OSI Systems, Inc. — Electronic Components. Scored on the same transparent model behind the daily rankings.
★
OSIS
OSI Systems, Inc. · Electronic Components
FCF$245mC
Rev+4.3%C+
D/E1.26C
P/E23.6xB+
PEG1.51C+
61.6Score
$210.89$3.4B
1Y Target$281.14Analyst consensus · 7 analysts
5Y Target$411.62Compound horizon
10Y Target$610.61Long-dated conviction
FCF$245mTTMC
FCF $245m — modest; watch for margin expansion
Rev+4.3%TTM YoYC+
Revenue +4.3% — steady but below market-beating range
D/E1.26C
D/E 1.26 — more levered than most Technology peers (≈90th pctile)
P/E23.6xB+
P/E 23.6 — below the Technology median (≈40th pctile)
PEG1.51C+
PEG 1.51 — modest premium; above fair value
Forward price target — the 1-year figure is the analyst consensus where the stock is covered; the 5- and 10-year figures compound our earnings estimate from there. The DCF below is a separate cross-check on intrinsic value (what it's worth today), not another target.
Quality-growth score · 61.6
Quality66.8
Growth65.4
Value53.4
Why this score
Buying back stock
Entry · Margin of safety
52-week rangeNear 52-week low
32% off the 12-month high
vs DCF fair value13% belowest. fair value ~$243
What the price assumes: free cash flow compounding at ~5% a year for the next decade — vs the ~13% a year our model projects from current growth and analyst estimates.
Quality signals · context only
Gross profitability24% · Bgross profit ÷ total assets (Novy-Marx)
ROIC9.4% · Breturn on invested capital — not score-weighted
Model-generatedGenerated by the Bull Rankings model from this company's reported fundamentals, and checked against the figures shown above.
Why now
OSI Systems is a high-quality compounder, evidenced by our model's 61.6/100 Quality-growth score with Quality as its strongest pillar (67), reflecting robust operational execution in critical security applications. The company's ability to generate $245m in free cash flow (TTM) and achieve an 18.6% Return on Equity underscores its efficiency in designing and manufacturing specialized electronic systems for global security needs. With management actively buying back stock, OSIS is effectively compounding shareholder value by reducing share count against a backdrop of steady demand for its baggage, cargo, and people screening solutions.
Moat
The durable edge for OSI Systems stems from its highly specialized electronic systems for critical security applications, such as explosive and narcotics trace detection and hold baggage screening, which inherently carry high regulatory barriers and switching costs for customers. The company's S2 brand further entrenches this moat by offering turnkey security screening services, integrating enterprise inspection processes and staffing, thereby creating sticky, recurring revenue streams and deep customer relationships across its global footprint.
Risk
Skeptics might point to OSI Systems' valuation, with our model's weakest pillar being Value (53/100) and a PEG ratio of 1.51, suggesting the market is already pricing in consistent growth. While the company operates in critical security markets, a debt-to-equity ratio of 1.26 could become a vulnerability if the 4.3% revenue growth (FY YoY) decelerates, especially given the reverse DCF implies ~5%/yr free-cash-flow growth is already sustained for 10 years. A concrete signal confirming the bear case would be a sustained contraction in new, large-scale government security infrastructure projects, directly impacting order flow for its core baggage, cargo, and people screening systems.
Horizon
1-3 yr $281.14 (7-analyst consensus) — fundamentals + valuation re-rating. 5 yr $411.62 at ~14% CAGR — compounding case rests on the competitive position widening. 10 yr $610.61 if current growth sustains into durable earnings power.
Not investment advice. The Bull Rankings publishes a quantitative ranking model and accompanying analysis for general informational purposes only. Nothing on this page is a recommendation to buy, sell, or hold any security; nothing is personalized to your circumstances, risk tolerance, or tax situation. Investing carries the risk of loss — invest at your own risk and consider consulting a licensed financial professional before acting on anything you read here. See terms and methodology for full disclosures.
OSIS vs the Top Picks average
Pillar
OSIS
Book avg
Diff
Quality
0.67
0.83
-0.17
Growth
0.65
0.87
-0.21
Value
0.53
0.76
-0.23
Averaged across the 30 names in today's Top Picks (mean score 81.6). A name can beat these averages and still be absent from the book — it also applies concentration limits.
Score history · OSIS
Trend
+5.1 over 51 daily scores
From 56.5 (Jun 22) → 61.6 (now)
One point per daily model run. The range autoscales, so a flat-looking line can still hide 1–2 point moves — read the From → To values for the actual range.
OSIS at a glance
Every figure here comes from the same audited fundamentals behind the score. Charts drawn from data the score does not use say so on the card.
Analyst estimate revisions
30-day change
+12.7%
90-day change
+12.4%
Forward EPS estimate
$12.87
Over the last 90 days, what analysts expect OSIS to earn is materially higher (+12.4%). The estimate is derived from price and forward P/E captured at the same instant, so a moving share price does not move this number — only a changed forecast does.
A rising estimate means expectations are improving, not that the price has failed to keep up — and estimates get cut as readily as they get raised. It is not part of the Bull Rankings score. Biggest movers across the market →
Position sizing · OSIS
$
%
%
Shares to buy
9
Position size
$1,898
3.8% of portfolio
Stop price
$158.17
25% below $210.89
$ at risk if stopped
$474.50
budget $500.00 · 1% of portfolio
Math only — share count is floor(portfolio × risk% ÷ (price × stop%)). Doesn't account for commissions, slippage, gap risk, or position-correlation across your book. Inputs persist locally; never sent to the server. Not investment advice.
OSI Systems, Inc. (OSIS): score, valuation & FAQ
OSI Systems, Inc. (OSIS) is a Electronic Components company that scores 61.6 out of 100 on the Bull Rankings quality-growth model — a middling reading. The score blends three pillars — quality (durable returns, healthy margins, low leverage), growth (revenue and earnings), and value (valuation versus sector peers) — into one number, refreshed daily; it is a screen, not a buy recommendation.
Its strongest graded signals are P/E (B+). On valuation, OSIS sits about 13% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 5% annual free-cash-flow growth over the next decade.
Is OSIS a good stock to buy?
Bull Rankings scores OSIS 61.6 out of 100 on its quality-growth model, which is a middling reading. That is driven by P/E (B+). A score is a quantitative screen of OSI Systems, Inc.'s fundamentals, not personalised financial advice — weigh it against your own time horizon and risk tolerance, and read the risk factors below before acting.
Why does OSIS score 61.6 on Bull Rankings?
The score leans on quality at 66.8 out of 100, with value the weakest pillar at 53.4 — the three combine geometrically, so a weak one cannot be papered over by a strong one. OSIS earns its highest marks on P/E (B+). Each signal is graded against sector-aware thresholds rather than one absolute bar, so OSIS is measured against Electronic Components peers, not against the market as a whole.
Is OSIS overvalued or undervalued?
Based on $210.89, OSIS sits about 13% below our discounted-cash-flow fair value (a margin of safety) — the current price implies roughly 5% annual free-cash-flow growth over the next decade. It trades at a 23.6x P/E (graded B+). Discounted-cash-flow estimates are sensitive to growth and discount-rate assumptions, so treat this as a cross-check, not a price target.
What are the main risks of investing in OSIS?
Skeptics might point to OSI Systems' valuation, with our model's weakest pillar being Value (53/100) and a PEG ratio of 1.51, suggesting the market is already pricing in consistent growth. While the company operates in critical security markets, a debt-to-equity ratio of 1.26 could become a vulnerability if the 4.3% revenue growth (FY YoY) decelerates, especially given the reverse DCF implies ~5%/yr free-cash-flow growth is already sustained for 10 years. A concrete signal confirming the bear case would be a sustained contraction in new, large-scale government security infrastructure projects, directly impacting order flow for its core baggage, cargo, and people screening systems.
Bull Rankings is an automated fundamentals screen for research and education. It is not investment advice, and nothing here is a recommendation to buy or sell any security. Do your own research and consider consulting a licensed financial advisor.