OSI SYSTEMS INC (OSIS) Stock Fundamental Analysis
NASDAQ:OSIS - US6710441055 - Common Stock
235.71 USD
+2.83 (+1.22%)
235.71 USD
0 (0%)
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. While OSIS belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. OSIS has a correct valuation and a medium 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.
Each year in the past 5 years OSIS has been profitable.
In multiple years OSIS reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of OSIS (6.80%) is better than 84.00% of its industry peers.
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 10.52% 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 9.48%.
The last Return On Invested Capital (10.52%) for OSIS is above the 3 year average (10.08%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 16.1% | ||
| ROIC | 10.52% |
ROA(3y)6.4%
ROA(5y)6.51%
ROE(3y)14.41%
ROE(5y)14.57%
ROIC(3y)10.08%
ROIC(5y)10.3%
1.3 Margins
Looking at the Profit Margin, with a value of 8.38%, OSIS is in the better half of the industry, outperforming 77.60% of the companies in the same industry.
OSIS's Profit Margin has improved in the last couple of years.
OSIS has a better Operating Margin (12.72%) than 83.20% of its industry peers.
In the last couple of years the Operating Margin of OSIS has grown nicely.
OSIS's Gross Margin of 33.94% is in line compared to the rest of the industry. OSIS outperforms 53.60% 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 3Y6.01%
OM growth 5Y6.37%
PM growth 3Y-3.58%
PM growth 5Y6.23%
GM growth 3Y-1.5%
GM growth 5Y-1.02%
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 less shares outstanding
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
An Altman-Z score of 4.09 indicates that OSIS is not in any danger for bankruptcy at the moment.
OSIS has a Altman-Z score of 4.09. This is in the better half of the industry: OSIS outperforms 61.60% 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's Debt to FCF ratio of 26.40 is in line compared to the rest of the industry. OSIS outperforms 51.20% of its industry peers.
A Debt/Equity ratio of 0.71 indicates that OSIS is somewhat dependend on debt financing.
OSIS has a Debt to Equity ratio of 0.71. This is amonst the worse of the industry: OSIS underperforms 80.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.71 | ||
| Debt/FCF | 26.4 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.13
WACC9.33%
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.
The Current ratio of OSIS (2.11) is comparable to the rest of the industry.
OSIS has a Quick Ratio of 1.38. This is a normal value and indicates that OSIS is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of OSIS (1.38) is worse than 60.80% 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 15.15% 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 15.24% on average per year.
Looking at the last year, OSIS shows a quite strong growth in Revenue. The Revenue has grown by 11.34% in the last year.
Measured over the past years, OSIS shows a small growth in Revenue. The Revenue has been growing by 8.00% on average per year.
EPS 1Y (TTM)15.15%
EPS 3Y17.05%
EPS 5Y15.24%
EPS Q2Q%14.08%
Revenue 1Y (TTM)11.34%
Revenue growth 3Y13.13%
Revenue growth 5Y8%
Sales Q2Q%4.99%
3.2 Future
The Earnings Per Share is expected to grow by 10.37% on average over the next years. This is quite good.
OSIS is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.27% yearly.
EPS Next Y9.56%
EPS Next 2Y10.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.12%
Revenue Next 2Y5.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 25.21, the valuation of OSIS can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of OSIS indicates a somewhat cheap valuation: OSIS is cheaper than 68.80% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.03. OSIS is around the same levels.
With a Price/Forward Earnings ratio of 23.01, OSIS is valued on the expensive side.
61.60% 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 22.63. OSIS is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 23.01 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, OSIS is valued a bit cheaper than the industry average as 66.40% 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 | 166.44 | ||
| EV/EBITDA | 16.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of OSIS may justify a higher PE ratio.
PEG (NY)2.64
PEG (5Y)1.65
EPS Next 2Y10.37%
EPS Next 3YN/A
5. Dividend
5.1 Amount
OSIS does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
235.71
+2.83 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryElectronic Equipment, Instruments & Components
Earnings (Last)
Earnings (Next)
Inst Owners121.66%
Inst Owner Change-2.48%
Ins Owners4.53%
Ins Owner Change0.63%
Market Cap3.97B
Analysts83.33
Price Target248.2 (5.3%)
Short Float %13.35%
Short Ratio10.55
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)1.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.62%
EPS NY rev (1m)0.08%
EPS NY rev (3m)-0.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.21 | ||
| Fwd PE | 23.01 | ||
| P/S | 2.35 | ||
| P/FCF | 166.44 | ||
| P/OCF | 58.35 | ||
| P/B | 4.51 | ||
| P/tB | 12.67 | ||
| EV/EBITDA | 16.57 |
EPS(TTM)9.35
EY3.97%
EPS(NY)10.24
Fwd EY4.35%
FCF(TTM)1.42
FCFY0.6%
OCF(TTM)4.04
OCFY1.71%
SpS100.36
BVpS52.25
TBVpS18.61
PEG (NY)2.64
PEG (5Y)1.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.8% | ||
| ROE | 16.1% | ||
| ROCE | 14.55% | ||
| ROIC | 10.52% | ||
| ROICexc | 11.18% | ||
| ROICexgc | 17.69% | ||
| OM | 12.72% | ||
| PM (TTM) | 8.38% | ||
| GM | 33.94% | ||
| FCFM | 1.41% |
ROA(3y)6.4%
ROA(5y)6.51%
ROE(3y)14.41%
ROE(5y)14.57%
ROIC(3y)10.08%
ROIC(5y)10.3%
ROICexc(3y)10.76%
ROICexc(5y)11.05%
ROICexgc(3y)17.38%
ROICexgc(5y)20.25%
ROCE(3y)15.46%
ROCE(5y)14.81%
ROICexcg growth 3Y-16.7%
ROICexcg growth 5Y-1.58%
ROICexc growth 3Y-4.15%
ROICexc growth 5Y2.67%
OM growth 3Y6.01%
OM growth 5Y6.37%
PM growth 3Y-3.58%
PM growth 5Y6.23%
GM growth 3Y-1.5%
GM growth 5Y-1.02%
F-Score6
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 | 4.09 |
F-Score6
WACC9.33%
ROIC/WACC1.13
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)15.15%
EPS 3Y17.05%
EPS 5Y15.24%
EPS Q2Q%14.08%
EPS Next Y9.56%
EPS Next 2Y10.37%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)11.34%
Revenue growth 3Y13.13%
Revenue growth 5Y8%
Sales Q2Q%4.99%
Revenue Next Year5.12%
Revenue Next 2Y5.27%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y13.56%
EBIT growth 3Y19.93%
EBIT growth 5Y14.88%
EBIT Next Year31.34%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y133.97%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y286.99%
OCF growth 3YN/A
OCF growth 5YN/A