Otis Worldwide Corporation (OTIS)

FairStock Score: 74/100 — STEADY

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable demand, honest cash generation, and a price that leaves room for error. Otis installs and maintains elevators and escalators, and the service side creates repeat revenue tied to a large installed base. The latest filed quarter was better year over year: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $3.9B, net income $428.0M, and diluted EPS $1.12; in fiscal Q2 2025, the quarter ended 2025-06-30, those figures were $3.6B, $393.0M, and $0.99. The full-year picture is less exciting: in FY2025, the year ended 2025-12-31, revenue was $14.4B, net income $1.4B, and diluted EPS $3.50, versus FY2024, the year ended 2024-12-31, revenue of $14.3B, net income $1.6B, and diluted EPS $4.07. That fits FairStock's STALWART label—profit up 8.8% a year over five years but revenue up only 2.5%. At the 2026-10-13 close of $67.68, FairStock calculates a P/E of 17.40, free-cash-flow yield of 6.6% on $1.7B trailing free cash flow, dividend yield of 2.60%, ROCE of 14.25%, PEG of 1.95, EV/EBITDA of 13.27, Piotroski F-Score of 5/9, Altman Z-Score of 1.28, and a FairStock Score of 75/100. The recurring service stream and cash yield are attractive, and the price is not demanding for a stalwart. But the profit dip in FY2025, middling quality score, and low Altman Z keep me cautious. It looks fairly valued, not a bargain, unless service growth and new-equipment demand both improve.

In plain English: Otis makes, installs, and services elevators and escalators around the world, with a large service business that brings in repeat revenue. The company is profitable and pays a moderate dividend, but sales and profits have grown only slowly. The stock price looks fair rather than cheap: it trades at about 17 times the company's yearly profit and produces solid cash after expenses.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer