QualityDipStocks / Technology · Semiconductors
OSI Systems OSIS
Outside our quality screen, so we don’t track its dips. It’s 36% below its 52-week high.
Outside our quality screen, trading well below our fair value estimate.
- Fair value est.
- $421.54+112%
- Market Value
- forming
- Off 52-wk high
- −36%
- Risk vs market
- Above marketbeta 1.17
5 bullish · 4 bearish See why
Repriced or dip?
Dip: business intact
The price is 36% below its 52-week high (Apr 17), but the business held up: earnings per share +11.4%, free cash flow +92.9%, shares outstanding fewer shares, each owns more.
Some numbers held up (earnings per share +11.4%, free cash flow +92.9%, shares outstanding fewer shares, each owns more), others slipped (revenue growth rate −6.1 pts). The price is 36% below its 52-week high.
The price is 36% below its 52-week high, and the business changed too: revenue growth rate −6.1 pts.
Within 10% of its 52-week high, so there is no dip to judge yet.
The evidence 10 numbers, high vs now
- Revenue, last 12 months$1.8B → $1.8B (+0.4%)about the same
- Revenue growth rate+9.0% → +2.9% a year (−6.1 pts)changed
- Earnings per share, 12 months$8.77 → $9.77 (+11.4%)held up
- Free cash flow, 12 months$137M → $265M (+92.9%)held up
- Operating margin12.3% → 12.2% (−0.1 pts)held up
- Shares outstanding−7.0% (fewer shares, each owns more)held up
- Net cash (cash minus debt)−0.9% of market cap since the highheld up
- Stock vs its sector (Technology)stock −36%, sector median +7% since Apr 17changed
- Price fall vs business numbersprice −36%, revenue/EPS/FCF median +11% (shown, not scored)
- Valuation multipleP/FCF 39.4× at the high → 12.2× now (shown, not scored)
Business numbers as reported at the high (12 months to Dec 31, 2025) vs the latest filing (12 months to Sep 30, 2026). Each measure is scored from −1 (business changed) to +1 (business intact) and weighted: revenue, earnings per share, free cash flow, operating margin, revenue growth rate, share count, net cash and the move vs its sector. 60 or more reads as a dip, 40 or less as a repricing. Analyst estimates are not in our data, so they are not used. How to read it
Data-based read, not advice.
Priced in
How much growth the market assumed at the 52-week high, the low and today (a reverse DCF).
At the high ($309.68, Apr 17) the price assumed about 20%/yr free-cash-flow growth; at the low ($192.30, Sep 29) about 0%; today about −2%. The last 3 years delivered 46%/yr (free cash flow).
Dashed line: what the last 3 years delivered, 46%/yr (free cash flow)
| High | Low | Now | |
|---|---|---|---|
| Price | $309.68Apr 17 | $192.30Sep 29 | $198.90 |
| Implied growth | +20% | 0% | −2% |
| P/E | 35.3× | 21.5× | 20.4× |
| P/FCF | 39.4× | 13.5× | 12.2× |
| EV/Sales | 3.4× | 2.2× | 2.2× |
What this means: the higher the implied growth, the more the price already counts on. If today's number sits well below what the business has delivered, the market expects less than its track record.
How it’s computed
Reverse DCF: the same 10-year free-cash-flow model as our fair value estimate (9.5% discount rate, growth for years 1–5 fading to 3% by year 10, 3% after), solved for the growth that makes it equal the market value at each price. For the high and the low we use only the filings that were public on that day, so nothing from a later report leaks back. Market value = that close × diluted shares. P/E = market value / 12-month net income; Price / FCF = market value / 12-month free cash flow; EV / Sales = (market value + debt − cash) / 12-month revenue. Hidden when the share count moved over 20% (split, merger), free cash flow is negative, or the company reports in another currency.
Valuation
What we estimate it's worth, and how it ranks on value vs every stock we cover.
Fair value estimate
How the range is computed
Ten-year free-cash-flow DCF. Same 10-year free-cash-flow model as the base: discount rate 9.5% ±1 point and growth 11.8% ±2 points. Bear = 10.5% and 9.8%; bull = 8.5% and 13.8% (both fade to 3%). A model estimate from public filings, not a forecast of where the price will go.
Price is below even the bear case.
Cyclical / peak cash flow — treat with care
What the price implies To be worth today’s price, OSIS’s free cash flow would need to shrink about 2% a year for five years; our estimate uses 12%.
Risk vs market
How risk vs market is measured
One year of daily returns (Oct 31 to Nov 2, 252 sessions). Beta = how much OSIS moved for each 1% move in the S&P 500 (SPY); 1.0 moves with the market. Volatility is the yearly standard deviation of daily returns. Past behavior, not a forecast.
Swings more than the market, and its own price swings are 3.4× the S&P 500’s.
- Beta vs S&P 500
- 1.17
- Volatility
- 43% vs 13% SPY
- Correlation SPY
- 0.35
- Correlation QQQ
- 0.29
How it ranks
Where OSIS stands vs every one of the 1,996 stocks we cover that has the number. Longer bar = better.
Top quarter on 2 of 6 measures
- Discount to fair value estimate112% · price below our base caseTop 7%of 1,314
- Free cash flow yield8.2% · free cash flow vs market capTop 17%of 1,391
- Dividends + buybacks yield0% · cash paid out or used to retire shares, vs market capLowest 1%of 1,836
- Revenue growth, last 12 months+2.9% · vs the 12 months beforeLowest 21%of 1,814
- Operating margin12% · of sales kept as operating profitLowest 50%of 1,288
- Return on invested capital12% · profit per dollar of capitalTop 42%of 838
From SEC filings and our fair value estimate model. A ranking, not advice.
Valuation details
DCF $421.54 · FCF value $368.93
Cyclical / peak cash flow — treat with care
Assumes 11.8% growth for 5 years (revenue grew 11.8% a year FY23–FY26), fading to 3%; 9.5% discount rate, 3% terminal growth. FCF base $16.28 a share (trailing 12 months to Sep 30, 2026), from the 10-Q filed Oct 29, 2026. Net debt $698M, not deducted.
Fundamentals
The business itself: sales, profits, cash and debt, from SEC filings.
Bull vs bear
Rule-based from the data on this page, strongest first. Not advice.
Top bullish points 5 of 5
ValuationOur DCF fair value estimate is $421.54, 112% above the price (cyclical or peak cash flow, so treat with care).
ValuationFree-cash-flow yield of 8.2% (price / FCF 12.2×): $265M of free cash in the last 12 months.
Cash returnsFree cash flow grew 106% over the last 12 months vs the 12 months before.
Cash returnsShare count down 7.0% in a year.
ValuationP/E of 20.4× vs a 33.0× median for the 220 Technology companies we cover.
Top bearish points 4 of 5
Balance sheetDebt rose 628% to $1.0B from FY2024 to FY2026.
GrowthSales growth slowed to 3% over the last 12 months, from 12% a year over the prior three fiscal years.
Balance sheetDebt / equity of 1.3×, above the 0.4× median for the 139 Technology companies we cover.
ProfitabilityGross margin of 33%, below the 59% median for the 265 Technology companies we cover.
All fundamentals
P/E 20.4 · FCF yield 8.2% · ROE 18%
Valuation
- P/E
- 20.4×Technology median 33.0×
- Price / FCF
- 12.2×
- FCF yield
- 8.2%
- EV / EBITDA
- 15.1×
- Price / sales
- 1.79×
- Price / book
- 4.13×
- Market cap
- $3.2Bprice × diluted shares
- Enterprise value
- $3.9B
Growth
- Revenue, 12 months
- $1.8B
- Sales growth, 12 months
- +2.9%vs the 12 months before
- Sales growth, 3 yrs
- +11.8%/yrfrom FY2023
- Diluted EPS, 12 months
- $9.28
- EPS growth, last FY
- +2.8%
- Net income, 12 months
- $159M
- Net income growth
- +4%12 months vs before
Profitability
- Gross margin
- 32.9%
- Operating margin
- 12.2%
- Net margin
- 8.8%
- FCF margin
- 14.7%
- Return on equity
- 18%
- Return on invested capital
- 12%
Balance sheet
- Cash & short-term inv.
- $302M
- Total debt
- $1000M
- Net cash
- −$698M
- Debt / equity
- 1.28×
- Interest coverage
- 9.9×operating income / interest
Cash flow & returns
- Free cash flow, 12 months
- $265M
- FCF growth, 12 months
- +106%
- Dividend yield
- 0%
- Payout ratio
- n/anot reported in its SEC filings
- Buybacks, 12 months
- n/anot reported in its SEC filings
- Share count, 1 year
- −7.0%diluted shares vs a year ago
- Stock-based comp
- $26M
Trailing 12 months to Sep 30, 2026; balance sheet at Sep 30, 2026. From OSI Systems’s SEC filings. Sparklines show up to six fiscal years. n/a means we don’t hold that number, with the reason. How each is computed.
The business
FCF $0.2B · Sales +5%
- Free cash flow, 12 months$0.2B
- Free-cash-flow yield8.2%
- Free-cash-flow margin13%
- Gross margin33%
- Operating margin9%
- Return on invested capital8%
- Return on equity18%
- Sales growth (latest quarter vs year-ago quarter)+5%
- Net debt / EBITDA2.8×
Chart & levels
Where the price is vs its key levels and trends.
Key levels
Every level vs today’s $198.90
- 52-wk lowlowest close, 1 year$192.30−3.3%
- PriceMon Nov 2 close$198.90you are here
- 52-wk highhighest close, 1 year$309.68+55.7%
- Fair value est.base case$421.54+111.9%
Momentum & 52-week range
RSI 50 · 5 days +0.4%
Signals
Reversal signal setups, the public ledger and the next earnings date.
Setup & signals
No setup armed
No setup armed, so there’s no trigger or stop to track yet. Reversal signal rules only run on companies that pass our quality screen.
OSIS is outside our quality screen
One text when a published rule fires on one of the 332 quality companies we track: the ticker, the price, the stop and a link to the numbers. Nothing else.
Voices & buzz
Who is talking about it, and how it compares with peers.
Who’s talking about it
Notable investors, executives, analysts and public figures on OSI Systems in the last 48 hours. Headlines as published, each linked. Their words, not ours.
No notable mentions in the last 48 hours. Checked Nov 3, 1:01 PM ET.
Compare with peers
Closest in size in Semiconductors
Information only, not investment advice. Fair value estimates and talking points are rule-based model output from public data and can be wrong; stop levels are reference points, not orders. How every number is computed.