Otis Worldwide (MEX:OTIS) Interest Coverage: 9.14 (As of Mar. 2026) — 40% Below Median


MEX:OTIS Otis Worldwide Corp MEX:OTIS
67 GF Score
Price MXN1,230.00
GF Value MXN1,701.40
Valuation Modestly Undervalued
! 3 Warning Signs
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What is Otis Worldwide Interest Coverage?

Otis Worldwide MEX:OTIS 67 Interest Coverage is 9.14 as of Mar. 2026, which is 40% below its 10-year median of 15.24. GuruFocus rates MEX:OTIS with a GF Score™ of 67/100 and a GF Value™ of MXN1,701.40 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 2,325 Industrial Products companies, Otis Worldwide ranks worse than 56.77% on this metric.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Otis Worldwide's Operating Income for the three months ended in Mar. 2026 was MXN9,720 Mil. Otis Worldwide's Interest Expense for the three months ended in Mar. 2026 was MXN-1,064 Mil. Otis Worldwide's interest coverage for the quarter that ended in Mar. 2026 was 9.14. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Otis Worldwide's Interest Coverage or its related term are showing as below:

MEX:OTIS' s Interest Coverage Range Over the Past 10 Years
Min: 11.18   Med: 15.24   Max: No Debt
Current: 11.18


MEX:OTIS's Interest Coverage is ranked worse than
56.77% of 2325 companies
in the Industrial Products industry
Industry Median: 14.8 vs MEX:OTIS: 11.18

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Otis Worldwide  (MEX:OTIS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Otis Worldwide Interest Coverage Related Terms


Otis Worldwide Interest Coverage Historical Data

* Premium members only.

The historical data trend for Otis Worldwide's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

Otis Worldwide Interest Coverage Chart

Otis Worldwide Annual Data
Trend Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Interest Coverage
Get a 7-Day Free Trial Premium Member Only 15.50 14.48 14.98 N/A 11.32

Otis Worldwide Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 9.13 21.04 9.61 10.55 9.14

MEX:OTIS vs IR, XYL, DOV: Interest Coverage Comparison

For the Specialty Industrial Machinery subindustry, Otis Worldwide's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Otis Worldwide Interest Coverage vs Industrial Products Industry

For the Industrial Products industry and Industrials sector, Otis Worldwide's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Otis Worldwide's Interest Coverage falls into.


MEX:OTIS
67GF Score
Otis Worldwide Corp MEX:OTIS
Interest Coverage is just one metric. See GF Score™, valuation, warning signs, and more.
View Full Analysis

Otis Worldwide Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Otis Worldwide's Interest Coverage for the fiscal year that ended in Dec. 2025 is calculated as

Here, for the fiscal year that ended in Dec. 2025, Otis Worldwide's Interest Expense was MXN-3,529 Mil. Its Operating Income was MXN39,955 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN131,388 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2025 )/Interest Expense (A: Dec. 2025 )
=-1*39954.648/-3529.117
=11.32

Otis Worldwide's Interest Coverage for the quarter that ended in Mar. 2026 is calculated as

Here, for the three months ended in Mar. 2026, Otis Worldwide's Interest Expense was MXN-1,064 Mil. Its Operating Income was MXN9,720 Mil. And its Long-Term Debt & Capital Lease Obligation was MXN131,260 Mil.

Interest Coverage=-1* Operating Income (Q: Mar. 2026 )/Interest Expense (Q: Mar. 2026 )
=-1*9719.625/-1063.929
=9.14

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Frequently Asked Questions Learn more about Interest Coverage →
What does a Interest Coverage of 9.14 mean?
Otis Worldwide (MEX:OTIS) has a Interest Coverage of 9.14 as of Mar. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Otis Worldwide and its competitors. This is 40% below median its historical median of 15.24. Over the past decade, Otis Worldwide's Interest Coverage has ranged from 11.18 to 10,000.00. According to the industry distribution chart, Otis Worldwide ranks #1320 out of 2325 companies in the Industrial Products industry, placing it in the top 56.8%.
Is Otis Worldwide's Interest Coverage too high?
Otis Worldwide's current Interest Coverage of 9.14 is 40% below median its 10-year median of 15.24. Over the past 10 years, this metric has ranged from a low of 11.18 to a high of 10,000.00. The Industrial Products industry median Interest Coverage is 14.80. Otis Worldwide's value of 9.14 is 38.2% below this industry median. Based on the distribution chart, Otis Worldwide ranks #1320 out of 2325 companies in the Industrial Products industry, which is below the industry midpoint. Overall, Otis Worldwide has a GF Score™ of 67/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Otis Worldwide's Interest Coverage compare to IR and XYL?
According to the Industrial Products industry distribution chart, Otis Worldwide ranks #1320 out of 2325 companies for Interest Coverage. This places Otis Worldwide in the lower half of its industry. The industry median Interest Coverage is 14.80. Otis Worldwide's value of 9.14 is 38.2% below this benchmark. Historically, Otis Worldwide's own Interest Coverage has ranged from 11.18 to 10,000.00 over the past decade. While the company's 10-year median is 15.24 vs. the industry median of 14.80, Otis Worldwide has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for an Industrial Products company?
The median Interest Coverage among Industrial Products companies is 14.80, based on 2,325 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Otis Worldwide's current Interest Coverage of 9.14 is 38.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Otis Worldwide and its competitors. For the Industrial Products industry, the median Interest Coverage is 14.80 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otis Worldwide's current Interest Coverage is 9.14, which is 40% below median its own 10-year median of 15.24. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Otis Worldwide stock overvalued right now?
Based on GuruFocus' analysis, Otis Worldwide (MEX:OTIS) is currently considered Modestly Undervalued. The stock's GF Value™ is MXN1,701.40, compared to a current price of MXN1,230.00 — trading 27.7% below its estimated fair value. The current Interest Coverage is 9.14, which is 40% below median its 10-year median of 15.24 and 38.2% below the Industrial Products industry median of 14.80. Otis Worldwide's overall GF Score™ is 67/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Otis Worldwide (MEX:OTIS), the current Interest Coverage is 9.14 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Otis Worldwide (MEX:OTIS) Overvalued in 2026?

Based on GuruFocus' analysis, Otis Worldwide stock appears to be undervalued. The current stock price of MXN1,230.00 is trading 27.7% below its estimated GF Value™ of MXN1,701.40. GuruFocus considers Otis Worldwide to be Modestly Undervalued.

Key valuation signals for MEX:OTIS:

  • Interest Coverage: 9.14 (40% below median its 10-year median of 15.24)
  • GF Value™: MXN1,701.40 vs. price of MXN1,230.00 (27.7% below fair value)
  • GF Score™: 67/100 with 3 warning signs
  • Industry Position: 38.2% below the Industrial Products median (#1320 of 2325)

No single metric tells the full story. See the MEX:OTIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Otis Worldwide Business Description

Address One Carrier Place, Farmington, CT, USA, 06032
Otis is the largest global elevator and escalator supplier by revenue with around 18% global market share. In 1854 Otis' founder and namesake Elisha Graves Otis, invented a safety mechanism that prevented elevators from falling if the hoisting cable failed. The company's product and service lifecycle begins with installations of elevator units in new buildings, later selling maintenance services on the units, and eventually replacement of the units after the average 15- to 20-year useful life of an elevator. As the largest global OEM, Otis has amassed an installed base under service that exceeds 2 million elevators. Its business model is similar to that of its closest competitors Kone, Schindler, and TK Elevator.
67GF Score

Get the complete analysis for MEX:OTIS

Interest Coverage is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

MXN1,230.00
Price
MXN1,701.40
GF Value