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Otis Worldwide Corp (OTIS)

Fair Value
IndustrialsSpecialty Industrial MachineryUnited States

Fundamental

70

Price

$64.32

Market Cap

$25.25B

Part 1 · What the company is worth

Overview

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects. This segment serves real-estate and building developers, and general contractors. It sells its products directly to customers, as well as through agents and distributors. The Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. Otis Worldwide Corporation was founded in 1853 and is headquartered in Farmington, Connecticut.

No editorial profile for this company yet

Direct competitors

Who this company fights with for the same customers

Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users

KONE OyjKNEBV

Named by Otis in its 10-K as a major global competitor, KONE sells new elevators and escalators to the same developers and building owners and competes for the same long-term maintenance contracts worldwide.

Schindler Holding AGSCHP

Also named by Otis as a major global competitor, the Swiss group bids on the same elevator and escalator installations in Europe, the Americas and Asia and services an installed base of comparable size.

TK Elevator GmbHNot tracked

The third competitor Otis names in its 10-K, TK Elevator competes head-on for new equipment orders and maintenance portfolios, especially in Germany, the rest of Europe and North America.

Mitsubishi Electric Corporation (三菱電機)6503

Its Building Systems division is one of the strongest elevator suppliers in Asia and a top-five vendor in the United States, competing with Otis on high-rise and high-speed installations.

Hitachi, Ltd. (日立製作所)6501

Hitachi's building systems business supplies elevators and escalators to the same commercial and infrastructure projects in Japan, China and South-East Asia, plus the aftermarket service that follows them.

Balance Sheet & Liquidity

Revenue

$14.91B

Trailing 12 months (through 6/30/2026)

Net Income

$1.52B

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$1.44B

Total Equity

$-5.39B

Total Liabilities

$15.92B

Current Ratio

0.83

Interest Coverage

9.95

Debt/EBITDA

3.83

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

General caseFairly Valued

Fair Value

$82.05

Current Price

$64.32

Margin of Safety

+21.6%

Fair Value Range

$63.88 - $100.21

Spread across the valuation methods used, not a statistically calibrated confidence interval.

Estimation Methods

Analyst price target:$87.38
Discounted cash flow (DCF):$99.76
Earnings multiple (P/E):$60.44
Graham growth formula:$104.20
Earnings power value (EPV):$50.22
Justified P/B:Not enough data to compute it
Dividend discount (Gordon):$31.71
P/FFO, funds from operations:$65.53
Mid-cycle earnings:$123.16
Revenue multiple:$110.57
Analyst Consensus:Buy (12B / 10H / 0S)
Last Earnings Surprise:-2.10%

Valuation Metrics

P/E Ratio

16.53

ROE

-25.7%

P/B Ratio

-

P/FCF

14.30

Gross Margin

-

ROIC

61.7%

Profitability Radar

Value Creation (Economic Moat)

ROIC outlier

ROIC

61.7%

WACC

7.5%

ROIC − WACC

+54.2 pp

ROIC exceeds the cost of capital — the company is creating value for shareholders.

Fundamental Analysis Criteria

Passed (17)

  • EPS shows upward trend
  • EPS CAGR 5.41%
  • ROIC 61.7%
  • P/FCF 14.30
  • Operating Margin 15.4%
  • Positive Free Cash Flow
  • CapEx intensity
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • ROE 14.9%
  • Analyst Consensus 55% Buy
  • PEG Ratio 1.52
  • Earnings Quality (OCF/NI) 1.23
  • Share Dilution -2.2%
  • Piotroski F-Score 5/9

Failed (6)

  • Price CAGR 0.38%
  • Low reliance on intangibles
  • DCF valuation (Fairly valued)
  • Revenue Growth 5Y 2.5%
  • Earnings Surprise avg -0.9%
  • Net Margin Trend 10.2% vs 10.7%

Unavailable (5)

  • Gross Margin NaN%
  • P/B Ratio NaN
  • Dividend Payout NaN%
  • Debt/Equity ratio
  • Price below Graham Number

Piotroski F-Score

5/9

Mixed signals: some areas need attention

score
criteria

Earnings Quality

1.23

High quality: earnings backed by cash

Share Dilution

-2.2%

Buying back shares. Shareholder friendly

Institutional Holdings

Governance

Executive Team

NameTitleAge
Ms. Judith F. MarksChair, President & CEO61
Ms. Cristina MendezExecutive VP & CFO44
Mr. Enrique Minarro ViserasEVP & Chief Operating Officer47
Ms. Sally A. LohPresident of Otis Greater China51
Mr. Michael Patrick RyanSenior VP & Chief Accounting Officer55
Ms. Imelda SuitSenior VP, Treasurer & Interim Head of Investor Relations-
Ms. Nora E. LaFreniere J.D.Executive VP & General Counsel54
Ms. Randi TanguaySenior VP & Chief Communications Officer-
Mr. Debraj ChowdhuryHead of Sales & Marketing-
Ms. Kimberly GoskExecutive VP & Chief People Officer51

Audit Risk

2

Board Risk

3

Compensation Risk

4

Shareholder Rights Risk

4

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Documents

  • Annual Report (10-K)

    A yearly overview of the business, its financial results, and the risks it faces.

    Filed on 2026-02-05

    View document
  • Quarterly Report (10-Q)

    A snapshot of financial performance for the most recent three-month period.

    Filed on 2026-07-23

    View document
  • Current Report (8-K)

    An announcement of a major event, such as a leadership change or big news.

    Filed on 2026-09-15

    View document

via SEC EDGAR

Income History

via SEC EDGAR

Latest News

Recent headlines for OTIS, sourced from Markets Gazette.

No recent news for OTIS.