OSI Systems, Inc.

OSI Systems, Inc.

OSISยทNASDAQ

$213.48

+0.052%
TechnologyHardware, Equipment & Parts

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.

At a Glance

Live Snapshot
Market Cap$3.52B
EPS8.9100
P/E Ratio23.96
Earnings Date08/20/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 24.0).

Valuation inputs: P/E 24.0, earnings yield +4.2%, momentum +0.1%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +15.7%, ROIC +10.0%).

Profitability stack: net margin +8.7%, ROE +15.7%, ROIC +10.0%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +57.6%, momentum +0.1%, net margin +8.7%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

osis

OSI Systems, Inc. Market vs Earnings Trajectory

OSIS ยท NASDAQ

Loading price and EPS data...

OSI Systems, Inc.

OSI Systems, Inc. Fair Value Envelope

OSIS ยท NASDAQ

Our analysis suggests that OSIS has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $213.48, this represents a potential HIDDEN relative to our calculated worth for OSI Systems, Inc..

Intrinsic Value
Current Price: $213.48
3Y+36.0%
5Y+115.0%
10Y+546.0%
3Y+45.0%
5Y+47.0%
10Y+106.0%
3Y+30.0%
5Y+99.0%
10Y+472.0%
3Y+53.0%
5Y-24.0%
10Y+65.0%
3Y+68.0%
5Y-41.0%
10Y+57.0%
3Y+55.0%
5Y+77.0%
10Y+126.0%
OSI Systems, Inc.

OSI Systems, Inc. Profit Bridge

OSIS ยท NASDAQ
Revenue1.71B
Cost of Goods Sold (1.13B)
Gross Profit587.18M
Operating Expenses (369.66M)
Operating Income217.52M
Interest Expense (33.87M)
Other Income/Expense-31.43M
Pretax Income186.09M
Income Tax (36.46M)
Net Income149.64M
Net Income
149.64M

Profitability Analysis

Gross Margin

34.3%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

12.7%

Acceptable margins but limited operational leverage. Operating expense control is important.

Net Profit Margin

8.7%

Moderate profitability with room for improvement. Monitor interest expenses and tax efficiency.

Effective Tax Rate

19.6%

Moderate tax rate typical for most corporations. Represents standard tax burden on profits.

Profitability Insight

Room for improvement: Moderate profitability with opportunities to enhance margins through better cost management or pricing strategy.

34.27%
Gross Profit Margin
-1%
3Y-4.0%
5Y-5.0%
10Y+3.0%
12.70%
Operating Profit Margin
3%
3Y+23.0%
5Y+140.0%
10Y+175.0%
8.73%
Net Profit Margin
5%
3Y-10.0%
5Y+35.0%
10Y+177.0%
15.73%
Return on Equity
6%
3Y-13.0%
5Y+20.0%
10Y+225.0%
6.68%
Return on Assets
1%
3Y-16.0%
5Y+13.0%
10Y+153.0%
10.04%
Return on Invested Capital
2%
3Y+15.0%
5Y+86.0%
10Y+167.0%
OSIS

OSI Systems, Inc. Cash Conversion Engine

OSIS ยท NASDAQ
Net Income149.64M
Depreciation & Amortization43.58M
Stock-Based Compensation31.96M
Change in Working Capital-119.76M
Others1.26M
Capital Expenditures-41.50M
Free Cash Flow56.09M

Cash Flow Quality Analysis

FCF Conversion Rate

37.5%

Weak cash conversion. Significant portion of earnings not converting to cashโ€”review working capital trends and capital intensity.

CapEx Intensity

42.5%

Capital-intensive operations require significant reinvestment. Monitor whether CapEx is maintenance or growth-oriented.

FCF Growth Trend

+144.2%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

-$119.76M

Significant working capital drain. Growth may be consuming cash through inventory buildup or receivables extensionโ€”monitor closely.

Cash Flow Quality Insight

Working capital strain: Significant cash tied up in operations. Monitor receivables collection, inventory turns, and payment terms to optimize cash conversion cycle.

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OSI Systems, Inc. Funding & Solvency Profile

OSIS ยท NASDAQ
Cash & Cash Equivalents345.24M
Net Receivables870.45M
Inventory435.29M
Other Current Assets66.36M
Total Current Assets2 B
Property, Plant & Equipment125.77M
Goodwill & Intangible Assets568.39M
Long-Term Investments0.00
Other Non-Current Assets142.94M
Total Non-Current Assets269 M
Total Assets
2.55B

Financial Health Analysis

Current Ratio

3.25x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

1.86x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

1 B

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

67% Current

Asset-light business model with high liquidity. Majority of assets are easily convertible to cash.

Financial Health Insight

Mixed signals: Strong short-term liquidity provides comfort, but high overall leverage requires careful monitoring of debt servicing capabilities and refinancing risk.

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OSI Systems, Inc. Street Expectations Map

OSIS ยท NASDAQ

Wall Street analysts project that OSIS stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 310.00, with estimates ranging from a low of 310.00 to a high of 310.00.

Lowest Target
310.00
45.21%
Consensus Target
310.00
45.21%
Highest Target
310.00
45.21%

The consensus 1-year price target stands at 310.00, with estimates ranging from a low of 310.00 to a high of 310.00.

Analyst Consensus Analysis

Upside Potential

+45.2%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

0.0% spread

High analyst agreement. Narrow target range indicates strong consensus on valuation, suggesting clear investment thesis and predictable outlook.

Analyst Conviction

Very High

Strong buy conviction: High upside with tight consensus suggests compelling investment opportunity backed by analyst confidence.

Market Sentiment Insight

Rare opportunity: Exceptional upside potential with strong analyst consensus creates a compelling setup. The combination of significant price target premium and tight agreement suggests high-conviction undervaluation that may attract institutional capital.

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OSI Systems, Inc. Insider Positioning

OSIS ยท NASDAQ

During the last 12 months, insiders have sold $22.59M worth of OSIS shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

20.0K

5.64M

Net Activity

-5.6M

-$5.64M

3-6 Months

Bought

0

0.00

Sold

20.0K

5.02M

Net Activity

-5.0M

-$5.02M

6-9 Months

Bought

0

0.00

Sold

42.5K

11.31M

Net Activity

-11.3M

-$11.31M

9-12 Months

Bought

0

0.00

Sold

2.7K

632.77K

Net Activity

-633K

-$633K

Top Buyers

No buying activity

Top Sellers

1
CD

Chopra Deepak

Director

80.0K sharesโ€ข4 transactions

$21.29M

2
MPK

Morben Paul Keith

Officer: Pres., Optoelectronics Div

2.1K sharesโ€ข2 transactions

$512K

3
HJB

Hawkins James B

Director

1.5K sharesโ€ข1 transactions

$425K

4
LM

Luskin Meyer/

Director

1.0K sharesโ€ข1 transactions

$237K

5
BWFJ

Ballhaus William Francis Jr

Director

562 sharesโ€ข1 transactions

$134K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $22.59M net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Recent Trend (3 Months)

$5.64M

Heavy recent selling activity. Recent insider sales notably exceed purchasesโ€”may warrant investigation into company developments.

Insider Participation

High Selling

5 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

Insider Activity Insight

Multiple red flags: Heavy selling, numerous sellers, and continued recent selling create a concerning pattern. Investigate fundamental drivers and consider whether company guidance or industry conditions have deteriorated.

No Dividend Yield Data

OSIS has not reported any dividend yield values in the available annual periods.

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osis Dividend History

OSIS
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%