OSI Systems, Inc (OSIS) Fair Value & Analysis

Technology · US · Market cap $3.5B

A solid business, but screening 48% overvalued on our models.

What matters now

• The price sits above even our optimistic bull case ($221.69). The favourable scenario is already priced in.
• The model range is unusually wide ($61.73 to $221.69). The outcome hinges heavily on assumptions, so read the point estimate with caution.
• Solid but not exceptional quality (54/100) and above fair value, neither a clear bargain nor a standout compounder.

Price vs Fair Value (5 years)

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Jul 16, 2026.

How to read this chart

60‑month range $70.83 – $309.68 · fair‑value band $61.73 – $221.69 · the $236.23 price screens above the $123.09 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Jul 16, 2026.

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Analysis

OSI Systems, Inc (OSIS) currently trades at $236.23, while our model-based Fair Value estimate is $123.09, implying the stock looks roughly 47.9% overvalued today. The Quality Score stands at 54/100 (solid quality), in the Technology sector. Bear case: priced above our estimate, the market already discounts strong expectations. Bull case: above-average quality can justify a premium, the entry price still matters most (evidence: high).

Over the trailing twelve months, OSI Systems, Inc generated revenue of $1.8B at a net margin of 8.4%. Revenue grew 2.0% year over year. It earns a return on equity of 17.2%. Net debt stands at $576M. Fundamentals as of Jul 16, 2026

Our scenario range runs from $61.73 (bear case) to $221.69 (bull case); at $236.23, the current price sits above that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 24% below its 52-week high and 16% above its 52-week low, currently below its 200-day average. For context, the median of 10 Technology peers we cover trades at -73% fair-value upside, at -48%, OSIS screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Widest divergence: Multiples ($154.33) versus Dividend Discount ($7.07). Highest evidence: Growth DCF (80).

Key figures & financial health

Quality Score breakdown

About the company

OSI Systems, Inc. designs and manufactures electronic systems and components in the United States and internationally. It operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing.

Full company description

OSI Systems, Inc. designs and manufactures electronic systems and components in the United States and internationally. It operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The company offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation monitoring, explosive and narcotics trace detection systems, and optical inspection systems, and radio frequency (RF) equipment under the Rapiscan name. It also provides site design, installation, training, and technical support services; and turnkey security screening solutions under the S2 name. In addition, the company offers patient monitoring, cardiology and remote monitoring, and connected care systems and accessories under the Spacelabs name for use in critical care, emergency, and perioperative areas within hospitals, physicians' offices, medical clinics, and ambulatory surgery centers. Further, it provides optoelectronic devices and flex circuits under the OSI Optoelectronics, OSI LaserDiode, and Advanced Photonix names for the aerospace and defense, avionics, medical imaging and diagnostics, biochemistry analysis, pharmaceutical, nanotechnology, telecommunications, construction, and homeland security markets. Additionally, the company offers electronics manufacturing services to original equipment manufacturers and end users for medical, automotive, defense, aerospace, industrial, and consumer applications under the OSI Electronics, APlus Products, Altaflex, and PFC Flexible Circuits names; and LCD displays for medical, industrial, and consumer electronics applications. The company was incorporated in 1987 and is headquartered in Hawthorne, California.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

OSI Systems, Inc reported revenue of $1.7B in FY2025 versus $1.1B in FY2021, a compound +10.6%/yr. Reported net income was $150M in FY2025, compounding +19.2%/yr from FY2021.

OSIS screens 48% overvalued. Compare with Delta Electronics, Inc →

Peer Group

Electronic Components · 626 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Valuation Multiples vs Electronic Components median · lower = cheaper

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 0: the price sits above our fair-value range.

Insider activity: 46/100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

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Frequently asked questions

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.