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 125 industry peers in the Electronic Equipment, Instruments & Components industry. OSIS has an excellent profitability rating, 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
In the past year OSIS was profitable.
In the past year OSIS had a positive cash flow from operations.
In the past 5 years OSIS has always been profitable.
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 6.80%, OSIS belongs to the top of the industry, outperforming 82.40% of the companies in the same industry.
With an excellent Return On Equity value of 16.10%, OSIS belongs to the best of the industry, outperforming 85.60% of the companies in the same industry.
OSIS's Return On Invested Capital of 10.47% is amongst the best of the industry. OSIS outperforms 84.80% 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 9.16%.
The last Return On Invested Capital (10.47%) for OSIS is above the 3 year average (10.46%), which is a sign of increasing profitability.
| 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
The Profit Margin of OSIS (8.38%) is better than 81.60% of its industry peers.
OSIS's Profit Margin has improved in the last couple of years.
OSIS's Operating Margin of 12.72% is amongst the best of the industry. OSIS outperforms 84.00% of its industry peers.
In the last couple of years the Operating Margin of OSIS has grown nicely.
OSIS has a Gross Margin of 33.94%. This is comparable to the rest of the industry: OSIS outperforms 54.40% 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.
The number of shares outstanding for OSIS has been increased compared to 1 year ago.
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
OSIS has an Altman-Z score of 4.06. This indicates that OSIS is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of OSIS (4.06) is better than 64.80% of its industry peers.
OSIS has a debt to FCF ratio of 26.40. This is a negative value and a sign of low solvency as OSIS would need 26.40 years to pay back of all of its debts.
OSIS has a Debt to FCF ratio of 26.40. This is comparable to the rest of the industry: OSIS outperforms 52.00% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that OSIS is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.71, OSIS is doing worse than 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 26.4 | ||
| Altman-Z | 4.06 |
ROIC/WACC1.12
WACC9.38%
2.3 Liquidity
A Current Ratio of 2.11 indicates that OSIS has no problem at all paying its short term obligations.
The Current ratio of OSIS (2.11) is comparable to the rest of the industry.
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 63.20% 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.
Measured over the past years, OSIS shows a quite strong growth in Earnings Per Share. The EPS has been growing by 13.45% on average per year.
Looking at the last year, OSIS shows a quite strong growth in Revenue. The Revenue has grown by 14.92% in the last year.
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
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 7.41% 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
Based on the Price/Earnings ratio of 23.77, the valuation of OSIS can be described as rather expensive.
Based on the Price/Earnings ratio, OSIS is valued a bit cheaper than the industry average as 68.80% of the companies are valued more expensively.
OSIS is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 20.79 indicates a rather expensive valuation of OSIS.
62.40% of the companies in the same industry are more expensive than OSIS, based on the Price/Forward Earnings ratio.
OSIS is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 20.79 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OSIS is valued a bit cheaper than the industry average as 67.20% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of OSIS is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 149.87 | ||
| EV/EBITDA | 16.35 |
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)1.4
PEG (5Y)1.77
EPS Next 2Y12.27%
EPS Next 3Y11.89%
5. Dividend
5.1 Amount
No dividends for OSIS!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
212.75
-17.23 (-7.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners120.56%
Inst Owner Change0.39%
Ins Owners4.52%
Ins Owner Change-8.92%
Market Cap3.57B
Analysts83.33
Price Target248.2 (16.66%)
Short Float %13.35%
Short Ratio10.07
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)1.09%
PT rev (3m)9.89%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)0%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)0.55%
Revenue NQ rev (1m)-0.16%
Revenue NQ rev (3m)-0.29%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.77 | ||
| Fwd PE | 20.79 | ||
| P/S | 2.11 | ||
| P/FCF | 149.87 | ||
| P/OCF | 52.54 | ||
| P/B | 4.06 | ||
| P/tB | 11.41 | ||
| EV/EBITDA | 16.35 |
EPS(TTM)8.95
EY4.21%
EPS(NY)10.24
Fwd EY4.81%
FCF(TTM)1.42
FCFY0.67%
OCF(TTM)4.05
OCFY1.9%
SpS100.6
BVpS52.37
TBVpS18.65
PEG (NY)1.4
PEG (5Y)1.77
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 | 4.06 |
F-Score5
WACC9.38%
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