OTISNEUTRAL

OTIS Gross Margin Analysis

29.4%

Updated 345h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue a company keeps after paying the direct costs of producing its goods or services, so 29.4% means OTIS retains about 29 cents of every sales dollar before other expenses.

Sector Performance

22th percentile

OTIS

29.4%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

30.3%(Jul 2026)

↓ Declining

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Deep Analysis

This sits far below the sector median of 46.4%, placing OTIS at the 23rd percentile among its peers, meaning three-quarters of comparable companies report higher margins. Trend data is unavailable: both the year-over-year change and quarter-over-quarter change are listed as N/A, and no historical values beyond the current 29.4% are provided. The combination of a low margin relative to peers and no observable trend introduces uncertainty, since investors cannot assess whether OTIS is improving or deteriorating on this key efficiency measure. This missing trend information raises the risk profile, as the current below-median level offers no indication of a path toward peer-normal profitability. The low gross margin and lack of trend do not contradict the overall NEUTRAL verdict, but they do not strengthen a bullish case either.

Frequently Asked Questions

What does the Gross Margin tell investors about OTIS?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are OTIS's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.