Otis Worldwide Corp (OTIS) Stock Analysis
Verdict: HOLD
Service-driven cash flows offer a 5.9% FCF yield at a deep P/E discount to peers, but China macro and high leverage limit immediate upside.
Investment score: 62/100
Analysis as of
Is Otis Worldwide Corp stock worth reviewing? The TradeMates thesis
OTIS offers strong recurring service revenue and attractive valuation relative to industrial peers, but negative equity and recent earnings misses require a 'Hold' stance until Q2 results confirm margin stability.
7-factor investment score
- Valuation: 78/100 (weight 20%)
- Financial Health: 55/100 (weight 15%)
- Technical Momentum: 45/100 (weight 15%)
- Earnings Quality: 48/100 (weight 15%)
- Insider Sentiment: 40/100 (weight 10%)
- Analyst Consensus: 70/100 (weight 10%)
- Risk-Adjusted Return: 75/100 (weight 15%)
Otis Worldwide Corp opportunities and risks
What speaks for OTIS
- Exceptional Free Cash Flow Generation
What speaks against OTIS
- Exposure to China Real Estate Volatility
Peers and competitors
| Ticker | P/E | P/S | EV/EBITDA | Gross margin | Net margin | FCF yield |
|---|---|---|---|---|---|---|
| OTIS | 19.2x | 1.9x | 14.6x | 30.4% | 10.1% | 5.9% |
| PH | 35.0x | 5.8x | 23.2x | 37.2% | 16.6% | 3.0% |
| ITW | 25.3x | 4.8x | 18.7x | 44.1% | 19.3% | 3.5% |
| IR | 53.7x | 4.1x | 21.2x | 38.2% | 7.5% | 3.7% |
| DOV | 26.5x | 3.5x | 16.2x | 39.5% | 13.3% | 4.0% |
| XYL | 29.4x | 3.1x | 16.3x | 38.6% | 10.7% | 3.4% |
| Peer median | 29.4x | 4.1x | 18.7x | 38.6% | 13.3% | 3.5% |
Frequently asked questions about Otis Worldwide Corp (OTIS)
Is OTIS stock a good investment?
The TradeMates model rates Otis Worldwide Corp as HOLD with an investment score of 62/100. OTIS offers strong recurring service revenue and attractive valuation relative to industrial peers, but negative equity and recent earnings misses require a 'Hold' stance until Q2 results confirm margin stability. This is algorithmic model output, not personal investment advice.
Is OTIS stock a buy?
The TradeMates model verdict for OTIS is HOLD with an investment score of 62/100. Treat this as a model signal to review, not a personal buy recommendation.