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OTIS

Analysis before buying or selling Otis shares

Trade the Otis share!
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If you want to invest in the Otis share price, it is essential that you know how to make a good analysis of this stock. To do so, we propose that you discover some data about this stock and this company, such as its activities and its main sources of income, but also its direct competitors and its recent partners. First, we will explain how to set up a fundamental analysis of this stock.

Elements to consider before selling or buying Otis shares

Analysis N°1

Firstly, it will be necessary to monitor the operations aimed at penetrating new markets and further developing the Otis Group internationally, particularly in the Asian markets.

Analysis N°2

It will also be necessary to keep an eye on the partnerships set up by the group and in particular on the strategic alliances with major players in the real estate sector which could bring it juicy and lasting contracts.

Analysis N°3

It will also be necessary to closely monitor the competition in this sector of activity, which is increasingly strong with large competitors.

Analysis N°4

It will also be necessary to keep an eye on the innovations implemented by the group in order to distinguish itself from the competition, in particular by monitoring its investments in research and development.

Analysis N°5

Finally, all of the group's earnings releases should be followed closely and compared with previous results and analysts' expectations.

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General presentation of Otis

A good knowledge of Otis is also essential before buying its shares on the stock market and it is necessary to understand what activities the group carries out and its current main sources of income. Here is a complete overview of the company.

The Otis Worldwide Corporation is an American company specialising in elevation systems such as lifts. More specifically, it is one of the world's leading manufacturers, installers and maintainers of elevator systems. The group offers lifts, escalators and moving walkways for residential buildings, shopping centres, public transport facilities, hotels, hospitals and industrial buildings.

To better understand the activities of the Otis Group, they can be divided into different divisions according to the share of turnover they generate, as follows:

  • Maintenance and repair services represent 45.3% of turnover.
  • The next largest category is elevation systems with 45% of turnover.
  • Modernisation services generate 9.7% of turnover.

In terms of the geographical distribution of the group's revenues, 25.9% of them come from the United States, 20.1% from China and 54% from the rest of the world. The group currently employs 70,000 people.

Analysis before buying or selling Otis shares
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The major competitors of Otis

Of course, despite being one of the leaders in its sector, it faces some major competitors, the most important of which we suggest you discover today:

Thyssenkrupp 

This company is a German steel group with various subsidiaries on all continents. Currently, the group employs over 100,000 people and is structured through 6 different divisions including steel, automotive components, lifts, materials, industrial solutions and marine systems.

Schindler Group 

This other company is Swiss and was founded in 1974. It is currently the world leader in the escalator and moving walkway segment and number two in the lift segment. The group also operates in around 100 countries worldwide and employs around 60,000 people.

Kone 

This Finnish company, whose name means "machine" in Finnish, also specialises in lifts, escalators and automatic doors. The company currently employs more than 55,000 people and is present in some 60 countries around the world.

Mitsubishi Elevator

Finally, the division of Mitsubishi Electric Corporation specialises in lifts, escalators, moving walks, spiral escalators and dumbwaiters. It has been in business since 1931. It is currently the largest manufacturer of lifts in Japan and is also one of the largest elevator companies in the world. It has an international presence in the lift market.


The major partners of Otis

While the Otis Group has a number of large competitors in its market, it also sometimes enters into strategic partnerships with other companies in order to boost its growth. Here you can find out who its latest partners are:

AT&T

The Otis Group has recently partnered with US technology service provider AT&T in the use of IoT technologies for the lifts, escalators and moving walkways used by more than two billion people every day. Through this alliance, the two companies wanted to give more control to these systems. With its IoT ecosystem, AT&T wants to strengthen the analysis of consumer data. The data that is transferred directly to the cloud will help to improve Otis' manufacturing. Given that there are currently more than 30,000 mechanics around the lifts and escalators, which represents more than 60 million working hours per year. So the arrival of connected objects at Otis is a real advantage. Indeed, thanks to AT&T technology, when a circuit fails, employees will be immediately alerted and the error will be reported and transmitted to satellite services in the event of a connection failure. This will allow the group to reassure users who are still afraid of getting stuck in a lift.

Xiji Elevator Group

another partnership has been signed with a Chinese company, Xiji Elevator Group, with which it has created a fifth joint venture in China in the province of Zhejiang. The new company created by the two groups is called 'Hangzhou Otis Elevator Company'. Otis currently owns 30% of the company, including an option for majority control. The Xiji Elevator Group sells around 1,500 units a year, including 400 escalators. As for Otis, the American group has, following its partnership, planned to increase its production capacity in China to 8,000 units.

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Frequently Asked Questions

Who are the main shareholders of the Otis Group today?

The capital of the Otis Group is currently largely free float. But the rest is held by a few large shareholders including The Vanguard Group with 8.63%, SSgA Funds Management with 4%, Fidelity Management & Research with 2.95%, Massachusetts Financial Services with 2.58%, BlackRock Fund Advisors with 2.48%, Fiera Capital Corp with 2.39%, Geode capital Management with 2.06%, AllianceBernstein with 1.90%, Capital Research & Management with 1.73% and Viking Global Investors with 1.61%.

On which market and stock index is the Otis share listed?

The Otis share is an American company share. It is therefore listed on the NYSE or New York Stock Exchange, more precisely on the Main Market. But this company is also an important capitalization of the American stock market. As such, it is also part of the benchmark S&P500 stock index, which includes the 500 largest listed American companies.

How to analyse the Otis share price?

To analyse the Otis share price and try to anticipate its future trends, you can use several methods of analysis. The first is of course technical analysis, which will use the movements of current and past charts, and the second is fundamental analysis, which will study the most influential events and news.

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