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OTIS:NYSEOtis Worldwide Corporation Analysis

Data as of 2026-03-10 - not real-time

$86.45

Latest Price

5/10Risk

Risk Level: Medium

Executive Summary

Otis trades around $86.45, just above its calculated support of $86.15, with a 30‑day volatility of roughly 26% and a low beta of ~0.39 indicating limited market sensitivity. The RSI sits at 37, hinting at modest oversold pressure, while the MACD remains bearish, suggesting short‑term momentum is still weak. Fundamentals show modest 3.3% revenue growth, a solid service segment, and a healthy free cash flow record of $817 million, but earnings missed consensus by a cent and full‑year revenue guidance fell slightly short of estimates. The dividend yield of 1.92% and a payout ratio under 50% point to sustainable shareholder returns, yet the DCF fair value of $46.25 makes the current price appear significantly overvalued, raising concerns about valuation sustainability.

Market Outlook

Short Term

< 1 year
Neutral
Model confidence: 6/10

Key Factors

  • Price hovering just above technical support
  • RSI indicating slight oversold condition
  • Bearish MACD histogram reinforcing weak momentum

Medium Term

1–3 years
Neutral
Model confidence: 7/10

Key Factors

  • Strong service segment cash flow and modernization order growth
  • Revenue guidance miss and weakness in new‑equipment sales
  • Sustainable dividend yield supporting total return

Long Term

> 3 years
Positive
Model confidence: 5/10

Key Factors

  • Long‑term cash‑flow generation and dividend stability
  • Significant valuation gap between market price and DCF fair value
  • Potential upside if service growth offsets new‑equipment headwinds

Key Metrics & Analysis

Financial Health

Revenue Growth3.30%
Profit Margin9.59%
P/E Ratio24.7
ROA13.52%
P/B Ratio-6.2
Op. Cash Flow$1.6B
Free Cash Flow$1.6B
Industry P/E29.6

Technical Analysis

TrendNeutral
RSI37.6
Support$86.15
Resistance$94.57
MA 20$90.85
MA 50$89.79
MA 200$90.85
MACDBearish
VolumeDecreasing
Fear & Greed Index79.09

Valuation

Fair Value$46.25
Target Price$102.43
Upside/Downside18.48%
GradeOvervalued
TypeValue
Dividend Yield1.92%

Risk Assessment

Beta0.39
Volatility25.68%
Sector RiskLow
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskMedium

This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.