OSI Systems (OSIS) AI Stock Analysis

• Market Cap: $4.23B
• Dividend Yield: N/A
• Average Volume (3M): 160.74K
• Price to Earnings (P/E): 28.9
• Beta (1Y): 1.39
• Revenue Growth: 11.33%
• EPS Growth: 18.47%
• Country: US
• Employees: 6,681
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 3.24
• Shares Outstanding: 16,825,912
• 10 Day Avg. Volume: 154,410
• 30 Day Avg. Volume: 160,742
• PEG Ratio: 1.43
• Price to Book (P/B): 4.06
• Price to Sales (P/S): 2.25
• P/FCF Ratio: 68.86
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 2.62
• Enterprise Value/Gross Profit: 7.65
• Enterprise Value/Ebitda: 18.67
• 1Y Price Target: $258.40
• Price Target Upside: 2.84% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 74 Outperform
• Price Target: $278.00 ▲(10.64% Upside)

OSI Systems demonstrates strong financial performance and positive technical indicators, supporting a favorable stock outlook. However, the high P/E ratio suggests potential overvaluation, which tempers the overall score. The absence of a dividend yield also impacts the valuation score. The earnings call provided positive guidance, but its weight was redistributed due to the exclusion of this component.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and stability.

Strong Backlog

A strong backlog provides revenue visibility and stability, ensuring sustained business operations and supporting future growth prospects.

Security Division Contracts

New contracts in the Security division enhance revenue streams and market position, reflecting robust demand for security solutions.

Negative Factors

Healthcare Division Underperformance

Underperformance in the Healthcare division could hinder overall growth and profitability, requiring strategic adjustments to improve results.

Significant Decrease in Mexico Revenues

A sharp decline in Mexico revenues impacts growth and highlights dependency on specific contracts, necessitating diversification.

Challenges with Accounts Receivable

High accounts receivable can strain cash flow, affecting liquidity and financial flexibility, and may require improved collection strategies.

OSI Systems Business Overview & Revenue Model

Company Description

OSI Systems, Inc. (OSIS) is a diversified global manufacturer of specialized electronic systems and components, primarily serving the security, healthcare, and aerospace and defense markets. The company operates through three main segments: Security, Healthcare, and Optoelectronics and Manufacturing. OSI Systems is renowned for its advanced technologies, including X-ray and imaging systems for security screening, as well as monitoring and diagnostic equipment for healthcare applications. The company is dedicated to innovation and providing high-quality products that enhance safety and operational efficiency across various sectors.

How the Company Makes Money

OSI Systems generates revenue through multiple streams, primarily from the sale of security and healthcare products and systems. The Security segment, which includes X-ray imaging systems and cargo and vehicle inspection systems, represents a significant portion of their income, driven by contracts with government agencies, airports, and other security-focused organizations. The Healthcare segment contributes revenue through the sale of medical devices and diagnostic equipment, often through long-term contracts with hospitals and healthcare providers. Additionally, the Optoelectronics and Manufacturing segment provides custom manufacturing services, which also adds to their earnings. The company benefits from strategic partnerships and collaborations with government entities and private organizations that enhance its market reach and technological capabilities.

OSI Systems Financial Statement Overview

Summary

OSI Systems presents a strong financial profile with consistent revenue growth, improved profitability, and a solid balance sheet with low leverage. The company has effectively managed its costs and improved its cash flow position, although continued negative cash flow from investing suggests ongoing capital investments.

Income Statement

OSI Systems demonstrates robust growth with a revenue increase from $1.27 billion in the last annual report to $1.69 billion in TTM, a growth rate of 9.77% from the previous year. The gross profit margin stands at 34.2%, and the net profit margin has improved to 11.2%, signaling effective cost management and profitability enhancement. The EBIT and EBITDA margins are 12.5% and 14.4% respectively, indicating healthy operating performance.

Balance Sheet

The balance sheet shows a strong equity position with an equity ratio of 42.3%. The debt-to-equity ratio is low at 0.09, indicating minimal leverage and reduced financial risk. Return on equity is 21.4%, reflecting efficient use of equity to generate profits. The company's liquidity is satisfactory with cash reserves of $95.83 million.

Cash Flow

Cash flow analysis reveals a significant turnaround with the operating cash flow moving to $67.99 million from a negative position in the previous year. Free cash flow also improved, showing a positive trend with a free cash flow to net income ratio of 0.29. Despite this, the cash flow from investing remains negative, indicating ongoing investment activities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.71B	1.71B	1.54B	1.28B	1.18B	1.15B
Gross Profit	587.18M	587.18M	530.46M	430.51M	424.43M	419.92M
EBITDA	240.52M	217.52M	230.72M	173.79M	167.97M	159.23M
Net Income	149.64M	149.64M	128.15M	91.78M	115.35M	74.05M
Balance Sheet
Total Assets	2.24B	2.24B	1.94B	1.56B	1.44B	1.38B
Cash, Cash Equivalents and Short-Term Investments	106.41M	106.41M	95.35M	76.75M	64.20M	80.61M
Total Debt	649.63M	649.63M	521.55M	393.09M	393.31M	301.08M
Total Liabilities	1.29B	1.29B	1.07B	829.52M	804.73M	744.55M
Stockholders Equity	951.08M	951.08M	863.48M	726.16M	638.42M	639.82M
Cash Flow
Free Cash Flow	87.33M	56.09M	-126.93M	62.56M	33.32M	109.56M
Operating Cash Flow	97.59M	97.59M	-87.50M	94.81M	63.81M	139.07M
Investing Cash Flow	-117.85M	-117.85M	-37.64M	-40.46M	-12.67M	-34.69M
Financing Cash Flow	30.82M	30.82M	144.25M	-37.17M	-64.01M	-103.92M

OSI Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 251.27
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSIS, the sentiment is Positive. The current price of 251.27 is above the 20-day moving average (MA) of 238.04, above the 50-day MA of 231.64, and above the 200-day MA of 209.73, indicating a bullish trend. The MACD of 4.31 indicates Negative momentum. The RSI at 64.06 is Neutral, neither overbought nor oversold. The STOCH value of 87.84 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for OSIS.

OSI Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PLXS	77 Outperform	$3.92B	24.70	12.12%	―	2.31%	48.63%
OSIS	74 Outperform	$4.23B	28.89	16.49%	―	11.33%	18.47%
VICR	73 Outperform	$2.20B	33.78	11.44%	―	2.46%	572.04%
TTMI	66 Neutral	$6.11B	66.41	5.89%	―	14.24%	424.78%
NOVT	65 Neutral	$3.76B	61.55	8.16%	―	6.34%	-1.57%
ST	63 Neutral	$4.52B	40.94	3.78%	1.55%	-7.23%	1278.91%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

OSI Systems Corporate Events

OSI Systems Expands Credit Facility to $725 Million

On July 1, 2025, OSI Systems announced an amendment to its Credit Agreement, increasing its revolving loan facility from $600 million to $725 million and adding a $100 million term loan, with the credit facility’s maturity extended to July 2030. This expansion enhances OSI Systems’ financial and operational flexibility, allowing the company to support its growth strategy and invest in strategic initiatives, reflecting the confidence of its lending partners and positioning the company for long-term value creation.

The most recent analyst rating on (OSIS) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on OSI Systems stock, see the OSIS Stock Forecast page.

OSI Systems Announces Leadership Change in Optoelectronics

On May 27, 2025, OSI Systems announced that Manoocher Mansouri, the President of its Optoelectronics and Manufacturing division, will retire from his position on June 30, 2025, but will continue as Chief Technology Officer. Paul Morben, currently the President of OSI Electronics, will succeed him as Opto President starting July 1, 2025.

The most recent analyst rating on (OSIS) stock is a Buy with a $160.00 price target. To see the full list of analyst forecasts on OSI Systems stock, see the OSIS Stock Forecast page.