Don't Take a Position in Otis Worldwide (OTIS) Without Knowing Its Fundamentals!

Otis Worldwide has moved 0.4% so far today on a volume of 287,523, compared to its average of 2,183,641. In contrast, the S&P 500 index moved -0.1%.

Over the last 52 weeks, the stock moved -4.5%, with a high of $88.22 and a low of $62.49. During this time, the stock underperformed the S&P 500 index by 11.1%.Otis Worldwide Corporation manufactures, installs, and services elevators and escalators in the United States, China, and internationally. The large-cap Industrials company has 68,000 full time employees and is based in Farmington, CT. Otis Worldwide has returned a 1.3% dividend yield over the last 12 months.

Snapshot of the Company's Consistent gross margins and A steady stream of strong cash flows:

2018-12-31 2019-12-31 2020-12-31 2021-12-31
Revenue $12,915,000,000 $13,118,000,000 $12,756,000,000 $14,298,000,000
Revenue Growth n/a 1.6% -2.8% 12.1%
Gross Margins 28.85% 29.17% 29.63% 29.33%
Gross Margins Growth n/a 1.11% 1.58% -1.01%
Operating Margins 14.91% 14.89% 14.73% 15.03%
Operating Margins Growth n/a -0.13% -1.07% 2.04%
Earnings Per Share $2.42 $2.55 $2.08 $2.89
EPS Growth n/a 5.37% -18.43% 38.94%
Free Cash Flow $1,378,000,000 $1,324,000,000 $1,297,000,000 $1,594,000,000
FCF Growth n/a -3.92% -2.04% 22.9%
LT Debt to Equity 0.0 0.0 -1.36 -2.0

Basic Valuation Metrics Show Otis worldwide Is Fairly valued:

Compared to the Industrials sector's average of 21.46, Otis Worldwide has a trailing twelve month price to earnings (P/E) ratio of 27.2 and, based on its Eps guidance of 3.42, an expected P/E ratio of 23.1. The firm's price to earnings growth (PEG) is 3.54, which indicates that it is overvalued in terms of its expected rate of earnings growth. .

There is Mixed market sentiment About Otis Worldwide:

12 analysts are following Otis Worldwide and have set target prices ranging from $65 to $90 per share. On average, they have given the company a rating of hold. At today's prices, OTIS is trading 1.17% away from its average analyst target price of $78 per share, implying an analyst consensus of little upside potential for the stock. The company has a very low short interest since 1.4% of the company's shares are tied to short positions. Institutions own 87.7% of Otis Worldwide's shares, while the insider ownership rate stands at 0.05%. The biggest shareholder is Vanguard Group, Inc. (The) with a 9.53% stake in the company worth approximately $3,131,508,705.00.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.