OTIS WORLDWIDE CORP (OTIS) Stock Fundamental Analysis
NYSE:OTIS - New York Stock Exchange, Inc. - US68902V1070 - Common Stock
OTIS gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 131 industry peers in the Machinery industry. While OTIS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. While showing a medium growth rate, OTIS is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
OTIS had positive earnings in the past year.
In the past year OTIS had a positive cash flow from operations.
OTIS had positive earnings in each of the past 5 years.
In the past 5 years OTIS always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.90%, OTIS belongs to the top of the industry, outperforming 94.49% of the companies in the same industry.
With an excellent Return On Invested Capital value of 59.55%, OTIS belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OTIS is significantly above the industry average of 11.19%.
The last Return On Invested Capital (59.55%) for OTIS is above the 3 year average (40.28%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.9% | ||
| ROE | N/A | ||
| ROIC | 59.55% |
ROA(3y)12.27%
ROA(5y)11.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.28%
ROIC(5y)36.18%
1.3 Margins
OTIS has a Profit Margin of 11.48%. This is in the better half of the industry: OTIS outperforms 77.95% of its industry peers.
In the last couple of years the Profit Margin of OTIS has grown nicely.
With a decent Operating Margin value of 14.51%, OTIS is doing good in the industry, outperforming 72.44% of the companies in the same industry.
In the last couple of years the Operating Margin of OTIS has grown nicely.
OTIS's Gross Margin of 29.94% is in line compared to the rest of the industry. OTIS outperforms 47.24% of its industry peers.
In the last couple of years the Gross Margin of OTIS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.51% | ||
| PM (TTM) | 11.48% | ||
| GM | 29.94% |
OM growth 3Y3.3%
OM growth 5Y1.64%
PM growth 3Y11.69%
PM growth 5Y4.03%
GM growth 3Y-0.13%
GM growth 5Y0.45%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so OTIS is creating value.
OTIS has less shares outstanding than it did 1 year ago.
OTIS has less shares outstanding than it did 5 years ago.
The debt/assets ratio for OTIS has been reduced compared to a year ago.
2.2 Solvency
OTIS has an Altman-Z score of 3.20. This indicates that OTIS is financially healthy and has little risk of bankruptcy at the moment.
OTIS has a Altman-Z score (3.20) which is in line with its industry peers.
OTIS has a debt to FCF ratio of 5.42. This is a neutral value as OTIS would need 5.42 years to pay back of all of its debts.
OTIS has a Debt to FCF ratio of 5.42. This is comparable to the rest of the industry: OTIS outperforms 51.97% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 3.2 |
ROIC/WACC6.64
WACC8.97%
2.3 Liquidity
A Current Ratio of 0.80 indicates that OTIS may have some problems paying its short term obligations.
The Current ratio of OTIS (0.80) is worse than 96.06% of its industry peers.
OTIS has a Quick Ratio of 0.80. This is a bad value and indicates that OTIS is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.72, OTIS is not doing good in the industry: 85.04% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.72 |
3. Growth
3.1 Past
OTIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 10.23%, which is quite good.
The Earnings Per Share has been growing slightly by 6.98% on average over the past years.
Looking at the last year, OTIS shows a small growth in Revenue. The Revenue has grown by 1.27% in the last year.
Measured over the past years, OTIS shows a small growth in Revenue. The Revenue has been growing by 1.93% on average per year.
EPS 1Y (TTM)10.23%
EPS 3Y12.14%
EPS 5Y6.98%
EPS Q2Q%1.05%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y3.66%
Revenue growth 5Y1.93%
Sales Q2Q%0.71%
3.2 Future
OTIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.20% yearly.
Based on estimates for the next years, OTIS will show a small growth in Revenue. The Revenue will grow by 3.31% on average per year.
EPS Next Y10.85%
EPS Next 2Y9.5%
EPS Next 3Y9.33%
EPS Next 5Y9.2%
Revenue Next Year0.71%
Revenue Next 2Y1.83%
Revenue Next 3Y2.56%
Revenue Next 5Y3.31%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
OTIS is valuated quite expensively with a Price/Earnings ratio of 25.33.
OTIS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 28.29. OTIS is around the same levels.
The Price/Forward Earnings ratio is 22.50, which indicates a rather expensive current valuation of OTIS.
OTIS's Price/Forward Earnings ratio is in line with the industry average.
OTIS's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 24.44.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.33 | ||
| Fwd PE | 22.5 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OTIS is valued a bit more expensive than 61.42% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OTIS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.45 | ||
| EV/EBITDA | 19.59 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates OTIS does not grow enough to justify the current Price/Earnings ratio.
OTIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.33
PEG (5Y)3.63
EPS Next 2Y9.5%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.67%, OTIS has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.65, OTIS pays a better dividend. On top of this OTIS pays more dividend than 82.68% of the companies listed in the same industry.
OTIS's Dividend Yield is slightly below the S&P500 average, which is at 2.28.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
5.2 History
OTIS has been paying a dividend for over 5 years, so it has already some track record.
OTIS has not decreased its dividend in the last 3 years.
Dividend Growth(5Y)N/A
Div Incr Years4
Div Non Decr Years4
5.3 Sustainability
36.11% of the earnings are spent on dividend by OTIS. This is a low number and sustainable payout ratio.
DP36.11%
EPS Next 2Y9.5%
EPS Next 3Y9.33%
OTIS WORLDWIDE CORP
NYSE:OTIS (1/21/2025, 8:18:59 PM)
After market: 95.5 0 (0%)95.5
+0.73 (+0.77%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners91.84%
Inst Owner Change0.2%
Ins Owners0.1%
Ins Owner Change4.65%
Market Cap38.15B
Analysts68.7
Price Target104.05 (8.95%)
Short Float %1.77%
Short Ratio3.71
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.67% |
Yearly Dividend1.31
Dividend Growth(5Y)N/A
DP36.11%
Div Incr Years4
Div Non Decr Years4
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)-0.7%
Min EPS beat(2)-2.67%
Max EPS beat(2)1.27%
EPS beat(4)1
Avg EPS beat(4)-0.68%
Min EPS beat(4)-2.67%
Max EPS beat(4)1.27%
EPS beat(8)4
Avg EPS beat(8)1.49%
EPS beat(12)8
Avg EPS beat(12)2.17%
EPS beat(16)12
Avg EPS beat(16)3.73%
Revenue beat(2)0
Avg Revenue beat(2)-4.16%
Min Revenue beat(2)-5.29%
Max Revenue beat(2)-3.03%
Revenue beat(4)0
Avg Revenue beat(4)-2.88%
Min Revenue beat(4)-5.29%
Max Revenue beat(4)-0.69%
Revenue beat(8)2
Avg Revenue beat(8)-1.33%
Revenue beat(12)2
Avg Revenue beat(12)-2.01%
Revenue beat(16)6
Avg Revenue beat(16)-0.73%
PT rev (1m)0.33%
PT rev (3m)3.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-3.58%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.61%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.33 | ||
| Fwd PE | 22.5 | ||
| P/S | 2.69 | ||
| P/FCF | 28.45 | ||
| P/OCF | 25.95 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 19.59 |
EPS(TTM)3.77
EY3.95%
EPS(NY)4.24
Fwd EY4.44%
FCF(TTM)3.36
FCFY3.52%
OCF(TTM)3.68
OCFY3.85%
SpS35.56
BVpS-12.27
TBVpS-17.18
PEG (NY)2.33
PEG (5Y)3.63
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.9% | ||
| ROE | N/A | ||
| ROCE | 95.24% | ||
| ROIC | 59.55% | ||
| ROICexc | 88.46% | ||
| ROICexgc | N/A | ||
| OM | 14.51% | ||
| PM (TTM) | 11.48% | ||
| GM | 29.94% | ||
| FCFM | 9.44% |
ROA(3y)12.27%
ROA(5y)11.36%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)40.28%
ROIC(5y)36.18%
ROICexc(3y)61.86%
ROICexc(5y)55.71%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)55.78%
ROCE(5y)51.31%
ROICexcg growth 3Y24.85%
ROICexcg growth 5Y-5.88%
ROICexc growth 3Y15.36%
ROICexc growth 5Y5.01%
OM growth 3Y3.3%
OM growth 5Y1.64%
PM growth 3Y11.69%
PM growth 5Y4.03%
GM growth 3Y-0.13%
GM growth 5Y0.45%
F-Score7
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.42 | ||
| Debt/EBITDA | 2.66 | ||
| Cap/Depr | 71.27% | ||
| Cap/Sales | 0.91% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 65.57% | ||
| Profit Quality | 82.22% | ||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z | 3.2 |
F-Score7
WACC8.97%
ROIC/WACC6.64
Cap/Depr(3y)69.52%
Cap/Depr(5y)76.99%
Cap/Sales(3y)0.97%
Cap/Sales(5y)1.09%
Profit Quality(3y)116.39%
Profit Quality(5y)122.19%
High Growth Momentum
Growth
EPS 1Y (TTM)10.23%
EPS 3Y12.14%
EPS 5Y6.98%
EPS Q2Q%1.05%
EPS Next Y10.85%
EPS Next 2Y9.5%
EPS Next 3Y9.33%
EPS Next 5Y9.2%
Revenue 1Y (TTM)1.27%
Revenue growth 3Y3.66%
Revenue growth 5Y1.93%
Sales Q2Q%0.71%
Revenue Next Year0.71%
Revenue Next 2Y1.83%
Revenue Next 3Y2.56%
Revenue Next 5Y3.31%
EBIT growth 1Y-5.89%
EBIT growth 3Y7.08%
EBIT growth 5Y3.6%
EBIT Next Year9.5%
EBIT Next 3Y8.16%
EBIT Next 5Y7.64%
FCF growth 1Y7.19%
FCF growth 3Y4.71%
FCF growth 5Y1.56%
OCF growth 1Y7.06%
OCF growth 3Y3.21%
OCF growth 5Y0.97%