UTX - Embedded Expectations Analysis - 2018 06 04
United Technologies Corporation (UTX:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 19.1x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about margins, cash flows, and salesSpecifically, management may lack confidence in their ability to develop connected products that enable real time health monitoring capabilities, and may have concerns about their ability to drive margin improvement in UTAS. Additionally, they may lack confidence in their claim that cash generation will accelerate as they progress through the year, and may be concerned about declines in Otis China sales due to weak orders in late 2016 and early 2017. Furthermore, they may lack confidence in the sustainability of service attachment conversion improvements, and may have concerns about the sustainability of aftermarket sales improvements across all segments
United Technologies provides technology products and services to the building systems and aerospace industries. The company has four segments: Otis, which designs, manufactures, sells and installs passenger and freight elevators; Carrier, which provides heating, ventilating, air conditioning refrigeration, fire, security and building automation products; Pratt & Whitney, which supplies aircraft engines for the commercial, military, business jet and general aviation market; and Collins Aerospace Systems, which provides aerospace products and aftermarket service solutions for aircraft manufacturers, airlines, regional, business and general aviation markets, military, space and undersea operations.
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