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Otis Worldwide Corp Ordinary Shares OTIS

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Stock XNYS Rating as of
$93.37 −4.10 (4.21%)
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As of Delayed Price Post-Trading: $93.37 0.00
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Company Report

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Otis' Elevator Maintenance and Modernization Business to Drive Solid Medium-Term Earnings Growth

Grant Slade

Otis Worldwide is the largest elevator and escalator original equipment manufacturer globally with integrated operations that span manufacturing and installation activities, as well as elevator and escalator servicing for existing installations. Additionally, Otis performs elevator modernization services for elevator systems at the end of a typical 15- to 20-year useful life. Otis estimates the global E&E market was worth about $80 billion in 2021 with Otis commanding an approximate 18% global market share, based on revenue.

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Price vs Fair Value

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OTIS is trading at a 1% discount.
Price
$97.47
Fair Value
$62.00
Uncertainty
Low
1-Star Price
$142.60
5-Star Price
$26.60
Economic Moat
Xlyb
Capital Allocation
Pgcmjbzx

Bulls Say, Bears Say

Bulls

Otis’ installed base business model—which boasts the largest installed base of elevators globally—drives strong free cash flow generation through the economic cycle.

Bears

Global new elevator installations have likely peaked structurally with the rate of urbanization in the Asia-Pacific slowing.

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Trading Information

Previous Close Price
$97.47
Day Range
$93.02–96.91
52-Week Range
$73.32–100.35
Bid/Ask
$93.02 / $94.99
Market Cap
$37.74 Bil
Volume/Avg
4.2 Mil / 1.9 Mil

Key Statistics

Price/Earnings (Normalized)
27.20
Price/Sales
2.81
Dividend Yield (Trailing)
1.41%
Dividend Yield (Forward)
1.41%
Total Yield
3.43%

Company Profile

Otis is the largest global elevator and escalator supplier by revenue with around 18% global market share. 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- to 20-year useful life of an elevator. As the largest global OEM, Otis has amassed an installed base under service that exceeds 2 million elevators. Its business model is similar to that of its closest competitors Kone, Schindler, and TK Elevator.
Sector
Industrials
Industry
Specialty Industrial Machinery
Stock Style Box
Mid Core
Total Number of Employees
71,000
Website
https://www.otis.com

Competitors

Valuation

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Metric
OTIS
KNEBV
SCHN
Price/Earnings (Normalized)
 27.2020.7130.05
Price/Book Value
 —8.165.41
Price/Sales
 2.812.052.07
Price/Cash Flow
 24.0820.2118.15
Price/Earnings
OTIS
KNEBV
SCHN

Financial Strength

Metric
OTIS
KNEBV
SCHN
Quick Ratio
 0.860.690.40
Current Ratio
 1.000.981.30
Interest Coverage
 14.8656.0434.88
Quick Ratio
OTIS
KNEBV
SCHN

Profitability

Metric
OTIS
KNEBV
SCHN
Return on Assets (Normalized)
 14.43%10.76%8.05%
Return on Equity (Normalized)
 —37.70%21.69%
Return on Invested Capital (Normalized)
 60.02%30.10%18.27%
Return on Assets
OTIS
KNEBV
SCHN
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