Otis Worldwide Corp

Otis Worldwide Corp

OTIS

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Market Cap$28.18B
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Compare to Similar Companies

P/E RatioDividendsReturn on EquityPrice-to-SalesDebt-to-Equity
Otis Worldwide CorpOtis Worldwide Corp19.32.31%-27%1.9-1.5

Earnings Call Q2 2026

July 22, 2026 - AI Summary

Strong top-line growth + cash generation (core positive): - Q2 2026 net sales: $3.9B, organic sales +6%. - Service remained the growth engine: organic service sales +9%, supported by modernization +24% organic (highest since Spin), repair +12% organic (best in ~10 quarters), and maintenance +3% organic. - Modernization backlog: +26% YoY at constant currency; modernization orders +9%. - Cash strength: adjusted free cash flow $290M, +19% YoY; enables continued investment + shareholder returns.
Margin pressure and why (bad / key constraint): - Adjusted operating profit margin down 180 bps to 15.2%; service margins down 170 bps to 23.2% YoY. - Management attributed margin pressure to labor/material inflation, mix (more modernization), productivity headwinds from service quality investments, and ramp-up inefficiencies as they scale skilled repair/modernization execution. - Expectation is that these are not permanent: margins should recover sequentially in 2H as productivity improves and initiatives flow through.
Service quality initiative is working on leading indicators, but retention lagged (good + surprising/negative): - They invested $50M total in service excellence + pricing (plan referenced earlier); $15M invested in Q2, on track. - Service quality index improved +7 points in targeted operating territories; early signs are positive. - However, retention recovery is taking longer than expected: overall retention ex China still down in Q2 (but management argues lighthouse territories show much higher retention and quality metrics).

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$91.75

Target Price by Analysts

29.6% upsideOtis Worldwide Target Price DetailsTarget Price
$83.07

Current Fair Value

17.4% upside

Undervalued by 17.4% based on the discounted cash flow analysis.

Share Statistics

Market cap$28.18 Billion
Enterprise Value$35.97 Billion
Dividend Yield$1.70 (2.31%)
Earnings per Share$3.53
Beta0.89
Outstanding Shares388,100,000

Return

Return on Equity-26.60%ROE
Return on Assets14.33%
Return on Invested Capital80.13%

Valuation & Multiples

P/E Ratio19.33P/E Ratio
PEG48.42PEG
Price to Sales1.91Price to Sales
Price to Book Ratio-4.72Price to Book Ratio
Enterprise Value to Revenue2.46
Enterprise Value to EBIT15.93
Enterprise Value to Net Income23
Total Debt to Enterprise0.24
Debt to Equity-1.52Debt to Equity

Revenue Sources

No data

Insider Trades

Last Earnings Call

Report Date
July 22, 2026
EPS Estimate
$1.01
Average shareholder expectation
Revenue Estimate
$3.76 B
Average shareholder expectation

Next Earnings Call

Expected Date
November 4, 2026
EPS Estimate
$1.09
Average shareholder expectation
Revenue Estimate
$3.85 B
Average shareholder expectation

Institutional Put/Call Ratio

Market sentiment based on institutional option activity.

Put/Call Ratio0.0000 150.54%
Total Calls- 100.00%
Total Puts- 100.00%

Institutional Ownership

Holdings and activity of institutional investors.

Ownership %3.30% 84.14%
Total Invested$923.43M 96.53%
Investors Holding231 1028.00%

ESG Score

No data

About Otis Worldwide Corp

Relevant Senate Committees

Joint Committee on Taxation

This committee provides critical analysis and official revenue estimates for all tax legislation. Its technical expertise directly influences the structure and impact of tax policies (e.g., corporate tax, depreciation, investment credits) that profoundly affect Otis Worldwide's financial performance and investment strategy.

Finance

As the primary tax-writing committee, it controls taxation and trade. Changes in corporate tax rates, investment credits, or tariffs on materials (e.g., steel components) can directly and significantly impact Otis Worldwide's profitability, capital expenditure decisions, and supply chain costs.

Appropriations

This committee directly allocates discretionary federal spending. Its subcommittees determine precise funding for various federal programs, including infrastructure, government building construction, and modernization projects, which are significant sources of revenue for Otis Worldwide.

Banking, Housing, and Urban Affairs

This committee directly regulates real estate markets and urban development through oversight of HUD. Since Otis's business is highly dependent on new construction and modernization of buildings in urban areas, this committee's policies on housing, infrastructure, and urban planning have a direct and significant impact.

Environment and Public Works

Otis Worldwide directly benefits from infrastructure spending and construction projects. This committee drives the 'infrastructure super-cycle' and regulates environmental standards that could impact manufacturing processes and materials used by Otis.