Otis WorldwideOTIS -0.60%76 Pretax Margin % is 13.46% as of Mar. 2026, which is 5% below its 10-year median of 14.19. GuruFocus rates OTIS with a GF Score™ of 76/100 and a GF Value™ of $101.24 (Modestly Undervalued). The stock has 3 warning signs investors should review. Among 3,038 Industrial Products companies, Otis Worldwide ranks better than 79% on this metric.
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
Otis Worldwide Pretax Margin % Related Terms
Otis Worldwide Pretax Margin % Historical Data
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The historical data trend for Otis Worldwide's Pretax 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.
For the Specialty Industrial Machinery subindustry, Otis Worldwide's Pretax Margin %, along with its competitors' market caps and Pretax 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 Pretax Margin % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Otis Worldwide's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where Otis Worldwide's Pretax Margin % falls into.
* 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 Pretax Margin % of 13.46% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Otis Worldwide and its competitors. This is near median its historical median of 14.19. Over the past decade, Otis Worldwide's Pretax Margin % has ranged from 11.85 to 15.88. According to the industry distribution chart, Otis Worldwide ranks #638 out of 3038 companies in the Industrial Products industry, placing it in the top 21%.
Is Otis Worldwide's Pretax Margin % too high?
Otis Worldwide's current Pretax Margin % of 13.46% is near median its 10-year median of 14.19. Over the past 10 years, this metric has ranged from a low of 11.85 to a high of 15.88. The Industrial Products industry median Pretax Margin % is 5.85. Otis Worldwide's value of 13.46% is 130.1% above this industry median. Based on the distribution chart, Otis Worldwide ranks #638 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 Pretax Margin % compare to IR and XYL?
According to the Industrial Products industry distribution chart, Otis Worldwide ranks #638 out of 3038 companies for Pretax Margin %. This places Otis Worldwide in the top 21% of its industry — outperforming the majority of peers. The industry median Pretax Margin % is 5.85. Otis Worldwide's value of 13.46% is 130.1% above this benchmark. Historically, Otis Worldwide's own Pretax Margin % has ranged from 11.85 to 15.88 over the past decade. While the company's 10-year median is 14.19 vs. the industry median of 5.85, 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 Pretax Margin % for an Industrial Products company?
The median Pretax Margin % among Industrial Products companies is 5.85, based on 3,038 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Otis Worldwide's current Pretax Margin % of 13.46% is 130.1% 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 Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on Otis Worldwide and its competitors. For the Industrial Products industry, the median Pretax Margin % is 5.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otis Worldwide's current Pretax Margin % is 13.46%, which is near median its own 10-year median of 14.19. 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 $101.24, compared to a current price of $73.19 — trading 27.7% below its estimated fair value. The current Pretax Margin % is 13.46%, which is near median its 10-year median of 14.19 and 130.1% above the Industrial Products industry median of 5.85. 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 Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For Otis Worldwide (OTIS), the current Pretax Margin % is 13.46% 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 $73.19 is trading 27.7% below its estimated GF Value™ of $101.24.
GuruFocus considers Otis Worldwide to be Modestly Undervalued.
Key valuation signals for OTIS:
Pretax Margin %: 13.46% (near median its 10-year median of 14.19)
GF Value™: $101.24 vs. price of $73.19 (27.7% below fair value)
Industry Position: 130.1% above the Industrial Products median (#638 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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