OSI Systems, Inc. (OSIS)
UndervaluedFundamental
74
Price
$194.37
Market Cap
$3.10B
Part 1 · What the company is worth
Overview
OSI Systems, Inc. designs and manufactures specialized electronic systems and components for critical applications in the United States, Mexico, the rest of Americas, the United Kingdom, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers security products, such as baggage and parcel inspection, cargo and vehicle inspection, hold baggage screening, people screening, radiation monitoring, explosive and narcotics trace detection, and optical inspection systems; turnkey security screening services for enterprise inspection process integration, operator training, and the staffing and operation of security screening checkpoints under the S2 brand. It also provides trace detection systems for trace amounts of explosives and narcotics and people screening products, including walk-through metal detectors for use at security checkpoints at airports, government buildings, sports arenas, and other venues; digital and analog high-power RF systems; and active components for detection of lights of different wavelengths and converts light into electrical signals. In addition, the company offers devices for emitting light in the form of lasers; passive components for amplifying, separating, and reflecting light under the OSI Optoelectronics brand; and printed circuit board assemblies, cable and harness assemblies, and complete systems. Further, it provides bedside monitors, such as the Xprezzon and Qube, as well as telemetry solutions; Spacelabs SafeNSound for assisting hospitals; predictive analytics clinical decision support solutions; Pathfinder SL and Lifescreen Pro analysis tools; and Eclipse Pro Holter recorders. Additionally, the company offers Eclipse Mini Ambulatory ECG recorders; ambulatory blood pressure monitors; Spacelabs OnTrak ambulatory blood pressure systems; Sentinel, a cardiology information management system; and multivendor compatible accessories. OSI Systems, Inc. was incorporated in 1987 and is headquartered in Hawthorne, California.
No editorial profile for this company yet
Direct competitors
Who this company fights with for the same customers
Generated on September 19, 2026 with claude-haiku-4-5 — shared with all users
After buying L3Harris' security detection business — a rival OSI Systems named by name for years — Leidos sells checkpoint CT, hold-baggage and cargo scanners to the same airports and customs agencies as Rapiscan.
Smiths Detection is the competitor OSI Systems names first in its own filings and bids against Rapiscan for the same airport, customs and border screening contracts worldwide, including the CBP drive-through cargo imaging award.
Named as a competitor in OSI Systems' filings, the Chinese group undercuts Rapiscan on price in customs and cargo inspection tenders, above all in Asia, Africa and Latin America.
Analogic builds the computed-tomography checkpoint and hold-baggage scanners that airports buy instead of Rapiscan's, and sells them to the same aviation-security authorities; it is privately held by Altaris.
Named in OSI Systems' filings, this private Italian maker of walk-through metal detectors and shoe scanners competes for the people-screening budget of the same airports, courthouses and prisons.
In the Healthcare division, Nihon Kohden sells the patient-monitoring systems that hospitals choose instead of OSI's Spacelabs monitors, and OSI Systems lists it among its healthcare competitors.
Balance Sheet & Liquidity
Revenue
$1.79B
Trailing 12 months (through 6/30/2026)
Net Income
$155M
Trailing 12 months (through 6/30/2026)
Free Cash Flow
$245M
Total Equity
$833M
Total Liabilities
$1.67B
Current Ratio
3.15
Interest Coverage
8.35
Debt/EBITDA
4.01
Earnings Per Share
Revenue & Net Income
Free Cash Flow
Income Breakdown
Historical statement
Margins over time
Debt over time
How heavy the debt is
Growth grid
Growth — Revenue
Fair Value Estimation
Fair Value
$260.96
Current Price
$194.37
Margin of Safety
+25.5%
Fair Value Range
$169.62 - $352.30
Spread across the valuation methods used, not a statistically calibrated confidence interval.
Estimation Methods
Valuation Metrics
P/E Ratio
21.60
ROE
18.6%
P/B Ratio
3.72
P/FCF
12.63
Gross Margin
33.2%
ROIC
8.7%
Profitability Radar
Value Creation (Economic Moat)
ROIC
8.7%
WACC
9.1%
ROIC − WACC
-0.4 pp
ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.
Fundamental Analysis Criteria
Passed (21)
- EPS shows upward trend
- EPS CAGR 12.92%
- Price CAGR 10.31%
- ROIC 8.7%
- Gross Margin 33.2%
- P/FCF 12.63
- Debt/Equity ratio
- Operating Margin 12.3%
- Positive Free Cash Flow
- CapEx intensity
- Current Ratio
- Interest Coverage
- Debt/EBITDA
- Return on Tangible Assets
- ROE 16.7%
- Revenue Growth 5Y 9.3%
- Analyst Consensus 86% Buy
- PEG Ratio 1.14
- Earnings Quality (OCF/NI) 1.78
- Share Dilution 0.6%
- Piotroski F-Score 5/9
Failed (6)
- P/B Ratio 3.72
- Low reliance on intangibles
- Price below Graham Number
- DCF valuation (Overvalued)
- Earnings Surprise avg -0.0%
- Net Margin Trend 8.7% vs 8.7%
Unavailable (1)
- Dividend Payout NaN%
Piotroski F-Score
Mixed signals: some areas need attention
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Institutional Holdings
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Ajay Mehra | President, CEO & Director | 63 |
| Mr. Alan I. Edrick | Executive VP & CFO | 57 |
| Mr. Victor S. Sze | Executive VP, General Counsel & Corporate Secretary | 58 |
| Mr. Aliabadi Manoocher Mansouri | CTO of Optoelectronics & Manufacturing Division | 69 |
| Mr. Paul Keith Morben | President of Optoelectronics & Manufacturing Division | 64 |
| Mr. Cary M. Okawa | Chief Accounting Officer | 59 |
| Mr. Todd Weathersby | Senior VP & Chief Information Officer | - |
| Mr. Glenn Grindstaff | Senior VP & Chief Human Resources Officer | 63 |
| Mr. Mohinder Chopra | Senior VP & GM of India | - |
| Mr. Michael N. Tropeano | President of Rapiscan | 55 |
Audit Risk
2
Board Risk
9
Compensation Risk
4
Shareholder Rights Risk
2
Part 2 · The price and when to enter
This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.
Documents
- View document
Annual Report (10-K)
A yearly overview of the business, its financial results, and the risks it faces.
Filed on 2026-08-21
- View document
Quarterly Report (10-Q)
A snapshot of financial performance for the most recent three-month period.
Filed on 2026-05-04
- View document
Current Report (8-K)
An announcement of a major event, such as a leadership change or big news.
Filed on 2026-08-20
via SEC EDGAR
Income History
via SEC EDGAR
Latest News
Recent headlines for OSIS, sourced from Markets Gazette.
- 5/8/2026POSITIVETop 3 Tech Stocks That Could Blast Off In Q2
The article identifies OSIS as a top tech stock presenting a buying opportunity in Q2 due to its oversold condition. The Relative Strength Index (RSI) indicates that the stock's recent performance suggests it may be undervalued. Investors looking for potential upside in the technology sector may consider OSIS, as oversold conditions often precede a rebound. The news suggests that OSIS, alongside CDW and AVNW, is poised for a potential upward movement in the coming quarter.
via Markets Gazette