OSI Systems (OSIS) AI Stock Analysis

• Market Cap: $4.73B
• Dividend Yield: N/A
• Average Volume (3M): 143.34K
• Price to Earnings (P/E): 32.0
• Beta (1Y): 1.37
• Revenue Growth: 11.33%
• EPS Growth: 18.47%
• Country: US
• Employees: 6,681
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.42
• Shares Outstanding: 16,825,912
• 10 Day Avg. Volume: 115,760
• 30 Day Avg. Volume: 143,341
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 1Y Price Target: $265.40
• Price Target Upside: -4.69% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 78 Outperform
• Price Target: $317.00 ▲(13.84% Upside)

OSI Systems' strong financial performance and positive earnings call are the most significant factors driving the stock score. The technical analysis supports a bullish trend, although caution is advised due to potential overbought conditions. The valuation indicates the stock may be expensive, which slightly tempers the overall score.

Positive Factors

Revenue Growth

Strong revenue growth, especially in the Security division, indicates robust demand and effective market penetration, supporting long-term business expansion.

Backlog and Book-to-Bill Ratio

A strong backlog and positive book-to-bill ratio suggest sustained demand and future revenue visibility, enhancing financial stability.

Cash Flow Improvement

Significant improvement in cash flow generation enhances the company's ability to fund operations, invest in growth, and reduce financial risk.

Negative Factors

Decline in Mexico Security Contracts Revenue

The significant drop in revenue from Mexico security contracts could impact overall revenue growth and profitability, posing a challenge to maintaining growth momentum.

Gross Margin Decline

A decline in gross margin suggests potential cost management issues or less favorable product mix, which could pressure profitability if not addressed.

Security Division Margin Pressure

Margin pressure in the Security division, due to product mix and R&D growth, could affect overall profitability if it persists, requiring strategic adjustments.

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 demonstrates strong financial health with consistent revenue growth and profitability. The balance sheet is stable with a balanced leverage approach, and cash flow generation is improving. However, there are areas for improvement in cash conversion.

Income Statement

OSI Systems has demonstrated consistent revenue growth over the years, with a notable increase of 11.4% in the most recent year. The company maintains healthy profit margins, with a gross profit margin around 34% and a net profit margin improving to 8.7%. EBIT and EBITDA margins are stable, indicating efficient operations. Overall, the income statement reflects strong growth and profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.68, indicating a balanced approach to leveraging. The return on equity is solid at 15.7%, reflecting effective use of shareholder funds. The equity ratio stands at 42.4%, suggesting a stable financial position. While debt levels have increased, the company maintains a healthy equity base.

Cash Flow

Cash flow analysis reveals a significant turnaround in free cash flow growth, from negative to positive, indicating improved cash generation. The operating cash flow to net income ratio is low at 0.14, suggesting potential challenges in converting income to cash. However, the free cash flow to net income ratio of 0.57 shows a reasonable level of cash profitability.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.75B	1.71B	1.54B	1.28B	1.18B	1.15B
Gross Profit	588.87M	587.18M	530.46M	430.51M	424.43M	419.92M
EBITDA	242.29M	261.10M	230.72M	173.79M	167.97M	159.23M
Net Income	152.26M	149.64M	128.15M	91.78M	115.35M	74.05M
Balance Sheet
Total Assets	2.30B	2.24B	1.94B	1.56B	1.44B	1.38B
Cash, Cash Equivalents and Short-Term Investments	124.42M	106.41M	95.35M	76.75M	64.20M	80.61M
Total Debt	5.38M	682.32M	521.55M	393.09M	393.31M	301.08M
Total Liabilities	1.35B	1.29B	1.07B	829.52M	804.73M	744.55M
Stockholders Equity	945.96M	951.08M	863.48M	726.16M	638.42M	639.82M
Cash Flow
Free Cash Flow	153.70M	56.09M	-126.93M	62.56M	33.32M	109.56M
Operating Cash Flow	151.89M	97.59M	-87.50M	94.81M	63.81M	139.07M
Investing Cash Flow	-41.30M	-117.85M	-37.64M	-40.46M	-12.67M	-34.69M
Financing Cash Flow	-70.75M	30.82M	144.25M	-37.17M	-64.01M	-103.92M

OSI Systems Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 278.46
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 278.46 is above the 20-day moving average (MA) of 250.49, above the 50-day MA of 241.59, and above the 200-day MA of 217.90, indicating a bullish trend. The MACD of 4.46 indicates Negative momentum. The RSI at 68.06 is Neutral, neither overbought nor oversold. The STOCH value of 52.43 is Neutral, 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
OSIS	―	$4.73B	32.02	16.49%	―	11.33%	18.47%
PLXS	―	$3.78B	22.34	12.44%	―	1.82%	56.52%
VICR	―	$4.05B	49.70	13.89%	―	11.55%	1745.46%
TTMI	―	$6.94B	53.62	8.12%	―	17.88%	91.41%
NOVT	―	$4.57B	74.79	8.16%	―	6.34%	-1.57%
Sector *	―	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ST	―	$4.64B	-166.39	-0.92%	1.51%	-7.98%	63.50%

OSI Systems Corporate Events

OSI Systems Reports Record Revenues Amid Growth Challenges

The recent earnings call of OSI Systems showcased a predominantly positive sentiment, highlighting significant achievements such as record revenues, robust service revenue growth, and an upward revision in fiscal year guidance. Despite facing challenges like reduced revenue from Mexico security contracts and margin pressures, the positive developments notably outweighed the negatives, painting an optimistic picture for the company’s future.

OSI Systems Reports Strong Q1 2026 Financial Results

OSI Systems, Inc. is a global company specializing in the design and manufacturing of specialized electronic systems and components for critical applications, operating through its Security, Optoelectronics and Manufacturing, and Healthcare segments.

OSI Systems Reports Record Earnings and Positive Outlook

OSI Systems, Inc. recently held its earnings call, revealing a strong performance in fiscal year 2025. The company reported record revenues and growth across its key divisions, despite facing challenges in its Healthcare division and a significant decrease in revenues from Mexico contracts. OSI Systems showcased an impressive backlog and bookings, improved margins, and a robust financial position. The outlook for fiscal year 2026 remains positive, with significant opportunities anticipated from new legislation and continued global demand.

OSI Systems Achieves Record Revenues in Fiscal 2025

OSI Systems, Inc. is a global leader in designing and manufacturing specialized electronic systems and components, operating through its Security, Optoelectronics and Manufacturing, and Healthcare segments. The company recently reported record-breaking revenues for the fourth quarter and the full fiscal year 2025, with a notable 11% year-over-year increase in annual revenues, reaching $1.713 billion. The Security division was a key driver of this growth, contributing significantly to the company’s robust financial performance.