Otis Worldwide Corporation

“Otis Worldwide is a capital-light service compounder with a genuine wide moat in elevator maintenance, generating $1.4–1.7B of predictable annual FCF at ~24% service operating margins with minimal reinvestment needs. At $73 — near 52-week lows and ~28% off the peak — the stock prices in only ~2% perpetual growth, far too pessimistic for a franchise that structurally grows at mid-single digits through installed-base expansion, modernization, and digital upsell. New Equipment China weakness is cyclical noise. The permanent bear case (commoditization of service) has not materialized in three decades and faces increasing resistance from Otis's deepening IoT moat. With a 6% FCF yield, 15.5x forward earnings, and low risk of permanent capital impairment, Otis now offers adequate compensation for long-term investors — not a screaming bargain, but a quality business at a reasonable price.”