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OSISOSI Systems, Inc.
$218.72$3.6B
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  4. Financial Ratios

OSI Systems, Inc. (OSIS) Financial Ratios

Latest Ratios: P/E Ratio 25.1x · EV/EBITDA 16.0x · ROE 16.5%. (1998–2025 historical series)

Income StatementBalance SheetCash FlowRatios
AnnualQuarterly

OSIS Valuation Multiples

Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Market Cap$3.6B$3.9B$2.4B$2.0B$1.5B$1.9B$1.4B$2.1B$1.4B$1.5B$1.2B
Enterprise Value$4.2B$4.4B$2.8B$2.3B$1.9B$2.1B$1.7B$2.4B$1.7B$1.7B$1.2B
P/E Ratio →25.1125.8218.6322.0713.2525.2218.4332.55—70.2344.72
P/S Ratio2.102.251.551.581.291.631.191.781.321.541.41
P/B Ratio3.954.062.762.792.392.922.433.822.942.602.16
P/FCF64.2768.86—32.3845.8217.0614.6523.7216.4436.5032.73
P/OCF36.9439.58—21.3623.9313.4410.7517.7010.8023.5719.71

P/E links to full P/E history page with 30-year chart

OSIS EV Ratios

Enterprise-value multiples — capital-structure-neutral measures of total business value

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
EV / Revenue—2.591.851.831.571.821.432.001.581.721.44
EV / EBITDA16.0117.0012.3013.4711.5713.1210.7816.1313.6616.3112.42
EV / EBIT19.2220.5215.0417.3114.3518.1115.9021.8930.5846.8231.20
EV / FCF—79.13—37.4355.7019.0717.6026.5319.6340.8833.55

OSIS Profitability

Margins and return-on-capital ratios measuring operating efficiency

Margins

Full margin charts and quarterly trend are on the Earnings History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Gross Margin34.3%34.3%34.5%33.7%35.9%36.6%36.1%36.4%36.0%33.7%33.4%
Operating Margin12.7%12.7%12.3%10.6%10.3%10.1%9.0%7.6%5.1%3.5%4.6%
Net Profit Margin8.7%8.7%8.3%7.2%9.7%6.5%6.5%5.5%-2.7%2.2%3.2%

Return on Capital

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
ROE16.5%16.5%16.1%13.5%18.0%12.2%13.4%12.4%-5.5%3.8%4.7%
ROA7.2%7.2%7.3%6.1%8.2%5.6%5.9%5.1%-2.3%1.9%2.7%
ROIC11.5%11.5%12.0%10.1%10.0%10.1%9.5%8.6%5.5%3.8%5.2%
ROCE16.3%16.3%18.0%14.9%13.0%11.7%11.5%10.6%6.6%4.4%5.7%

OSIS Leverage & Debt

Solvency and debt-coverage ratios — lower is generally safer

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Debt / Equity0.720.720.640.540.620.470.620.630.740.610.25
Debt / EBITDA2.612.612.392.262.451.892.302.372.903.421.39
Net Debt / Equity—0.610.530.440.520.340.490.450.570.310.05
Net Debt / EBITDA2.212.211.981.822.051.381.811.712.221.750.31
Debt / FCF—10.27—5.069.882.012.952.813.194.380.83
Interest Coverage6.396.396.796.7514.436.905.594.992.913.6813.32

OSIS Liquidity & Efficiency

Short-term solvency ratios and asset-utilisation metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Current Ratio2.042.041.491.471.222.061.871.681.471.891.51
Quick Ratio1.461.461.000.880.671.201.140.960.761.170.77
Cash Ratio0.150.150.120.130.100.230.230.250.190.490.28
Asset Turnover—0.760.790.820.820.830.920.930.870.780.84
Inventory Turnover2.772.772.532.512.272.473.092.752.222.572.02
Days Sales Outstanding—178.49153.75108.7395.0095.8084.4773.6270.6278.4562.35

OSIS Shareholder Yields

Earnings, FCF, buyback, and dividend yields — total returns to shareholders

Dividends

Full dividend history and growth charts are on the Dividend History page

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Dividend Yield———————————
Payout Ratio———————————

Total Shareholder Return Metrics

MetricTTMFY 2025FY 2024FY 2023FY 2022FY 2021FY 2020FY 2019FY 2018FY 2017FY 2016
Earnings Yield4.0%3.9%5.4%4.5%7.5%4.0%5.4%3.1%—1.4%2.2%
FCF Yield1.6%1.5%—3.1%2.2%5.9%6.8%4.2%6.1%2.7%3.1%
Buyback Yield2.2%2.1%0.0%1.7%7.3%2.0%3.7%1.0%4.4%3.3%6.3%
Total Shareholder Yield2.2%2.1%0.0%1.7%7.3%2.0%3.7%1.0%4.4%3.3%6.3%
Shares Outstanding—$17M$17M$17M$18M$18M$19M$19M$19M$20M$20M

Key Metrics

Growth RegimeMixed
ProfitabilityModerate
Balance SheetHealthy
Cash FlowMixed
Top Statement Risk

Lumpy contract revenue volatility

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q3)

Conglomerate Discount Masks Growth Potential

Based on current market data, OSIS trades at a P/E of 25.06, which appears to reflect a conglomerate discount when compared to the broader security and defense peer group, suggesting the market may be under-appreciating the potential for margin expansion through the company's evolving turnkey service model.

The forward P/E of 20.95 implies that investors are pricing in moderate growth, yet the PEG ratio of 1.51 suggests that the current valuation may be stretched relative to the company's historical earnings volatility. This valuation gap warrants further investigation into whether the market is correctly discounting the cyclical nature of the healthcare segment versus the higher-growth security screening business.

Capital Efficiency Constrained by Scale

According to recent financial statements, OSIS has struggled to maintain consistent ROIC, with figures hovering between 1.6% and 4.3% over the last ten quarters, indicating that the company is currently failing to generate returns that meaningfully exceed its cost of capital in a sustained manner.

The low ROIC trend suggests that the company's heavy investment in specialized manufacturing and R&D is not yet yielding the expected efficiency gains. Investors should monitor whether the shift toward recurring service contracts can improve capital turnover, as the current returns appear significantly lower than those of more specialized defense peers.

Working Capital Cycles Impede Liquidity

As reported in quarterly filings, the company's cash conversion cycle remains elevated, peaking at 276 days in 2025Q1, which highlights the significant operational friction caused by long-duration government contracts and the resulting accumulation of unbilled receivables and inventory that ties up critical working capital.

The high DSO, which reached 199 days in 2026Q1, suggests that OSIS faces structural challenges in collecting payments from its government and international customers. This inefficiency forces the company to maintain higher liquidity buffers, which may be limiting its ability to deploy capital more aggressively toward higher-return growth initiatives.

Misapplication of Traditional Hardware Multiples

Based on institutional research standards, the most commonly misapplied metric for OSIS is the standard EV/EBITDA multiple, which fails to account for the shifting revenue mix toward recurring service-based contracts that should theoretically command a higher valuation multiple than traditional, project-based hardware manufacturing.

By treating OSIS as a pure-play hardware manufacturer, the market obscures the value of the company's growing 'Turnkey' service footprint. Analysts should instead focus on the quality of earnings and the stability of service-based cash flows, as these components are likely to drive a re-rating if the company successfully scales its recurring revenue base.

Download Financial Ratios Data

Includes 30+ ratios · 28 years · Updated daily

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OSIS — Frequently Asked Questions

Quick answers to the most common questions about buying OSIS stock.

What is OSI Systems, Inc.'s P/E ratio?

OSI Systems, Inc.'s current P/E ratio is 25.1x. The historical average is 31.8x. This places it at the 38th percentile of its historical range.

What is OSI Systems, Inc.'s EV/EBITDA?

OSI Systems, Inc.'s current EV/EBITDA is 16.0x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.0x.

What is OSI Systems, Inc.'s ROE?

OSI Systems, Inc.'s return on equity (ROE) is 16.5%. The historical average is 7.4%.

Is OSIS stock overvalued?

Based on historical data, OSI Systems, Inc. is trading at a P/E of 25.1x. This is at the 38th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.

What are OSI Systems, Inc.'s profit margins?

OSI Systems, Inc. has 34.3% gross margin and 12.7% operating margin. Operating margin between 10-20% is typical for established companies.

How much debt does OSI Systems, Inc. have?

OSI Systems, Inc.'s Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.