OSI Systems (OSIS) AI Stock Analysis

• Market Cap: $3.57B
• Dividend Yield: N/A
• Average Volume (3M): 215.74K
• Price to Earnings (P/E): 25.9
• Beta (1Y): 1.36
• Revenue Growth: 14.93%
• EPS Growth: 12.89%
• Country: US
• Employees: 6,681
• Sector: Technology
• Sector Strength: 91
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.44
• Shares Outstanding: 16,788,616
• 10 Day Avg. Volume: 187,218
• 30 Day Avg. Volume: 215,737
• PEG Ratio: -1.27
• Price to Book (P/B): 2.73
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 31.70
• Enterprise Value/Market Cap: 0.63
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 3.92
• Enterprise Value/Ebitda: 2.35
• 1Y Price Target: $253.33
• Price Target Upside: 19.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3

• Rating: 78 Outperform
• Price Target: $261.00 ▲(22.68%Upside)

OSI Systems' overall stock score is driven by strong financial performance and positive earnings call sentiments, indicating growth potential. However, technical analysis and valuation suggest caution due to potential overvaluation and recent downtrend signals.

Positive Factors

Market Share

OSIS holds the number-1 market share at the US/Mexico and the US/Canada borders for Non-Intrusive Inspections solutions.

Recurring Revenue

Increasing the proportion of recurring revenue can support OSI’s valuation.

Revenue Outlook

OSIS management is confident in filling the revenue gap with additional work, providing a strong outlook for the second half of its fiscal year.

Negative Factors

Contract Roll-Off

Risks are associated with the roll-off of profitable Mexico SEDENA contracts.

Revenue Decline

Revenue from Mexico is coming down off its peak.

Valuation Concerns

The stock is up 28% YTD vs 4% for the S&P 500, and valuation is nicely above the historical average, so analysts are inclined to be patient.

OSI Systems Business Overview & Revenue Model

Company Description

OSI Systems, Inc. (OSIS) is a diversified global company that designs and manufactures specialized electronic systems for critical applications. The company operates through three primary sectors: Security, Healthcare, and Optoelectronics. In the Security segment, OSI Systems provides security screening products, including baggage and parcel inspection systems, cargo and vehicle inspection systems, and radiation detection systems. The Healthcare segment offers patient monitoring, diagnostic cardiology, and anesthesia systems. The Optoelectronics segment supplies optoelectronic devices and value-added manufacturing services to original equipment manufacturers (OEMs) for various applications.

How the Company Makes Money

OSI Systems generates revenue through sales of its products and services across its three business segments. In the Security segment, the company earns by selling security screening equipment to airports, government agencies, and commercial enterprises, often supplemented by long-term service contracts. The Healthcare segment brings in revenue from the sale of medical devices and associated maintenance services to hospitals and healthcare providers. In the Optoelectronics segment, OSI Systems profits from manufacturing and selling optoelectronic components and providing assembly services to OEMs. Significant factors contributing to its earnings include its global presence, technological innovation, and strategic partnerships with government bodies and commercial entities to deliver tailored solutions for security and healthcare needs.

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. These strengths position OSI Systems well for future growth and stability in the competitive hardware industry.

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	Jun 2024	Jun 2023	Jun 2022	Jun 2021	Jun 2020
Income Statement
Total Revenue	1.69B	1.54B	1.28B	1.18B	1.15B	1.17B
Gross Profit	577.76M	530.46M	430.51M	424.43M	419.92M	420.64M
EBITDA	242.68M	230.72M	173.79M	167.97M	159.23M	154.65M
Net Income	188.38M	128.15M	91.78M	115.35M	74.05M	75.25M
Balance Sheet
Total Assets	2.08B	1.94B	1.56B	1.44B	1.38B	1.27B
Cash, Cash Equivalents and Short-Term Investments	95.83M	95.35M	76.75M	64.20M	80.61M	76.10M
Total Debt	8.14M	521.55M	359.57M	353.24M	277.27M	327.00M
Total Liabilities	1.20B	1.07B	829.52M	804.73M	744.55M	696.39M
Stockholders Equity	879.33M	863.48M	726.16M	638.42M	639.82M	572.15M
Cash Flow
Free Cash Flow	55.06M	-126.93M	62.56M	33.32M	109.56M	95.43M
Operating Cash Flow	67.99M	-87.50M	94.81M	63.81M	139.07M	129.18M
Investing Cash Flow	-119.15M	-37.64M	-40.46M	-12.67M	-34.69M	-42.69M
Financing Cash Flow	43.88M	144.25M	-37.17M	-64.01M	-103.92M	-104.73M

OSI Systems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 212.75
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For OSIS, the sentiment is Negative. The current price of 212.75 is below the 20-day moving average (MA) of 225.39, below the 50-day MA of 224.99, and above the 200-day MA of 187.59, indicating a neutral trend. The MACD of 1.16 indicates Positive momentum. The RSI at 38.98 is Neutral, neither overbought nor oversold. The STOCH value of 47.40 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for OSIS.

OSI Systems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
OSIS	78 Outperform	$3.57B	25.88	16.73%	―	14.93%	12.89%
BL	71 Outperform	$3.34B	24.71	44.83%	―	8.93%	102.77%
Sector *	63 Neutral	$33.91B	5.95	-11.88%	1.83%	5.33%	-18.39%
SMTC	62 Neutral	$4.17B	―	-93.41%	―	13.83%	88.14%
GBTG	58 Neutral	$3.07B	―	-3.84%	―	4.82%	73.90%
LPL	55 Neutral	$3.35B	―	-28.93%	―	17.34%	34.72%
POWI	55 Neutral	$3.27B	89.33	5.03%	1.45%	-5.75%	-41.75%

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.