Is Otis Worldwide Stock a Good Investment?
Otis Worldwide Investment Advice | OTIS |
- Examine Otis Worldwide's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Otis Worldwide's leadership team and their track record. Good management can help Otis Worldwide navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Industrial Machinery & Supplies & Components space and any emerging trends that could impact Otis Worldwide's business and its evolving consumer preferences.
- Compare Otis Worldwide's performance and market position to its competitors. Analyze how Otis Worldwide is positioned in terms of product offerings, innovation, and market share.
- Check if Otis Worldwide pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Otis Worldwide's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Otis Worldwide Corp stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Otis Worldwide Corp is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Very Weak | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Otis Worldwide Stock
Researching Otis Worldwide's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 94.0% of the company shares are owned by institutional investors. The company has Price/Earnings To Growth (PEG) ratio of 2.38. Otis Worldwide Corp last dividend was issued on the 14th of February 2025.
To determine if Otis Worldwide is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Otis Worldwide's research are outlined below:
| Otis Worldwide Corp generated a negative expected return over the last 90 days | |
| Otis Worldwide Corp currently holds 8.74 B in liabilities with Debt to Equity (D/E) ratio of 4.12, indicating the company may have difficulties to generate enough cash to satisfy its financial obligations. Otis Worldwide Corp has a current ratio of 0.95, indicating that it has a negative working capital and may not be able to pay financial obligations when due. Note, when we think about Otis Worldwide's use of debt, we should always consider it together with its cash and equity. | |
| Over 94.0% of Otis Worldwide shares are owned by institutional investors | |
| Latest headline from finance.yahoo.com: Otis Worldwide Insiders Sell US6.2m Of Stock, Possibly Signalling Caution |
Otis Worldwide Quarterly Long Term Debt |
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Otis Worldwide uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Otis Worldwide Corp. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Otis Worldwide's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 31st of January 2024 Upcoming Quarterly Report | View | |
| 24th of April 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 31st of January 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Otis Worldwide's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Otis Worldwide's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2021-02-01 | 2020-12-31 | 0.59 | 0.66 | 0.07 | 11 | ||
2022-07-27 | 2022-06-30 | 0.78 | 0.86 | 0.08 | 10 | ||
2021-04-26 | 2021-03-31 | 0.63 | 0.72 | 0.09 | 14 | ||
2020-07-28 | 2020-06-30 | 0.44 | 0.56 | 0.12 | 27 | ||
2020-10-26 | 2020-09-30 | 0.56 | 0.69 | 0.13 | 23 | ||
2020-05-06 | 2020-03-31 | 0.46 | 0.6 | 0.14 | 30 |
Otis Worldwide Target Price Consensus
Otis target price is determined by taking all analyst projections and averaging them out. There is no one specific way to measure analysts' performance other than comparing it to past results via a very sophisticated attribution analysis. Otis Worldwide's target price projections below should be used in combination with other traditional price prediction techniques such as stock price forecasting, investor sentiment analysis, technical analysis, earnings estimate, and various momentum models.
| 17 | Buy |
Most Otis analysts issue ratings four times a year, at intervals of three months. Ratings are usually accompanied by a target price to help potential investors understand Otis stock's fair price compared to its market value. Analysts arrive at stock ratings after researching the public financial statements of Otis Worldwide Corp, talking to its executives and customers, or listening to those companies' conference calls.
Macroaxis Advice Exposure ValuationOtis Worldwide Target Price Projection
Otis Worldwide's current and average target prices are 96.74 and 100.94, respectively. The current price of Otis Worldwide is the price at which Otis Worldwide Corp is currently trading. On the other hand, Otis Worldwide's target price is what analysts think the stock is worth or could sell for in the future. The more significant the discrepancy between the two prices, the more it stimulates investors to act.Current Price
Otis Worldwide Market Quote on 17th of February 2025
Target Price
Analyst Consensus On Otis Worldwide Target Price
Otis Worldwide Analyst Ratings
Otis Worldwide's analyst stock recommendations are determined by taking an average estimate of all analysts we track and classifying them as Strong Buy, Buy, Hold, Strong Sell, or Sell. Ratings generally communicate what analysts sense about Otis Worldwide stock, and they use a lot of effort and time to analyze it and arrive at a rating. That suggests that analyst recommendations are the outcome of an objective and thorough examination of Otis Worldwide's financials, market performance, and future outlook by experienced professionals. Otis Worldwide's historical ratings below, therefore, can serve as a valuable tool for investors.Know Otis Worldwide's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Otis Worldwide is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Otis Worldwide Corp backward and forwards among themselves. Otis Worldwide's institutional investor refers to the entity that pools money to purchase Otis Worldwide's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Fundsmith Llp | 2024-12-31 | 6 M | Grantham, Mayo, Van Otterloo & Co., Llc | 2024-09-30 | 5.1 M | Bls Capital Fondsmæglerselskab A/s | 2024-12-31 | 4.2 M | Northern Trust Corp | 2024-09-30 | 4.1 M | Sarasin & Partners Llp | 2024-12-31 | 4.1 M | Wellington Management Company Llp | 2024-12-31 | 3.8 M | Amvescap Plc. | 2024-09-30 | 3.7 M | Bank Of America Corp | 2024-09-30 | 3.7 M | Fmr Inc | 2024-09-30 | 3.5 M | Jpmorgan Chase & Co | 2024-09-30 | 56.2 M | Vanguard Group Inc | 2024-12-31 | 45 M |
Otis Worldwide's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 38.36 B.Market Cap |
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Otis Worldwide's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.17 | 0.11 | |
| Return On Capital Employed | 0.56 | 0.40 | |
| Return On Assets | 0.15 | 0.09 | |
| Return On Equity | (0.34) | (0.32) |
Determining Otis Worldwide's profitability involves analyzing its financial statements and using various financial metrics to determine if Otis Worldwide is a good buy. For example, gross profit margin measures Otis Worldwide's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Otis Worldwide's profitability and make more informed investment decisions.
Otis Worldwide's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Otis Worldwide's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Otis Worldwide Corp. Check Otis Worldwide's Beneish M Score to see the likelihood of Otis Worldwide's management manipulating its earnings.
Evaluate Otis Worldwide's management efficiency
Otis Worldwide Corp has return on total asset (ROA) of 0.1371 % which means that it generated a profit of $0.1371 on every $100 spent on assets. This is way below average. Otis Worldwide's management efficiency ratios could be used to measure how well Otis Worldwide manages its routine affairs as well as how well it operates its assets and liabilities. Return On Tangible Assets is likely to drop to 0.11 in 2025. Return On Capital Employed is likely to drop to 0.40 in 2025. At this time, Otis Worldwide's Other Assets are comparatively stable compared to the past year. Intangible Assets is likely to gain to about 363.6 M in 2025, despite the fact that Net Tangible Assets are likely to grow to (5.7 B).| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (11.77) | (11.18) | |
| Tangible Book Value Per Share | (16.40) | (17.22) | |
| Enterprise Value Over EBITDA | 19.55 | 11.86 | |
| Price Book Value Ratio | (7.67) | (7.29) | |
| Enterprise Value Multiple | 19.55 | 11.86 | |
| Price Fair Value | (7.67) | (7.29) | |
| Enterprise Value | 16.8 B | 15 B |
The operational strategies employed by Otis Worldwide management play a crucial role in its market positioning. Assessing these strategies alongside financial data helps us evaluate the stock's investment potential.
Basic technical analysis of Otis Stock
As of the 17th of February 2025, Otis Worldwide holds the Variance of 0.9649, risk adjusted performance of (0.03), and Coefficient Of Variation of (2,457). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Otis Worldwide, as well as the relationship between them. Please check Otis Worldwide Corp standard deviation and potential upside to decide if Otis Worldwide Corp is priced some-what accurately, providing market reflects its current price of 96.74 per share. Given that Otis Worldwide has information ratio of (0.05), we recommend you to check out Otis Worldwide Corp's recent market performance to make sure the company can sustain itself at a future point.Otis Worldwide's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Otis Worldwide insiders, such as employees or executives, is commonly permitted as long as it does not rely on Otis Worldwide's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Otis Worldwide insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Otis Worldwide's Outstanding Corporate Bonds
Otis Worldwide issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Otis Worldwide Corp uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Otis bonds can be classified according to their maturity, which is the date when Otis Worldwide Corp has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| OTIS WORLDWIDE P Corp BondUS68902VAH06 | View | |
| Valero Energy Partners Corp BondUS91914JAA07 | View | |
| US68902VAJ61 Corp BondUS68902VAJ61 | View | |
| OTIS WORLDWIDE P Corp BondUS68902VAK35 | View | |
| OTIS WORLDWIDE P Corp BondUS68902VAL18 | View | |
| US68902VAM90 Corp BondUS68902VAM90 | View | |
| MPLX LP 4125 Corp BondUS55336VAK61 | View |
Understand Otis Worldwide's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Otis Worldwide's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.13) | |||
| Mean Deviation | 0.8043 | |||
| Coefficient Of Variation | (2,457) | |||
| Standard Deviation | 0.9823 | |||
| Variance | 0.9649 | |||
| Information Ratio | (0.05) | |||
| Jensen Alpha | (0.05) | |||
| Total Risk Alpha | (0.05) | |||
| Treynor Ratio | (0.14) | |||
| Maximum Drawdown | 4.27 | |||
| Value At Risk | (1.76) | |||
| Potential Upside | 1.49 | |||
| Skewness | (0.29) | |||
| Kurtosis | (0.44) |
| Risk Adjusted Performance | (0.03) | |||
| Market Risk Adjusted Performance | (0.13) | |||
| Mean Deviation | 0.8043 | |||
| Coefficient Of Variation | (2,457) | |||
| Standard Deviation | 0.9823 | |||
| Variance | 0.9649 | |||
| Information Ratio | (0.05) | |||
| Jensen Alpha | (0.05) | |||
| Total Risk Alpha | (0.05) | |||
| Treynor Ratio | (0.14) | |||
| Maximum Drawdown | 4.27 | |||
| Value At Risk | (1.76) | |||
| Potential Upside | 1.49 | |||
| Skewness | (0.29) | |||
| Kurtosis | (0.44) |
Consider Otis Worldwide's intraday indicators
Otis Worldwide intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Otis Worldwide stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
Otis Worldwide Corporate Filings
| 13th of February 2025 Other Reports | ViewVerify | |
F4 | 10th of February 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
10K | 4th of February 2025 Annual report required by the U.S. Securities and Exchange Commission (SEC) of a company financial performance | ViewVerify |
8K | 29th of January 2025 Report filed with the SEC to announce major events that shareholders should know about | ViewVerify |
Otis Stock media impact
Far too much social signal, news, headlines, and media speculation about Otis Worldwide that are available to investors today. That information is available publicly through Otis media outlets and privately through word of mouth or via Otis internal channels. However, regardless of the origin, that massive amount of Otis data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Otis Worldwide news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Otis Worldwide relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Otis Worldwide's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Otis Worldwide alpha.
Otis Worldwide Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Otis Worldwide can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Otis Worldwide Corp Historical Investor Sentiment
Investor biases related to Otis Worldwide's public news can be used to forecast risks associated with an investment in Otis. The trend in average sentiment can be used to explain how an investor holding Otis can time the market purely based on public headlines and social activities around Otis Worldwide Corp. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Otis Worldwide's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Otis Worldwide and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Otis Worldwide news discussions. The higher the estimate score, the more favorable the investor's outlook on Otis Worldwide.
Otis Worldwide Maximum Pain Price Across May 16th 2025 Option Contracts
Otis Worldwide's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Otis Worldwide close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Otis Worldwide's options.
Otis Worldwide Corporate Management
| Jeffrey Black | Independent Director | Profile | |
| Michael Ryan | Chief Accounting Officer, Vice President | Profile | |
| Bernardo Fernandez | President Otis EMEA | Profile | |
| Bryant Henson | Executive Vice President - Global Strategy and Business Development | Profile | |
| Robert Quartaro | Vice Relations | Profile | |
| Shelley Stewart | Independent Director | Profile |
Additional Tools for Otis Stock Analysis
When running Otis Worldwide's price analysis, check to measure Otis Worldwide's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Otis Worldwide is operating at the current time. Most of Otis Worldwide's value examination focuses on studying past and present price action to predict the probability of Otis Worldwide's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Otis Worldwide's price. Additionally, you may evaluate how the addition of Otis Worldwide to your portfolios can decrease your overall portfolio volatility.