Otis stock poised for rebound as analysts see services growth, construction boom: should you buy?
Otis Worldwide Corp.'s share price has been on a slow decline for much of the year, but signs are emerging that the worst may be over.
Fiscal Year: January - December
Otis Worldwide Corporation (OTIS), listed on the NYSE, has a market capitalization of $. As of Aug 19, 2025, the stock is trading at $87.61 per share, offering investors a clear view of its current market value. Otis Worldwide Corporation is a prominent player in the industry sector, attracting both institutional and retail investors due to its performance and potential.
With a P/E ratio of 23.15, investors can assess the stock's valuation in comparison to its earnings. A P/E ratio is a crucial indicator for value investors, showing whether the stock is over or undervalued relative to its current earnings. Otis Worldwide Corporation also offers a dividend yield of 1.92%, making it an attractive option for income-focused investors who seek regular dividends.
Our Discounted Cash Flow (DCF) analysis reveals that Otis Worldwide Corporation (OTIS) may be overvalued compared to its intrinsic worth. However, to see the exact DCF fair value, please Login or Upgrade for access.
The proprietary SS Score for Otis Worldwide Corporation is a unique metric that analyzes the company's financial health and growth potential. The score takes into account critical factors such as revenue growth, net income, free cash flow (FCF) compound annual growth rate (CAGR), the trend of shares outstanding, and the debt-to-FCF ratio. This helps investors to make a more informed decision, as an undervalued stock might still have poor financial fundamentals.
To view the detailed SS Score for Otis Worldwide Corporation, Login or Upgrade for access.
The Price to Free Cash Flow (P/FCF) ratio for Otis Worldwide Corporation is 25.51, offering insights into how much investors are paying for the company's free cash flow. A lower P/FCF ratio typically suggests that the stock is undervalued, while a higher ratio may indicate overvaluation.
In summary, Otis Worldwide Corporation (OTIS) has shown consistent financial performance, as illustrated by the financial charts above, which track its revenue growth, net income, free cash flow, and shares outstanding over the past several years. These metrics provide investors with key insights into the company's past and projected future performance. Investors should use the SS Score alongside the DCF Fair Value to make better-informed decisions about whether to buy or hold the stock.
*This analysis is for informational purposes only and does not constitute investment advice. Always read the company's 10-K filings and do your own research before making any investment decisions.
Whether Otis Worldwide Corporation (OTIS) is a good stock to buy depends on various factors, including its financial health, market conditions, and your investment strategy. Our analysis indicates that the stock may be overvalued compared to its intrinsic value. However, it is important to assess the SS Score and review the company's fundamentals before making any investment decisions.
The fair value of Otis Worldwide Corporation (OTIS) is determined through our Discounted Cash Flow (DCF) analysis. This value represents the intrinsic worth of the stock based on its expected future cash flows. To view the specific fair value, consider subscribing to our service for complete access.
The SS Score is a proprietary financial quality metric that assesses factors such as revenue growth, net income, free cash flow growth, and debt levels. It helps investors evaluate the overall financial health of Otis Worldwide Corporation. To access the full SS Score, consider upgrading your subscription.
Otis Worldwide Corporation is a significant player in the industry sector, with a market capitalization of $ and a competitive P/E ratio of 23.15. Investors should compare these metrics with industry peers to gauge whether Otis Worldwide Corporation is outperforming or underperforming within its sector.
Otis Worldwide Corp.'s share price has been on a slow decline for much of the year, but signs are emerging that the worst may be over.
Industrial stocks have shot higher in 2025, powered by AI and commercial aerospace. Analysts are warming to some other stocks in the sector that don't depend on either theme.
Market volatility from tariffs presents a buying opportunity for quality stocks, especially for long-term investors seeking value in the current dip. Otis Worldwide offers resilience and upside potent...
DUBAI, UAE, Aug. 4, 2025 /PRNewswire/ -- Otis Worldwide Corporation (NYSE: OTIS), the world's leading elevator and escalator manufacturing, installation and service company, will provide and install 7...
This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms. We go over our filter...
The most oversold stocks in the industrials sector presents an opportunity to buy into undervalued companies.
Otis's resilient service-driven business model generates high-margin, recurring revenue, insulating it from cyclical downturns and justifying premium valuation multiples. Despite a Q2 revenue miss and...
FARMINGTON, Conn. , July 24, 2025 /PRNewswire/ -- The Otis Worldwide Corporation (NYSE: OTIS) Board of Directors today declared a quarterly dividend of $0.42 per share of Otis' common stock.
OTIS' Q2 earnings miss and revised 2025 outlook triggered a steep sell-off, with persistent headwinds, especially in China and New Equipment segment. Despite near-term volatility from tariffs and weak...
Otis Worldwide Corporation (NYSE:OTIS) Q2 2025 Earnings Conference Call July 23, 2025 8:30 AM ET Company Participants Robert Quartaro - Vice President of Investor Relations Judith Marks - Chair, Pres...
Otis delivers mid-single digit organic Service sales growth and continued Service operating profit margin expansion and reconfirms 2025 EPS outlook Second quarter 2025 • Service net sales up 6% with...
I reiterate a Sell rating on Otis Worldwide Corporation, with a fair value of $82 per share, due to a persistently weak growth outlook. Otis faces ongoing headwinds from sluggish China real estate and...
FARMINGTON, Conn. , July 9, 2025 /PRNewswire/ -- Otis Worldwide Corporation (NYSE: OTIS) will host a conference call on Wednesday, July 23, 2025, at 8:30 a.m.
CAIRO , July 8, 2025 /PRNewswire/ -- To enhance the quality of life for its residents, Tatweer Misr, one of Egypt's leading real estate developers, has selected Otis (NYSE: OTIS), the world's leading ...
Otis Worldwide is the global leader in elevator and escalator manufacturing, installation, and services. Since its 2020 spin-off from United Technologies, Otis has delivered a 130% total return. The f...
Elevator is first of three on site to be modernized with new Otis elevators SEATTLE , May 23, 2025 /PRNewswire/ -- A new, double-deck glass elevator from Otis opened for its first rides to passengers ...
Team from Pembroke Pines Charter High School in Florida proposes smartphone app that uses Artificial Intelligence to aid visually impaired people; wins grants to support STEM programming at school FAR...
I am neutral on Otis Worldwide Corporation due to visible macro headwinds in China and the Americas impacting near-term revenue and margin trends. OTIS's latest earnings showed a slight decline in org...
Otis Worldwide chair, CEO and president Judy Marks discusses supply side options amid tariff talks on 'The Claman Countdown.'
Otis Worldwide Corporation (NYSE:OTIS) Q1 2025 Earnings Conference Call April 23, 2025 8:30 AM ET Company Participants Rob Quartaro - VP, IR Judy Marks - Chair, CEO and President Cristina Mendez - EV...
Otis delivers mid-single digit organic Service sales growth and strong Service operating profit margin expansion Service net sales up 1% with organic sales up 4% GAAP operating profit margin down 350 ...
FARMINGTON, Conn. , April 22, 2025 /PRNewswire/ -- The Otis Worldwide Corporation (NYSE: OTIS) Board of Directors today declared a quarterly dividend of $0.42 per share of Otis' common stock, represen...
FARMINGTON, Conn. , April 9, 2025 /PRNewswire/ -- Otis Worldwide Corporation (NYSE: OTIS) will host a conference call on Wednesday, April 23, 2025, at 8:30 a.m.
Upgrading Otis Worldwide to a Buy rating due to its defensive qualities and recent outperformance amid market volatility, reflecting investor confidence. Otis's service business, accounting for 85% of...
Below estimates were sourced from SimplyWallSt and are intended for educational purposes only as a baseline for the analysis.
Year | FCF Estimate | % | # Analysts |
---|---|---|---|
2025 | 1.61B | 12.10% | Est @12.1% |
2026 | 1.78B | 10.79% | Analyst x7 |
2027 | 2.07B | 15.97% | Analyst x3 |
2028 | 2.23B | 7.97% | Analyst x3 |
2029 | 2.44B | 8.99% | Analyst x2 |
2030 | 2.55B | 4.85% | Est @4.9% |
2031 | 2.66B | 4.09% | Est @4.1% |
2032 | 2.75B | 3.56% | Est @3.6% |
2033 | 2.84B | 3.18% | Est @3.2% |
2034 | 2.92B | 2.72% | Est @2.7% |
Below are the FCF estimates with the discount factor and the calculated present value with the terminal value that led the results above.
Year | FCF | Discount Factor | PV of Future FCF |
---|---|---|---|
2023A | 1.49B | 1.00 | 1.49B |
2024A | 1.44B | 1.00 | 1.44B |
2025E | 1.61B | 1.09 | 1.48B |
2026E | 1.78B | 1.18 | 1.51B |
2027E | 2.07B | 1.28 | 1.61B |
2028E | 2.23B | 1.40 | 1.60B |
2029E | 2.44B | 1.52 | 1.60B |
2030E | 2.55B | 1.65 | 1.55B |
2031E | 2.66B | 1.79 | 1.48B |
2032E | 2.75B | 1.95 | 1.41B |
2033E | 2.84B | 2.12 | 1.34B |
2034E | 2.92B | 2.31 | 1.27B |
Terminal | 48.14B | 2.31 | 20.88B |
The information given by Studying Stocks and provided in the web and/or mobile applications (Platforms) is only factual information and should not be considered financial advice.
Any information contained in this website has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice.
When creating an account, you acknowledge that you are:
We retain the right to cancel your account for any reason, or refuse your account creation request.
The information on our Platforms is not comprehensive and is intended to provide a summary of the subject matter covered. While we use all reasonable attempts to ensure the accuracy and completeness of the data and information on our Platforms, to the extent permitted by law, we make no warranty regarding the information on these Platforms. You should monitor any changes to the information contained on these Platforms.
Furthermore we make no commitments in regards to the minimum amount of uptime that our platforms will maintain, although we will make ever reasonable attempt to ensure that the platforms are operational. Therefore, any reference of "latest", "current" and related words about the financial data presented here may not be up to date with the financial markets or represent reality of the information.
We are not liable to you or anyone else if interference with or damage to your computer systems occurs in connection with the use of these Platforms or a linked website. You must take your own precautions to ensure that whatever you select for your use from our Platforms is free of viruses or anything else (such as worms or Trojan horses) that may interfere with or damage the operations of your computer systems.
We may, from time to time and without notice, change or add to the Platforms (including the Terms) or the information, products or services described in it. However, we do not undertake to keep the Platforms updated. We are not liable to you or anyone else if errors occur in the information or the Platforms is not up-to-date.
Our Platforms may contain links to websites operated by third parties. Those links are provided for convenience and may not remain current or be maintained. Unless expressly stated otherwise, we do not endorse and are not responsible for the content on those linked websites and have no control over or rights in those linked websites.
These Platforms are for your personal, non-commercial use only. You may not modify, copy, distribute, transmit, display, perform, reproduce, publish, license, commercially exploit, create derivative works from, transfer, or sell any Content, software, products or services contained within these Platforms. You may not use these Platforms, or any of its Content, to further any commercial purpose, including any advertising or advertising revenue generation activity on your own website.
You must not do any act that we would deem to be inappropriate, is unlawful or is prohibited by any laws applicable to these Platforms, including but not limited to:
If we allow you to post any information to our Platforms, we have the right to take down this information at our sole discretion and without notice.
To the maximum extent permitted by law, we make no warranties or representations about these Platforms or the Content, including but not limited to warranties or representations that they will be complete, accurate or up-to-date, that access will be uninterrupted or error-free or free from viruses, or that these Platforms will be secure.
We reserve the right to restrict, suspend or terminate without notice your access to these Platforms, any Content, or any feature of these Platforms at any time without notice and we will not be responsible for any loss, cost, damage or liability that may arise as a result.
To the maximum extent permitted by law, in no event shall we be liable for any direct and indirect loss, damage or expense – irrespective of the manner in which it occurs – which may be suffered due to your use of our Platforms and/or the information or materials contained on it, or as a result of the inaccessibility of these Platforms and/or the fact that certain information or materials contained on it are incorrect, incomplete or not up-to-date.
This website utilises cookies. If you do not have cookies enabled in your web browser some functions of the site may not work as intended.