NasdaqGS:OSIS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Adequate balance sheet with questionable track record.


Similar Companies

Share Price & News

How has OSI Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

OSIS

4.0%

US Electronic

2.3%

US Market


1 Year Return

35.9%

OSIS

9.8%

US Electronic

5.6%

US Market

Return vs Industry: OSIS exceeded the US Electronic industry which returned 9.8% over the past year.

Return vs Market: OSIS exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

OSISIndustryMarket
7 Day1.5%4.0%2.3%
30 Day-6.3%-0.4%-1.0%
90 Day-10.7%3.3%-0.7%
1 Year35.9%35.9%10.9%9.8%7.9%5.6%
3 Year48.2%48.2%53.3%49.1%45.6%36.3%
5 Year53.0%53.0%90.9%81.7%65.8%47.6%

Price Volatility Vs. Market

How volatile is OSI Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

0.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: OSIS ($98.12) is trading below our estimate of fair value ($98.79)

Significantly Undervalued: OSIS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: OSIS is poor value based on its PE Ratio (27.4x) compared to the Electronic industry average (19x).

PE vs Market: OSIS is poor value based on its PE Ratio (27.4x) compared to the US market (17.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: OSIS is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: OSIS is overvalued based on its PB Ratio (3.2x) compared to the US Electronic industry average (2x).


Next Steps

Future Growth

How is OSI Systems forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSIS's forecast earnings growth (14.5% per year) is above the savings rate (2.7%).

Earnings vs Market: OSIS's earnings (14.5% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: OSIS's revenue (5.3% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: OSIS's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: OSIS's Return on Equity is forecast to be low in 3 years time (11.8%).


Next Steps

Past Performance

How has OSI Systems performed over the past 5 years?

-25.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: OSIS's earnings have declined by -25.9% per year over the past 5 years.

Accelerating Growth: OSIS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: OSIS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Electronic industry (58.6%).


Return on Equity

High ROE: OSIS's Return on Equity (11.7%) is considered low.


Return on Assets

ROA vs Industry: OSIS has a higher Return on Assets than the Electronic industry average last year.


Return on Capital Employed

ROCE Improving: OSIS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is OSI Systems's financial position?


Financial Position Analysis

Short Term Liabilities: OSIS's short term assets ($640.9M) exceeds its short term liabilities ($382.0M)

Long Term Liabilities: OSIS's short term assets (640.9M) exceeds its long term liabilities (331.1M)


Debt to Equity History and Analysis

Debt Level: OSIS's debt to equity ratio (62.8%) is considered high

Reducing Debt: OSIS's debt to equity ratio has increased from 7% to 62.8% over the past 5 years.

Debt Coverage: OSIS's debt is well covered by operating cash flow (34.4%).

Interest Coverage: OSIS's interest payments on its debt are well covered by EBIT (5.1x coverage).


Balance Sheet

Inventory Level: OSIS has a high level of physical assets or inventory.

Debt Coverage by Assets: OSIS's debt is covered by short term assets (assets are 1.849330x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.6%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of OSIS's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of OSI Systems's salary, the management and board of directors tenure and is there insider trading?

13.1yrs

Average management tenure


CEO

Deepak Chopra (68yo)

32.4yrs

Tenure

US$7,310,240

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 ($USD7.31M) is about average for companies of similar size in the US market ($USD4.07M).

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


Management Age and Tenure

13.1yrs

Average Tenure

57yo

Average Age

Experienced Management: OSIS's management team is seasoned and experienced (13.1 years average tenure).


Board Age and Tenure

16.5yrs

Average Tenure

74yo

Average Age

Experienced Board: OSIS's board of directors are seasoned and experienced ( 16.5 years average tenure).


Insider Trading

Insider Buying: OSIS insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$1,575,74412 Sep 19
Victor Sze
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares15,000
Max PriceUS$105.05
SellUS$1,738,90430 Aug 19
Deepak Chopra
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares16,500
Max PriceUS$105.39
SellUS$2,083,40015 May 19
Victor Sze
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares20,000
Max PriceUS$104.17
SellUS$2,466,81908 May 19
Deepak Chopra
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares24,000
Max PriceUS$103.17
SellUS$439,00022 Feb 19
Manoocher Mansouri Aliabadi
EntityIndividual
Role
Unit President
President of OSI Optoelectronics & Manufacturing Division
Shares5,000
Max PriceUS$87.80
SellUS$2,768,56021 Feb 19
Deepak Chopra
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares31,500
Max PriceUS$88.74
SellUS$1,725,46813 Feb 19
Victor Sze
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares20,000
Max PriceUS$86.27
SellUS$304,50031 Jan 19
Steven Good
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares3,500
Max PriceUS$87.00
SellUS$593,68627 Nov 18
Deepak Chopra
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares8,126
Max PriceUS$73.06
SellUS$39,49421 Nov 18
Mal Maginnis
EntityIndividual
Role
Unit President
President of Rapiscan Systems Inc
Shares552
Max PriceUS$71.55

Ownership Breakdown


Management Team

  • Deepak Chopra (68yo)

    Chairman

    • Tenure: 32.4yrs
    • Compensation: US$7.31m
  • Ajay Mehra (57yo)

    Executive VP

    • Tenure: 23.6yrs
    • Compensation: US$3.13m
  • Alan Edrick (51yo)

    Executive VP & CFO

    • Tenure: 13.1yrs
    • Compensation: US$3.17m
  • Victor Sze (52yo)

    Executive VP

    • Tenure: 17.6yrs
    • Compensation: US$2.76m
  • Mal Maginnis (60yo)

    President of Rapiscan Systems Inc

    • Tenure: 2.3yrs
    • Compensation: US$892.13k
  • Manoocher Mansouri Aliabadi (63yo)

    President of OSI Optoelectronics & Manufacturing Division

    • Tenure: 13.3yrs
    • Compensation: US$715.51k
  • Shalabh Chandra (54yo)

    President of Healthcare Division

    • Tenure: 0.08yrs
  • Lee Cegielski (49yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 1.8yrs
  • Paul Morben (58yo)

    President of OSI Electronics

    • Tenure: 0.8yrs

Board Members

  • Meyer Luskin (94yo)

    Lead Independent Director

    • Tenure: 0yrs
    • Compensation: US$395.40k
  • Jim Hawkins (63yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$300.53k
  • Deepak Chopra (68yo)

    Chairman

    • Tenure: 32.4yrs
    • Compensation: US$7.31m
  • Ajay Mehra (57yo)

    Executive VP

    • Tenure: 23.6yrs
    • Compensation: US$3.13m
  • Steve Good (77yo)

    Independent Director

    • Tenure: 32.1yrs
    • Compensation: US$444.46k
  • Gerald Chizever (75yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$285.53k
  • William Ballhaus (74yo)

    Independent Director

    • Tenure: 9.4yrs
    • Compensation: US$383.58k

Company Information

OSI Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: OSI Systems, Inc.
  • Ticker: OSIS
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Electronic Equipment and Instruments
  • Sector: Tech
  • Market Cap: US$1.788b
  • Shares outstanding: 18.22m
  • Website: https://www.osi-systems.com

Number of Employees


Location

  • OSI Systems, Inc.
  • 12525 Chadron Avenue
  • Hawthorne
  • California
  • 90250
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
OSISNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 1997
OS2DB (Deutsche Boerse AG)YesCommon StockDEEUROct 1997

Biography

OSI Systems, Inc. designs, manufactures, and sells electronic systems and components worldwide. The company operates through three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 23:39
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.