Otis Worldwide Corp
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Otis Worldwide Corp AI Insights
Informational only. Not investment advice.Snapshot
- Negative equity (-5.4B) with negative working capital (-453M) - classic asset-light model where customers fund operations before service delivery[Common Stockholders Equity]
- Operating margin 14.8% TTM vs industry median 9.1% - 63% premium reflects service contract pricing power on 2.2M+ unit installed base[Operating Margin TTM]
- FCF of 1.3B TTM on 8.5B debt yields 15.6% debt paydown capacity annually, yet EPS declined 29% YoY despite stable operations[Free Cash Flow TTM]
Watch Triggers
- Operating Margin TTM: Falls below 12% — Service pricing power thesis invalidated; signals competitive pressure or cost inflation
- Free Cash Flow TTM: Drops below 1.0B — Threatens dividend coverage (637M annual) and debt service capacity
- Total Debt: Exceeds 4.0x EBITDA — Negative equity structure requires strong cash generation; leverage creep signals stress
Bull Case
Negative working capital (-453M) and negative equity (-5.4B) mean OTIS operates with customer-funded capital structure - generates 1.3B FCF with minimal invested capital (2.7B)
Duopoly with Schindler in service/maintenance creates sticky 15-20yr customer relationships; 90% FCF conversion enables consistent capital returns at 1.62/share dividend TTM
Bear Case
EPS declined 29% YoY despite stable revenue - suggests cost pressures or one-time items; 8.5B debt at 3.7x EBITDA limits flexibility if margins compress
P/E of 24.8x near industry median 27.8x prices in quality premium; China exposure (~20% of industry revenue) faces structural construction decline
Bull vs Bear Balance
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Forward Thesis
Service revenue mix shift to drive margin expansion as new equipment growth slows globally
- Installed base of 2.2M+ units generates recurring maintenance revenue
- Service margins typically 2-3x new equipment margins
- China new construction slowdown accelerates mix shift
Valuation Context
Caveats
Public Strategies Rankings
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OTIS Fundamentals
| Metric | Value | YoY Growth | Industry Percentile |
|---|---|---|---|
$31.2B | — | ||
$38.61B | — | ||
23 | — | ||
$14.43B | +1.2% | — | |
$3.50 | -11.9% | — | |
15.4% | +1.0% | — | |
9.59% | -1.9% | — | |
$1.44B | +0.5% | — | |
0% | — | ||
Beta 5Y (Monthly) | unknown | — |
OTIS Dividend History
2026
$0.42002025
$1.65002024
$1.51002023
$1.31002022
$1.11002021
$0.92002020
$0.6000OTIS Stock Splits
OTIS SEC Filings
| Filing Date | Report Date | Report Type | Filing Link |
|---|---|---|---|
02/05/26 | 12/31/25 | 10-K | |
10/30/25 | 09/30/25 | 10-Q | |
07/24/25 | 06/30/25 | 10-Q | |
04/24/25 | 03/31/25 | 10-Q | |
02/04/25 | 12/31/24 | 10-K | |
10/31/24 | 09/30/24 | 10-Q | |
07/25/24 | 06/30/24 | 10-Q | |
04/25/24 | 03/31/24 | 10-Q | |
02/02/24 | 12/31/23 | 10-K | |
10/26/23 | 09/30/23 | 10-Q | |
07/27/23 | 06/30/23 | 10-Q | |
04/27/23 | 03/31/23 | 10-Q | |
02/03/23 | 12/31/22 | 10-K | |
10/27/22 | 09/30/22 | 10-Q | |
07/28/22 | 06/30/22 | 10-Q | |
04/27/22 | 03/31/22 | 10-Q | |
02/04/22 | 12/31/21 | 10-K | |
10/26/21 | 09/30/21 | 10-Q | |
07/28/21 | 06/30/21 | 10-Q | |
04/28/21 | 03/31/21 | 10-Q | |
02/05/21 | 12/31/20 | 10-K | |
10/28/20 | 09/30/20 | 10-Q | |
07/31/20 | 06/30/20 | 10-Q | |
05/08/20 | 03/31/20 | 10-Q | |
03/11/20 | 12/31/19 | 10-12B/A | |
10/28/20 | 09/30/19 | 10-Q | |
07/31/20 | 06/30/19 | 10-Q | |
05/08/20 | 03/31/19 | 10-Q |