Recent News
Between June 9 and July 10, 2025, OSI Systems announced multiple Security-division contract awards (roughly $10M, $11M, $14M, $17M and $34M) for cargo/vehicle inspection and radiation monitoring systems, disclosed an upsized and extended credit facility on July 2, and confirmed participation in investor conferences in June and July. These items increase backlog visibility and highlight continued Security-segment order intake.
Technical Analysis
ADX at 15.56 indicates no established trend; this lowers conviction for a durable directional breakout despite other signals supporting near-term upside.
Directional indicators show DI+ at 20.87 and DI- at 25.09 with DI+ having crossed below DI-, which signals bearish directional pressure even as other momentum measures improve; that cross reduces the chance of sustained upside without fresh buying interest.
MACD sits at 2.14 with the signal line at 1.62 and the MACD having crossed above its signal line, presenting a bullish momentum signal that supports short-term price lift and aligns with the recent price move above short-term averages.
MRO at 24.87 reads positive, indicating the price sits above the computed target and thus introduces the potential for mean reversion or consolidation after recent gains.
RSI at 53.54 with a dip-and-reversal pattern reflects a shift from weakness toward neutral-to-modest bullishness, consistent with the MACD crossover and supporting further short-term upside if volume confirms.
Price context: the last close of $235.71 trades above the 20-day average ($229.22), the 50-day average ($224.96) and the 200-day average ($202.83); price crosses above the -1x Bollinger band and the 12-day EMA sits below the price and is increasing, all of which favor a near-term bullish bias versus the multi-month base.
Ichimoku signals show the Chikou span above the cloud with Tenkan/Kijun levels near $220–$222, supporting that recent price strength carries above short-term equilibrium levels rather than sitting inside a clear downtrend.
Volume undercurrent reduces conviction: intraday volume (113,747) remains below the 10-day average (240,309) and the 200-day average (223,250), suggesting limited participation on the latest advance and leaving follow-through vulnerable to renewed order flow.
Fundamental Analysis
Revenue and margins: total revenue $504,985,000. YoY revenue growth registers at -26.73% (revenue growth year-over-year), while another revenue measure shows 13.65%; quarterly revenue growth measures show a strong QoQ move (133.49%). Gross margin equals 33.32% and operating margin equals 14.79% (operating margin QoQ +16.939%, YoY +13.26%), indicating operating leverage within recent periods.
Profitability: EBIT equals $73,022,000 with an EBIT margin of 14.46% (EBIT margin QoQ +14.299%, YoY +10.703%). That EBIT margin sits above the industry peer mean of 0.416% and close to the industry peer high of 15.207%, signaling relative outperformance on operating profitability versus peers on those measures.
Cash flow and liquidity: cash and short-term investments total $106,405,000 while operating cash flow reads $562,000 and free cash flow equals -$9,705,000 (free cash flow yield -0.259%). The cash conversion cycle stands at 209.01 days versus an industry peer mean of 142.35 days, indicating working-capital intensity that pressures free cash generation despite positive operating margins.
Balance sheet and leverage: total debt $649,634,000 with net debt $543,229,000. Debt-to-equity equals 0.68 and debt-to-EBITDA registers 7.74, reflecting elevated leverage versus operating cash generation that warrants monitoring even as interest coverage sits near 10.11x.
Returns and efficiency: return on equity 5.546%, return on assets 2.441%, and asset turnover 0.2337. Book value per share $56.65 and shares outstanding 16,788,617. Inventory days and receivables days remain extended (inventory 131 days; days sales outstanding 136 days), contributing to the long cash conversion cycle.
Valuation: forward EPS $2.4575 and forward P/E 87.46x. Enterprise value $4,290,157,368 versus market cap $3,746,928,368 yields an enterprise multiple of 51.11. Free cash flow dynamics and elevated leverage create a mixed picture versus headline margins. The current valuation as determined by WMDST: under-valued, reflecting margin strength, recent contract awards that lift near-term revenue visibility, and long-term cash-conversion pressures that weigh on cash generation.
MOST-RECENT QUARTERLY REPORT
| REPORT PERIOD ENDING: | 2025-06-30 |
| REPORT DATE: | 2025-08-20 |
| NEXT REPORT DATE: | 2025-11-19 |
| CASH FLOW | Begin Period Cash Flow | $ 95.8 M |
| Operating Cash Flow | $ 562.0 K | |
| Capital Expenditures | $ -10.27 M | |
| Change In Working Capital | $ -65.02 M | |
| Dividends Paid | — | |
| Cash Flow Delta | $ 10.6 M | |
| End Period Cash Flow | $ 106.4 M | |
| INCOME STATEMENT | REVENUE | |
| Total Revenue | $ 505.0 M | |
| Forward Revenue | $ 98.7 M | |
| COSTS | ||
| Cost Of Revenue | $ 336.7 M | |
| Depreciation | $ 10.9 M | |
| Depreciation and Amortization | $ 10.9 M | |
| Research and Development | $ 18.8 M | |
| Total Operating Expenses | $ 430.3 M | |
| PROFITABILITY | ||
| Gross Profit | $ 168.2 M | |
| EBITDA | $ 83.9 M | |
| EBIT | $ 73.0 M | |
| Operating Income | $ 74.7 M | |
| Interest Income | — | |
| Interest Expense | $ 7.2 M | |
| Net Interest Income | $ -7.22 M | |
| Income Before Tax | $ 65.8 M | |
| Tax Provision | $ 13.1 M | |
| Tax Rate | 19.833 % | |
| Net Income | $ 52.7 M | |
| Net Income From Continuing Operations | $ 52.7 M | |
| EARNINGS | ||
| EPS Estimate | — | |
| EPS Actual | — | |
| EPS Difference | — | |
| EPS Surprise | — | |
| Forward EPS | $ 2.46 | |
| BALANCE SHEET | ASSETS | |
| Total Assets | $ 2.2 B | |
| Intangible Assets | $ 570.7 M | |
| Net Tangible Assets | $ 380.4 M | |
| Total Current Assets | $ 1.4 B | |
| Cash and Short-Term Investments | $ 106.4 M | |
| Cash | $ 106.4 M | |
| Net Receivables | $ 837.7 M | |
| Inventory | $ 407.2 M | |
| Long-Term Investments | $ 121.0 M | |
| LIABILITIES | ||
| Accounts Payable | $ 205.2 M | |
| Short-Term Debt | $ 186.1 M | |
| Total Current Liabilities | $ 696.9 M | |
| Net Debt | $ 543.2 M | |
| Total Debt | $ 649.6 M | |
| Total Liabilities | $ 1.3 B | |
| EQUITY | ||
| Total Equity | $ 951.1 M | |
| Retained Earnings | $ 942.3 M | |
| VALUATION & PER-SHARE METRICS | EQUITY & PER-SHARE METRICS | |
| Book Value Per-Share | $ 56.65 | |
| Shares Outstanding | 16.789 M | |
| Revenue Per-Share | $ 30.08 | |
| VALUATION | Market Capitalization | $ 3.7 B |
| Enterprise Value | $ 4.3 B | |
| Enterprise Multiple | 51.111 | |
| Enterprise Multiple QoQ | -8.712 % | |
| Enterprise Multiple YoY | 41.027 % | |
| Enterprise Multiple IPRWA | high: 111.411 OSIS: 51.111 mean: 45.767 median: 35.319 low: -59.365 |
|
| EV/R | 8.496 | |
| CAPITAL STRUCTURE | ||
| Asset To Equity | 2.357 | |
| Asset To Liability | 1.737 | |
| Debt To Capital | 0.406 | |
| Debt To Assets | 0.29 | |
| Debt To Assets QoQ | -4.134 % | |
| Debt To Assets YoY | 43.093 % | |
| Debt To Assets IPRWA | high: 0.44 mean: 0.339 median: 0.33 OSIS: 0.29 low: 0.012 |
|
| Debt To Equity | 0.683 | |
| Debt To Equity QoQ | -4.541 % | |
| Debt To Equity YoY | 50.395 % | |
| Debt To Equity IPRWA | high: 1.111 mean: 0.77 median: 0.751 OSIS: 0.683 low: 0.015 |
|
| PRICE-BASED VALUATION | ||
| Price To Book (P/B) | 3.94 | |
| Price To Book QoQ | 8.061 % | |
| Price To Book YoY | 41.462 % | |
| Price To Book IPRWA | high: 21.057 median: 21.057 mean: 18.354 OSIS: 3.94 low: 0.379 |
|
| Price To Earnings (P/E) | — | |
| Price To Earnings QoQ | — | |
| Price To Earnings YoY | — | |
| Price To Earnings IPRWA | — | |
| PE/G Ratio | — | |
| Price To Sales (P/S) | 7.42 | |
| Price To Sales QoQ | 2.846 % | |
| Price To Sales YoY | 48.385 % | |
| Price To Sales IPRWA | high: 276.515 median: 86.064 mean: 81.69 OSIS: 7.42 low: 1.022 |
|
| FORWARD MULTIPLES | ||
| Forward P/E | 87.463 | |
| Forward PE/G | — | |
| Forward P/S | 37.945 | |
| EFFICIENCY | OPERATIONAL | |
| Operating Leverage | 2.191 | |
| ASSET & SALES | ||
| Asset Turnover Ratio | 0.234 | |
| Asset Turnover Ratio QoQ | 10.744 % | |
| Asset Turnover Ratio YoY | -8.48 % | |
| Asset Turnover Ratio IPRWA | high: 0.269 OSIS: 0.234 mean: 0.112 median: 0.109 low: 0.015 |
|
| Receivables Turnover | 0.669 | |
| Receivables Turnover Ratio QoQ | 3.574 % | |
| Receivables Turnover Ratio YoY | -19.886 % | |
| Receivables Turnover Ratio IPRWA | high: 2.116 mean: 1.158 low: 1.089 median: 1.089 OSIS: 0.669 |
|
| Inventory Turnover | 0.796 | |
| Inventory Turnover Ratio QoQ | 19.2 % | |
| Inventory Turnover Ratio YoY | 2.453 % | |
| Inventory Turnover Ratio IPRWA | high: 1.15 median: 0.9 mean: 0.892 OSIS: 0.796 low: 0.353 |
|
| Days Sales Outstanding (DSO) | 136.42 | |
| CASH CYCLE | ||
| Cash Conversion Cycle Days (CCC) | 209.012 | |
| Cash Conversion Cycle Days QoQ | -8.712 % | |
| Cash Conversion Cycle Days YoY | 9.901 % | |
| Cash Conversion Cycle Days IPRWA | high: 236.465 OSIS: 209.012 median: 155.247 mean: 142.349 low: -56.81 |
|
| CAPITAL DEPLOYMENT | ||
| Cash Conversion Ratio | 0.696 | |
| CapEx To Revenue | -0.02 | |
| CapEx To Depreciation | -0.941 | |
| CAPITAL, LIQUIDITY & COVERAGE | CAPITAL STRUCTURE | |
| Total Capital | $ 1.4 B | |
| Net Invested Capital | $ 1.6 B | |
| Invested Capital | $ 1.6 B | |
| Net Tangible Assets | $ 380.4 M | |
| Net Working Capital | $ 725.9 M | |
| LIQUIDITY | ||
| Cash Ratio | 0.153 | |
| Current Ratio | 2.042 | |
| Current Ratio QoQ | -3.104 % | |
| Current Ratio YoY | 36.826 % | |
| Current Ratio IPRWA | high: 4.51 mean: 2.953 median: 2.952 low: 2.401 OSIS: 2.042 |
|
| Quick Ratio | 1.457 | |
| Quick Ratio QoQ | 5.591 % | |
| Quick Ratio YoY | 45.21 % | |
| Quick Ratio IPRWA | high: 4.112 median: 2.714 mean: 2.629 low: 1.569 OSIS: 1.457 |
|
| COVERAGE & LEVERAGE | ||
| Debt To EBITDA | 7.739 | |
| Cost Of Debt | 0.906 % | |
| Interest Coverage Ratio | 10.108 | |
| Interest Coverage Ratio QoQ | 47.946 % | |
| Interest Coverage Ratio YoY | 31.273 % | |
| Interest Coverage Ratio IPRWA | OSIS: 10.108 high: 3.807 median: -0.355 mean: -0.616 low: -25.467 |
|
| Operating Cash Flow Ratio | -0.055 | |
| TIMING / LIQUIDITY | ||
| Days Payables Outstanding (DPO) | 58.688 | |
| DIVIDENDS | ||
| Dividend Coverage Ratio | — | |
| Dividend Payout Ratio | — | |
| Dividend Rate | — | |
| Dividend Yield | — | |
| PERFORMANCE | GROWTH | |
| Asset Growth Rate | 7.701 % | |
| Revenue Growth | 13.645 % | |
| Revenue Growth QoQ | 133.487 % | |
| Revenue Growth YoY | -26.734 % | |
| Revenue Growth IPRWA | OSIS: 13.645 % high: 10.752 % median: 10.752 % mean: 9.735 % low: -3.559 % |
|
| Earnings Growth | — | |
| Earnings Growth QoQ | — | |
| Earnings Growth YoY | — | |
| Earnings Growth IPRWA | — | |
| MARGINS | ||
| Gross Margin | 33.315 % | |
| Gross Margin QoQ | -1.499 % | |
| Gross Margin YoY | 3.821 % | |
| Gross Margin IPRWA | high: 60.392 % median: 60.392 % mean: 56.129 % OSIS: 33.315 % low: 7.623 % |
|
| EBIT Margin | 14.46 % | |
| EBIT Margin QoQ | 14.299 % | |
| EBIT Margin YoY | 10.703 % | |
| EBIT Margin IPRWA | high: 15.207 % OSIS: 14.46 % mean: 0.416 % median: -1.525 % low: -9.685 % |
|
| Return On Sales (ROS) | 14.794 % | |
| Return On Sales QoQ | 16.939 % | |
| Return On Sales YoY | 13.26 % | |
| Return On Sales IPRWA | high: 15.336 % OSIS: 14.794 % mean: 1.606 % median: -0.155 % low: -9.179 % |
|
| CASH FLOW | ||
| Free Cash Flow (FCF) | $ -9.71 M | |
| Free Cash Flow Yield | -0.259 % | |
| Free Cash Flow Yield QoQ | -111.42 % | |
| Free Cash Flow Yield YoY | -85.158 % | |
| Free Cash Flow Yield IPRWA | high: 10.006 % mean: 0.0 % median: -0.199 % OSIS: -0.259 % low: -1.638 % |
|
| Free Cash Growth | -113.35 % | |
| Free Cash Growth QoQ | -258.122 % | |
| Free Cash Growth YoY | 256.615 % | |
| Free Cash Growth IPRWA | high: 45.951 % median: 33.357 % mean: -1.436 % OSIS: -113.35 % low: -118.386 % |
|
| Free Cash To Net Income | -0.184 | |
| Cash Flow Margin | -7.529 % | |
| Cash Flow To Earnings | -0.721 | |
| VALUE & RETURNS | ||
| Economic Value Added | $ 0.04 | |
| Return On Assets (ROA) | 2.441 % | |
| Return On Assets QoQ | 24.987 % | |
| Return On Assets YoY | 2.909 % | |
| Return On Assets IPRWA | OSIS: 2.441 % high: 0.84 % median: 0.587 % mean: 0.282 % low: -9.199 % |
|
| Return On Capital Employed (ROCE) | 4.728 % | |
| Return On Equity (ROE) | 0.055 | |
| Return On Equity QoQ | 18.555 % | |
| Return On Equity YoY | 7.19 % | |
| Return On Equity IPRWA | OSIS: 0.055 high: 0.021 median: 0.013 mean: 0.006 low: -0.219 |
|
| DuPont ROE | 5.763 % | |
| Return On Invested Capital (ROIC) | 3.657 % | |
| Return On Invested Capital QoQ | 14.496 % | |
| Return On Invested Capital YoY | -78.86 % | |
| Return On Invested Capital IPRWA | OSIS: 3.657 % high: 1.871 % median: -0.17 % mean: -0.254 % low: -11.104 % |
|