Otis Worldwide Corp

Technology
Consumer Electronics/Appliances
www.otis.com

Earnings Score
Safety Score

Market Cap $39.94B
Debt $8.60B
Cash $832.00M
EV $47.71B
FCF $1.34B

Earnings

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Sales & Net Margins

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Earnings	$1.63B
EBIT	$2.08B
ROA	20%
FCF	$1.34B
Equity	-$4.84B
Growth Stability	100%
PE	24.49
PEG	2.22
PB	-8.26
P/FCF	29.78
P/S	2.81
Price/Cash	0.02
Debt/Equity	-1.78
Debt/FCF	6.41
Net Margins	12%
Op. Margins	15%
Earnings CAGR	11%
Sales Growth YoY	1%
Sales Growth QoQ	-1%
Sales CAGR	2%
FCF CAGR	-1%
Equity CAGR	0%
Earnings Stability	0.25
Earnings Growth YoY	44%

Earnings Growth QoQ	30%
Earnings CAGR 5Y	11%
Sales CAGR 5Y	2%
FCF CAGR 5Y	-1%
Earnings CAGR 3Y	0%
Sales CAGR 3Y	0%
FCF CAGR 3Y	-4%
Market Cap	$39.94B
Revenue	$14.21B
Dividend Yield	1%
Payout Ratio	36%
Assets	$10.26B
Total Debt	$8.60B
Cash	$832.00M
Shares Outstanding	400.2M
EV	47.71B
Earnings Score	13%
Safety Score	54%
Working Capital	-1.6B
Current Ratio	0.8
Shares Growth 3y	-2%
Equity Growth QoQ	-2%
Equity Growth YoY	2%

Assets & ROA

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Stockholders Equity & ROE

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Otis is the largest global elevator and escalator supplier by revenue with around one quarter of share excluding Japan. In 1854 Otis' founder and namesake, Elisha Graves Otis, invented a safety mechanism that prevented elevators from falling if the hoisting cable failed.The company's product and service lifecycle begins with installations of elevator units in new buildings, later selling maintenance services on the units, and eventually replacement of the units after the average 15-20 year useful life of an elevator. As the largest global OEM, over decades Otis has built a base of 2 million elevators under service. Its business model is much the same as that of its competitors Kone, Schindler, and Thyssenkrupp.

SEC Filings

Direct access to Otis Worldwide Corp (OTIS) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Otis Worldwide Corp compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Otis Worldwide Corp compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 11%

Stability 25%

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Otis Worldwide Corp Discounted Cash Flow

Fully customizable DCF calculator online for Otis Worldwide Corp.

Years

Calculation mode

= $12B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.3B	$1.3B	$1.3B	$1.3B	$1.3B	$1.3B	$1.2B	$1.2B	$1.2B	$1.2B	$1.2B	$12B
DCF		$1.2B	$1.1B	$966M	$866M	$777M	$696M	$624M	$560M	$502M	$450M	$4.5B
Value	$12B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	8%	8%	7%	9%	9%	10%	12%
ROA	-	19%	15%	17%	21%	22%	20%
ROE	-	49%	-28%	-40%	-26%	-29%	-

Good Net Margins (12.36%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	0.03	4.63	4.59	5.08	4.66	6.41
Debt over Equity	-	0.02	-1.83	-2.33	-1.53	-1.43	-1.78
Growth Stability	-	-	-	100%	100%	100%	100%

Bad Debt/FCF ratio (6.41)

Net Margins are too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Good Debt/Equity ratio (-1.78)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	2%	-3%	12%	-4%	4%	2%
Earnings YoY growth	-	5%	-18%	38%	1%	12%	11%
Equity YoY growth	-	6%	-247%	-4%	53%	1%	-
FCF YoY growth	-	-4%	-2%	23%	-9%	3%	-1%