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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#1389
Positioning
Market Dominance
Manufacturing
Electronic Equipment
$4.3B
Deepak Chopra
OSI Systems, Inc. designs, manufactures, and sells electronic systems and components. It operates through three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The Security segment offers baggage and parcel inspection, cargo and vehicle inspection, radiation detection, and radiation detection. The Healthcare segment offers patient monitoring and diagnostic cardiology systems, and related supplies and accessories under Spacelabs name.
Headcount
6.3K
HQ Base
Hawthorne, California
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = OSIS ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$UL UNILEVER PLC | 78 | 96 | 98 | 59 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ASML ASML HOLDING NV | 77 | 89 | 86 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ESLT ELBIT SYSTEMS LTD | 76 | 81 | 87 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$MT ArcelorMittal | 75 | 71 | 98 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$AMAT APPLIED MATERIALS INC /DE | 75 | 85 | 87 | 84 | 20.9x | 13.6x | 32.9% | 20.5% | 48.8% | 30.6% | 24.4% | 7.7% | 0.9% | 32.0x | $148.6B | VS | |
$SIMO Silicon Motion Technology CORP | 75 | 84 | 86 | 85 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$CODA Coda Octopus Group, Inc. | 74 | 83 | 90 | 79 | 16.3x | 11.9x | 7.4% | 7.5% | 68.3% | 19.5% | 18.2% | 29.0% | 0.0% | 0.0x | $84M | VS | |
$GSK GSK plc | 74 | 84 | 90 | 70 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$EFXT Enerflex Ltd. | 74 | 80 | 91 | 83 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$BUD Anheuser-Busch InBev SA/NV | 74 | 84 | 97 | 63 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$OSIS OSI SYSTEMS INC | 54 | 58 | 59 | 63 | 34.9x | 28.3x | 16.4% | 5.5% | 33.4% | 11.9% | 8.0% | 34.9% | 0.0% | 119.0x | $4.3B | ||
| SECTOR BENCH | - | - | - | - | - | 22.3x | 11.5x | -1.9% | 0.9% | 44.1% | 2.5% | 1.0% | 6.7% | 0.0% | 0.2x | - | REF |
OSI SYSTEMS INC (OSIS) receives a "Hold" rating with a composite score of 54.0/100. It ranks #1389 out of 7,333 stocks in our coverage universe and carries a 3-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Outperforming peers — winners tend to keep winning over 3-12 months
Fair valuation relative to peers
Average quality profile
Low volatility — smoother ride and historically better risk-adjusted returns
Aggressive spending — empire-building risk, dilutive growth
Mid-range overall rating
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Relative valuation derived from Manufacturing sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for OSIS.
View All RatingsROE proxy 16.4% (sector -1.9%)
GM 33% vs sector 44%, OM 12% vs sector 3%
Capital turnover N/A, R&D intensity 4.7%
Rev growth 35%, 11yr history
Interest coverage N/A
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate OSI SYSTEMS INC (OSIS) as a Hold with a composite score of 54.0/100 at a current price of $298.09. The stock presents a mixed quantitative picture — neither compelling enough to warrant new accumulation nor weak enough to justify selling.
OSI SYSTEMS INC holds a top-quartile position (#0 of 50) within the Manufacturing sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 54.0/100 places it at rank #1389 in our full universe.
The near-term outlook is constructive, with revenue growing at 35% and momentum in the 63th percentile confirming positive market sentiment. The combination of strong top-line growth and favorable price dynamics suggests the company is executing well on its growth strategy.
Narrow
Medium
Poor
Fair Value
Returns on equity of 16.4% exceed cost of capital.
Stable competitive position in a defensive sector.
Leverage of 119% D/E amplifies downside risk.
Vulnerability to macroeconomic shocks and interest rate volatility.
OSI SYSTEMS INC represents a hold based on multi-factor quantitative performance.
Our model assigns OSI SYSTEMS INC a Hold rating, with a composite score of 54.0/100 and 3 out of 5 stars. Ranked #1389 of 7,333 stocks, OSIS presents a mixed quantitative picture — neither compelling enough to initiate new positions nor weak enough to warrant selling. Investors already holding may consider maintaining their position while monitoring for changes in the factor profile.
With a quality score of 58/100, OSIS shows adequate but unremarkable business quality. The company reports a return on equity of 16.4% (sector avg: -1.9%), gross margins of 33.4% (sector avg: 44.1%), net margins of 8.0% (sector avg: 1.0%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
OSIS's value score of 59/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 34.91x, an EV/EBITDA of 28.29x, a P/B ratio of 5.71x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
OSI SYSTEMS INC's investment score of 28/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 34.9% vs. a sector average of 6.7% and a return on assets of 5.5% (sector: 0.9%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
OSIS demonstrates moderate momentum with a score of 63/100, suggesting a neutral price trend without strong directional conviction. Revenue growth stands at 34.9% year-over-year, while a beta of 1.17 reflects its sensitivity to broader market moves. Moderate momentum may indicate the stock is consolidating or transitioning between trends, warranting close monitoring of upcoming catalysts.
OSIS shows good financial stability with a score of 70/100. Key stability metrics include a beta of 1.17 and a debt-to-equity ratio of 119.00x (sector avg: 0.2x). This suggests manageable leverage and moderate price volatility, making it appropriate for investors seeking a balance between growth potential and capital preservation.
OSI SYSTEMS INC's short interest score of 26/100 reveals significant bearish positioning, suggesting institutional investors are actively betting against the stock. Specific risk factors include elevated leverage (D/E: 119.00x). At $4.3B (mid-cap), OSIS carries meaningful risk and is best suited for investors with high risk tolerance who have thoroughly evaluated the bear thesis.
OSI SYSTEMS INC is a mid-cap company in the Manufacturing sector, ranked #0 of 50 in its sector (100th percentile) and #1389 of 7,333 overall (81st percentile). Key comparisons include ROE of 16.4% exceeding the -1.9% sector median and operating margins of 11.9% above the 2.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Manufacturing peers.
While OSIS currently exhibits a HOLD profile, superior opportunities exist within the MANUFACTURING sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Manufacturing Alpha →Quant Factor Profile
Key factor gap
Stability (70) vs Short Int. (26) — closing this gap could shift the rating.
EV/EBITDA 147% ABOVE SECTOR MEDIAN
ROE 961% BELOW SECTOR MEDIAN
Gross Margin 24% BELOW SECTOR MEDIAN
Above 50MA
37.18%
Net New Highs
+51081
OSI Systems, Inc. (NASDAQ:OSIS) is among the 9 Best Video Surveillance and Private Security Stocks to Buy. OSI Systems, Inc. (NASDAQ:OSIS) is one of the best video surveillance stocks. TheFly reported on February 2 that JPMorgan increased its price target for OSIS to $262 from $255 and maintained a Neutral rating on the stock. Separately, […]
OSI Systems reported record revenue of $504.99 million and non-GAAP EPS of $3.24 in Q4 2025, exceeding analyst expectations. The Security division drove strong performance, while the Healthcare division remained weak. Management provided positive fiscal 2026 guidance with projected revenue growth of 5.4% to 8.0%.
OSI (OSIS) could be a great choice for investors looking to make a profit from fundamentally strong stocks that are currently on the move. It is one of the several stocks that made it through our "Recent Price Strength" screen.
OSI Systems, a maker of X-ray and metal detector equipment, reported positive free cash flow for the first time in a year, with record revenues and earnings that beat Wall Street estimates. The company also raised its sales and earnings growth guidance for the fiscal year.