60b > Net Income 1.38b |
| Net Debt (7.26b) to EBITDA (2.26b): 3.21 < 3 |
| Current Ratio: 0.85 > 1.5 & < 3 |
| Outstanding Shares: last quarter (393.7m) vs 12m ago -2.65% < -2% |
| Gross Margin: 30.46% > 18% (prev 0.30%; Δ 3016 % > 0.5%) |
| Asset Turnover: 131.4% > 50% (prev 126.0%; Δ 5.35% > 0%) |
| Interest Coverage Ratio: 10.63 > 6 (EBITDA TTM 2.26b / Interest Expense TTM 196.0m) |
Altman Z'' 0.35
| A: -0.11 (Total Current Assets 6.50b - Total Current Liabilities 7.66b) / Total Assets 10.65b |
| B: -0.04 (Retained Earnings -440.0m / Total Assets 10.65b) |
| C: 0.19 (EBIT TTM 2.08b / Avg Total Assets 10.98b) |
| D: -0.07 (Book Value of Equity -1.19b / Total Liabilities 15.92b) |
| Altman-Z'' Score: 0.35 = B |
Beneish M -3.03
| DSRI: 0.88 (Receivables 3.69b/4.13b, Revenue 14.43b/14.26b) |
| GMI: 0.99 (GM 30.46% / 30.09%) |
| AQI: 1.20 (AQ_t 0.27 / AQ_t-1 0.22) |
| SGI: 1.01 (Revenue 14.43b / 14.26b) |
| TATA: -0.02 (NI 1.38b - CFO 1.60b) / TA 10.65b) |
| Beneish M-Score: -3.03 (Cap -4..+1) = AA |
What is the price of OTIS shares?
Over the past week, the price has changed by -4.89%, over one month by -2.48%, over three months by -4.01% and over the past year by -7.25%.
Is OTIS a buy, sell or hold?
- StrongBuy: 2
- Buy: 2
- Hold: 9
- Sell: 1
- StrongSell: 1
What are the forecasts/targets for the OTIS price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 104.4 | 21.2% |
| Analysts Target Price | 104.4 | 21.2% |
| ValueRay Target Price | 88.6 | 2.9% |
OTIS Fundamental Data Overview January 31, 2026
P/E Forward = 19.9601
P/S = 2.3705
P/B = 13.1987
P/EG = 2.1965
Revenue TTM = 14.43b USD
EBIT TTM = 2.08b USD
EBITDA TTM = 2.26b USD
Long Term Debt = 7.59b USD (from longTermDebt, two quarters ago)
Short Term Debt = 1.06b USD (from shortTermDebt, last quarter)
Debt = 8.35b USD (from shortLongTermDebtTotal, last quarter)
Net Debt = 7.26b USD (from netDebt column, last quarter)
Enterprise Value = 41.47b USD (34.21b + Debt 8.35b - CCE 1.10b)
Interest Coverage Ratio = 10.63 (Ebit TTM 2.08b / Interest Expense TTM 196.0m)
EV/FCF = 28.72x (Enterprise Value 41.47b / FCF TTM 1.44b)
FCF Yield = 3.48% (FCF TTM 1.44b / Enterprise Value 41.47b)
FCF Margin = 10.01% (FCF TTM 1.44b / Revenue TTM 14.43b)
Net Margin = 9.59% (Net Income TTM 1.38b / Revenue TTM 14.43b)
Gross Margin = 30.46% ((Revenue TTM 14.43b - Cost of Revenue TTM 10.04b) / Revenue TTM)
Gross Margin QoQ = 30.22% (prev 30.70%)
Tobins Q-Ratio = 3.89 (Enterprise Value 41.47b / Total Assets 10.65b)
Interest Expense / Debt = 0.77% (Interest Expense 64.0m / Debt 8.35b)
Taxrate = 27.00% (142.0m / 526.0m)
NOPAT = 1.52b (EBIT 2.08b * (1 - 27.00%))
Current Ratio = 0.85 (Total Current Assets 6.50b / Total Current Liabilities 7.66b)
Debt / Equity = -1.55 (negative equity) (Debt 8.35b / totalStockholderEquity, last quarter -5.39b)
Debt / EBITDA = 3.21 (Net Debt 7.26b / EBITDA 2.26b)
Debt / FCF = 5.03 (Net Debt 7.26b / FCF TTM 1.44b)
Total Stockholder Equity = -5.33b (last 4 quarters mean from totalStockholderEquity)
RoA = 12.60% (Net Income 1.38b / Total Assets 10.65b)
RoE = -25.98% (negative equity) (Net Income TTM 1.38b / Total Stockholder Equity -5.33b)
RoCE = 92.02% (EBIT 2.08b / Capital Employed (Equity -5.33b + L.T.Debt 7.59b))
RoIC = 54.84% (NOPAT 1.52b / Invested Capital 2.77b)
WACC = 6.11% (E(34.21b)/V(42.56b) * Re(7.47%) + D(8.35b)/V(42.56b) * Rd(0.77%) * (1-Tc(0.27)))
Discount Rate = 7.47% (= CAPM, Blume Beta Adj.) -> floored to rf + 0.7*ERP = 7.95%
Shares Correlation 3-Years: -100.0 | Cagr: -2.12%
[DCF Debug] Terminal Value 85.46% ; FCFF base≈1.44b ; Y1≈1.44b ; Y5≈1.53b
Fair Price DCF = 90.81 (EV 42.65b - Net Debt 7.26b = Equity 35.39b / Shares 389.7m; r=6.11% [WACC]; 5y FCF grow -0.43% → 2.90% )
EPS Correlation: 83.40 | EPS CAGR: 8.07% | SUE: 0.0 | # QB: 0
Revenue Correlation: 57.81 | Revenue CAGR: 2.87% | SUE: -1.24 | # QB: 0
EPS next Quarter (2026-03-31): EPS=0.94 | Chg30d=-0.072 | Revisions Net=+0 | Analysts=5
EPS current Year (2026-12-31): EPS=4.37 | Chg30d=-0.103 | Revisions Net=+1 | Growth EPS=+7.8% | Growth Revenue=+5.2%
EPS next Year (2027-12-31): EPS=4.85 | Chg30d=-0.102 | Revisions Net=+1 | Growth EPS=+11.1% | Growth Revenue=+5.4%