OSIS

OSI Systems, Inc.

Fundamental data last updated:October 19, 2026

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company profile

SECTOR

Technology

industry

Hardware, Equipment & Parts

Exchange

NASDAQ

County of HQ

US

Next Earnings Date

Pending Announcement

Business Summary

OSI Systems, Inc. designs and manufactures electronic systems and components worldwide. It operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The Security segment offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation detection, and explosive and narcotics trace detection systems under the Rapiscan Systems, AS&E, and Gatekeeper names. It also provides site design, installation, training, and technical support services; and security screening solutions under the S2 name. The Healthcare segment offers patient monitoring and diagnostic cardiology systems, and related supplies and accessories under the Spacelabs name for use in critical care, emergency, and perioperative areas within hospitals, physicians' offices, medical clinics, and ambulatory surgery centers. The Optoelectronics and Manufacturing segment provides optoelectronic devices under the OSI Optoelectronics, OSI LaserDiode, OSI Laserscan, Semicoa, and Advanced Photonix names for the aerospace and defense, avionics, medical imaging and diagnostics, biochemistry analysis, pharmaceutical, nanotechnology, telecommunications, construction, and homeland security markets. It also offers electronics manufacturing services to original equipment manufacturers and end users for medical, automotive, defense, aerospace, industrial, and consumer applications under the OSI Electronics, APlus Products, Altaflex, and PFC names; and LCD displays for medical, industrial, and consumer electronics applications, as well as flex circuits for OEM customers. This segment offers laser-based remote sensing devices to detect and classify vehicles in toll and traffic management systems under the OSI Laserscan and Autosense names; and solid-state laser products for aerospace, defense, telecommunication, and medical applications under the OSI LaserDiode name. The company was incorporated in 1987 and is headquartered in Hawthorne, California.

 


VALUATION

P/E

23.94

Market Cap ($M USD)

$3.65B

Forward P/E

16.96

PEG

0.41

PRICE TO SALES

2.02

PRICE TO BOOK

4.07

EV / EBITDA

12.58

5-Year Average P/E

Free Cash Flow Yield

2.10%

DCF Value

$82.37

Graham Number

$106.24

Price to FCF

47.63

EV to FCF

43.17

Earnings Yield

4.18%

FCF Yield

2.10%

DIVIDEND

Yield

0.00%

Annual Payout

$0.00

Payout Ratio

0.00%

Consecutive Years of Dividend Growth

5-Year Dividend Growth Rate

Financial Health & Profitability

Earnings Per Share

$9.24

Next Year EPS Growth Estimate

$13.04

Next Year Revenue Growth Estimate

$2.08B

Return on Equity (ROE)

16.74%

FREE CASH FLOW

Operating Margin

12.30%

Debt-to-Equity

0.72

Piotroski F-Score

6

Altman Z-Score

3.34

Return on Invested Capital (ROIC)

10.97%

Current Ratio

3.25

Quick Ratio

2.42

Net Debt to EBITDA

-1.30

Interest Coverage

7.46

Gross Profit margin

32.31%

FCF PER SHARE

$4.65

REVENUE PER SHARE

$109.68

Gainseekers Quantitative Analysis

Summary

The market appears to be mispricing OSI Systems, Inc. relative to its intrinsic value. Despite a robust Forward P/E of 17.49, the stock traded significantly above its DCF Value, suggesting potential overvaluation. The Altman Z-score of 3.42 indicates financial stability, yet the Earnings Yield of 3.79% is underwhelming for a GARP investor. With a Graham Number far below the snapshot price, caution is warranted despite the company’s solid growth prospects.

AI Exposure / Tech Reliance

Positioned within the Technology sector, OSI Systems is well-placed to leverage AI advancements and modern tech shifts. As a player in Hardware, Equipment & Parts, it can integrate AI to enhance product offerings and operational efficiencies. This adaptability is crucial for maintaining competitive advantage in a rapidly evolving industry.

The Bull Case

For the value-driven investor, OSI Systems offers compelling strengths. A ROIC of 10.97% reflects efficient capital use, while a Piotroski F-Score of 5 suggests moderate financial health. The company's Operating Margin of 12.30% and a solid FCF Yield, albeit low, indicate potential for long-term profitability. These metrics underscore its pricing power and operational resilience.

The Bear Case

However, the stock's valuation raises red flags. With a Price/Book ratio of 4.49 and Price/Sales of 2.10, it appears overextended. The Price to FCF ratio of 49.71 signals poor cash flow efficiency, and trading below its 50-Day SMA suggests technical weakness. These factors, combined with a zero dividend yield, highlight structural risks that could deter cautious investors.

Market Sentiment & Smart Money

Short Interest %

Analyst Consensus

Buy

Average Analyst Price Target

$301.00

Institutional Ownership %

1-Year Beta

1.31

Insider Buying % (6 Mo)

Distance to 52-Week High

40.95%

Distance to 52-Week Low

8.01%

EARNINGS SURPRISE %

2.77%

50-DAY SMA

$263.76

200-DAY SMA

$260.82

⚠️ Financial Disclaimer:
This content is for informational purposes only and is not financial advice. Information may be delayed or inaccurate. We may earn a commission from partner links.