Otis Worldwide Corp (OTIS) Stock

Otis Worldwide Corp trades at a P/E ratio of 18.97, which is near the market average of approximately 20, suggesting the market views it as fairly valued relative to its earnings. Looking ahead, the forward P/E of 17.73 is lower than the current P/E, indicating analysts expect earnings to grow over the next year. The PEG ratio of 1.42 indicates reasonable value when growth is considered.

With a beta of 0.88, Otis Worldwide Corp 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 Corp achieves a profit margin of 10.20%, meaning it retains $10.20 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 15.10% reveals how efficiently the company runs its core business operations before interest and taxes.0

Otis Worldwide Corp's revenue grew by 7.30% year-over-year, showing steady progress in growing the business. This positive trajectory indicates the company maintains competitive positioning in its markets. Earnings increased by 13.00% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SPECIALTY INDUSTRIAL MACHINERY industry averages for proper context.

Otis Worldwide Corp offers a dividend yield of 2.30%, paying $1.70 per share annually. This above-average yield of 2-4% provides meaningful income while still allowing the company to reinvest for growth. It compares favorably to the S&P 500 average and offers competitive returns versus bonds in the current rate environment. To receive the next dividend, shares must be purchased before the ex-dividend date of Aug 14, 2026.

The dividend sustainability can be assessed through the payout ratio - Otis Worldwide Corp pays $1.70 per share in dividends against earnings of $3.90 per share, resulting in a payout ratio of 43.59%. 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 Sep 11, 2026.

Otis Worldwide Corp has a market capitalization of $28.2B, 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 380.67M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SPECIALTY INDUSTRIAL MACHINERY industry, it competes with other firms in this sector.

Otis Worldwide Corp's book value per share is -$15.10, while the current stock price is $70.15, resulting in a price-to-book (P/B) ratio of -4.65. 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.

14 analysts cover OTIS with 50% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The mixed views reflect uncertainty about the outlook. The consensus target of $90.50 implies 29.0% upside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:2 Strong Buy, 5 Buy, 7 Hold, 00The 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.