Otis Worldwide Corp

Technology
Consumer Electronics/Appliances
www.otis.com

Earnings Score
Safety Score

Market Cap $38.14B
Debt $9.90B
Cash $1.93B
EV $46.10B
FCF $1.45B

Earnings

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Sales & Net Margins

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Earnings	$1.54B
EBIT	$1.91B
ROA	17%
FCF	$1.45B
Equity	-$5.05B
Growth Stability	100%
PE	24.84
PEG	2
PB	-7.55
P/FCF	26.25
P/S	2.69
Price/Cash	0.05
Debt/Equity	-1.96
Debt/FCF	6.81
Net Margins	7%
Op. Margins	13%
Earnings CAGR	11%
Sales Growth YoY	-3%
Sales Growth QoQ	-9%
Sales CAGR	2%
FCF CAGR	-1%
Equity CAGR	0%
Earnings Stability	0.36
Earnings Growth YoY	-31%

Earnings Growth QoQ	-28%
Earnings CAGR 5Y	12%
Sales CAGR 5Y	2%
FCF CAGR 5Y	-3%
Earnings CAGR 3Y	1%
Sales CAGR 3Y	1%
FCF CAGR 3Y	3%
Market Cap	$38.14B
Revenue	$14.17B
Dividend Yield	2%
Payout Ratio	41%
Assets	$11.18B
Total Debt	$9.90B
Cash	$1.93B
Shares Outstanding	396.6M
EV	46.1B
Earnings Score	23%
Safety Score	54%
Working Capital	-457M
Current Ratio	0.94
Shares Growth 3y	-2%
Equity Growth QoQ	6%
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.

2025
- 10-Q Mar 31
2024
- 10-K Dec 31
- 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

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 36%

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Otis Worldwide Corp Discounted Cash Flow

Fully customizable DCF calculator online for Otis Worldwide Corp.

Years

Calculation mode

= $14B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.5B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$1.3B	$13B
DCF		$1.3B	$1.2B	$1.1B	$962M	$868M	$783M	$706M	$637M	$575M	$519M	$5.2B
Value	$14B

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	12/2024	TTM
Net Margins	8%	8%	7%	9%	9%	10%	12%	7%
ROA	-	19%	15%	17%	21%	22%	18%	17%
ROE	-	49%	-28%	-40%	-26%	-29%	-34%	-

Net Margins (7.25%)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

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	12/2024	TTM
Debt over FCF	-	0.03	4.63	4.59	5.08	4.66	6.73	6.81
Debt over Equity	-	0.02	-1.83	-2.33	-1.53	-1.43	-2.02	-1.96
Growth Stability	-	-	-	100%	100%	100%	100%	100%

Bad Debt/FCF ratio (6.81)

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 (-1.96)

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	12/2024	CAGR 5Y
Revenue YoY growth	-	2%	-3%	12%	-4%	4%	0%	2%
Earnings YoY growth	-	5%	-18%	38%	1%	12%	17%	12%
Equity YoY growth	-	6%	-247%	-4%	53%	1%	-1%	-
FCF YoY growth	-	-4%	-2%	23%	-9%	3%	-3%	-3%