📊 OTIS Key Takeaways
Is Otis Worldwide Corp (OTIS) a Good Investment?
Otis exhibits severe financial distress with negative stockholders' equity of -$5.7B and deteriorating profitability despite stable revenue, signaling structural leverage concerns. Profitability is contracting sharply with net income down 4.9% YoY and diluted EPS down 14% YoY on minimal 1.2% revenue growth, while liquidity metrics (current ratio 0.84x, quick ratio 0.75x) indicate acute near-term cash constraints. Although positive operating cash flow of $413M and 9.3x interest coverage provide temporary support, the combination of negative equity, declining earnings trajectory, and weak growth momentum presents material downside risk without evidence of operational recovery.
Otis generates solid operating profitability and strong free cash flow with modest capex, indicating resilient fundamentals despite modest top-line growth. While interest coverage is healthy, negative equity and sub-1x liquidity constrain flexibility. Sustained FCF and a reacceleration in revenue and EPS are needed to justify a more constructive view.
Otis Worldwide Corp Key Strengths (OTIS)
- Positive operating cash flow of $413M and free cash flow of $380M with 10.7% FCF margin demonstrates underlying cash generation despite balance sheet stress
- Interest coverage ratio of 9.3x provides current debt service capacity and buydown flexibility
- Operating margins of 15.1% and gross margins of 28.4% reflect operational efficiency in core business
- Strong free cash flow with low capex needs
- Healthy operating margin supporting cash generation
- Interest coverage of ~9.8x indicates manageable debt service
OTIS Stock Risks: Otis Worldwide Corp Investment Risks
- Negative stockholders' equity of -$5.7B represents technical insolvency with liabilities exceeding assets by 52% of total asset base
- Current ratio of 0.84x and quick ratio of 0.75x signal acute short-term liquidity constraints and refinancing vulnerability
- Earnings declining sharply with net income -4.9% YoY and diluted EPS -14% YoY amid flat 1.2% revenue growth indicates margin compression and operational deterioration
- Negative stockholders' equity and sizable long-term debt
- Sub-1x current and quick ratios pressure liquidity
- EPS down YoY and minimal revenue growth
Key Metrics to Watch
- Operating cash flow stability and free cash flow coverage of debt service and capital requirements
- Earnings trajectory recovery and operating margin stabilization to justify debt burden relative to revenue base
- Debt reduction progress and equity rebuild initiatives to address negative book value and refinancing risk
- Organic revenue growth
- Free cash flow conversion (FCF/Net Income)
Otis Worldwide Corp (OTIS) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The current ratio below 1.0x warrants monitoring of short-term liquidity.
OTIS Profit Margin, ROE & Profitability Analysis
OTIS vs Technology Sector: How Otis Worldwide Corp Compares
How Otis Worldwide Corp compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Otis Worldwide Corp Stock Overvalued? OTIS Valuation Analysis 2026
Based on fundamental analysis, Otis Worldwide Corp has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Otis Worldwide Corp Balance Sheet: OTIS Debt, Cash & Liquidity
OTIS Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Otis Worldwide Corp's revenue has shown modest growth of 1% over the 5-year period. The most recent EPS of $3.39 reflects profitable operations.
OTIS Revenue Growth, EPS Growth & YoY Performance
OTIS Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $3.4B | $243.0M | $0.61 |
| Q3 2025 | $3.5B | $374.0M | $0.95 |
| Q2 2025 | $3.6B | $393.0M | $0.99 |
| Q1 2025 | $3.4B | $243.0M | $0.61 |
| Q3 2024 | $3.5B | $376.0M | $0.91 |
| Q2 2024 | $3.6B | $376.0M | $0.90 |
| Q1 2024 | $3.3B | $331.0M | $0.79 |
| Q3 2023 | $3.3B | $324.0M | $0.77 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Otis Worldwide Corp Dividends, Buybacks & Capital Allocation
OTIS SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Otis Worldwide Corp (CIK: 0001781335)
📋 Recent SEC Filings
❓ Frequently Asked Questions about OTIS
What is the AI rating for OTIS?
Otis Worldwide Corp (OTIS) has a Combined AI Grade of C from Claude (C) and ChatGPT (B) with 72% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are OTIS's key strengths?
Claude: Positive operating cash flow of $413M and free cash flow of $380M with 10.7% FCF margin demonstrates underlying cash generation despite balance sheet stress. Interest coverage ratio of 9.3x provides current debt service capacity and buydown flexibility. ChatGPT: Strong free cash flow with low capex needs. Healthy operating margin supporting cash generation.
What are the risks of investing in OTIS?
Claude: Negative stockholders' equity of -$5.7B represents technical insolvency with liabilities exceeding assets by 52% of total asset base. Current ratio of 0.84x and quick ratio of 0.75x signal acute short-term liquidity constraints and refinancing vulnerability. ChatGPT: Negative stockholders' equity and sizable long-term debt. Sub-1x current and quick ratios pressure liquidity.
What is OTIS's revenue and growth?
Otis Worldwide Corp reported revenue of $3.6B.
Does OTIS pay dividends?
Otis Worldwide Corp pays dividends, with $163.0M distributed to shareholders in the trailing twelve months.
Where can I find OTIS SEC filings?
Official SEC filings for Otis Worldwide Corp (CIK: 0001781335) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is OTIS's EPS?
Otis Worldwide Corp has a diluted EPS of $0.87.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined grade reflects both perspectives for balanced insights.
What is OTIS's fundamental grade?
Based on our AI fundamental analysis in May 2026, Otis Worldwide Corp has a C grade with 72% confidence. Review the strengths and risks sections above for full context. This is not investment advice.
Is OTIS stock overvalued or undervalued?
Valuation metrics for OTIS: ROE of N/A (sector avg: 22%), net margin of 9.5% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
What is OTIS's AI grade for 2026?
Our dual AI analysis gives Otis Worldwide Corp a combined C grade for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is OTIS's free cash flow?
Otis Worldwide Corp's operating cash flow is $413.0M, with capital expenditures of $33.0M. FCF margin is 10.7%.
How does OTIS compare to other Technology stocks?
Vs Technology sector averages: Net margin 9.5% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.84 (avg: 2.5).