Otis Worldwide Corporation
$69.92
-0.58%Otis Worldwide Corporation manufactures, installs, and services 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. The Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. It had a network of approximately 34,000 service mechanics operating approximately 1,400 branches and offices. The company was founded in 1853 and is headquartered in Farmington, Connecticut.
At a Glance
Live SnapshotIntrinsic Alpha Methodology
Thesis Lenses
Signal
High confidenceValuation multiple is mid-range (P/E 19.8).
Valuation inputs: P/E 19.8, earnings yield +5.0%, momentum -0.6%.
If multiples stay elevated while momentum fades, downside repricing risk rises.
Driver
High confidenceReturn profile is soft (ROE -25.7%, ROIC +39.6%).
Profitability stack: net margin +9.6%, ROE -25.7%, ROIC +39.6%.
Quality deterioration often appears in margins before it shows up in headline EPS.
Risk
High confidenceDownside profile is elevated and scenario stress-testing is essential.
Risk factors: liabilities/assets +149.5%, momentum -0.6%, net margin +9.6%.
Higher leverage with weak momentum and thin margins can amplify drawdown severity.
Otis Worldwide Corporation Market vs Earnings Trajectory
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Otis Worldwide Corporation Fair Value Envelope
Otis Worldwide Corporation Profit Bridge
Profitability Analysis
Gross Margin
Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.
Operating Margin
Acceptable margins but limited operational leverage. Operating expense control is important.
Net Profit Margin
Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.
Effective Tax Rate
Moderate tax rate typical for most corporations. Represents standard tax burden on profits.
Profitability Insight
Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.
Otis Worldwide Corporation Cash Conversion Engine
Cash Flow Quality Analysis
FCF Conversion Rate
Strong cash conversion. Most reported earnings translate into actual cash flow, suggesting solid fundamentals.
CapEx Intensity
Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.
FCF Growth Trend
Flat FCF growth. Stable but not expanding—monitor for signs of business maturity or temporary headwinds.
Working Capital Impact
Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.
Cash Flow Quality Insight
Asset-light with strong cash conversion: Low capital requirements combined with efficient cash generation creates significant shareholder value through dividends, buybacks, or strategic investments.
Otis Worldwide Corporation Funding & Solvency Profile
Financial Health Analysis
Current Ratio
Warning: Liquidity concerns. Current assets may not be sufficient to cover short-term obligations.
Working Capital
Negative working capital indicates short-term liabilities exceed short-term assets—potential liquidity stress.
Asset Composition
Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.
Otis Worldwide Corporation Street Expectations Map
Wall Street analysts project that OTIS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 92.00, with estimates ranging from a low of 77.00 to a high of 105.00.
The consensus 1-year price target stands at 92.00, with estimates ranging from a low of 77.00 to a high of 105.00.
Analyst Consensus Analysis
Upside Potential
Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.
Analyst Agreement
Good consensus alignment. Moderate target spread reflects general agreement on value drivers with some variance in assumptions.
Analyst Conviction
Positive outlook with reasonable agreement. Analysts generally optimistic about prospects with manageable uncertainty.
Market Sentiment Insight
Monitor and evaluate: Current analyst consensus suggests limited conviction or near-term catalysts. Stay informed on company developments and reassess positioning as new information emerges.
Otis Worldwide Corporation Insider Positioning
During the last 12 months, insiders have sold $14.90M worth of OTIS shares, with no buying activity reported.
3 Months
0
0.00
1.6K
125.18K
-125K
-$125K
3-6 Months
0
0.00
159.8K
14.50M
-14.5M
-$14.50M
6-9 Months
0
0.00
3.0K
277.65K
-278K
-$278K
9-12 Months
0
0.00
0
0.00
+0
+$0
Top Buyers
No buying activity
Top Sellers
Marks Judith Fran
Director, Officer: Chair, Ceo And President
$9.29M
De Montlivault Stephane
Officer: President, Otis Asia Pacific
$4.42M
Green Neil
Officer: Evp & Chief Digital Officer
$519K
Ryan Michael Patrick
Officer: Svp, Cao & Controller
$384K
Lafreniere Nora E.
Officer: Evp, General Counsel
$162K
Insider Activity Analysis
Net Insider Sentiment
Strong bearish signal with $14.90M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.
Buy/Sell Ratio
Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.
Recent Trend (3 Months)
Heavy recent selling activity. Recent insider sales notably exceed purchases—may warrant investigation into company developments.
Insider Participation
5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.
Insider Activity Insight
Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.
otis Dividend History
Learning Layer
Related Guides
Build conviction on OTIS by pairing this stock hub with focused valuation guides.
Research Paths
Snapshot
Start with context, operating signals, and key market metrics.
Value Model
Stress test fair value across bear, base, and bull assumptions.
Statements
Validate revenue quality, margins, and balance sheet durability.
Earnings Call
Read management commentary and compare it with reported outcomes.
Dividends
Check payout sustainability and long-term distribution behavior.
Analyst Expectations
Review consensus spread and where estimate risk is concentrated.