OSI SYSTEMS INC (OSIS)
US6710441055 - Common Stock
We assign a fundamental rating of 5 out of 10 to OSIS. OSIS was compared to 128 industry peers in the Electronic Equipment, Instruments & Components industry. While OSIS has a great profitability rating, there are quite some concerns on its financial health. OSIS is growing strongly while it is still valued neutral. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year OSIS was profitable.
In the past year OSIS has reported a negative cash flow from operations.
In the past 5 years OSIS has always been profitable.
OSIS had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
OSIS has a better Return On Assets (6.88%) than 80.16% of its industry peers.
OSIS has a better Return On Equity (15.48%) than 83.33% of its industry peers.
The Return On Invested Capital of OSIS (10.80%) is better than 80.95% of its industry peers.
OSIS had an Average Return On Invested Capital over the past 3 years of 10.39%. This is in line with the industry average of 9.11%.
The last Return On Invested Capital (10.80%) for OSIS is above the 3 year average (10.39%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 15.48% | ||
| ROIC | 10.8% |
ROA(3y)6.41%
ROA(5y)6.06%
ROE(3y)14.09%
ROE(5y)13.43%
ROIC(3y)10.39%
ROIC(5y)9.91%
1.3 Margins
The Profit Margin of OSIS (8.57%) is better than 80.16% of its industry peers.
In the last couple of years the Profit Margin of OSIS has grown nicely.
OSIS's Operating Margin of 12.87% is amongst the best of the industry. OSIS outperforms 87.30% of its industry peers.
In the last couple of years the Operating Margin of OSIS has grown nicely.
Looking at the Gross Margin, with a value of 35.32%, OSIS is in the better half of the industry, outperforming 61.90% of the companies in the same industry.
In the last couple of years the Gross Margin of OSIS has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.87% | ||
| PM (TTM) | 8.57% | ||
| GM | 35.32% |
OM growth 3Y5.37%
OM growth 5Y6.02%
PM growth 3Y3.6%
PM growth 5YN/A
GM growth 3Y-2.27%
GM growth 5Y-1.3%
2. Health
2.1 Basic Checks
OSIS has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
The number of shares outstanding for OSIS has been reduced compared to 1 year ago.
The number of shares outstanding for OSIS has been reduced compared to 5 years ago.
OSIS has a better debt/assets ratio than last year.
2.2 Solvency
OSIS has an Altman-Z score of 3.36. This indicates that OSIS is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.36, OSIS is in line with its industry, outperforming 59.52% of the companies in the same industry.
OSIS has a Debt/Equity ratio of 0.59. This is a neutral value indicating OSIS is somewhat dependend on debt financing.
OSIS has a worse Debt to Equity ratio (0.59) than 77.78% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.36 |
ROIC/WACC1.22
WACC8.88%
2.3 Liquidity
A Current Ratio of 1.47 indicates that OSIS should not have too much problems paying its short term obligations.
OSIS has a Current ratio of 1.47. This is in the lower half of the industry: OSIS underperforms 77.78% of its industry peers.
OSIS has a Quick Ratio of 1.47. This is a bad value and indicates that OSIS is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.89, OSIS is doing worse than 82.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.89 |
3. Growth
3.1 Past
OSIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.10%, which is quite impressive.
The Earnings Per Share has been growing by 11.28% on average over the past years. This is quite good.
OSIS shows a strong growth in Revenue. In the last year, the Revenue has grown by 22.13%.
The Revenue has been growing slightly by 3.25% on average over the past years.
EPS 1Y (TTM)44.1%
EPS 3Y10.52%
EPS 5Y11.28%
EPS Q2Q%44.97%
Revenue 1Y (TTM)22.13%
Revenue growth 3Y3.12%
Revenue growth 5Y3.25%
Sales Q2Q%33.85%
3.2 Future
The Earnings Per Share is expected to grow by 17.00% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.92% on average over the next years. This is quite good.
EPS Next Y32.81%
EPS Next 2Y19.44%
EPS Next 3Y17%
EPS Next 5YN/A
Revenue Next Year21.96%
Revenue Next 2Y13.34%
Revenue Next 3Y10.92%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 16.95 indicates a correct valuation of OSIS.
78.57% of the companies in the same industry are more expensive than OSIS, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.39. OSIS is valued slightly cheaper when compared to this.
A Price/Forward Earnings ratio of 15.19 indicates a correct valuation of OSIS.
Based on the Price/Forward Earnings ratio, OSIS is valued a bit cheaper than the industry average as 76.98% of the companies are valued more expensively.
OSIS's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 19.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 15.19 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OSIS is valued a bit cheaper than the industry average as 76.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 10.17 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The excellent profitability rating of OSIS may justify a higher PE ratio.
A more expensive valuation may be justified as OSIS's earnings are expected to grow with 17.00% in the coming years.
PEG (NY)0.52
PEG (5Y)1.5
EPS Next 2Y19.44%
EPS Next 3Y17%
5. Dividend
5.1 Amount
OSIS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
OSI SYSTEMS INC
NASDAQ:OSIS (6/14/2024, 7:27:22 PM)
After market: 134.59 0 (0%)134.59
-2.25 (-1.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap2.29B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
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Div Incr Years
Div Non Decr Years
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Surprises & Revisions
EPS beat(2)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 16.95 | ||
| Fwd PE | 15.19 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.52
PEG (5Y)1.5
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.88% | ||
| ROE | 15.48% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.87% | ||
| PM (TTM) | 8.57% | ||
| GM | 35.32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.59 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.47 | ||
| Quick Ratio | 0.89 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)44.1%
EPS 3Y10.52%
EPS 5Y
EPS Q2Q%
EPS Next Y32.81%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)22.13%
Revenue growth 3Y3.12%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y