NasdaqGS:OSIS

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Proven track record with adequate balance sheet.


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

Stable Share Price: OSIS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

19.1%

OSIS

9.2%

US Electronic

9.9%

US Market


1 Year Return

-26.2%

OSIS

-20.1%

US Electronic

-11.9%

US Market

Return vs Industry: OSIS underperformed the US Electronic industry which returned -18% over the past year.

Return vs Market: OSIS underperformed the US Market which returned -11.5% over the past year.


Shareholder returns

OSISIndustryMarket
7 Day19.1%9.2%9.9%
30 Day-20.5%-18.8%-15.0%
90 Day-35.6%-29.7%-21.5%
1 Year-26.2%-26.2%-19.3%-20.1%-10.0%-11.9%
3 Year-11.4%-11.4%-1.8%-4.6%12.3%5.1%
5 Year-12.8%-12.8%22.8%16.7%32.5%18.1%

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?

33.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: OSIS ($64.64) is trading below our estimate of fair value ($96.87)

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


Price To Earnings Ratio

PE vs Industry: OSIS is poor value based on its PE Ratio (15.1x) compared to the Electronic industry average (14.5x).

PE vs Market: OSIS is poor value based on its PE Ratio (15.1x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: OSIS is poor value based on its PEG Ratio (2.4x)


Price to Book Ratio

PB vs Industry: OSIS is overvalued based on its PB Ratio (2.1x) compared to the US Electronic industry average (1.5x).


Next Steps

Future Growth

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

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: OSIS's forecast earnings growth (6.2% per year) is above the savings rate (1.7%).

Earnings vs Market: OSIS's earnings (6.2% per year) are forecast to grow slower than the US market (12.3% 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

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


Next Steps

Past Performance

How has OSI Systems performed over the past 5 years?

-7.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: OSIS has high quality earnings.

Growing Profit Margin: OSIS's current net profit margins (6.5%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: OSIS's earnings have declined by -7.7% per year over the past 5 years.

Accelerating Growth: OSIS's earnings growth over the past year (115.7%) exceeds its 5-year average (-7.7% per year).

Earnings vs Industry: OSIS earnings growth over the past year (115.7%) exceeded the Electronic industry 3.2%.


Return on Equity

High ROE: OSIS's Return on Equity (14%) is considered low.


Next Steps

Financial Health

How is OSI Systems's financial position?


Financial Position Analysis

Short Term Liabilities: OSIS's short term assets ($648.3M) exceed its short term liabilities ($383.9M).

Long Term Liabilities: OSIS's short term assets ($648.3M) exceed its long term liabilities ($360.3M).


Debt to Equity History and Analysis

Debt Level: OSIS's debt to equity ratio (63.5%) is considered high.

Reducing Debt: OSIS's debt to equity ratio has increased from 6.5% to 63.5% over the past 5 years.

Debt Coverage: OSIS's debt is well covered by operating cash flow (38.9%).

Interest Coverage: OSIS's interest payments on its debt are well covered by EBIT (5.7x 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 1.8x debt).


Next Steps

Dividend

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


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 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.


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.


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

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

13.5yrs

Average management tenure


CEO

Deepak Chopra (68yo)

32.83s

Tenure

US$6,818,095

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 ($USD6.82M) is above average for companies of similar size in the US market ($USD3.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Deepak Chopra
Chairman32.83yrsUS$6.82m2.82% $33.4m
Alan Edrick
Executive VP & CFO13.5yrsUS$2.97m1.39% $16.4m
Victor Sze
Executive VP18yrsUS$2.58m1.09% $12.9m
Ajay Mehra
Executive VP & President of OSI Solutions Business17.33yrsUS$4.60m0.41% $4.8m
Mal Maginnis
President of Rapiscan Detection2.67yrsUS$958.56k0.063% $742.4k
Glenn Grindstaff
Chief Human Resources Officer0.083yrno datano data
Shalabh Chandra
President of Healthcare Division0.50yrno data0.0085% $100.5k
Manoocher Mansouri Aliabadi
President of OSI Optoelectronics & Manufacturing Division13.75yrsUS$715.51k0.41% $4.9m
Paul Morben
President of OSI Electronics1.17yrsno datano data

13.5yrs

Average Tenure

57yo

Average Age

Experienced Management: OSIS's management team is seasoned and experienced (13.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Deepak Chopra
Chairman32.83yrsUS$6.82m2.82% $33.4m
Meyer Luskin
Lead Independent Directorno dataUS$412.78k0.16% $1.9m
James Hawkins
Independent Director4.25yrsUS$298.86k0.024% $278.9k
Steven Good
Independent Director32.5yrsUS$362.84k0.092% $1.1m
Gerald Chizever
Independent Director3.42yrsUS$283.86k0.042% $491.5k
William Ballhaus
Independent Director9.83yrsUS$370.81k0.14% $1.7m
Kelli Bernard
Independent Director0.25yrno data0.0048% $56.7k

7.0yrs

Average Tenure

74yo

Average Age

Experienced Board: OSIS's board of directors are considered experienced (7 years average tenure).


Ownership

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


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$1.183b
  • Shares outstanding: 18.31m
  • 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 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 and AS&E 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, as well as physicians' offices, medical clinics, and ambulatory surgery centers. The Optoelectronics and Manufacturing segment provides optoelectronic devices under the OSI Optoelectronics, OSI LaserDiode, and OSI Laserscan 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 and touch panels. In addition, 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 founded in 1987 and is headquartered in Hawthorne, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 00:49
End of Day Share Price2020/03/27 00:00
Earnings2019/12/31
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.