OSI Systems, Inc.
OSI Systems, Inc. Fundamental Analysis
OSI Systems, Inc. (OSIS) shows moderate financial fundamentals with a PE ratio of 31.97, profit margin of 8.52%, and ROE of 16.91%. The company generates $1.8B in annual revenue with strong year-over-year growth of 11.33%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 65.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze OSIS's fundamental strength across five key dimensions:
Efficiency Score
WeakOSIS struggles to generate sufficient returns from assets.
Valuation Score
WeakOSIS trades at a premium to fair value.
Growth Score
ExcellentOSIS delivers strong and consistent growth momentum.
Financial Health Score
ModerateOSIS shows balanced financial health with some risks.
Profitability Score
ModerateOSIS maintains healthy but balanced margins.
Key Financial Metrics
Is OSIS Expensive or Cheap?
P/E Ratio
OSIS trades at 31.97 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, OSIS's PEG of 57.29 indicates potential overvaluation.
Price to Book
The market values OSI Systems, Inc. at 5.79 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 15.81 times EBITDA. This signals the market has high growth expectations.
How Well Does OSIS Make Money?
Net Profit Margin
For every $100 in sales, OSI Systems, Inc. keeps $8.52 as profit after all expenses.
Operating Margin
Core operations generate 12.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $16.91 in profit for every $100 of shareholder equity.
ROA
OSI Systems, Inc. generates $6.07 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
OSI Systems, Inc. generates limited operating cash flow of $158.96M, signaling weaker underlying cash strength.
Free Cash Flow
OSI Systems, Inc. produces free cash flow of $140.05M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $8.50 in free cash annually.
FCF Yield
OSIS converts 2.94% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
31.97
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
57.29
vs 25 benchmark
P/B Ratio
Price to book value ratio
5.79
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.68
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.19
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.15
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.17
vs 25 benchmark
ROA
Return on assets percentage
0.06
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How OSIS Stacks Against Its Sector Peers
| Metric | OSIS Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 31.97 | 35.19 | Neutral |
| ROE | 16.91% | 1155.00% | Weak |
| Net Margin | 8.52% | -127067.00% (disorted) | Weak |
| Debt/Equity | 1.19 | 0.41 | Weak (High Leverage) |
| Current Ratio | 3.15 | 4.71 | Strong Liquidity |
| ROA | 6.07% | -314918.00% (disorted) | Weak |
OSIS outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews OSI Systems, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
55.59%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
110.57%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-20.00%
Industry Style: Growth, Innovation, High Beta
Declining