Otis Worldwide Corporation Fundamental Analysis (NYSE: OTIS)
Otis Worldwide Corporation Fundamental Analysis (NYSE: OTIS)
Otis Worldwide Corporation (NYSE: OTIS) shows weak financial fundamentals with a PE ratio of 18.87, profit margin of 10.17%, and ROE of -27.26%. The company generates $14.7B in annual revenue with weak year-over-year growth of 1.19%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 27.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze OTIS's fundamental strength across five key dimensions:
Efficiency Score
ExcellentOTIS demonstrates superior asset utilization.
Valuation Score
ModerateOTIS shows balanced valuation metrics.
Growth Score
WeakOTIS faces weak or negative growth trends.
Financial Health Score
ModerateOTIS shows balanced financial health with some risks.
Profitability Score
WeakOTIS struggles to sustain strong margins.
Key Financial Metrics
Is OTIS Expensive or Cheap?
P/E Ratio
OTIS trades at 18.87 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, OTIS's PEG of 7.19 indicates potential overvaluation.
Price to Book
The market values Otis Worldwide Corporation at -4.94 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.30 times EBITDA. This is generally considered low.
How Well Does OTIS Make Money?
Net Profit Margin
For every $100 in sales, Otis Worldwide Corporation keeps $10.17 as profit after all expenses.
Operating Margin
Core operations generate 15.35 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-27.26 in profit for every $100 of shareholder equity.
ROA
Otis Worldwide Corporation generates $13.59 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Otis Worldwide Corporation produces operating cash flow of $1.85B, showing steady but balanced cash generation.
Free Cash Flow
Otis Worldwide Corporation generates strong free cash flow of $1.69B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.44 in free cash annually.
FCF Yield
OTIS converts 6.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
18.87
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
7.19
vs 25 benchmark
P/B Ratio
Price to book value ratio
-4.94
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.88
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-1.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.83
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.27
vs 25 benchmark
ROA
Return on assets percentage
0.14
vs 25 benchmark
ROCE
Return on capital employed
0.78
vs 25 benchmark
How OTIS Stacks Against Its Sector Peers
| Metric | OTIS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 18.87 | 30.91 | Better (Cheaper) |
| ROE | -27.26% | 1122.00% | Weak |
| Net Margin | 10.17% | -21289.00% (disorted) | Strong |
| Debt/Equity | -1.54 | 0.76 | Strong (Low Leverage) |
| Current Ratio | 0.83 | 21.80 | Weak Liquidity |
| ROA | 13.59% | -1330634.00% (disorted) | Strong |
OTIS outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Otis Worldwide Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
24.49%
Industry Style: Cyclical, Value, Infrastructure
High GrowthEPS CAGR
68.09%
Industry Style: Cyclical, Value, Infrastructure
High GrowthFCF CAGR
18.66%
Industry Style: Cyclical, Value, Infrastructure
High Growth