Otis Worldwide (OTIS)
Industrials · $25.9B market cap · SEC CIK 0001781335
fundamentals score out of 100
Next reports on Oct 27, 2026, with analysts expecting $1.05 in earnings per share.
The case for OTIS
- Earns 14% a year on everything it owns (return on assets).
- Reasonably priced at 17.1× earnings.
- Pays a modest 1.6% dividend.
The case against
- Down 25.3% over the past year.
- Owes more than it owns: shareholder equity is -$5.4B, usually the result of buybacks funded with debt. ROE and price-to-book mean little here.
- Current liabilities exceed current assets (ratio 0.83).
- Near the bottom of its 52-week range, 28% below the high. Falling prices usually have a reason; find it first.
- Growth is weak (31/100): revenue +5.2%, EPS +3.0%, +2.5% a year over five years.
- Long-term debt of $6.9B against $1.1B of cash.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Industrials companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 79 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 31 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 49 |
| Momentumhow the price has behaved lately | 18 |
| Stabilityhow violently it moves, what it owes and what it pays you | 34 |
- Shareholder equity is negative, so return on equity, price-to-book and debt-to-equity are left out.
- Each factor except momentum is half fixed thresholds, half rank among the 79 Industrials companies.
Key numbers
| Price / earnings | 17.1× |
|---|---|
| Price / book | n/a |
| Price / sales | 1.7× |
| Revenue growth (YoY) | +5.2% |
| EPS growth (YoY) | +3.0% |
| Gross margin | 30% |
| Operating margin | 15% |
| Net margin | 10% |
| Return on assets | 14.1% (ROE not meaningful: negative equity) |
| Debt / equity | n/m (negative equity) |
| Current ratio | 0.83 |
| Dividend yield | 1.60% |
| Beta | 0.89 |
| 52-week range | $66.57 – $94.57 |
| Position in that range | 5% of the way up |
| 3-month return | -9.0% |
| 1-year return | -25.3% |
Five years of financials, as filed
Pulled from Otis Worldwide's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $14.4B | $14.3B | $14.2B | $13.7B | $14.3B |
| Operating income | $2.1B | $2.0B | $2.2B | $2.0B | $2.1B |
| Net income | $1.4B | $1.6B | $1.4B | $1.3B | $1.2B |
| Operating cash flow | $1.6B | $1.6B | $1.6B | $1.6B | $1.8B |
| Capital expenditure | $152M | $126M | $138M | $115M | $156M |
| Total assets | $10.7B | $11.3B | $10.1B | $9.8B | $12.3B |
| Total liabilities | $15.9B | $16.0B | $14.8B | $14.5B | $15.3B |
| Shareholder equity | -$5.4B | -$4.8B | -$4.9B | -$4.9B | -$3.6B |
| Cash | $1.1B | $2.3B | $1.3B | $1.2B | $1.6B |
| Long-term debt | $6.9B | $7.0B | $6.9B | $6.1B | $7.2B |
| Free cash flow | $1.4B | $1.4B | $1.5B | $1.4B | $1.6B |
| Operating margin | 14.8% | 14.1% | 15.4% | 14.9% | 14.7% |
| Net margin | 9.6% | 11.5% | 9.9% | 9.2% | 8.7% |
| Diluted shares | 395M | 404M | 415M | 423M | 431M |
Share count is down 8.5% over 4 years. Buybacks have been shrinking the pie.
What Otis Worldwide says it does
Our Company Otis is t he world’s leading elevator and escalator manufacturing, installation, service and modernization company. We serve customers in ov er 200 countries and territories around t he world. Otis has global scale and local focus, with more than 1,400 branc hes and offices, and a direct physical presence in more than 70 co untries. The following description of our busin ess should be read in conjunction with Item 7 in this Form 10-K, including the information contained therein under the heading "Business Overview." Description of Business by Segment Our Company is organized into two segments, New Equipment and Service, which, for 2025, contributed 35% and 65% of our net sales, and 9% and 91% of our segment operating profit, respectively. Our international operations represented approximately 71% of our net sales for 2025. New Equipment Through our New Equipment segment, we design, manufacture, sell and install a wide range…
Risk factors OTIS lists in its 10-K
- We may be affected by global economic conditions in general and conditions in the construction and infrastructure industries in particular
- Our international operations subject us to risk as our results of operations may be adversely affected by changes in local and regional economic conditions, such as fluctuations in exchange rates and changes in credit conditions
- Our international operations subject us to risks associated with government policies on international trade and investments and risks in general and particularly in China
- Adverse changes in our relationships with, or the financial condition, performance or purchasing patterns, or compliance practices of, key distributors and agents could adversely affect us
- We operate in a competitive environment and our profitability depends on our ability to accurately estimate the costs and timing of providing our products and services
- We may not realize expected benefits from our cost reduction, restructuring and transformation efforts, including UpLift, and our profitability may be negatively impacted or our business otherwise might be adversely affected
- We operate in challenging markets for talent and may fail to attract, develop and retain key personnel
- Quarterly cash dividends and share repurchases may be discontinued, accelerated or modified, are subject to a number of uncertainties and may affect the price of Common Stock
- We are party to joint ventures which may not be successful and may expose us to special risks and restrictions
- Additional tax expense or additional tax exposures could affect our future profitability
- Our defined benefit pension plans are subject to financial market risk that could adversely affect our results
- We are subject to litigation, product safety and other legal and compliance risks
- We are impacted by evolving stakeholder interest in sustainability and responsibility matters
- Information security, data privacy and identity protection may require significant resources and present certain risks to our business, reputation and financial condition