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Upturn AI Summary - About
OSI Systems Inc(OSIS)
Advisory History & Simulated Performance *
*as per simulation (see disclosures)- ALL
- 1Y
- 1M
- 1W
- BUY Advisory
- SELL Advisory (Profit)
- SELL Advisory (Loss)
- Profit
- Loss
- PASS (Skip)
Advisory Performance History (Simulated)
Upturn Advisory & Investor View for OSIS
09/25/2026: OSIS (1-star) is currently NOT-A-BUY. Pass it for now.
OSI Systems is a specialized provider of electronic instrumentation, primarily serving the security and healthcare sectors. The company is known for its durable Rapiscan security systems and Spacelabs healthcare monitoring, which benefit from long-term service contracts and a substantial installed base. Its primary growth opportunity lies in upgrading existing infrastructure with AI-driven diagnostic and screening software. Key risks include heavy reliance on government budgets, intense competition from global industrial conglomerates, and cyclical exposure in aviation markets. The stock is best suited for growth-oriented investors who can monitor ongoing contract win cycles and the execution of its multi-segment business strategy.
How to Read the Upturn Advisory
The Upturn Star Rating and the current BUY, SELL, or PASS advisory are generated by Upturn’s AI advisory engine based on proprietary signal analysis, price behavior, advisory history, and historical signal performance.
Company fundamentals, valuation, risks, and news provide supporting context about the business.
Investor Fit
| Investor style | Fit | Why |
|---|---|---|
| Growth investor | Strong fit | The company targets consistent revenue growth through market-leading positions in security and medical infrastructure. |
| Momentum investor | Mixed fit | Momentum is conditional on positive price trends and sustained contract win announcements. |
| Value investor | Strong fit | The stock often trades at valuations reflective of its solid cash flow and market position. |
| Dividend investor | Weak fit | OSI Systems does not pay a dividend, making it unsuitable for income-focused portfolios. |
| Low-risk investor | Mixed fit | While government contracts provide stability, exposure to global security cycles introduces periodic volatility. |
Risk Profile
| Risk factor | Level | Why it matters |
|---|---|---|
| Price volatility | Medium / high | The stock can react sharply to government contract awards and defense budget news. |
| Valuation risk | Medium | Investors must weigh current earnings growth against the potential for multiple compression. |
| Competition risk (Defense/Healthcare) | High | Competing against massive conglomerates like Leidos and GE requires constant innovation. |
| Business quality | Strong | A long-term history of profitability and high recurring service revenue signals a durable franchise. |
| Dividend income | Low / none | This stock is not designed to provide regular cash flow to investors. |
| Execution risk | Medium | Successfully delivering large-scale international security projects involves significant logistical complexity. |
Price Behavior

Steep Decline
The stock price has dropped sharply with strong downward pressure.

Moderately Choppy
The stock has experienced noticeable price swings while retaining some directional structure.
Analysis of Past Performance
Type Stock | Historic Profit -45.9% | Avg. Invested days 31 | Today’s Advisory PASS |
Upturn Advisory Rating ![]() | Upturn Advisory Performance | Stock Returns Performance |
Upturn Scorecard
Upturn Star Rating 
Company Fundamentals 
Financial Health Rating 
Growth Momentum Score 
Ownership 
Top 5 Institutional Investors
Unit Economics (Per $1K Revenue) 
Economic Dimensions
Quantitative Style Profile 
Style Classification
Quality Focused
Key Highlights
Company Size Mid-Cap Stock | Market Capitalization 3.14B USD | Price to earnings Ratio 22.04 | 1Y Target Price 278.29 |
Price to earnings Ratio 22.04 | 1Y Target Price 278.29 | ||
Volume (30-day avg) 303.1K shares | Beta 1.2 | 52 Weeks Range 186.50 - 311.72 | Updated Date 09/27/2026 |
52 Weeks Range 186.50 - 311.72 | Updated Date 09/27/2026 | ||
Dividends yield (FY) - | Basic EPS (TTM) 8.95 |
How Company Makes Money
| Business area | What it includes | Retail investor read |
|---|---|---|
| Security | Checkpoint, cargo, and vehicle inspection systems. | Selling the hardware and long-term service needed to keep borders and airports secure. |
| Healthcare | Patient monitoring and cardiology diagnostics. | Providing essential technology for hospital monitoring of critical-care patients. |
| Optoelectronics | High-tech sensors for industrial/aerospace. | Selling the specialized components that power complex electronic machinery. |
Analyzing Revenue: Products, Geography and Growth
Revenue by Products
Product revenue - Year on Year
Revenue by Geography
Geography revenue - Year on Year
Valuation
Trailing PE 22.04 | Forward PE 17.83 | Enterprise Value 3.84B | Price to Sales(TTM) 1.76 |
Enterprise Value 3.84B | Price to Sales(TTM) 1.76 | ||
Enterprise Value to Revenue 2.17 | Enterprise Value to EBITDA 14.82 | Shares Outstanding 15.94M | Shares Floating 14.98M |
Shares Outstanding 15.94M | Shares Floating 14.98M | ||
Percent Insiders 4.87 | Percent Institutions 124.72 |
Upturn AI Summary
AI Summarization is directionally correct and might not be accurate.
Summarized information shown could be a few years old and not current.
Fundamental Rating based on AI could be based on old data.
AI-generated summaries may have inaccuracies (hallucinations). Please verify the information before taking action.
Financial Metrics
🧭 Investment Snapshot
Total Revenue (Scale)
Total money earned from selling products or services before any costs. It is needed to understand the scale of the business and its ability to generate income.
Net Income (Profit)
Final profit after all expenses, interest, and taxes are deducted. It is needed to determine the overall profitability available to shareholders.
Free Cash Flow (Cash Strength)
Cash remaining after operating activities and capital expenditures, showing cash available for growth. It is needed to evaluate the company’s ability to invest, pay dividends, or reduce debt.
📈 Growth & Strength
Operating Income (Core Profit)
Profit from core operations after deducting all operating expenses. It is needed to measure how efficiently the company runs its primary business activities.
EBITDA (Cash Earnings)
Earnings before interest, taxes, depreciation, and amortization, indicating operating cash potential. It is needed to compare operating performance across companies without accounting or financing differences.
Gross Profit (Unit Profitability)
Revenue minus cost of revenue, showing profit after direct production costs. It is needed to evaluate core business profitability before overhead expenses.
🛡️ Financial Safety
Cash (Liquidity Buffer)
Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.
Total Debt (Leverage Risk)
Total debt including both short-term and long-term components. It is needed to assess the company’s leverage and financial risk.
Net Working Capital (Short-Term Health)
Current assets minus current liabilities, indicating short-term liquidity strength. It is needed to assess whether the company can meet its short-term obligations.
🧱 Balance Sheet Strength
Stockholder Equity (Net Worth)
Total equity value held by shareholders. It is needed to understand the net worth of the company from the owners’ perspective.
Total Assets (Asset Base)
The full value of everything the company owns, including cash, inventory, equipment, and investments. It is needed to understand the resource base used to generate revenue.
Income Before Tax (Pre-Tax Earnings)
Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.
⚙️ Cost & Drag Factors
Cost of Revenue (Production Cost)
Direct costs required to produce and deliver the products or services sold. It is needed to assess efficiency in production and service delivery.
Total Operating Expenses (Operating Cost)
Indirect costs of running the business such as salaries, marketing, and administration. It is needed to understand how much it costs to sustain ongoing business operations.
Income Tax Expense (Tax Drag)
Amount of taxes paid or payable to the government. It is needed to evaluate the impact of taxation on overall profitability.
About OSI Systems Inc
Exchange NASDAQ | Headquarters Hawthorne, CA, United States | ||
IPO Launch date 1997-10-02 | President, CEO & Director Mr. Ajay Mehra | ||
Sector Technology | Industry Electronic Components | Full time employees 7806 | Website https://www.osi-systems.com |
Full time employees 7806 | Website https://www.osi-systems.com | ||
OSI Systems, Inc. designs and manufactures specialized electronic systems and components for critical applications in the United States, Mexico, the rest of Americas, the United Kingdom, Europe, the Middle East, Africa, and the Asia-Pacific. The company offers security products, such as baggage and parcel inspection, cargo and vehicle inspection, hold baggage screening, people screening, radiation monitoring, explosive and narcotics trace detection, and optical inspection systems; turnkey security screening services for enterprise inspection process integration, operator training, and the staffing and operation of security screening checkpoints under the S2 brand. It also provides trace detection systems for trace amounts of explosives and narcotics and people screening products, including walk-through metal detectors for use at security checkpoints at airports, government buildings, sports arenas, and other venues; digital and analog high-power RF systems; and active components for detection of lights of different wavelengths and converts light into electrical signals. In addition, the company offers devices for emitting light in the form of lasers; passive components for amplifying, separating, and reflecting light under the OSI Optoelectronics brand; and printed circuit board assemblies, cable and harness assemblies, and complete systems. Further, it provides bedside monitors, such as the Xprezzon and Qube, as well as telemetry solutions; Spacelabs SafeNSound for assisting hospitals; predictive analytics clinical decision support solutions; Pathfinder SL and Lifescreen Pro analysis tools; and Eclipse Pro Holter recorders. Additionally, the company offers Eclipse Mini Ambulatory ECG recorders; ambulatory blood pressure monitors; Spacelabs OnTrak ambulatory blood pressure systems; Sentinel, a cardiology information management system; and multivendor compatible accessories. OSI Systems, Inc. was incorporated in 1987 and is headquartered in Hawthorne, California.

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