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Otis Worldwide Corp (OTIS) Stock Fundamental Analysis & AI Rating 2026

OTIS NYSE Electronic & Other Electrical Equipment (No Computer Equip) DE CIK: 0001781335
Recently Updated • Analysis: Apr 13, 2026 • SEC Data: 2025-12-31
SELL
72% Conf
Pending
Analysis scheduled

📊 OTIS Key Takeaways

Revenue: $14.4B
Net Margin: 9.6%
Free Cash Flow: $1.4B
Current Ratio: 0.85x
Debt/Equity: N/A
EPS: $3.50
AI Rating: SELL with 72% confidence
Otis Worldwide Corp (OTIS) receives a SELL rating with 72% confidence from our AI fundamental analysis based on SEC 10-K filings. With revenue of $14.4B, net profit margin of 9.6%, Otis Worldwide Corp demonstrates mixed fundamentals in the Technology sector. Below is our complete OTIS stock analysis for 2026.

Is Otis Worldwide Corp (OTIS) a Good Investment?

Claude

Otis exhibits strong operational cash generation and healthy operating margins, but is burdened by negative stockholders' equity of -$5.4B and deteriorating liquidity metrics (current ratio 0.85x). Stagnant revenue growth (1.2% YoY), flat net income, and declining EPS (-14%) combined with structural balance sheet weakness indicate elevated financial stress.

Why Buy Otis Worldwide Corp Stock? OTIS Key Strengths

Claude
  • + Strong operating cash flow of $1.6B and free cash flow of $1.4B demonstrate operational soundness
  • + Healthy operating margin of 14.8% reflects efficient core business operations
  • + Robust interest coverage ratio of 9.8x indicates current debt serviceability despite high leverage

OTIS Stock Risks: Otis Worldwide Corp Investment Risks

Claude
  • ! Critical: Negative stockholders' equity of -$5.4B indicates balance sheet insolvency and unsustainable capital structure
  • ! Liquidity crisis: Current ratio of 0.85x and quick ratio of 0.77x below 1.0 signal inability to cover short-term obligations
  • ! Growth stagnation: Revenue up only 1.2% YoY with flat net income and 14% EPS decline suggesting earnings deterioration despite revenue stability
  • ! Excessive leverage: $7.7B long-term debt against $10.7B total assets creates vulnerability in downturns

Key Metrics to Watch

Claude
  • * Stockholders equity trend and progress toward positive equity
  • * Current ratio and liquidity improvement efforts
  • * Revenue growth acceleration and operating margin sustainability
  • * Free cash flow conversion and debt reduction trajectory

Otis Worldwide Corp (OTIS) Financial Metrics & Key Ratios

Revenue
$14.4B
Net Income
$1.4B
EPS (Diluted)
$3.50
Free Cash Flow
$1.4B
Total Assets
$10.7B
Cash Position
$1.1B

💡 AI Analyst Insight

The current ratio below 1.0x warrants monitoring of short-term liquidity.

OTIS Profit Margin, ROE & Profitability Analysis

Gross Margin 7.0%
Operating Margin 14.8%
Net Margin 9.6%
ROE N/A
ROA 13.0%
FCF Margin 10.0%

OTIS vs Technology Sector: How Otis Worldwide Corp Compares

How Otis Worldwide Corp compares to Technology sector averages

Net Margin
OTIS 9.6%
vs
Sector Avg 18.0%
OTIS Sector
ROE
OTIS 0.0%
vs
Sector Avg 22.0%
OTIS Sector
Current Ratio
OTIS 0.8x
vs
Sector Avg 2.5x
OTIS Sector
Debt/Equity
OTIS 0.0x
vs
Sector Avg 0.5x
OTIS Sector

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.

Return on Equity
N/A
Sector avg: 22%
Net Profit Margin
9.6%
Sector avg: 18%
Revenue Growth
N/A
Year-over-year
Debt/Equity
N/A
Sector avg: 0.5x

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

Current Ratio
0.85x
Quick Ratio
0.77x
Debt/Equity
N/A
Debt/Assets
149.5%
Interest Coverage
9.83x
Long-term Debt
$7.7B

OTIS Revenue & Earnings Growth: 5-Year Financial Trend

OTIS 5-year financial data: Year 2021: Revenue $14.3B, Net Income $1.1B, EPS $2.55. Year 2022: Revenue $14.3B, Net Income $906.0M, EPS $2.08. Year 2023: Revenue $14.3B, Net Income $1.2B, EPS $2.89. Year 2024: Revenue $14.3B, Net Income $1.3B, EPS $2.96. Year 2025: Revenue $14.4B, Net Income $1.4B, EPS $3.39.
Revenue
Net Income
EPS (right axis)

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

Revenue Growth
N/A
Year-over-year
Net Income Growth
N/A
Year-over-year
EPS Growth
N/A
Earnings per share
FCF Margin
10.0%
Free cash flow / Revenue

OTIS Quarterly Earnings & Performance

Quarterly financial performance data for Otis Worldwide Corp including revenue, net income, and earnings per share.
Quarter Revenue Net Income EPS
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
Q2 2023 $3.5B $321.0M $0.76

Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.

Otis Worldwide Corp Dividends, Buybacks & Capital Allocation

Operating Cash Flow
$1.6B
Cash generated from operations
Stock Buybacks
$809.0M
Shares repurchased (TTM)
Capital Expenditures
$152.0M
Investment in assets
Dividends Paid
$647.0M
Returned to shareholders

OTIS SEC Filings: Latest 10-K & 10-Q Analysis

Access official SEC EDGAR filings for Otis Worldwide Corp (CIK: 0001781335)

📋 Recent SEC Filings

Date Form Document Action
Mar 3, 2026 4 xslF345X05/form4.xml View →
Mar 3, 2026 4 xslF345X05/form4.xml View →
Feb 13, 2026 4 xslF345X05/form4.xml View →
Feb 10, 2026 4 xslF345X05/form4.xml View →
Feb 10, 2026 4 xslF345X05/form4.xml View →

Frequently Asked Questions about OTIS

What is the AI rating for OTIS?

Otis Worldwide Corp (OTIS) has an AI rating of SELL with 72% confidence, based on fundamental analysis of SEC EDGAR filings.

What are OTIS's key strengths?

Claude: Strong operating cash flow of $1.6B and free cash flow of $1.4B demonstrate operational soundness. Healthy operating margin of 14.8% reflects efficient core business operations.

What are the risks of investing in OTIS?

Claude: Critical: Negative stockholders' equity of -$5.4B indicates balance sheet insolvency and unsustainable capital structure. Liquidity crisis: Current ratio of 0.85x and quick ratio of 0.77x below 1.0 signal inability to cover short-term obligations.

What is OTIS's revenue and growth?

Otis Worldwide Corp reported revenue of $14.4B.

Does OTIS pay dividends?

Otis Worldwide Corp pays dividends, with $647.0M 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 $3.50.

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 rating reflects both perspectives for balanced insights.

Is OTIS a good stock to buy right now?

Based on our AI fundamental analysis in April 2026, Otis Worldwide Corp has a SELL rating with 72% confidence. Review the strengths and risks sections above before making a decision. 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 9.6% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.

Should I buy OTIS stock in 2026?

Our dual AI analysis gives Otis Worldwide Corp a combined SELL rating 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 $1.6B, with capital expenditures of $152.0M. FCF margin is 10.0%.

How does OTIS compare to other Technology stocks?

Vs Technology sector averages: Net margin 9.6% (avg: 18%), ROE N/A (avg: 22%), current ratio 0.85 (avg: 2.5).

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Disclaimer: This analysis is generated by Claude AI (Anthropic) and ChatGPT (OpenAI) based on publicly available SEC EDGAR filings. It does not include stock price data and should not be considered financial advice. All fundamental data is sourced from SEC public domain filings. Always conduct your own research and consult with a qualified financial advisor before making investment decisions.
Data Source: SEC EDGAR | Analysis Date: Apr 13, 2026 | Data as of: 2025-12-31 | Powered by Claude AI