Stock analysis · Bull Rankings model

OTIS analysis

Otis Worldwide CorporationSpecialty Industrial Machinery. Scored on the same transparent model behind the daily rankings.

OTIS
Otis Worldwide Corporation · Specialty Industrial Machinery
FCF$1.7bC+
Rev+5.2%C+
D/E
P/E18.4xA-
PEG1.39B
69Score
$71.69$27.3B
1Y Target$90.50Analyst consensus · 12 analysts
5Y Target$132.50Compound horizon
10Y Target$196.56Long-dated conviction
FCF$1.7bTTM
C+
FCF $1.7b — respectable but not differentiating
Rev+5.2%TTM YoY
C+
Revenue +5.2% — steady but below market-beating range
D/E
D/E data unavailable — neutral default
P/E18.4x
A-
P/E 18.4 — cheaper than most Industrials peers (≈25th pctile)
PEG1.39
B
PEG 1.39 — acceptable premium for growth

Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.

Quality-growth score · 69
Quality0.67
Growth0.62
Value0.79
Why this score
  • Buying back stock
  • Raising its dividend
  • Short track record
Entry · Margin of safety
52-week rangeNear 52-week low
24% off the 12-month high
vs DCF fair value21% belowest. fair value ~$91
What the price assumes: free cash flow compounding at ~3% a year for the next decade — vs the ~13% a year our model projects from current growth and analyst estimates.
Why now
Specialty Industrial Machinery · market cap $27.3b. Down 24% from 52-week high of $94.56 — deep drawdown territory. 12 sell-side analysts rate this a Buy with a mean 1-yr target of $90.50 (implying +26% upside).
Moat
FCF converts 113% of net income — earnings translate cleanly into cash, a sign that working capital and capex are well-disciplined.
Risk
ROE -26% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.
Horizon
1-3 yr $90.50 (12-analyst consensus) — fundamentals + valuation re-rating. 5 yr $132.50 at ~13% CAGR — compounding case rests on the competitive position widening. 10 yr $196.56 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
Trend
+3.9 over 31 daily scores
From 65.1 (Jun 22) → 69.0 (now)

One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.

Shares to buy
27
Position size
$1,936
3.9% of portfolio
Stop price
$53.77
25% below $71.69
$ at risk if stopped
$483.91
budget $500.00 · 1% of portfolio

Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.

Otis Worldwide Corporation (OTIS): score, valuation & FAQ

Otis Worldwide Corporation (OTIS) is a Specialty Industrial Machinery company that scores 69 out of 100 on the Bull Rankings quality-growth model — a solid, above-average reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.

Its strongest graded signals are P/E (A-). On valuation, OTIS sits about 21% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 3% annual free-cash-flow growth over the next decade.

Is OTIS a good stock to buy?

Bull Rankings scores OTIS 69 out of 100 on its quality-growth model, which is a solid, above-average reading. That is driven by P/E (A-). A score is a quantitative screen of Otis Worldwide Corporation's fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.

Why does OTIS score 69 on Bull Rankings?

The quality-growth score blends three pillars — quality (returns on capital, margins, leverage, earnings quality), growth (revenue and earnings expansion), and value (valuation versus sector peers). OTIS earns its highest marks on P/E (A-). Each pillar is graded against sector-aware thresholds, then combined into the single 0–100 score.

Is OTIS overvalued or undervalued?

Based on $71.69, OTIS sits about 21% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 3% annual free-cash-flow growth over the next decade. It trades at a 18.4x× P/E (graded A-). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.

What are the main risks of investing in OTIS?

ROE -26% is below the long-run sustainable threshold of ~10% — capital efficiency would need to improve for the equity base to compound at the market rate.

New to these metrics? The guides explain free cash flow, how the score works, and more in the learn hub — or run another name through the screener.

Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial adviser.

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