/
OSI Systems, Inc., together with our subsidiaries, is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications. We sell our products and provide related services in diversified markets, including homeland security, healthcare, defense and aerospace.
$212.66
$3.56 (-1.65%)
EOD Jul 17, 2026
12.70% operating margin is respectable but not wide. ROIC at 14.56%. Suggests the business covers its cost of capital, but doesn't point to a wide moat.
Revenue grew 11.3%, still solid.
Net debt of $398M represents 5.4x FCF, leverage limits flexibility.
24.2x earnings, 54.9x FCF. Valuation is in a reasonable range. The main question is whether the business can re-accelerate or if current trajectory is already priced in.
Based on TTM earnings · Diluted shares
Profitability & Returns
Revenue (TTM)
$1.81B
▲ +11.3% YoY
Net Income (TTM)
$152M
▲ +16.8% YoY
Op. Margin
12.07%
▲ +0.4pp YoY
ROIC
10.83%
▼ -1.6pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$67M
▲ +167.3% YoY
Op. Cash Flow (TTM)
$94M
▲ +211.5% YoY
Net Debt
$700M
Cash & Equiv.
$345M
5Y CAGR: +8.0%
5Y CAGR: -7.4%
Continue Research
At a P/E of 24.2 and a price-to-free-cash-flow of 54.9, Osi Systems (OSIS) trades above a two-stage DCF intrinsic value of about $26.63 per share, so at $212.66 the stock looks overvalued (87.5% above estimated intrinsic value). A high multiple is not the same as overvalued: fast-growing, high-quality businesses can deserve a premium. See the general approach in how to tell if a stock is overvalued.
On quality, Osi Systems scores 69/100 on Intrinsiqq's quality scorecard (a solid business on these measures), weighing growth, margins, returns on capital, share count, and balance-sheet strength. All figures are computed from SEC filings; read the full methodology. This is analysis, not investment advice.
Intrinsiqq's two-stage DCF estimates an intrinsic value of about $26.63 per share for OSIS, projecting its recent free cash flow forward with a growth rate that fades toward a long-run rate and discounting it back to today. Applying a 25% margin of safety gives a more conservative fair-value entry around $19.97. At today's $212.66, that puts the stock about 87.5% above estimated intrinsic value. The result is sensitive to the growth and discount-rate inputs, so it is best to run conservative, base and optimistic cases. You can adjust all of them yourself with the sliders on the DCF tab.
Osi Systems scores 69 out of 100 on Intrinsiqq's quality score, a weighted blend of 8 metrics each scored 0 to 100, which makes it a solid business on these measures. Recent fundamentals include a 12.1% operating margin and a 10.8% return on invested capital. The score weighs revenue and free-cash-flow growth, operating margins, return on invested capital, share-count change, and balance-sheet strength, all computed from SEC filings, not opinion. Because valuation only means something relative to quality, the full metric-by-metric breakdown is on the quality scorecard.
That depends on valuation and quality together, not either alone. OSIS currently trades above its estimated intrinsic value and scores 69/100 on quality (solid). A cheap price is only a bargain if the business is durable, and a premium can be justified by genuine quality, so the two questions, "is it cheap?" and "is it good?", only make sense side by side. Read the valuation against the quality scorecard, run the DCF on your own assumptions, and decide for yourself. This is analysis from SEC filings, not investment advice.