OSI Systems (OSIS) AI Stock Analysis

• Market Cap: $3.94B
• Dividend Yield: N/A
• Average Volume (3M): 183.76K
• Price to Earnings (P/E): 27.3
• Beta (1Y): 1.32
• Revenue Growth: 14.93%
• EPS Growth: 12.89%
• Country: US
• Employees: 6,681
• Sector: Technology
• Sector Strength: 84
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.44
• Shares Outstanding: 16,788,616
• 10 Day Avg. Volume: 191,159
• 30 Day Avg. Volume: 183,758
• 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: 0.57
• Enterprise Value/Revenue: 0.35
• Enterprise Value/Gross Profit: 3.92
• Enterprise Value/Ebitda: 2.35
• 1Y Price Target: $238.00
• Price Target Upside: 5.89% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5

• Rating: 75 Outperform
• Price Target: ―

OSI Systems demonstrates robust financial performance and positive momentum, supported by strong technical and earnings call indicators. The company's high valuation and overbought technical conditions pose potential risks. However, the strong growth outlook and effective cost management position the company well for future success in the competitive hardware industry.

Positive Factors

Contract Wins

The company is already benefiting from its RF acquisition, with a $23 million contract win to deploy long-range radio frequency communications for the US government.

Financial Performance

Services revenue is beginning to come in stronger, which typically carries a higher margin.

Market Position

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

Negative Factors

Contract Roll-off

Strong awards momentum is expected to offset risks from the roll-off of profitable Mexico SEDENA contracts.

Revenue Decline

Revenue from Mexico is coming down off its peak, posing potential challenges for the company.

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. designs and manufactures electronic systems and components worldwide. It operates in 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, AS&E, and Gatekeeper 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, physicians' offices, medical clinics, and ambulatory surgery centers. The Optoelectronics and Manufacturing segment provides optoelectronic devices under the OSI Optoelectronics, OSI LaserDiode, OSI Laserscan, Semicoa, and Advanced Photonix 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 for OEM customers. 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 incorporated in 1987 and is headquartered in Hawthorne, California.

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
	EBIT
211.22M	189.06M	135.28M	121.75M	81.62M	61.61M
	EBITDA
242.68M	230.72M	173.79M	167.97M	159.23M	154.65M
	Net Income Common Stockholders
188.38M	128.15M	91.78M	115.35M	74.05M	75.25M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
95.83M	95.35M	76.75M	64.20M	80.61M	76.10M
	Total Assets
2.08B	1.94B	1.56B	1.44B	1.38B	1.27B
	Total Debt
8.14M	521.55M	359.57M	353.24M	277.27M	327.00M
	Net Debt
-87.69M	426.20M	282.82M	289.04M	196.65M	250.90M
	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: Positive
• Last Price: 224.77
• 50DMA: Positive
• 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 Positive. The current price of 224.77 is below the 20-day moving average (MA) of 226.60, above the 50-day MA of 214.69, and above the 200-day MA of 181.16, indicating a neutral trend. The MACD of 3.98 indicates Positive momentum. The RSI at 50.13 is Neutral, neither overbought nor oversold. The STOCH value of 46.05 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	75 Outperform	$3.94B	27.34	16.73%	―	14.93%	12.89%
BL	74 Outperform	$3.45B	25.32	44.83%	―	8.93%	102.77%
Sector *	62 Neutral	$11.97B	10.29	-7.47%	2.99%	7.32%	-8.06%
GBTG	58 Neutral	$2.95B	―	-3.84%	―	4.82%	73.90%
LPL	58 Neutral	$3.23B	―	-28.93%	―	17.34%	34.72%
SMTC	58 Neutral	$3.54B	―	-93.41%	―	13.83%	88.14%
POWI	55 Neutral	$3.19B	87.26	5.03%	1.48%	-5.75%	-41.75%

OSI Systems Corporate Events

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.