Otis Worldwide Corp (OTIS) Stock Analysis

Analysis from 10-Q filed 2025-10-30. Data as of Q2 2026.

Overall Grade: F (Concerning)

Grade F (Concerning). ROIC 68.4%. FCF margin 11.5%. D/E -1.5x. Source: 10-Q filed 2025-10-30.

Metric	Value	Context
ROIC	68.4%	Above industry average
FCF Margin	11.5%	Healthy cash flow
Debt/Equity	-1.5x	Conservative leverage

ROIC 68.4% — Top 5% of sector peers. FCF margin 11.5% — Top 50%.

Explore Otis Worldwide Corp: Earnings History | Filings

Programmatic access: Available via MCP at mcp.metricduck.com. Tools for OTIS: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.

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Profitability: Otis Worldwide Corp earns 68.4% ROIC, Top 5% in Technology

ROIC TTM 68.4%, sector median 3.9%, Top 5%. DuPont: NOPAT margin 11.7% × asset turnover 1.4x. Gross margin 30.7%. Operating margin 15.4%. Source: 10-Q filed 2025-10-30.

Metric	OTIS	Rating	Context
Return on Invested Capital (ROIC)	68.4%	Excellent	Above sector median of 3.9%
Return on Equity (ROE)	-27.5%	Red flag	Moderate equity returns
Gross Margin	30.7%	Good	Competitive pricing environment
Operating Margin	15.4%	Good	Efficient operations

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Cash Flow: Otis Worldwide Corp generates $1.7B FCF at 11.5% margin, positive NaN/8 quarters

FCF TTM $1.7B. FCF margin 11.5%, Top 50%. OCF/Net income 1.2x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-10-30.

Metric	OTIS	Rating	Context
Free Cash Flow Margin	11.5%	Good	Healthy cash generation
Free Cash Flow (TTM)	$1.7B	Good	Positive cash generation
OCF/Net Income	1.2x	Excellent	High earnings quality
FCF Consistency (8Q)	N/A	Warning	Variable cash flow

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Balance Sheet: Otis Worldwide Corp at -1.5x leverage

Debt/Equity -1.5x. Total debt $8.4B, cash & investments $813.0M. Source: 10-Q filed 2025-10-30.

Metric	OTIS	Rating	Context
Debt to Equity	-1.5x	Excellent	Conservative capital structure
Net Cash Position	$-7.6B	Warning	Net debt position

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Valuation: Otis Worldwide Corp trades at 18.3x earnings

P/E 18.3x. EV/Sales 2.8x. FCF yield 6.2%. Dividend yield 2.4%. Source: 10-Q filed 2025-10-30.

Metric	OTIS	Rating	Context
P/E Ratio	18.3x	Adequate	Reasonable valuation
EV/Sales	2.8x	Good	Attractive revenue multiple
FCF Yield	6.2%	Good	Attractive cash return
Dividend Yield	2.4%	Adequate	Growth focus over income

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Capital Allocation: Otis Worldwide Corp returns 6.2% shareholder yield

Total shareholder yield 6.2% (div 2.4% + buyback 3.8%). Capital returned $1.7B TTM. Source: 10-Q filed 2025-10-30.

Metric	OTIS	Rating	Context
Total Shareholder Yield	6.2%	Excellent	Dividend + buyback yield combined
Buyback Yield	3.8%	Good	Active share repurchases
Total Capital Returned (TTM)	$1.7B	Good	Dividends + buybacks returned to shareholders

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Sector Rankings

Metric	Value	Percentile	vs Median
Return on Invested Capital (ROIC)	68.4%	Top 5%	17.6x above
Free Cash Flow Margin	11.5%	Top 50%	1.4x above
Gross Margin	30.7%	Bottom 25%	0.6x below
Operating Margin	15.4%	Top 50%	3.4x above
Return on Equity (ROE)	-27.5%	Top 50%	-5.3x below
P/E Ratio	18.3x	N/A	-

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Financial Scorecard

Metric	OTIS	Rating	Sector Context
Return on Invested Capital (ROIC)	68.4%	Excellent	Top 5% of sector (median: 3.9%)
Free Cash Flow Margin	11.5%	Good	Top 50% of sector (median: 8.4%)
Gross Margin	30.7%	Good	Bottom 25% of sector (median: 50.7%)
Debt to Equity Ratio	-146.8%	Excellent	Conservative capital structure
P/E Ratio (Price-to-Earnings)	18.3x	Adequate	Fair value
Free Cash Flow Yield	6.2%	Good	Solid cash yield

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Frequently Asked Questions

Q: What is Otis Worldwide Corp's Return on Invested Capital (ROIC)?

Otis Worldwide Corp (OTIS) has a trailing twelve-month Return on Invested Capital (ROIC) of 68.4%. Sector median 3.9%. Source: 10-Q filed 2025-10-30.

Q: What is Otis Worldwide Corp's Free Cash Flow Margin?

Otis Worldwide Corp (OTIS) has a free cash flow margin of 11.5%, generating $1.7 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-10-30.

Q: What is Otis Worldwide Corp's P/E ratio and how does it compare to peers?

Otis Worldwide Corp (OTIS) trades at a P/E ratio of 18.3x, which is above the sector median of N/A. EV/Sales 2.8x. FCF yield 6.2%. Source: 10-Q filed 2025-10-30.

Q: Does Otis Worldwide Corp pay a dividend?

Otis Worldwide Corp (OTIS) currently pays a dividend yield of 2.4%. Total shareholder yield (dividend + buybacks) 6.2%. Source: 10-Q filed 2025-10-30.

Q: What is Otis Worldwide Corp's revenue and earnings growth?

Otis Worldwide Corp (OTIS) grew revenue by 5.2% year-over-year. EPS +2.8% YoY. Source: 10-Q filed 2025-10-30.

Q: Is Otis Worldwide Corp buying back stock?

Otis Worldwide Corp (OTIS) repurchased $1.1 billion of stock over the trailing twelve months. This represents a buyback yield of 3.8%. Source: 10-Q filed 2025-10-30.

Q: How does Otis Worldwide Corp compare to competitors in Technology?

Compared to other companies in Technology, Otis Worldwide Corp (OTIS) shows: ROIC 68.4%, sector median 3.9% (Top 5%). FCF margin 11.5%, sector median 8.4% (Top 50%). Gross margin 30.7%, 20.0pp below sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.

Q: What warning signs should I watch for with Otis Worldwide Corp?

No quantitative warning flags fired for Otis Worldwide Corp (OTIS) on margin trend, FCF trend, ROIC trend, or leverage thresholds. Source: 10-Q filed 2025-10-30.

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Data Source: Data sourced from 10-Q filed 2025-10-30. TTM metrics as of Q2 2026.

Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.

Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.

This analysis is for informational purposes only and does not constitute investment advice.