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Otis Worldwide: Good Growth Prospects At Reasonable Valuation

Mar. 27, 2023 5:08 PM ETOtis Worldwide Corporation (OTIS)4 Comments
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GS Analytics


  • A high backlog level and pricing in FY2023 should drive the topline growth in the New Equipment segment.
  • The accelerated maintenance portfolio growth, pricing increases, and a high backlog for modernization business should increase the revenue in the Service segment.
  • Margins should also improve thanks to volume leverage, pricing, and productivity improvements.
  • Valuation is at a discount to its historical levels.

Otis headquarters in Silicon Valley

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Investment Thesis

Otis Worldwide Corporation's (NYSE:OTIS) New Equipment sales are expected to increase in the coming years, driven by China reopening, a high backlog level, and pricing increases. Additionally, in the Service segment, accelerated maintenance portfolio growth, pricing, and a high backlog in the modernization

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We primarily focus on GARP (Growth at reasonable Price) opportunities in industrial, consumer, and technology sectors. Please click the "Follow" button to receive our latest research. If you have any questions, feel free to reach out to us through the comments section of our articles or SA messaging functionality.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

This article is written by Harshit K.

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Comments (4)

Is the negative shareholders' equity a concern in anyway? Looks a solid company but is that a significant risk?
@GS Analytics any reasoning for that at all?
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@MATTINTERWEB negative shareholder equity may be due to multiple reasons. In this particular case the company’s earnings is positive and shareholder deficit isn’t reflective of underlying business performance.
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