OTISOTIS
US • —
$71.89
P/E
19.06
PEG
—
FCF Yield
—
Rev Growth YoY
+3.3% YoY
Gross Margin
30.4%
Health Score
7/10
D/E Ratio
0.02
Confidence
LOW
Business Snapshot
Otis Worldwide Corporation is a leading manufacturer and servicer of elevators, escalators, and moving walkways, generating the majority of its revenue from maintenance and modernization services on existing equipment. The company operates in the global building transportation market, holding a strong competitive position as the largest elevator company by market share, with a significant installed base providing recurring service revenue. Otis is a large-cap company, though specific market capitalisation and TTM revenue figures are unavailable in the provided data. A key defining characteristic is its high-margin service business, which provides stable, long-term recurring revenue streams and creates a natural durability in its financial profile through economic cycles.
Financial Health
Otis reported gross margin of 30.4% and net margin of 10.1%, reflecting moderate profitability with service margins typically exceeding new equipment margins. The balance sheet is conservative with a Debt/Equity ratio of 0.02x, indicating very low financial leverage, and a Current Ratio of 0.85x, which suggests potential liquidity pressure on short-term obligations...
Risk Assessment
- LIQUIDITY — Current ratio of 0.85x is below the 1.0x threshold, indicating potential difficulty in covering short-term obligations with current assets.
- EARNINGS QUALITY — Otis beat analyst estimates in only 2 of the last 4 quarters, indicating inconsistent earnings predictability.
- DEBT / LIQUIDITY — Debt/Equity of 0.02x is very low, but the current ratio of 0.85x suggests a stretched short-term liquidity position.
- TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed....
Otis reported gross margin of 30.4% and net margin of 10.1%, reflecting moderate profitability with service margins typically exceeding new equipment margins. The balance sheet is conservative with a Debt/Equity ratio of 0.02x, indicating very low financial leverage, and a Current Ratio of 0.85x, which suggests potential liquidity pressure on short-term obligations. Free cash flow figures (absolute and yield) are not available in the provided data, preventing an assessment of cash generation efficiency. Overall, the company maintains a healthy financial profile supported by low debt, though the current ratio below 1.0x warrants monitoring for its ability to cover near-term liabilities.
- LIQUIDITY — Current ratio of 0.85x is below the 1.0x threshold, indicating potential difficulty in covering short-term obligations with current assets. - EARNINGS QUALITY — Otis beat analyst estimates in only 2 of the last 4 quarters, indicating inconsistent earnings predictability. - DEBT / LIQUIDITY — Debt/Equity of 0.02x is very low, but the current ratio of 0.85x suggests a stretched short-term liquidity position. - TECHNICALS — RSI, MACD, and moving average data unavailable for this period; momentum cannot be independently confirmed.
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