5-Year Return on Invested Incremental Capital (5-Year ROIIC %) measures the change in earnings as a percentage of change in investment over 5-year.
Otis Worldwide's 5-Year ROIIC % for the quarter that ended in Dec. 2025 was 200.71%. High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
The industry rank for Otis Worldwide's 5-Year ROIIC % or its related term are showing as below:
OTIS's 5-Year ROIIC % is ranked better than 98.02% of 2784
companies
in the Industrial Products industry
Industry Median: 4.505
vs OTIS: 200.71
Return on Incremental Invested Capital (ROIIC) is an extension of Return on Investment Capital (ROIC). ROIC % tells investors how efficiently that profitability is earned per dollar of company capital. ROIIC narrows the focus even further and shows how profitable each additional unit of capital investment could be. ROIIC % is a more powerful metric than ROIC because it measures how much money the company can generate going forward on future capital investments.
High ROIIC is generally an indication that your business is capital efficient or has a higher operating leverage.
Be Aware
It's important to keep in mind that when tracking ROIIC, the metric is better suited to forecasting the trend of future returns rather than measuring current return on investment.
Otis Worldwide 5-Year ROIIC % Related Terms
Otis Worldwide 5-Year ROIIC % Historical Data
* Premium members only.
The historical data trend for Otis Worldwide's 5-Year ROIIC % 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 5-Year ROIIC %, along with its competitors' market caps and 5-Year ROIIC % 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 5-Year ROIIC % vs Industrial Products Industry
For the Industrial Products industry and Industrials sector, Otis Worldwide's 5-Year ROIIC % distribution charts can be found below:
* The bar in red indicates where Otis Worldwide's 5-Year ROIIC % falls into.
Otis Worldwide's 5-Year ROIIC % for the quarter that ended in Dec. 2025 is calculated as:
5-Year ROIIC %
=
5-Year Incremental Net Operating Profit After Taxes (NOPAT)**
/
5-Year Incremental Invested Capital**
=
( 1669.3537 (Dec. 2025) - 1145.4971 (Dec. 2020) )
/
( 8635 (Dec. 2025) - 8374 (Dec. 2020) )
=
523.8566
/
261
=
200.71%***
* 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.
** Annual data of NOPAT and Invested Capital was used to calculate 5-Year ROIIC %.
*** Please be aware that the ROIIC (Return on Invested Capital) calculations are based on company-level data using the primary share class. The calculated data provided is for demonstration purposes and may slightly differ from the results displayed in the title due to potential variations caused by currency exchange rate differences throughout the year.
Otis Worldwide (OTIS) has a 5-Year ROIIC % of 200.71 as of Dec. 2025. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Otis Worldwide and its competitors. According to the industry distribution chart, Otis Worldwide ranks #55 out of 2784 companies in the Industrial Products industry, placing it in the top 2%.
Is Otis Worldwide's 5-Year ROIIC % too high?
Otis Worldwide's current 5-Year ROIIC % is 200.71. The Industrial Products industry median 5-Year ROIIC % is 4.51. Otis Worldwide's value of 200.71 is 4355.3% above this industry median. Based on the distribution chart, Otis Worldwide ranks #55 out of 2784 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 5-Year ROIIC % compare to INIO and XYL?
According to the Industrial Products industry distribution chart, Otis Worldwide ranks #55 out of 2784 companies for 5-Year ROIIC %. This places Otis Worldwide in the top 2% of its industry — outperforming the majority of peers. The industry median 5-Year ROIIC % is 4.51. Otis Worldwide's value of 200.71 is 4355.3% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year ROIIC % for an Industrial Products company?
The median 5-Year ROIIC % among Industrial Products companies is 4.51, based on 2,784 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year ROIIC % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year ROIIC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Otis Worldwide's current 5-Year ROIIC % of 200.71 is 4355.3% 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 5-Year ROIIC % mean?
A high 5-Year ROIIC % can signal that a stock is expensive relative to its fundamentals. 5-Year ROIIC % measures the change in earnings as a percentage of change in investment over 5-year. View historical data on Otis Worldwide and its competitors. For the Industrial Products industry, the median 5-Year ROIIC % is 4.51 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Otis Worldwide's current 5-Year ROIIC % is 200.71. 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 $101.45, compared to a current price of $73.09 — trading 28% below its estimated fair value. The current 5-Year ROIIC % is 200.71 and 4355.3% above the Industrial Products industry median of 4.51. 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 5-Year ROIIC % calculated?
5-Year ROIIC % is calculated from a company's financial statements. For Otis Worldwide (OTIS), the current 5-Year ROIIC % is 200.71 as of Dec. 2025. 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 $73.09 is trading 28% below its estimated GF Value™ of $101.45.
GuruFocus considers Otis Worldwide to be Modestly Undervalued.
Key valuation signals for OTIS:
5-Year ROIIC %: 200.71
GF Value™: $101.45 vs. price of $73.09 (28% below fair value)
Industry Position: 4355.3% above the Industrial Products median (#55 of 2784)
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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