Otis Worldwide CorporationOTISNYSE
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Executive Summary
Latest Data: Dec 2025Industrials•Industrial - Machinery
$36.2BLarge Cap
A large-scale business, operating profitably valued in line with the market.
Key Investment Themes
Mature business (1% growth)
Business Narrative
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.
IndustrialsIndustrial - Machinery
Mature & Stable
high confidence
Revenue Mix
Single segment business
Company at a Glance
Business Performance
Key Highlights
Positive Signals
- Conservative balance sheet with low debt levels
Watch Areas
- Current liabilities exceed current assets
Financial Health
Liquidity
Concern
Current Ratio0.85
<1.0 = Weak
Cash & Equivalents$1.1B
Leverage
Strong
Debt / Equity-1.62
<1.0 = Low leverage
Interest Coverage10.88x
≥5x = Comfortable
Efficiency
Concern
Return on Equity-25.7%
<8% = Weak
Return on Capital39.6%
≥15% = Excellent
Valuation Assessment
Market Cap
$36.2B
Large Cap
P/E (TTM)
26.4x
In-line
vs 5Y avg: 26.0x (+2%)
P/S (TTM)
2.5x
In-line
vs 5Y avg: 2.5x (-1%)
EV/EBITDA
19.0x
In-line
vs 5Y avg: 18.3x
(+4%)
(+4%)
P/E Historical Range (5Y)
Min: 22.6xAvg: 26.0xNow: 26.4xMax: 29.9x
P/S Historical Range (5Y)
Min: 2.4xAvg: 2.5xNow: 2.5xMax: 2.6x
EV/EBITDA Historical Range (5Y)
Min: 17.2xAvg: 18.3xNow: 19.0xMax: 19.6x
Valuation Corridor
FAIR
FCF Yield
4.0%
vs Cost of Capital ~8.0% = Moderate
P/E Corridor (5Y)26.4x
22.6xFair: 23.3x-28.6x29.9x
P/S Corridor (5Y)2.5x
2.4xFair: 2.4x-2.6x2.6x
EV/EBITDA Corridor (5Y)19.0x
17.2xFair: 17.3x-19.2x19.6x
Detailed Financials
Comprehensive financial statement data for deep analysis
| Metric | Dec 21 | Dec 22 | Dec 23 | Dec 24 | Dec 25 |
|---|---|---|---|---|---|
| Return on Equity | - | - | - | - | - |
| Return on Invested Capital | - | - | - | - | - |
| Gross Margin | 29.3% | 28.6%↓2.3% | 29.5%↑3.0% | 29.9%↑1.2% | 30.3%↑1.4% |
| Operating Margin | 14.7% | 14.9%↑0.8% | 15.4%↑3.6% | 14.1%↓8.5% | 14.8%↑5.0% |
| Net Margin | 8.7% | 9.2%↑5.1% | 9.9%↑8.1% | 11.5%↑16.6% | 9.6%↓16.9% |
| Earnings Yield | - | - | - | - | - |
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