OTIS WORLDWIDE CORP (OTIS)
US68902V1070 - Common Stock
We assign a fundamental rating of 5 out of 10 to OTIS. OTIS was compared to 132 industry peers in the Machinery industry. While OTIS has a great profitability rating, there are some minor concerns on its financial health. OTIS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year OTIS was profitable.
OTIS had a positive operating cash flow in the past year.
In the past 5 years OTIS has always been profitable.
Each year in the past 5 years OTIS had a positive operating cash flow.
1.2 Ratios
The Return On Assets of OTIS (15.90%) is better than 94.62% of its industry peers.
The Return On Invested Capital of OTIS (59.55%) is better than 100.00% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for OTIS is significantly above the industry average of 11.15%.
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's Profit Margin of 11.48% is fine compared to the rest of the industry. OTIS outperforms 78.46% of its industry peers.
In the last couple of years the Profit Margin of OTIS has grown nicely.
The Operating Margin of OTIS (14.51%) is better than 73.08% of its industry peers.
OTIS's Operating Margin has improved in the last couple of years.
OTIS has a Gross Margin (29.94%) which is comparable to the rest of the industry.
OTIS's Gross Margin has been stable in the last couple of years.
| 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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), OTIS is creating value.
Compared to 1 year ago, OTIS has less shares outstanding
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
An Altman-Z score of 3.30 indicates that OTIS is not in any danger for bankruptcy at the moment.
OTIS has a Altman-Z score (3.30) which is comparable to the rest of the industry.
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.
The Debt to FCF ratio of OTIS (5.42) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 5.42 | ||
| Altman-Z | 3.3 |
ROIC/WACC7.22
WACC8.25%
2.3 Liquidity
A Current Ratio of 0.80 indicates that OTIS may have some problems paying its short term obligations.
With a Current ratio value of 0.80, OTIS is not doing good in the industry: 95.38% of the companies in the same industry are doing better.
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: 82.31% 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.
Measured over the past 5 years, OTIS shows a small growth in Earnings Per Share. The EPS has been growing by 6.98% on average per year.
OTIS shows a small growth in Revenue. In the last year, the Revenue has grown by 1.27%.
OTIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.93% yearly.
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
The Earnings Per Share is expected to grow by 8.57% on average over the next years. This is quite good.
Based on estimates for the next years, OTIS will show a small growth in Revenue. The Revenue will grow by 3.24% on average per year.
EPS Next Y11.08%
EPS Next 2Y9.91%
EPS Next 3Y9.82%
EPS Next 5Y8.57%
Revenue Next Year0.82%
Revenue Next 2Y1.81%
Revenue Next 3Y2.43%
Revenue Next 5Y3.24%
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
With a Price/Earnings ratio of 26.84, OTIS can be considered very expensive at the moment.
OTIS's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 29.29. OTIS is around the same levels.
OTIS is valuated rather expensively with a Price/Forward Earnings ratio of 23.66.
OTIS's Price/Forward Earnings ratio is in line with the industry average.
OTIS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.01, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.84 | ||
| Fwd PE | 23.66 |
4.2 Price Multiples
60.77% of the companies in the same industry are cheaper than OTIS, based on the Enterprise Value to EBITDA ratio.
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 | 30.15 | ||
| EV/EBITDA | 20.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
OTIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.42
PEG (5Y)3.85
EPS Next 2Y9.91%
EPS Next 3Y9.82%
5. Dividend
5.1 Amount
OTIS has a Yearly Dividend Yield of 1.56%.
OTIS's Dividend Yield is rather good when compared to the industry average which is at 1.52. OTIS pays more dividend than 83.85% of the companies in the same industry.
Compared to the average S&P500 Dividend Yield of 2.19, OTIS is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
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 Years3
Div Non Decr Years3
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 2Y9.91%
EPS Next 3Y9.82%
OTIS WORLDWIDE CORP
NYSE:OTIS (11/22/2024, 8:04:00 PM)
After market: 101.2 0 (0%)101.2
+1.25 (+1.25%)
Chartmill FA Rating
GICS SectorIndustrials
GICS IndustryGroupCapital Goods
GICS IndustryMachinery
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.43B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.56% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.84 | ||
| Fwd PE | 23.66 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.42
PEG (5Y)3.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.9% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 14.51% | ||
| PM (TTM) | 11.48% | ||
| GM | 29.94% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.38
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.8 | ||
| Quick Ratio | 0.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)10.23%
EPS 3Y12.14%
EPS 5Y
EPS Q2Q%
EPS Next Y11.08%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)1.27%
Revenue growth 3Y3.66%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y