OSI SYSTEMS INC (OSIS) Stock Fundamental Analysis
NASDAQ:OSIS - Nasdaq - US6710441055 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to OSIS. OSIS was compared to 124 industry peers in the Electronic Equipment, Instruments & Components industry. OSIS scores excellent on profitability, but there are some minor concerns on its financial health. OSIS is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
OSIS had positive earnings in the past year.
OSIS had a positive operating cash flow in the past year.
OSIS had positive earnings in each of the past 5 years.
OSIS had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
OSIS has a better Return On Assets (6.80%) than 82.26% of its industry peers.
With an excellent Return On Equity value of 16.10%, OSIS belongs to the best of the industry, outperforming 84.68% of the companies in the same industry.
OSIS has a better Return On Invested Capital (10.47%) than 83.87% of its industry peers.
OSIS had an Average Return On Invested Capital over the past 3 years of 10.46%. This is in line with the industry average of 9.55%.
The 3 year average ROIC (10.46%) for OSIS is below the current ROIC(10.47%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 16.1% | ||
| ROIC | 10.47% |
ROA(3y)6.84%
ROA(5y)6.36%
ROE(3y)15.18%
ROE(5y)14.05%
ROIC(3y)10.46%
ROIC(5y)9.97%
1.3 Margins
OSIS has a Profit Margin of 8.38%. This is in the better half of the industry: OSIS outperforms 78.23% of its industry peers.
In the last couple of years the Profit Margin of OSIS has grown nicely.
Looking at the Operating Margin, with a value of 12.72%, OSIS belongs to the top of the industry, outperforming 84.68% of the companies in the same industry.
OSIS's Operating Margin has improved in the last couple of years.
OSIS's Gross Margin of 33.94% is in line compared to the rest of the industry. OSIS outperforms 53.23% of its industry peers.
OSIS's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.72% | ||
| PM (TTM) | 8.38% | ||
| GM | 33.94% |
OM growth 3Y5.1%
OM growth 5Y6.11%
PM growth 3Y8.88%
PM growth 5Y8.72%
GM growth 3Y-1.99%
GM growth 5Y-1.1%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), OSIS is creating some value.
Compared to 1 year ago, OSIS has more shares outstanding
OSIS has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, OSIS has a worse debt to assets ratio.
2.2 Solvency
An Altman-Z score of 4.01 indicates that OSIS is not in any danger for bankruptcy at the moment.
The Altman-Z score of OSIS (4.01) is better than 65.32% of its industry peers.
The Debt to FCF ratio of OSIS is 26.40, which is on the high side as it means it would take OSIS, 26.40 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 26.40, OSIS perfoms like the industry average, outperforming 52.42% of the companies in the same industry.
A Debt/Equity ratio of 0.71 indicates that OSIS is somewhat dependend on debt financing.
The Debt to Equity ratio of OSIS (0.71) is worse than 83.87% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 26.4 | ||
| Altman-Z | 4.01 |
ROIC/WACC1.12
WACC9.37%
2.3 Liquidity
OSIS has a Current Ratio of 2.11. This indicates that OSIS is financially healthy and has no problem in meeting its short term obligations.
OSIS's Current ratio of 2.11 is in line compared to the rest of the industry. OSIS outperforms 44.35% of its industry peers.
A Quick Ratio of 1.38 indicates that OSIS should not have too much problems paying its short term obligations.
OSIS has a worse Quick ratio (1.38) than 62.10% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 12.72% over the past year.
The Earnings Per Share has been growing by 13.45% on average over the past years. This is quite good.
OSIS shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.92%.
The Revenue has been growing slightly by 5.42% on average over the past years.
EPS 1Y (TTM)12.72%
EPS 3Y15.06%
EPS 5Y13.45%
EPS Q2Q%12.96%
Revenue 1Y (TTM)14.92%
Revenue growth 3Y10.29%
Revenue growth 5Y5.42%
Sales Q2Q%9.61%
3.2 Future
OSIS is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 11.89% yearly.
Based on estimates for the next years, OSIS will show a small growth in Revenue. The Revenue will grow by 7.41% on average per year.
EPS Next Y17.03%
EPS Next 2Y12.27%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue Next Year11.83%
Revenue Next 2Y8.42%
Revenue Next 3Y7.41%
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 stable.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 25.24, which means the current valuation is very expensive for OSIS.
Based on the Price/Earnings ratio, OSIS is valued a bit cheaper than 68.55% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.48, OSIS is valued at the same level.
OSIS is valuated rather expensively with a Price/Forward Earnings ratio of 22.07.
66.13% of the companies in the same industry are more expensive than OSIS, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 34.04. OSIS is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 22.07 |
4.2 Price Multiples
68.55% of the companies in the same industry are more expensive than OSIS, based on the Enterprise Value to EBITDA ratio.
OSIS's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 159.16 | ||
| EV/EBITDA | 15.96 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OSIS has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.48
PEG (5Y)1.88
EPS Next 2Y12.27%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
OSIS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
225.94
+2.01 (+0.9%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners120.56%
Inst Owner Change0.47%
Ins Owners4.52%
Ins Owner Change-7.08%
Market Cap3.79B
Analysts83.33
Price Target248.2 (9.85%)
Short Float %13.31%
Short Ratio10.89
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)0.67%
Min EPS beat(2)-0.49%
Max EPS beat(2)1.84%
EPS beat(4)2
Avg EPS beat(4)3.76%
Min EPS beat(4)-0.49%
Max EPS beat(4)13.95%
EPS beat(8)6
Avg EPS beat(8)5.84%
EPS beat(12)9
Avg EPS beat(12)4.31%
EPS beat(16)13
Avg EPS beat(16)3.99%
Revenue beat(2)1
Avg Revenue beat(2)0.59%
Min Revenue beat(2)-0.19%
Max Revenue beat(2)1.38%
Revenue beat(4)3
Avg Revenue beat(4)2.23%
Min Revenue beat(4)-0.19%
Max Revenue beat(4)6.68%
Revenue beat(8)5
Avg Revenue beat(8)1.37%
Revenue beat(12)5
Avg Revenue beat(12)0.28%
Revenue beat(16)7
Avg Revenue beat(16)0.18%
PT rev (1m)0%
PT rev (3m)10.61%
EPS NQ rev (1m)-0.21%
EPS NQ rev (3m)-0.21%
EPS NY rev (1m)0%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.24 | ||
| Fwd PE | 22.07 | ||
| P/S | 2.25 | ||
| P/FCF | 159.16 | ||
| P/OCF | 55.8 | ||
| P/B | 4.31 | ||
| P/tB | 12.11 | ||
| EV/EBITDA | 15.96 |
EPS(TTM)8.95
EY3.96%
EPS(NY)10.24
Fwd EY4.53%
FCF(TTM)1.42
FCFY0.63%
OCF(TTM)4.05
OCFY1.79%
SpS100.6
BVpS52.37
TBVpS18.65
PEG (NY)1.48
PEG (5Y)1.88
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 16.1% | ||
| ROCE | 14.55% | ||
| ROIC | 10.47% | ||
| ROICexc | 11.12% | ||
| ROICexgc | 17.6% | ||
| OM | 12.72% | ||
| PM (TTM) | 8.38% | ||
| GM | 33.94% | ||
| FCFM | 1.41% |
ROA(3y)6.84%
ROA(5y)6.36%
ROE(3y)15.18%
ROE(5y)14.05%
ROIC(3y)10.46%
ROIC(5y)9.97%
ROICexc(3y)11.2%
ROICexc(5y)10.73%
ROICexgc(3y)21.42%
ROICexgc(5y)20.43%
ROCE(3y)15.84%
ROCE(5y)14.3%
ROICexcg growth 3Y-4.68%
ROICexcg growth 5Y-3.7%
ROICexc growth 3Y1.94%
ROICexc growth 5Y1.67%
OM growth 3Y5.1%
OM growth 5Y6.11%
PM growth 3Y8.88%
PM growth 5Y8.72%
GM growth 3Y-1.99%
GM growth 5Y-1.1%
F-Score5
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 26.4 | ||
| Debt/EBITDA | 2.4 | ||
| Cap/Depr | 99.47% | ||
| Cap/Sales | 2.61% | ||
| Interest Coverage | 7.22 | ||
| Cash Conversion | 26.22% | ||
| Profit Quality | 16.84% | ||
| Current Ratio | 2.11 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 4.01 |
F-Score5
WACC9.37%
ROIC/WACC1.12
Cap/Depr(3y)85.38%
Cap/Depr(5y)78.2%
Cap/Sales(3y)2.56%
Cap/Sales(5y)2.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12.72%
EPS 3Y15.06%
EPS 5Y13.45%
EPS Q2Q%12.96%
EPS Next Y17.03%
EPS Next 2Y12.27%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue 1Y (TTM)14.92%
Revenue growth 3Y10.29%
Revenue growth 5Y5.42%
Sales Q2Q%9.61%
Revenue Next Year11.83%
Revenue Next 2Y8.42%
Revenue Next 3Y7.41%
Revenue Next 5YN/A
EBIT growth 1Y13.56%
EBIT growth 3Y15.91%
EBIT growth 5Y11.86%
EBIT Next Year41.55%
EBIT Next 3Y16.88%
EBIT Next 5YN/A
FCF growth 1Y-61.43%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-28.21%
OCF growth 3YN/A
OCF growth 5YN/A