OSI SYSTEMS INC (OSIS) Stock Fundamental Analysis
NASDAQ:OSIS - Nasdaq - US6710441055 - Common Stock - Currency: USD
Taking everything into account, OSIS scores 4 out of 10 in our fundamental rating. OSIS was compared to 125 industry peers in the Electronic Equipment, Instruments & Components industry. OSIS scores excellent on profitability, but there are concerns on its financial health. OSIS is valied quite expensively at the moment, while it does show a decent growth rate.
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.
Of the past 5 years OSIS 4 years had a positive operating cash flow.
1.2 Ratios
OSIS has a Return On Assets of 6.31%. This is in the better half of the industry: OSIS outperforms 80.00% of its industry peers.
OSIS has a better Return On Equity (16.28%) than 85.60% of its industry peers.
With an excellent Return On Invested Capital value of 9.98%, OSIS belongs to the best of the industry, outperforming 84.00% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for OSIS is in line with the industry average of 9.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 16.28% | ||
| ROIC | 9.98% |
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
With a decent Profit Margin value of 8.15%, OSIS is doing good in the industry, outperforming 80.00% of the companies in the same industry.
OSIS's Profit Margin has improved in the last couple of years.
With an excellent Operating Margin value of 12.65%, OSIS belongs to the best of the industry, outperforming 85.60% of the companies in the same industry.
In the last couple of years the Operating Margin of OSIS has grown nicely.
OSIS has a Gross Margin of 33.88%. This is comparable to the rest of the industry: OSIS outperforms 54.40% of its industry peers.
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 | 12.65% | ||
| PM (TTM) | 8.15% | ||
| GM | 33.88% |
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
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 increased compared to 1 year ago.
The number of shares outstanding for OSIS has been reduced compared to 5 years ago.
The debt/assets ratio for OSIS is higher compared to a year ago.
2.2 Solvency
OSIS has an Altman-Z score of 3.74. 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 3.74, OSIS is in the better half of the industry, outperforming 68.00% of the companies in the same industry.
OSIS has a Debt/Equity ratio of 0.85. This is a neutral value indicating OSIS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.85, OSIS is doing worse than 86.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.74 |
ROIC/WACC1.17
WACC8.53%
2.3 Liquidity
A Current Ratio of 1.88 indicates that OSIS should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.88, OSIS is doing worse than 60.80% of the companies in the same industry.
A Quick Ratio of 1.25 indicates that OSIS should not have too much problems paying its short term obligations.
The Quick ratio of OSIS (1.25) is worse than 66.40% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
OSIS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12.72%, which is quite good.
OSIS shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 13.45% yearly.
OSIS shows a strong growth in Revenue. In the last year, the Revenue has grown by 20.37%.
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)20.37%
Revenue growth 3Y10.29%
Revenue growth 5Y5.42%
Sales Q2Q%9.61%
3.2 Future
The Earnings Per Share is expected to grow by 12.22% on average over the next years. This is quite good.
The Revenue is expected to grow by 7.15% on average over the next years.
EPS Next Y16.39%
EPS Next 2Y13.11%
EPS Next 3Y12.22%
EPS Next 5YN/A
Revenue Next Year11.38%
Revenue Next 2Y8.22%
Revenue Next 3Y7.15%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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 25.12, which means the current valuation is very expensive for OSIS.
OSIS's Price/Earnings is on the same level as the industry average.
OSIS's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.22.
Based on the Price/Forward Earnings ratio of 21.64, the valuation of OSIS can be described as rather expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as OSIS.
OSIS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 21.64 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of OSIS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.36 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The decent profitability rating of OSIS may justify a higher PE ratio.
OSIS's earnings are expected to grow with 12.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.53
PEG (5Y)1.87
EPS Next 2Y13.11%
EPS Next 3Y12.22%
5. Dividend
5.1 Amount
OSIS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
224.86
+0.53 (+0.24%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners116.91%
Inst Owner Change-0.04%
Ins Owners4.84%
Ins Owner Change-8.04%
Market Cap3.78B
Analysts83.08
Price Target224.4 (-0.2%)
Short Float %15.1%
Short Ratio9.27
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)2
Avg EPS beat(2)7.89%
Min EPS beat(2)1.84%
Max EPS beat(2)13.95%
EPS beat(4)3
Avg EPS beat(4)4.04%
Min EPS beat(4)-0.25%
Max EPS beat(4)13.95%
EPS beat(8)7
Avg EPS beat(8)5.91%
EPS beat(12)10
Avg EPS beat(12)4.46%
EPS beat(16)14
Avg EPS beat(16)4.1%
Revenue beat(2)2
Avg Revenue beat(2)4.03%
Min Revenue beat(2)1.38%
Max Revenue beat(2)6.68%
Revenue beat(4)3
Avg Revenue beat(4)1.91%
Min Revenue beat(4)-1.49%
Max Revenue beat(4)6.68%
Revenue beat(8)5
Avg Revenue beat(8)1.15%
Revenue beat(12)5
Avg Revenue beat(12)0.19%
Revenue beat(16)7
Avg Revenue beat(16)-0.07%
PT rev (1m)-0.65%
PT rev (3m)14.78%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-4.28%
EPS NY rev (1m)0%
EPS NY rev (3m)1.23%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.01%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.93%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.12 | ||
| Fwd PE | 21.64 | ||
| P/S | 2.29 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 4.57 | ||
| P/tB | 14.43 | ||
| EV/EBITDA | 16.36 |
EPS(TTM)8.95
EY3.98%
EPS(NY)10.39
Fwd EY4.62%
FCF(TTM)-6.57
FCFYN/A
OCF(TTM)-3.91
OCFYN/A
SpS98.22
BVpS49.16
TBVpS15.58
PEG (NY)1.53
PEG (5Y)1.87
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.31% | ||
| ROE | 16.28% | ||
| ROCE | 14.63% | ||
| ROIC | 9.98% | ||
| ROICexc | 10.63% | ||
| ROICexgc | 16.65% | ||
| OM | 12.65% | ||
| PM (TTM) | 8.15% | ||
| GM | 33.88% | ||
| FCFM | N/A |
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-Score3
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Debt/EBITDA | 2.77 | ||
| Cap/Depr | 100.45% | ||
| Cap/Sales | 2.71% | ||
| Interest Coverage | 7.79 | ||
| Cash Conversion | N/A | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.25 | ||
| Altman-Z | 3.74 |
F-Score3
WACC8.53%
ROIC/WACC1.17
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 Y16.39%
EPS Next 2Y13.11%
EPS Next 3Y12.22%
EPS Next 5YN/A
Revenue 1Y (TTM)20.37%
Revenue growth 3Y10.29%
Revenue growth 5Y5.42%
Sales Q2Q%9.61%
Revenue Next Year11.38%
Revenue Next 2Y8.22%
Revenue Next 3Y7.15%
Revenue Next 5YN/A
EBIT growth 1Y21.34%
EBIT growth 3Y15.91%
EBIT growth 5Y11.86%
EBIT Next Year39.25%
EBIT Next 3Y17.35%
EBIT Next 5YN/A
FCF growth 1Y-385.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-195.81%
OCF growth 3YN/A
OCF growth 5YN/A