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OSI Systems Inc
OSIS : NASDAQ : Industrial Goods
$74.97 | %
Today's Range: 74.68 - 75.88
Avg. Daily Volume: 126,300
04/17/15 - 3:59 PM ET

Financial Analysis


OSI SYSTEMS INC's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. OSI SYSTEMS INC has weak liquidity. Currently, the Quick Ratio is 0.68 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 9.74% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q2 FY15 Q2 FY14
Net Sales ($mil)257.83236.41
EBITDA ($mil)42.4837.75
EBIT ($mil)28.1424.21
Net Income ($mil)18.2414.57


Balance Sheet Q2 FY15 Q2 FY14
Cash & Equiv. ($mil)44.7839.9
Total Assets ($mil)1056.66935.27
Total Debt ($mil)35.2274.7
Equity ($mil)541.32493.26


Profitability Q2 FY15 Q2 FY14
Gross Profit Margin40.1939.97
EBITDA Margin16.4715.96
Operating Margin10.9110.24
Sales Turnover0.890.93
Return on Assets5.334.95
Return on Equity10.429.39
Debt Q2 FY15 Q2 FY14
Current Ratio1.831.77
Debt/Capital0.060.13
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY15 Q2 FY14
Shares outstanding (mil)19.7919.93
Div / share0.00.0
EPS0.890.71
Book value / share27.3524.75
Institutional Own % n/a n/a
Avg Daily Volume128238.0160539.0

Valuation


BUY. OSI SYSTEMS INC's P/E ratio indicates a premium compared to an average of 24.99 for the Electronic Equipment, Instruments & Components industry and a premium compared to the S&P 500 average of 20.44. To use another comparison, its price-to-book ratio of 2.72 indicates valuation on par with the S&P 500 average of 2.82 and a discount versus the industry average of 2.87. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
OSIS 27.13 Peers 24.99   OSIS 12.83 Peers 21.35

Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.

OSIS is trading at a valuation on par with its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

OSIS is trading at a significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
OSIS 19.01 Peers 18.01   OSIS 0.51 Peers 4.67

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

OSIS is trading at a premium to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

OSIS trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
OSIS 2.72 Peers 2.87   OSIS 21.23 Peers 29.23

Average. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

OSIS is trading at a valuation on par with its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, OSIS is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
OSIS 1.56 Peers 2.27   OSIS 8.20 Peers 13.17

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

OSIS is trading at a significant discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

OSIS significantly trails its peers on the basis of sales growth

 

 

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