OSI SYSTEMS INC's gross profit margin for the third quarter of its fiscal year 2016 has decreased when compared to the same period a year ago. Sales and net income have dropped, although the growth in revenues underperformed the average competitor within the industry, the net income growth did not. OSI SYSTEMS INC has weak liquidity. Currently, the Quick Ratio is 0.63 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 remained virtually unchanged only decreasing by 4.51% 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||Q3 FY16||Q3 FY15|
|Net Sales ($mil)||210.8||215.38|
|Net Income ($mil)||9.34||13.23|
|Balance Sheet||Q3 FY16||Q3 FY15|
|Cash & Equiv. ($mil)||97.43||49.04|
|Total Assets ($mil)||1075.3||1005.93|
|Total Debt ($mil)||134.53||17.84|
|Profitability||Q3 FY16||Q3 FY15|
|Gross Profit Margin||33.23||39.92|
|Return on Assets||3.96||6.44|
|Return on Equity||8.02||11.63|
|Debt||Q3 FY16||Q3 FY15|
|Share Data||Q3 FY16||Q3 FY15|
|Shares outstanding (mil)||19.76||19.81|
|Div / share||0.0||0.0|
|Book value / share||26.93||28.13|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||258492.0||251768.0|
HOLD. OSI SYSTEMS INC's P/E ratio indicates a discount compared to an average of 29.50 for the Electronic Equipment, Instruments & Components industry and a value on par with the S&P 500 average of 23.99. For additional comparison, its price-to-book ratio of 1.88 indicates a discount versus the S&P 500 average of 2.74 and a discount versus the industry average of 2.48. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, OSI SYSTEMS INC proves to trade at a discount to investment alternatives within the industry.
|OSIS 24.09||Peers 29.50||OSIS NA||Peers 13.93|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
OSIS is trading at a discount to its peers.
Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.
Ratio not available.
|OSIS 19.38||Peers 18.68||OSIS NM||Peers 1.22|
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 significant premium to its peers.
Neutral. 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's negative PEG ratio makes this valuation measure meaningless.
|OSIS 1.88||Peers 2.48||OSIS -33.34||Peers 4.03|
Discount. 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 discount to 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.
|OSIS 1.14||Peers 2.19||OSIS -8.09||Peers 1.99|
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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