OSI SYSTEMS INC's gross profit margin for the second quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. OSI SYSTEMS INC has weak liquidity. Currently, the Quick Ratio is 0.78 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.85% 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 FY16||Q2 FY15|
|Net Sales ($mil)||197.34||257.83|
|Net Income ($mil)||0.11||18.24|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||79.79||44.78|
|Total Assets ($mil)||1010.39||1056.66|
|Total Debt ($mil)||65.01||35.22|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||41.58||40.19|
|Return on Assets||4.6||5.33|
|Return on Equity||8.2||10.42|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||19.76||19.79|
|Div / share||0.0||0.0|
|Book value / share||28.73||27.35|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||275157.0||124387.0|
HOLD. The current P/E ratio indicates a discount compared to an average of 24.81 for the Electronic Equipment, Instruments & Components industry and a premium compared to the S&P 500 average of 21.13. For additional comparison, its price-to-book ratio of 1.96 indicates a discount versus the S&P 500 average of 2.51 and a discount versus the industry average of 2.28. The price-to-sales ratio is 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 24.75||Peers 24.81||OSIS 17.34||Peers 11.60|
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.
Premium. 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 premium to its peers.
|OSIS 15.31||Peers 21.54||OSIS NM||Peers 1.11|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
OSIS is trading at a discount 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 1.96||Peers 2.28||OSIS -17.16||Peers 22.67|
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 1.26||Peers 1.75||OSIS -6.48||Peers 6.21|
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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