OSI Systems (NasdaqGS:OSIS) - Share price, News & Analysis

OSIS fundamental analysis
Snowflake Score
Valuation	4/6
Future Growth	0/6
Past Performance	4/6
Financial Health	4/6
Dividends	0/6

OSIS Stock Overview

OSI Systems, Inc. designs, manufactures, and sells electronic systems and components worldwide.

Rewards

Trading at 42.6% below our estimate of its fair value

Earnings grew by 73% over the past year

Risk Analysis

Debt is not well covered by operating cash flow

Large one-off items impacting financial results

OSI Systems Competitors

Novanta

NasdaqGS:NOVT

US$4.6b

Advanced Energy Industries

NasdaqGS:AEIS

US$3.0b

Entegris

NasdaqGS:ENTG

US$14.8b

Smiths Group

LSE:SMIN

UK£5.7b

Price History & Performance

Summary of all time highs, changes and price drops for OSI Systems
Historical stock prices
Current Share Price	US$81.60
52 Week High	US$102.24
52 Week Low	US$76.09
Beta	0.75
1 Month Change	1.02%
3 Month Change	-0.43%
1 Year Change	-14.62%
3 Year Change	-19.61%
5 Year Change	5.18%
Change since IPO	439.50%

Recent News & Updates

Apr 29

Here's Why OSI Systems (NASDAQ:OSIS) Can Manage Its Debt Responsibly

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

Shareholder Returns

	OSIS	US Electronic	US Market
7D	2.9%	0.7%	0.7%
1Y	-14.6%	-13.4%	-10.8%

Return vs Industry: OSIS underperformed the US Electronic industry which returned -12.3% over the past year.

Return vs Market: OSIS underperformed the US Market which returned -10.4% over the past year.

Price Volatility

Is OSIS's price volatile compared to industry and market?
OSIS volatility
OSIS Average Weekly Movement	3.3%
Electronic Industry Average Movement	7.8%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: OSIS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: OSIS's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1987	6,778	Deepak Chopra	https://www.osi-systems.com

OSI Systems, Inc. designs, manufactures, and sells electronic systems and components worldwide. It operates through three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The Security segment offers baggage and parcel inspection, cargo and vehicle inspection, radiation detection, hold baggage and people screening, and explosive and narcotics trace detection systems under the Rapiscan Systems and AS&E names.

OSI Systems Fundamentals Summary

How do OSI Systems's earnings and revenue compare to its market cap?
OSIS fundamental statistics
Market Cap	US$1.38b
Earnings (TTM)	US$107.48m
Revenue (TTM)	US$1.18b

12.9x

P/E Ratio

1.2x

P/S Ratio

Is OSIS overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
OSIS income statement (TTM)
Revenue	US$1.18b
Cost of Revenue	US$758.59m
Gross Profit	US$420.03m
Other Expenses	US$312.55m
Earnings	US$107.48m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	6.31
Gross Margin	35.64%
Net Profit Margin	9.12%
Debt/Equity Ratio	60.0%

How did OSIS perform over the long term?

See historical performance and comparison

Valuation

Is OSI Systems undervalued compared to its fair value and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

42.6%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: OSIS ($81.6) is trading below our estimate of fair value ($142.04)

Significantly Below Fair Value: OSIS is trading below fair value by more than 20%.

Price To Earnings Ratio

PE vs Industry: OSIS is good value based on its PE Ratio (12.9x) compared to the US Electronic industry average (15.4x).

PE vs Market: OSIS is good value based on its PE Ratio (12.9x) compared to the US market (15.5x).

Price to Earnings Growth Ratio

PEG Ratio: OSIS is poor value based on its PEG Ratio (9x)

Price to Book Ratio

PB vs Industry: OSIS is overvalued based on its PB Ratio (2.2x) compared to the US Electronic industry average (1.8x).

Future Growth

How is OSI Systems forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSIS's forecast earnings growth (1.4% per year) is below the savings rate (1.9%).

Earnings vs Market: OSIS's earnings (1.4% per year) are forecast to grow slower than the US market (12.6% per year).

High Growth Earnings: OSIS's earnings are forecast to grow, but not significantly.

Revenue vs Market: OSIS's revenue (6.2% per year) is forecast to grow slower than the US market (8% per year).

High Growth Revenue: OSIS's revenue (6.2% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: Insufficient data to determine if OSIS's Return on Equity is forecast to be high in 3 years time

Past Performance

How has OSI Systems performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

37.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: OSIS has a large one-off gain of $27.5M impacting its March 31 2022 financial results.

Growing Profit Margin: OSIS's current net profit margins (9.1%) are higher than last year (5.7%).

Past Earnings Growth Analysis

Earnings Trend: OSIS's earnings have grown significantly by 37.2% per year over the past 5 years.

Accelerating Growth: OSIS's earnings growth over the past year (73%) exceeds its 5-year average (37.2% per year).

Earnings vs Industry: OSIS earnings growth over the past year (73%) exceeded the Electronic industry 37.6%.

Return on Equity

High ROE: OSIS's Return on Equity (17.4%) is considered low.

Financial Health

How is OSI Systems's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: OSIS's short term assets ($758.5M) exceed its short term liabilities ($645.8M).

Long Term Liabilities: OSIS's short term assets ($758.5M) exceed its long term liabilities ($194.8M).

Debt to Equity History and Analysis

Debt Level: OSIS's net debt to equity ratio (46.5%) is considered high.

Reducing Debt: OSIS's debt to equity ratio has reduced from 60.5% to 60% over the past 5 years.

Debt Coverage: OSIS's debt is not well covered by operating cash flow (13.4%).

Interest Coverage: OSIS's interest payments on its debt are well covered by EBIT (10.9x coverage).

Balance Sheet

Dividend

What is OSI Systems's current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

Notable Dividend: Unable to evaluate OSIS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate OSIS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.

Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if OSIS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if OSIS's dividend payments have been increasing.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as OSIS has not reported any payouts.

Next Steps

Explore strong dividend paying companies in the Tech industry.

Management

How experienced are the management team and are they aligned to shareholders interests?

15.7yrs

Average management tenure

CEO

Deepak Chopra (70 yo)

35yrs

Tenure

US$9,567,617

Compensation

Mr. Deepak Chopra serves as the Chief Executive Officer of Spacelabs Healthcare, Inc. and has been its Executive Director since July 2005. Mr. Chopra founded OSI Systems, Inc., in 1987 and has been its Chi...

CEO Compensation Analysis

Compensation vs Market: Deepak's total compensation ($USD9.57M) is above average for companies of similar size in the US market ($USD5.45M).

Compensation vs Earnings: Deepak's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: OSIS's management team is seasoned and experienced (15.7 years average tenure).

Board Members

Experienced Board: OSIS's board of directors are seasoned and experienced ( 12 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/05/16 00:00
End of Day Share Price	2022/05/16 00:00
Earnings	2022/03/31
Annual Earnings	2021/06/30