OSI Systems Inc

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OSIS : NASDAQ : Industrial Goods
$59.47 | %
Today's Range: 58.42 - 59.59
Avg. Daily Volume: 204,800
07/29/16 - 4:00 PM ET

Financial Analysis


OSI SYSTEMS INC's gross profit margin for the third 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 0.63 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 ($mil)210.8215.38
EBITDA ($mil)29.8835.44
EBIT ($mil)15.3822.08
Net Income ($mil)9.3413.23


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)97.4349.04
Total Assets ($mil)1075.31005.93
Total Debt ($mil)134.5317.84
Equity ($mil)532.12557.26


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin40.1139.92
EBITDA Margin14.1716.45
Operating Margin7.310.25
Sales Turnover0.810.95
Return on Assets3.966.44
Return on Equity8.0211.63
Debt Q3 FY16 Q3 FY15
Current Ratio1.592.04
Debt/Capital0.20.03
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)18.8919.81
Div / share0.00.0
EPS0.470.64
Book value / share28.1628.13
Institutional Own % n/a n/a
Avg Daily Volume245481.0289531.0

Valuation


HOLD. The current P/E ratio indicates a discount compared to an average of 30.89 for the Electronic Equipment, Instruments & Components industry and a premium compared to the S&P 500 average of 25.05. For additional comparison, its price-to-book ratio of 2.11 indicates a discount versus the S&P 500 average of 2.81 and a discount versus the industry average of 2.53. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
OSIS 28.24 Peers 30.89   OSIS 19.55 Peers 13.16

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
OSIS 23.72 Peers 18.72   OSIS NM Peers 3.15

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
OSIS 2.11 Peers 2.53   OSIS -33.34 Peers -21.26

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
OSIS 1.28 Peers 2.27   OSIS -8.09 Peers 19.06

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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