OSI Systems Inc. Common Stock (DE) (OSIS)

FairStock Score: 46/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for businesses that earn good returns on capital and sell at a sensible price. OSI Systems makes specialized security screening equipment for borders, baggage, and cargo—mission-critical gear with switching costs once installed. The numbers show a decent, not spectacular, enterprise. In fiscal 2026, the year ended 2026-06-30, revenue was $1.8B, net income $154.7M, and diluted EPS $8.95. A year earlier, revenue was $1.7B, net income $149.6M, and EPS $8.71, so profits grew only modestly. The latest quarter, fiscal Q4 2026 ended 2026-06-30, had revenue of $484.1M and net income of $55.2M. Over five years, the Lynch category says profits grew 15.9% annually and revenue 9.3%, a steady record. Financial health is mixed. Trailing free cash flow was $227.4M, a 7.3% yield on the $3.1B market cap, and ROE was 17.34%. But debt-to-equity of 1.26, an Altman Z-Score of 2.42, and ROCE of 5.94% suggest capital intensity and leverage. Piotroski 7/9 is respectable. Valuation is the rub. At the 2026-10-13 close of $194.70, the P/E is 21.75 and P/B is 3.72. The Graham Number is $102.65, leaving a negative margin of safety of -89.67%. PEG is 9.33 and EV/EBITDA 14.32. I would want a larger discount to conservative value before calling it a bargain. The business is steady and cash-generative, but the price already reflects much of that.

In plain English: OSI Systems makes specialized security screening equipment used at airports, borders, and cargo sites. The business looks steady and generates cash, but profit growth has been slow and it uses a fair amount of debt. At the recent price, the stock looks expensive compared with a conservative estimate of the company's value, even though cash flow is solid.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q4 2026 10-K (period ended 2026-06-30) · fiscal Q3 2026 10-K (period ended 2026-03-31) · fiscal Q2 2026 10-K (period ended 2025-12-31) · fiscal Q1 2026 10-K (period ended 2025-09-30) · FY2026 10-K (period ended 2026-06-30) · FY2025 10-K (period ended 2025-06-30) · FY2024 10-K (period ended 2024-06-30)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer