Otis Worldwide Corporation (OTIS) Stock

Otis Worldwide Corporation trades at a P/E ratio of 25.55, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 24.04 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 2.62 indicates a premium valuation even accounting for growth.

With a beta of 0.97, Otis Worldwide Corporation is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 13.20 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Otis Worldwide Corporation achieves a profit margin of 10.80%, meaning it retains $10.80 from every $100 in revenue after all expenses. This represents a solid margin typical of well-run businesses, showing the company can effectively balance revenue generation with cost control. The operating margin of 16.50% reveals how efficiently the company runs its core business operations before interest and taxes.0

Otis Worldwide Corporation's revenue declined by 2.50% year-over-year, indicating challenges in maintaining sales momentum. This contraction may reflect market headwinds, competitive pressures, or strategic transitions. Earnings decreased by 29.10% year-over-year, reflecting the bottom-line impact of business performance. These growth metrics should be evaluated against ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (NO COMPUTER EQUIP) industry averages for proper context.

Otis Worldwide Corporation offers a dividend yield of 1.72%, paying $1.56 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 5/16/2025.

The dividend sustainability can be assessed through the payout ratio - Otis Worldwide Corporation pays $1.56 per share in dividends against earnings of $3.82 per share, resulting in a payout ratio of 40.84%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 6/6/2025.

Otis Worldwide Corporation has a market capitalization of $38.52B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 394.68M shares outstanding, the company's ownership is relatively concentrated. As a participant in the ELECTRONIC & OTHER ELECTRICAL EQUIPMENT (NO COMPUTER EQUIP) industry, it competes with other firms in this sector.

Otis Worldwide Corporation's book value per share is -$12.97, while the current stock price is $99.43, resulting in a price-to-book (P/B) ratio of -7.67. Trading below book value can indicate the market perceives challenges ahead, or it might represent a value opportunity if the assets are quality and earnings can recover. Value investors often screen for P/B ratios below 1.0. As a common stock, this represents equity ownership with voting rights.

15 analysts cover OTIS with 27% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $101.86 implies 2.4% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 Strong Buy, 2 Buy, 9 Hold, 1 Sell, 1 Strong Sell. The neutral stance suggests uncertainty or fair valuation at current levels.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

RSI data is not available for this stock.

MACD and moving average data are not available for this stock.