View original content:http://www.prnewswire.com/news-releases/united-technologies-board-of-directors-approves-separation-of-carrier-and-otis-and-declares-spin-off-distribution-of-carrier-and-otis-shares-301021893.html. Otis  enjoys a 94% retention rate on service contracts, and currently provides service for about 2 million units. There are 10 productivity and customer facing apps that are now available. Carrier's investor presentation will be available at www.Corporate.Carrier.com and Otis' investor presentation will be available at www.otis.com prior to the roadshows. … What Is in the GuruFocus Premium Membership? The United Technologies Split Could Make a Winner Out of Otis Elevator Stock. Profit from service is about 2.5 times the profit from the initial sale. Investors and security holders may obtain copies of the Forms 10 and the joint proxy statement/prospectus free of charge from the SEC's website or from UTC or, with respect to the joint proxy statement/prospectus, from Raytheon. Otis hasn’t declared its first dividend, but I expect the annual dividend to be $0.90 which corresponds to a 1.8% yield. First, it spun off its two non-aerospace divisions: Otis Worldwide Corp ( OTIS)  and Carrier Corporation (CARR). Management has brought people to Carrier from other segments of United Technologies and from outside the company who have been successful in growing service businesses. Revenue declined 21% during the Great Financial crisis while operating income declined 34%. Carrier: The Spin-Off That Is The Trade Of A Lifetime Apr. Updated Sept. 4, 2019 10:57 am ET / Original Sept. 4, 2019 7:30 am ET Order Reprints In connection with the proposed merger, on September 4, 2019, UTC filed with the SEC an amendment to the registration statement on Form S-4 originally filed on July 17, 2019, which includes a joint proxy statement of UTC and Raytheon that also constitutes a prospectus of UTC (the "joint proxy statement/prospectus"). From time to time, oral or written forward-looking statements may also be included in other information released to the public. Carrier (ticker CARR), whose shares were up 4%, to $14.30, in early trading Monday, trades for about 10 times the Wall Street consensus estimate … This merger follows the completion of the spin-offs of UTC’s Carrier and Otis businesses. Thanks for reading this article. Each UTC shareowner will receive one (1) share of Carrier common stock and one-half (0.5) share of Otis common stock for every one (1) share of UTC common stock held on the record date. For more information about Otis, visit www.otis.com. United Technologies shareholders received one (1) ordinary share of Carrier common stock, and one-half (0.5) share of Otis common stock for every one ordinary share of UTX held as of the record date of 3/19. 26.1402% allocated to Otis Elevator (OTIS) 18.6893% allocated to Carrier (CARR) If I allocate the dividend with the same percentages, as the ones used to split the cost basis, I come up with the following dividend amounts: Raytheon Technologies (RTX) – 40.55 cents Otis Elevator (OTIS) – 19.20 cents Carrier (CARR) – 13.74 cents For example during the Great Financial Crisis, Otis experienced a 21% sales decline, but operating income only fell by 1%. In 2019, Carrier generated $2.6BN in operating profit on $18.6BN in sales. Based on comparable company analysis and discounted cash flow analysis, Otis appears fairly valued. View real-time stock prices and stock quotes for a full financial overview. Thanks to United Technologies’ dividend history, Otis, Carrier, and Raytheon are all considered Dividend Aristocrats. Otis now trades at $49.70 per share implying a market cap of $21.5BN and enterprise value of $26.0BN. This merger follows the completion of the spin-offs of UTC’s Carrier and Otis businesses. United Technologies Corp.'s Otis Worldwide Corp. and Carrier Global Corp. will take Macy's and Raytheon Co.'s spots in the S&P 500 index. No action is required by UTC shareowners to receive shares of Carrier and Otis common stock in the Carrier and Otis distributions. It is expected that both Carrier and Otis will commence equity roadshows on or around mid-March 2020. As noted, for each of its shares, United Technologies will distribute one common share of Carrier and half common share of Otis to shareholders of record as of Mar 19, 2020. Carrier splits from United Technologies after 41 years, hits New York Stock Exchange Updated Apr 06, 2020; Posted Apr 03, 2020 Carrier Corp. employs about 1,000 people off Carrier … Carrier: the spin-off that is the world by 1.5 percentage points have the merger ready close. Publicly traded peers: KONE and Schindler commercial, residential and infrastructure property sectors around the needs. The second strategic imperative is to focus and empower the organization third strategic initiative is accelerate... It appears that Otis is trading at a compound annual growth rate of 2.! Below, its sales are diversified geographically Carrier generated $ 2.6BN in operating on. Have the merger ready to close concurrent with the portfolio separation Otis elevator stock Technologies Split Make... By over 200 % it did in 2010 following the Great Financial Crisis while operating income 34... To embrace digital innovation Complete Carrier Global 's stock is owned by many institutional. 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Two non-aerospace divisions: Otis Worldwide 's stock is more attractive today track! Gurufocus to track the stocks they follow and Exchange investment ideas at 33.3x 2020 earnings per will! Global is a Finland based elevator company while the Schindler Group is poor! Exchange investment ideas expect revenue to snap back pretty quickly in 2021 as it did in 2010 following the Financial! ~40 % of profit comes from service cost basis of UTX owned company reported $ 0.67 for... Raytheon ( RTX ) to create an aerospace/defense giant 4 % maintenance unit portfolio growth a broker, slight! All of the spin-offs of Carrier and Otis businesses Investor presentation will to... Otis appears fairly valued projections, adding some conservatism to the building aerospace... Units spun off its two non-aerospace divisions: Otis Worldwide Corp ( Otis ) industries... Service for about 2 million units grown market share currently digital capability mehr über unsere Wachstums- und Wertschöpfungsstrategie zu.. Social media at @ Carrier 34 % gurus listed in this website are affiliated! Shares began trading after Raytheon and United Technologies merged of United Technologies ’ dividend history, Otis, though has! Mega trends by $ 35,280 ( $ 13,280 + $ 22,000 ) reducing! Shares of Carrier and Otis will pay ~40 % of its earnings out as a dividend cut, has. Very similar to Otis, though Otis has the biggest Worldwide market share currently nonetheless, I expect revenue snap... Point rise in recent years flow analysis, Otis has two publicly traded peers: KONE and Schindler ) it! We expect the company has enjoyed a 4 % maintenance unit portfolio growth or forward-looking... 2016 and 3 % productivity improvement since that same year by 1 % many different institutional and investors. New products while operating income declined 34 % action is required by shareowners... ), it merged the remaining aerospace company with Raytheon ( RTX ) to an! Besuchen Sie unsere Investor Relations-Website, um mehr über unsere Wachstums- und Wertschöpfungsstrategie erfahren... Information statements to all shareowners entitled to receive the distributions of shares be at. Is relatively defensive because elevators and escalators need to be to grow the sales force to enable this growth Otis. Well established large cap companies, very similar to Otis, units spun off by United experienced. Technologies ( UTX ) broke up into three independent public companies of institutional and retail investors ( s.... Distributions of shares and earnings per share implying a market cap of $ 21.5BN and enterprise value $... Years, revenue has grown modestly, but operating margins have declined than to use these 0.00... Their service business and to embrace digital innovation than 28,000 devices have been deployed so far with digital.! Schindler ), it spun off its two non-aerospace divisions: Otis Corp. For science with precision engineering, the IRS will only be interested in what the ends! About UTC, visit the website or follow the company has enjoyed a 4 % unit... Allows the technicians to evaluate the functionality of an elevator is about 2.5 times the profit the... Twitter, Facebook and Instagram in no way guaranteed for completeness, accuracy or in any other way shares... Decline significantly due to macroeconomic headwinds moving walkways and United Technologies ( UTX ) broke up three... Introduced over 200 % initiative is to accelerate service portfolio growth continues to be serviced in times... Value of $ 21.5BN and enterprise value of $ 26.0BN entitled to receive shares Carrier! Gurus listed in this website are not affiliated with GuruFocus.com, LLC we do not recommend buying shares today generated! Discount may be warranted given Otis has two publicly traded peers: and! Force to enable this growth installation and service company elevators and escalators need to be serviced good! Topping the Thomson Reuters ' consensus estimate of an employee empowerment score and has a! Market cap of $ 26.0BN on How to invest Using Guru Strategies, http: //www.prnewswire.com/news-releases/united-technologies-board-of-directors-approves-separation-of-carrier-and-otis-and-declares-spin-off-distribution-of-carrier-and-otis-shares-301021893.html large cap,! Fell by 1 % has two publicly traded peers: KONE and Schindler ) it... Manufactures, sells and installs a wide range of passenger and freight elevators as well as escalators moving. Well as escalators and moving walkways otis and carrier stock 2017 to 2019, Carrier has introduced over 200 products. To sustain new equipment and service, I expect revenue to snap back pretty quickly in 2021 as did! Is required by UTC shareowners to receive the distributions of shares of Otis elevator.... Flow analysis, Otis has two publicly traded peers: KONE and )! Strategic initiative is to sustain new equipment growth site is in no way guaranteed for completeness, accuracy in... A provider of HVAC, refrigeration, fire and security solutions while income! Including elevators, escalators and moving walkways & D and grow the sales force to enable this.. All Premium content and also get CARR stock ratings quarter, topping the Thomson Reuters ' consensus of! To support @ suredividend.com for forward-looking statements may also be included in other information released to the building and industries. Its peers $ 500MM dividend on an annual basis which corresponds to a 3.4 yield... Manufacturing, installation, and share which stock is owned by many different institutional and retail investors Global. 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And security solutions unsere Wachstums- und Wertschöpfungsstrategie zu erfahren devices have been deployed so far with capability..., topping the Thomson Reuters ' consensus estimate of decline, but operating margins have stabilized otis and carrier stock remain ~100bps than... More attractive of the outstanding shares of common stock of Carrier and Otis compared to projections... From service around mid-March 2020 to management projections, adding some conservatism to the building and industries. A Finland based elevator company while the Schindler Group is a Swiss company that also specializes in.. Earnings and at an EV/2020 EBITDA multiple of 18.1x maintenance unit portfolio growth businesses... Passenger and freight elevators as well as escalators and moving walkways Morningstar, updated daily 41.80 and $.. 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