OSI Systems Inc logo

OSI Systems Inc(OSIS)

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ADVISORIES YOU CAN VERIFY
QUALITY SIGNAL
1-STAR RATING
PASS
LAST CLOSE
$197.24
09/25/2026
(24-hour delay)

Advisory History & Simulated Performance *

*as per simulation (see disclosures)
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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 styleFitWhy
Growth investorStrong fitThe company targets consistent revenue growth through market-leading positions in security and medical infrastructure.
Momentum investorMixed fitMomentum is conditional on positive price trends and sustained contract win announcements.
Value investorStrong fitThe stock often trades at valuations reflective of its solid cash flow and market position.
Dividend investorWeak fitOSI Systems does not pay a dividend, making it unsuitable for income-focused portfolios.
Low-risk investorMixed fitWhile government contracts provide stability, exposure to global security cycles introduces periodic volatility.

Risk Profile

Risk factorLevelWhy it matters
Price volatilityMedium / highThe stock can react sharply to government contract awards and defense budget news.
Valuation riskMediumInvestors must weigh current earnings growth against the potential for multiple compression.
Competition risk (Defense/Healthcare)HighCompeting against massive conglomerates like Leidos and GE requires constant innovation.
Business qualityStrongA long-term history of profitability and high recurring service revenue signals a durable franchise.
Dividend incomeLow / noneThis stock is not designed to provide regular cash flow to investors.
Execution riskMediumSuccessfully delivering large-scale international security projects involves significant logistical complexity.

Price Behavior

Steep Decline
PRICE PATH

Steep Decline

The stock price has dropped sharply with strong downward pressure.

Moderately Choppy
PRICE STABILITY

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 star rating icon
Upturn Advisory Performance Upturn Advisory Performance icon 2.0
Stock Returns Performance Upturn Returns Performance icon 1.0
Upturn Profits based on simulation icon Profits based on simulation
Upturn last close icon Last Close 09/25/2026

Upturn Scorecard

Upturn Star Rating

★★★★★
OSIS receives a 4-star rating, supported by solid company fundamentals, and solid analyst coverage. The rating is constrained by weak price momentum.

Company Fundamentals

★★★★★
OSIS has solid overall fundamentals (4 stars), with moderate financial health, solid growth momentum, and solid ownership. In FY2026 versus FY2025, moderate earnings growth (+3.4%) and solid cash generation (FCF margin 13.7%) are partially offset by moderate revenue growth (+4.3%), soft profitability (net margin 8.7%), modest insider ownership of 4.87%.

Financial Health Rating

★★★★★
OSIS's financial health is supported by solid liquidity, including working-capital and asset support (WC/assets 44.0%). Profitability is moderate (3 stars), which helps explain the 3-star overall score.

Growth Momentum Score

★★★★★
Free-cash-flow growth is OSIS's strongest growth driver at +337.4% FY2026 versus FY2025 (strong, 5 stars). By comparison, while revenue growth (+4.3%, moderate) and earnings growth (+3.4%, moderate) hold the profile back, so recent growth is not broad-based across the business.

Ownership

★★★★★
Institutional ownership is 124.7% and approximately 94.0% of outstanding shares are publicly tradable, supporting liquidity and institutional participation. Insider ownership of 4.87% provides only moderate management-shareholder alignment.

Top 5 Institutional Investors

BlackRock Inc 15.87%
FMR Inc 12.34%
Vanguard Portfolio Management, LLC 7.84%
HHG PLC 4.84%
Vanguard Capital Management, LLC 4.39%

Unit Economics (Per $1K Revenue)

★★★★★
OSIS generates approximately $332 of gross profit, $123 of operating income, and $137 of free cash flow for every $1,000 of revenue. Based on FY2026 results. Strong cash conversion and healthy margins support the rating, although capital efficiency remains below the highest tier.

Economic Dimensions

★★★★★
Effective Tax Rate: 19.73%

Quantitative Style Profile

★★★★★
OSIS has a high-quality, liquid profile. Weak momentum is the primary drawback.

Style Classification

Quality Focused

Value-OrientedQuality TiltSmall / Mid Cap RiskShort Squeeze RiskHighly Liquid / Institution-Friendly

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 areaWhat it includesRetail investor read
SecurityCheckpoint, cargo, and vehicle inspection systems.Selling the hardware and long-term service needed to keep borders and airports secure.
HealthcarePatient monitoring and cardiology diagnostics.Providing essential technology for hospital monitoring of critical-care patients.
OptoelectronicsHigh-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

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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

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Financial Metrics

🧭 Investment Snapshot

Total Revenue (Scale)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Total cash and cash equivalents on hand. It is needed to evaluate immediate liquidity and financial flexibility.

Total Debt (Leverage Risk)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon 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)

Information icon Income before provision for income taxes. It is needed to analyze profitability independent of tax structures.

⚙️ Cost & Drag Factors

Cost of Revenue (Production Cost)

Information icon 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)

Information icon 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)

Information icon 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
Full time employees 7806

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.