Otis WorldwideOTIS +1.23%76 Operating Margin % is 15.11% as of Mar. 2026, which is 3% above its 10-year median of 14.74. GuruFocus rates OTIS with a GF Score™ of 76/100 and a GF Value™ of $101.23 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 3,038 Industrial Products companies, Otis Worldwide ranks better than 84.96% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Otis Worldwide Operating Margin % Related Terms
Otis Worldwide Operating Margin % Historical Data
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The historical data trend for Otis Worldwide's Operating Margin % 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.
OTIS vs IR, XYL, DOV: Operating Margin % Comparison
For the Specialty Industrial Machinery subindustry, Otis Worldwide's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Otis Worldwide's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Otis Worldwide's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Otis Worldwide's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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.
Otis Worldwide (OTIS) has a Operating Margin % of 15.11% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Otis Worldwide and its competitors. This is near median its historical median of 14.74. Over the past decade, Otis Worldwide's Operating Margin % has ranged from 12.85 to 16.02. According to the industry distribution chart, Otis Worldwide ranks #457 out of 3038 companies in the Industrial Products industry, placing it in the top 15%.
Is Otis Worldwide's Operating Margin % too high?
Otis Worldwide's current Operating Margin % of 15.11% is near median its 10-year median of 14.74. Over the past 10 years, this metric has ranged from a low of 12.85 to a high of 16.02. The Industrial Products industry median Operating Margin % is 6.53. Otis Worldwide's value of 15.11% is 131.4% above this industry median. Based on the distribution chart, Otis Worldwide ranks #457 out of 3038 companies in the Industrial Products industry, which is in the top quartile — a strong position relative to peers. Overall, Otis Worldwide has a GF Score™ of 76/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Otis Worldwide's Operating Margin % compare to IR and XYL?
According to the Industrial Products industry distribution chart, Otis Worldwide ranks #457 out of 3038 companies for Operating Margin %. This places Otis Worldwide in the top 15% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 6.53. Otis Worldwide's value of 15.11% is 131.4% above this benchmark. Historically, Otis Worldwide's own Operating Margin % has ranged from 12.85 to 16.02 over the past decade. While the company's 10-year median is 14.74 vs. the industry median of 6.53, Otis Worldwide has consistently been above 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 Operating Margin % for an Industrial Products company?
The median Operating Margin % among Industrial Products companies is 6.53, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Otis Worldwide's current Operating Margin % of 15.11% is 131.4% above 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Otis Worldwide and its competitors. For the Industrial Products industry, the median Operating Margin % is 6.53 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otis Worldwide's current Operating Margin % is 15.11%, which is near median its own 10-year median of 14.74. 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 (OTIS) is currently considered Modestly Undervalued. The stock's GF Value™ is $101.23, compared to a current price of $72.63 — trading 28.3% below its estimated fair value. The current Operating Margin % is 15.11%, which is near median its 10-year median of 14.74 and 131.4% above the Industrial Products industry median of 6.53. Otis Worldwide's overall GF Score™ is 76/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Otis Worldwide (OTIS), the current Operating Margin % is 15.11% 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 (OTIS) Overvalued in 2026?
Based on GuruFocus' analysis, Otis Worldwide stock appears to be undervalued.
The current stock price of $72.63 is trading 28.3% below its estimated GF Value™ of $101.23.
GuruFocus considers Otis Worldwide to be Modestly Undervalued.
Key valuation signals for OTIS:
Operating Margin %: 15.11% (near median its 10-year median of 14.74)
GF Value™: $101.23 vs. price of $72.63 (28.3% below fair value)
Industry Position: 131.4% above the Industrial Products median (#457 of 3038)
No single metric tells the full story. See the OTIS stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
76GF Score
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