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. While OSIS belongs to the best of the industry regarding profitability, there are concerns on its financial health. OSIS is quite expensive at the moment. 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.
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
Looking at the Return On Assets, with a value of 6.31%, OSIS is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
OSIS has a Return On Equity of 16.28%. This is amongst the best in the industry. OSIS outperforms 85.60% of its industry peers.
The Return On Invested Capital of OSIS (9.98%) is better than 84.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for OSIS is in line with the industry average of 9.21%.
| 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
OSIS's Profit Margin of 8.15% is fine compared to the rest of the industry. OSIS outperforms 80.00% of its industry peers.
OSIS's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 12.65%, OSIS belongs to the top of the industry, outperforming 84.80% of the companies in the same industry.
OSIS's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 33.88%, OSIS perfoms like the industry average, outperforming 53.60% of the companies in the same industry.
OSIS's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so OSIS is still creating some value.
OSIS has more shares outstanding than it did 1 year ago.
OSIS has less shares outstanding than it did 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 3.70. 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 3.70, OSIS is in the better half of the industry, outperforming 60.80% of the companies in the same industry.
A Debt/Equity ratio of 0.85 indicates that 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 89.60% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.85 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 3.7 |
ROIC/WACC1.1
WACC9.11%
2.3 Liquidity
OSIS has a Current Ratio of 1.88. This is a normal value and indicates that OSIS is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.88, OSIS is doing worse than 65.60% 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.
OSIS has a Quick ratio of 1.25. This is in the lower half of the industry: OSIS underperforms 65.60% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.88 | ||
| Quick Ratio | 1.25 |
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%.
OSIS shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.42% yearly.
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
The Earnings Per Share is expected to grow by 11.89% on average over the next years. This is quite good.
Based on estimates for the next years, OSIS will show a small growth in Revenue. The Revenue will grow by 7.49% on average per year.
EPS Next Y17.18%
EPS Next 2Y12.53%
EPS Next 3Y11.89%
EPS Next 5YN/A
Revenue Next Year11.83%
Revenue Next 2Y8.45%
Revenue Next 3Y7.49%
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.
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
The Price/Earnings ratio is 24.48, which indicates a rather expensive current valuation of OSIS.
64.80% of the companies in the same industry are more expensive than OSIS, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of OSIS to the average of the S&P500 Index (26.25), we can say OSIS is valued inline with the index average.
The Price/Forward Earnings ratio is 21.31, which indicates a rather expensive current valuation of OSIS.
OSIS's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of OSIS to the average of the S&P500 Index (22.15), we can say OSIS is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.48 | ||
| Fwd PE | 21.31 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OSIS is valued a bit cheaper than 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 16.07 |
4.3 Compensation for Growth
OSIS's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
OSIS has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)1.42
PEG (5Y)1.82
EPS Next 2Y12.53%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
OSIS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
219.11
-1.08 (-0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners116.91%
Inst Owner Change4.31%
Ins Owners4.84%
Ins Owner Change-9.8%
Market Cap3.68B
Analysts83.08
Price Target245.53 (12.06%)
Short Float %15.06%
Short Ratio8.61
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)9.42%
PT rev (3m)9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.37%
EPS NY rev (1m)0.68%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.13%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)0.46%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.48 | ||
| Fwd PE | 21.31 | ||
| P/S | 2.23 | ||
| P/FCF | N/A | ||
| P/OCF | N/A | ||
| P/B | 4.45 | ||
| P/tB | 14.06 | ||
| EV/EBITDA | 16.07 |
EPS(TTM)8.95
EY4.08%
EPS(NY)10.28
Fwd EY4.69%
FCF(TTM)-6.57
FCFYN/A
OCF(TTM)-3.91
OCFYN/A
SpS98.28
BVpS49.19
TBVpS15.59
PEG (NY)1.42
PEG (5Y)1.82
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 | 3.7 |
F-Score3
WACC9.11%
ROIC/WACC1.1
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 Y17.18%
EPS Next 2Y12.53%
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 2Y8.45%
Revenue Next 3Y7.49%
Revenue Next 5YN/A
EBIT growth 1Y21.34%
EBIT growth 3Y15.91%
EBIT growth 5Y11.86%
EBIT Next Year41.55%
EBIT Next 3Y16.88%
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