Otis Worldwide OTIS
Otis Worldwide scores average on business quality (5.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Otis Worldwide does
Otis Worldwide manufactures, installs, and services elevators and escalators, generating steady revenue from both new equipment sales and recurring maintenance contracts paid by building owners. The company is leaning into digital modernization initiatives for its installed base to secure long-term service agreements across global real estate.
- What it does best
Otis secures a massive recurring revenue stream through its maintenance portfolio, boasting a net income of $1.5B on $14.9B in revenue. This sticky service model creates high switching costs that pure equipment rivals struggle to replicate.
- The main risk
Sluggish top-line expansion poses the primary threat, with revenue growth sitting in the bottom quartile at the 31st sector percentile. If new equipment demand stalls further, the high-margin service base must carry the entire valuation.
Quality, check by check
Scored against its own industry, from company filings.
Gross margin rests at 30.2% while net margin hits 10.2%, showing modest profitability that scales slowly with service volume.
Maintenance contracts lock in building owners for decades, reflected in an operating margin sitting at the 55th sector percentile.
Revenue growth limps along at 1.2%, lingering far below peers like IR at 5.8% and failing to accelerate meaningfully from historical levels.
Interest coverage sits at 9.8x alongside $1.7B in free cash flow, showing reliable cash conversion that easily covers $658M in dividends.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on OTIS
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Otis Worldwide scores average on the Cluenex quality check (5.3 of 10), measured against its own industry. Profitability is fair, moat fair, growth slow and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 28, 2026.
See OTIS today
- Today's verdict on OTIS, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Otis Worldwide (OTIS)”, https://cluenex.com/stocks/otis/, data as of Oct 10, 2026.