Is Otis Worldwide Corp (OTIS) Halal?

NYSE Industrials United States $29.6B
✓ HALAL
Confidence: 95/100
Otis Worldwide Corp (OTIS) is Halal under 3 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 24.5% against the AAOIFI threshold of 30%, Otis Worldwide Corp comfortably passes the key financial ratio tests. The company operates in the Industrials sector (Specialty Industrial Machinery), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from December 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 24.5%
/ 30%
3.2%
/ 30%
12.6%
/ 30%
0.62%
/ 5%
✓ HALAL
DJIM 24.5%
/ 33%
3.2%
/ 33%
12.6%
/ 33%
0.62%
/ 5%
✓ HALAL
MSCI 79.9%
/ 33%
10.3%
/ 33%
41.2%
/ 33%
0.62%
/ 5%
✗ NOT HALAL
S&P 24.5%
/ 33%
3.2%
/ 33%
12.6%
/ 33%
0.62%
/ 5%
✓ HALAL
FTSE 79.9%
/ 33%
10.3%
/ 33%
41.2%
/ 50%
0.62%
/ 5%
✗ NOT HALAL

Financial Highlights

P/E Ratio
21.7
Forward: 15.7
EPS
$3.50
Dividend Yield
221.0%
Payout: 47.1%
P/B Ratio
-5.5
EV/EBITDA
14.5
EV: $37.1B
Revenue
$14.4B
Growth: 3.3%
Beta
1.0
Average volatility
Current Ratio
0.8

Profitability

Gross Margin 30.6%
Operating Margin 15.6%
Net Margin 9.6%
Return on Assets (ROA) 13.5%

Cash Flow & Balance Sheet

Operating Cash Flow$1.6B
Free Cash Flow$1.4B
Total Debt$8.5B
Current Ratio0.8
Total Assets$10.7B

Price & Trading

Last Close$77.44
50-Day MA$87.56
200-Day MA$89.86
Avg Volume3.7M
Beta1.0
52-Week Range
$75.90
$105.95

About Otis Worldwide Corp (OTIS)

CEO
Ms. Judith F. Marks
Employees
72,000
Sector
Industrials
Industry
Specialty Industrial Machinery
Country
United States
Exchange
NYSE
Market Cap
$29.6B
Currency
USD

Otis Worldwide Corporation engages in manufacturing, installation, and servicing of elevators and escalators in the United States, China, and internationally. The company operates in two segments, New Equipment and Service. The New Equipment segment designs, manufactures, sells, and installs a range of passenger and freight elevators, as well as escalators and moving walkways for residential and commercial buildings, and infrastructure projects. This segment serves real-estate and building developers, and general contractors. It sells its products directly to customers, as well as through agents and distributors. The Service segment performs maintenance and repair services, as well as modernization services to upgrade elevators and escalators. Otis Worldwide Corporation was founded in 1853 and is headquartered in Farmington, Connecticut.

Purification Calculator

As a halal stock with 0.62% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is Otis Worldwide Corp (OTIS) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), Otis Worldwide Corp is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is Otis Worldwide Corp's debt ratio?

Otis Worldwide Corp's debt ratio is 24.5% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 79.9%.

Does Otis Worldwide Corp require dividend purification?

Yes, Otis Worldwide Corp has an impermissible income ratio of 0.62%, which means 0.62% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are Otis Worldwide Corp's key financial metrics?

Otis Worldwide Corp has a market capitalization of $29.6B, trailing P/E ratio of 21.7, and revenue of $14.4B. The company maintains a gross margin of 30.6% and a net margin of 9.6%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.