OSI Systems Inc (OSIS) stock analysis

P/E below its 5-year median

OSI Systems's P/E of 21.1 is below its own 5-year median of 21.9.

P/E below the industry

OSI Systems's P/E of 21.1 is below the Electronic Components and Accessories median of 34.8.

EV/EBITDA above its 5-year median

OSI Systems's EV/EBITDA of 14.5 is above its 5-year median of 12.2.

P/B above the industry

OSI Systems's price-to-book of 3.95 is above the Electronic Components and Accessories median of 3.49.

Trading below fair value

The share price of $196.58 is below our fair value estimate of $239.20.

Margin of safety under 20%

The price is 17.8% below fair value, less than the 20% cushion we look for.

Revenue growing 10%+ a year

Revenue grew 11.8% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 18.8% a year over the last three fiscal years.

Earnings acceleration

Needs positive net income now, a year ago and five years ago.

Growing slower than the industry

Revenue grew 2.9% over the last twelve months; the Electronic Components and Accessories median is 17.3%.

Guidance raised

OSI Systems raised its fiscal 2026 non-GAAP adjusted earnings per diluted share outlook on Jan 29, 2026.

Gross margin slipping

Gross margin was 32.9% over the last twelve months, against 33.6% a year earlier.

Return on equity over 15%

Return on equity was 18.4% over the last twelve months and averaged 15.9% over five years.

Return on capital over 10%

Return on invested capital was 12.9%, above the 10% that usually covers the cost of capital.

Return on equity above the industry

OSI Systems's return on equity of 18.4% is above the Electronic Components and Accessories median of 4.8%.

Earnings over 5 years

Needs positive net income five years ago and in the latest year.

Net margin above its 5-year average

Net margin was 8.8% over the last twelve months, against a 5-year average of 8.2%.

Net margin above the industry

OSI Systems's net margin of 8.8% is above the Electronic Components and Accessories median of 2.9%.

High debt

Debt is 128% of shareholders' equity, above the 40% we consider low.

Debt rising against equity

Debt to equity rose from 43.3% five years ago to 128%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 29.6% of total debt.

Interest well covered

Operating income covers interest expense 9.9 times.

Short-term assets cover short-term debts

Current assets are 2.89 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 3.06; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

OSI Systems has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.