OSI Systems Inc.

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OSIS : NASDAQ : Electronic Technology
$64.48 -0.76 | -1.2%
Today's Range: 64.2 - 66.35
Avg. Daily Volume: 378300.0
03/23/18 - 3:04 PM ET

Financial Analysis

OSI SYSTEMS INC's gross profit margin for the second quarter of its fiscal year 2018 has increased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. OSI SYSTEMS INC has weak liquidity. Currently, the Quick Ratio is 0.89 which shows a lack of ability to cover short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 2.57% 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 FY18 Q2 FY17
Net Sales ($mil)277.53242.55
EBITDA ($mil)46.9135.18
EBIT ($mil)25.6318.43
Net Income ($mil)-46.954.83

Balance Sheet Q2 FY18 Q2 FY17
Cash & Equiv. ($mil)211.97138.25
Total Assets ($mil)1346.761258.01
Total Debt ($mil)442.46356.49
Equity ($mil)530.07544.11

Profitability Q2 FY18 Q2 FY17
Gross Profit Margin44.2940.96
EBITDA Margin16.914.5
Operating Margin9.237.6
Sales Turnover0.770.71
Return on Assets-1.571.64
Return on Equity-4.03.81
Debt Q2 FY18 Q2 FY17
Current Ratio1.551.07
Interest Expense0.00.0
Interest Coverage0.00.0

Share Data Q2 FY18 Q2 FY17
Shares outstanding (mil)18.9819.09
Div / share0.00.0
Book value / share27.9328.5
Institutional Own % n/a n/a
Avg Daily Volume402635.0401305.0


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. To use another comparison, its price-to-book ratio of 2.39 indicates a discount versus the S&P 500 average of 3.28 and a significant discount versus the industry average of 4.02. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, OSI SYSTEMS INC proves to trade at a discount to investment alternatives within the industry.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
OSIS NM Peers 55.81   OSIS 9.72 Peers 20.59

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

OSIS's P/E is negative making this valuation measure meaningless.


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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
OSIS 17.24 Peers 21.45   OSIS NA Peers 1.42

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.

Ratio not available.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
OSIS 2.39 Peers 4.02   OSIS -209.52 Peers -1.10

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 significant 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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
OSIS 1.23 Peers 3.22   OSIS 15.24 Peers 14.86

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.


Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

OSIS is keeping pace with its peers on the basis of sales growth.



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