One-glance verdict
Undervalued
$303.12 our estimate vs market $199.44
Wall Street consensus: $273.29 (-9.8% lower than our fair-value estimate)
34% below our estimate, below the bear case
Fundamentals snapshot
OSI Systems, Inc.
OSIS · NMS · Technology · Electronic Components
Current price
$199.44
52-week range
$186.50 - $311.72
Market cap
$3.14B
Balance sheet
Watch
8.98x Adequate
Net debt $752.83M. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
2 Risks
3 rewards · 2 risks
- Reward Revenue grew 13.4% last year.
- Reward Returns 18.4% on equity, ahead of 66% of its peers.
- Risk Net debt grew 126.7% over 3 years.
- Risk Operating margin compressed from 11.2% to 8.8% over 3 years.
What this company does
OSI Systems, Inc.
OSI Systems makes specialized electronic gear for security and healthcare, like baggage scanners and patient monitors. Their money mostly comes from selling these products and offering security services, and it matters because these are essential tools for safety and patient care.
How the company got here
OSI Systems, Inc. was founded in 1987 and has grown by developing specialized electronic systems for demanding environments. The company's journey has involved expanding its technological capabilities and acquiring businesses that complement its core offerings in security and healthcare. This strategic growth has allowed OSI Systems to become a key player in providing advanced solutions for security screening and medical monitoring.
What it actually does
OSI Systems creates and sells sophisticated electronic equipment and components. Think of them as the brains and specialized eyes behind important systems that need to be highly reliable. Their products are used in places where security is paramount, like airports, and in hospitals, where accurate patient monitoring is critical. They build everything from the machines that scan luggage to the devices that track a patient's heart rhythm.
Security
This segment focuses on keeping people and places safe by providing advanced screening technology. This includes systems that can detect explosives or narcotics in baggage and cargo, as well as equipment for screening people at security checkpoints. They also offer services to manage entire security screening processes for large organizations. This part of the business is crucial for airports, government facilities, and other high-security areas that need to identify potential threats.
Healthcare
In the healthcare division, OSI Systems develops and manufactures medical monitoring devices. These are the sophisticated machines found in hospitals that keep track of vital patient information, such as heart rate, blood pressure, and other critical signs. They offer solutions that help doctors and nurses monitor patients closely, especially in critical care settings, and provide tools for analyzing this important health data.
Optoelectronics and Manufacturing
This segment is where OSI Systems designs and builds specialized electronic components and provides manufacturing services. They create devices that emit or detect light, like lasers, and components that manipulate light signals. They also assemble printed circuit boards and complete electronic systems for other companies. This business line supports both the company's own security and healthcare products and serves external customers who need high-quality electronic manufacturing.
What management is betting on now
OSI Systems' management is focused on leveraging its expertise in advanced electronics to address growing global needs in security and healthcare. They are likely investing in research and development to enhance their existing product lines and create new technologies. The company aims to capitalize on increasing demand for sophisticated screening solutions and advanced patient monitoring systems, seeking to expand its market share in these critical sectors.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q2
$47.06M
FY2025 Q3
$77.12M
FY2025 Q4
$-5.56M
FY2026 Q1
$10.11M
FY2026 Q2
$55.52M
FY2026 Q3
$6.90M
FY2026 Q4
$172.81M
FY2027 Q1
$29.43M
Revenue
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Net income
$24.57M
Diluted EPS
1.51
Operating cash flow
$37.09M
Free cash flow
$29.43M
Fetching…
Sources
Revenue
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Net income
$55.24M
Diluted EPS
3.27
Operating cash flow
$182.11M
Free cash flow
$172.81M
Fetching…
Sources
Revenue
—
Net income
$40.22M
Diluted EPS
2.33
Operating cash flow
$14.46M
Free cash flow
$6.90M
Fetching…
Sources
Revenue
—
Net income
$38.70M
Diluted EPS
2.22
Operating cash flow
$62.20M
Free cash flow
$55.52M
Fetching…
Sources
Revenue
—
Net income
$20.56M
Diluted EPS
1.18
Operating cash flow
$17.14M
Free cash flow
$10.11M
Fetching…
Sources
Revenue
—
Net income
$52.75M
Diluted EPS
3.03
Operating cash flow
$562.00K
Free cash flow
$-5.56M
Fetching…
Sources
Revenue
—
Net income
$41.13M
Diluted EPS
2.40
Operating cash flow
$81.64M
Free cash flow
$77.12M
Fetching…
Sources
Revenue
—
Net income
$37.82M
Diluted EPS
2.22
Operating cash flow
$52.55M
Free cash flow
$47.06M
Fetching…
Sources
Is it cheap or expensive?
Fair value $303.12 vs current price $199.44
Wall Street consensus is the average analyst price target: $273.29 (-9.8% lower than our fair-value estimate).
Our most-likely fair value is $303.12 a share — about 52.0% above today's price of $199.44, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Watch
Net debt $752.8M. Interest coverage 9.0x.
Net debt
$752.83M
Interest coverage
8.98x
OSI Systems, Inc.'s profit covers its interest bill about 9.0 times over. which is stronger than most peers shown here.
Watch
Worse cushion
Baseline
Better cushion
OSIS
BASELINE
OSI Systems, Inc.
Total debt $1.05B Interest coverage 8.98x This is the baseline the peer rows are being compared against.
Total debt $6.58B Interest coverage 10.34x +15% vs OSIS Carries about 1.2x more debt cushion than OSIS.
Total debt $379.30M Interest coverage 2.02x -77% vs OSIS Carries about 4.4x less debt cushion than OSIS.
Total debt $285.60M Interest coverage 5.43x -40% vs OSIS Carries about 1.7x less debt cushion than OSIS.
Total debt $2.03B Interest coverage 19.29x +115% vs OSIS Carries about 2.1x more debt cushion than OSIS.
What you should know
The case for and against OSIS
3 Rewards
2 Risks
Rewards
-
Revenue grew 13.4% last year.
-
Returns 18.4% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 9/10 years.
Risks
-
Net debt grew 126.7% over 3 years.
-
Operating margin compressed from 11.2% to 8.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
21.45x
Forward P/E
15.53x
P/B
4.01x
P/S
1.74x
EV/EBITDA
14.58x
PEG ratio
1.47x
Profitability
How much profit each dollar creates
Gross margin
32.9%
Operating margin
8.8%
Net margin
8.8%
ROE
18.4%
ROA
5.9%
Health
Liquidity and balance-sheet strength
Debt / equity
1.35x
Current ratio
2.89x
Quick ratio
1.91x
Total debt
$1.05B
Total cash
$302.00M
Growth
How the business has been compounding
Revenue TTM
$1.09B
Revenue 5Y CAGR
4.7%
EPS TTM
9.30
EPS 5Y CAGR
18.8%
Cash flow
How much cash the business throws off
Operating CF TTM
$295.86M
Free CF TTM
$245.33M
FCF margin
22.5%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
0.0%
Last ex-div date
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