Otis Worldwide Corporation (OTIS) Stock Analysis — Fair Value, Risk & Moat Rating
NYQ · Industrials · Specialty Industrial Machinery
Is Otis Worldwide Corporation a safe investment right now?
Otis Worldwide Corporation's Altman Z-Score of 2.99 places it in the gray zone. Our fair value estimate is $65.47 (Overvalued). Moat rating: 3.4/5 stars.
Could Otis Worldwide Corporation go bankrupt? Altman Z-Score analysis
Z-Score of 2.99 places the company in the gray zone (1.8-3.0), warranting closer scrutiny.
- Below 1.8 — Distress Zone (high bankruptcy risk)
- 1.8 to 3.0 — Gray Zone (elevated uncertainty)
- Above 3.0 — Safe Zone (financially healthy)
What drives OTIS's Z-Score?
| Component | Formula | Value | Weight | Contribution |
|---|---|---|---|---|
| A · Working Capital / Total Assets | WC / TA | -0.1084 | 1.2 | -0.13 |
| B · Retained Earnings / Total Assets | RE / TA | -0.0413 | 1.4 | -0.06 |
| C · EBIT / Total Assets | EBIT / TA | 0.2083 | 3.3 | 0.69 |
| D · Market Cap / Total Liabilities | MCap / TL | 1.9011 | 0.6 | 1.14 |
| E · Revenue / Total Assets | Rev / TA | 1.3546 | 1.0 | 1.35 |
How has OTIS's financial health changed over time?
| Year | Z-Score | Zone |
|---|---|---|
| 2022 | 2.85 | Gray |
| 2023 | 3.07 | Safe |
| 2024 | 2.86 | Gray |
| 2025 | 2.99 | Gray |
Source: Calculated from OTIS's latest 10-K filing on SEC EDGAR.
What is Otis Worldwide Corporation actually worth?
How we calculated this
| Input | Value | Source |
|---|---|---|
| Predicted EPS (α) | $3.72 | Proprietary blend of reported actuals (1Q actual) + analyst consensus, weighted by α |
| Last Year EPS | $3.50 | Annual report (SEC EDGAR) |
| Analyst Consensus EPS (This Year) | $4.24 | 14 analysts consensus |
| Trailing P/E | 20.7x | Current market pricing |
| Fair P/E (β discount) | 17.6x | Trailing PE adjusted by value discount factor β, hard-capped |
| Earnings Trend (γ) | Stable | Directional signal: predicted vs trailing EPS |
Wall Street Reference: Analyst consensus target price is $99.00 (14 analysts). This is shown for reference only and is not used in our valuation model.
Source: Earnings data from SEC EDGAR filings. Market data via Yahoo Finance.
Does Otis Worldwide Corporation have a durable competitive advantage?
Moat rating: 3.4/5.
What makes up OTIS's moat score?
ROIC Stability
ROIC variability over the past decade. Score: 4/5.
Gross Margin Trend
Gross margin trajectory over the past decade. Score: 3/5.
Switching Costs
Estimated customer lock-in based on margin level. Score: 3/5.
How stable is OTIS's return on invested capital?
| Year | ROIC | Trend |
|---|---|---|
| 2022 | 60.0% | — |
| 2023 | 60.0% | Stable |
| 2024 | 59.0% | Stable |
| 2025 | 60.0% | Stable |
Source: ROIC calculated from SEC EDGAR filings.
Is Otis Worldwide Corporation's dividend safe?
Can Otis Worldwide Corporation afford its dividend?
Payout ratio is 44.7%. FCF covers the dividend 3.1x. 7 consecutive years of payments.
Otis Worldwide Corporation's key financial metrics
| Metric | Latest | 1Y Ago | 3Y Ago | Trend |
|---|---|---|---|---|
| Revenue | $14.4B | $14.3B | $13.7B | Rising |
| Net Income | $1.4B | $1.6B | $1.3B | Rising |
| Free Cash Flow | $1.4B | $1.4B | $1.4B | Stable |
| Gross Margin | 30.3% | 29.8% | 28.6% | Rising |
Recent events that affect our OTIS analysis
OTIS analyst consensus: 38% bullish (6 of 16 analysts)
2 Strong Buy, 4 Buy, 9 Hold, 0 Sell, 1 Strong Sell. Consensus target: $99.00 (27.1% upside). Compare with our independent Fair Value: $65.47.
OTIS missed EPS estimates by 0.8%
Reported EPS: $0.89 vs estimate $0.90. Our Fair Value of $65.47 may face downward pressure if the trend continues.
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
OTIS paid $0.4200/share dividend
Dividend Safety Grade: A. Payout ratio: 44.7%.
OTIS filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
OTIS missed EPS estimates by 0.3%
Reported EPS: $1.03 vs estimate $1.03. Our Fair Value of $65.47 may face downward pressure if the trend continues.
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
OTIS paid $0.4200/share dividend
Dividend Safety Grade: A. Payout ratio: 44.7%.
OTIS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
OTIS beat EPS estimates by 4.7%
Reported EPS: $1.05 vs estimate $1.00. Earnings strength supports our Fair Value of $65.47 (15.9% below current price).
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
OTIS paid $0.4200/share dividend
Dividend Safety Grade: A. Payout ratio: 44.7%.
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
OTIS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
OTIS beat EPS estimates by 11.8%
Reported EPS: $0.99 vs estimate $0.89. Earnings strength supports our Fair Value of $65.47 (15.9% below current price).
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
OTIS paid $0.4200/share dividend
Dividend Safety Grade: A. Payout ratio: 44.7%.
OTIS filed quarterly report (10-Q)
Quarterly update with interim financials. May signal changes to earnings trajectory and balance sheet health. View on SEC EDGAR →
OTIS beat EPS estimates by 1.1%
Reported EPS: $0.92 vs estimate $0.91. Earnings strength supports our Fair Value of $65.47 (15.9% below current price).
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
OTIS paid $0.3900/share dividend
Dividend Safety Grade: A. Payout ratio: 44.7%.
OTIS filed annual report (10-K)
Annual filing with full-year financials. Our Altman Z-Score, Moat, and Fair Value models are derived from this data. View on SEC EDGAR →
OTIS missed EPS estimates by 2.8%
Reported EPS: $0.93 vs estimate $0.96. Our Fair Value of $65.47 may face downward pressure if the trend continues.
OTIS filed 8-K (material event)
8-K filings disclose material events — acquisitions, leadership changes, or guidance revisions that may affect valuation. View on SEC EDGAR →
Common questions about Otis Worldwide Corporation
What is Otis Worldwide Corporation stock price today?
Otis Worldwide Corporation (OTIS) stock price is $77.88 as of the latest market close, traded on the NYSE exchange.
What does Otis Worldwide Corporation do?
Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. It 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.
What is Otis Worldwide Corporation market cap?
Otis Worldwide Corporation has a market capitalization of $30.27B, classifying it as a large-cap stock in the Industrials sector.
What sector and industry is OTIS in?
Otis Worldwide Corporation operates in the Industrials sector, specifically within the Specialty Industrial Machinery industry. It trades on the NYSE under the ticker symbol OTIS.
Is OTIS stock overvalued or undervalued?
Based on our valuation model, Otis Worldwide Corporation trades 19.0% above our fair value estimate — potentially overvalued.
- FairValueLabs Fair Value: $65.47
- Current Price: $77.88
- Valuation Zone: Overvalued
What is OTIS stock forecast and analyst target price?
Based on 14 Wall Street analysts, the consensus price target for Otis Worldwide Corporation is $99.00, implying upside of 27.1% from the current price.
- Analyst High Target: $120.00
- Analyst Low Target: $80.00
Note: Analyst targets are shown for reference and are not used in our valuation model.
Is Otis Worldwide Corporation revenue and earnings growing?
Here are the analyst consensus growth estimates for Otis Worldwide Corporation:
- Revenue growth (current year est.): 4.3%
- EPS growth (current year est.): 4.8%
- Revenue growth (next year est.): 4.9%
- EPS growth (next year est.): 11.9%
What are Otis Worldwide Corporation's key financial metrics?
| Metric | Latest | Trend |
|---|---|---|
| Revenue | $14.4B | Rising |
| Net Income | $1.4B | Rising |
| Free Cash Flow | $1.4B | Stable |
| Gross Margin | 30.3% | Rising |
What is OTIS's P/E ratio?
The price-to-earnings ratio measures how much investors pay per dollar of earnings:
- Trailing P/E (last 12 months): 20.7x
- Forward P/E (next 12 months est.): 16.5x
- FairValueLabs Fair P/E: 17.6x
How volatile is OTIS stock?
Otis Worldwide Corporation has a beta of 1.00, meaning it is roughly in line with overall market volatility. A beta above 1.0 indicates higher price swings relative to the S&P 500, while below 1.0 suggests more stability.
How much cash and debt does Otis Worldwide Corporation have?
Otis Worldwide Corporation's balance sheet shows:
- Total Cash: $834.0M
- Total Debt: $8.22B
- Net Cash Position: $-7.38B
A positive net cash position means the company holds more cash than debt, reducing financial risk.
What is Otis Worldwide Corporation's free cash flow?
Otis Worldwide Corporation generated $1.80B in trailing twelve-month free cash flow (from $1.82B in operating cash flow). Free cash flow represents the cash available for dividends, buybacks, and debt reduction after all capital expenditures.
Does Otis Worldwide Corporation pay a dividend, and is it safe?
Yes, Otis Worldwide Corporation pays a regular dividend. Here are the key metrics:
- Dividend Yield: 1.6%
- Payout Ratio: 44.7%
- Consecutive Years Paid: 7
- 5-Year Dividend Growth: -14.5%
- FairValueLabs Safety Grade: A
Is Otis Worldwide Corporation at risk of going bankrupt?
Otis Worldwide Corporation's Altman Z-Score is 2.99, placing it in the gray zone (1.8–3.0) — some financial uncertainty. The Z-Score uses five balance sheet ratios to predict bankruptcy probability within two years.
Does Otis Worldwide Corporation have a durable competitive advantage?
Otis Worldwide Corporation scores 3.4/5 stars (Narrow moat) in our moat analysis:
- ROIC Stability: 4/5
- Gross Margin Trend: 3/5
- Switching Costs: 3/5
A score above 3.5 suggests meaningful pricing power and a defensible market position.
How do I buy OTIS stock?
OTIS shares can be purchased through any brokerage account that provides access to the NYSE. Common steps:
- Open an account with a broker (e.g., Fidelity, Schwab, Interactive Brokers)
- Search for ticker symbol OTIS
- Place a market or limit order for your desired number of shares
This is not investment advice. Always do your own research before buying any stock.
Is OTIS a value stock or speculative?
FairValueLabs classifies Otis Worldwide Corporation as Value Investment. It exhibits consistent profitability, reasonable valuation, and financial stability — characteristics of a traditional value investment.
Who is the CEO of Otis Worldwide Corporation?
The current CEO of Otis Worldwide Corporation is Ms. Judith F. Marks.
What is OTIS's earnings per share (EPS)?
Earnings per share measures the company's profit allocated to each outstanding share:
- Trailing EPS (last 12 months): $3.76
- Forward EPS (next 12 months est.): $4.73
- Analyst consensus EPS (this year): $4.24
- Analyst consensus EPS (next year): $4.75
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FairValueLabs Disclaimer
All valuations, scores, ratings, and classifications on this page are produced by the FairValueLabs internal valuation system. They do not represent actual market value, guaranteed outcomes, or professional investment advice. These are analytical estimates for educational and research purposes only.
This is not financial advice. All data is sourced from SEC EDGAR public filings. Always consult a qualified financial advisor before making investment decisions.
Last updated: Apr 22, 2026. Data sources: SEC EDGAR (financial statements), Yahoo Finance (market data, analyst consensus). Data may not reflect the most recent quarter.
OTIS analysis methodology: How we calculate fair value, Z-Scores, and moat ratings