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OSI Systems

OSIS
62
Hardware, Equipment & Parts · Technology
Price
$212.66
-3.56 (-1.65%)
Market Cap
$3.51B
Exchange
NASDAQ
Winston Score
62
Winston is curious
A decent business — some strong pillars, some weaker.

Share count falling — buybacks

6.6% over 4y

The company has reduced its share count over this period, returning value to shareholders through buybacks.

Diluted shares outstanding: 18.4M (2021) → 17.2M (2025)

OSI Systems, Inc. designs and manufactures electronic systems and components worldwide. It operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The Security segment offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation detection, and explosive and narcotics trace detection systems under the Rapiscan Systems, AS&E, and Gatekeeper names. It also provides site design, installation, training, and technical

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+2.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

-0.4% YoY

YoY Growth Rate

Earnings declining

R&D Spend

$73M/ year

Rising (+13% vs prior year)

4.3% of revenue

Below sector average (15%)

R&D investment increasing — building for the future

Insider Activity

5.6%ownership

Flat

Insiders holding steady — not selling despite ability to

Cash Position

Cash flow positive

$345M cash & investments

Quarterly Free Cash Flow

↑ Burn rate improving

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

OSI Systems is growing revenue at 2% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
31.1%
Modest — 31.1% gross margin
Operating Margin
12.7%
Healthy — 12.7% operating margin
ROCE
6.4%
Weak — 6.4% return on capital

ROIC between 5% and 15%. They earn 5 to 15 cents back per year on every dollar invested.

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Growth

Sales YoY
+14.6%
Fast-growing sales (14.6% YoY)
EPS YoY
+26.3%
Earnings growing fast (26.3% YoY)

Earnings growing 25%+ a year. The compounder zone.

EPS Consistency
8/8 quarters
Every recent quarter grew earnings vs last year

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Cash Flow

Cash Conversion
92%
Modest — 92% of profit becomes cash
FCF Margin
6.5%
Modest free cash flow (6.5%)

FCF margin between 0% and 10%. Some cash from sales, but not a lot.

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Stability

Debt / Equity
0.00
Conservative — low debt load (0.00)
Interest Cover
8.01x
Comfortably covers interest (8.0x)

Interest coverage above 8. Profits cover interest many times over.

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Valuation

P/E Ratio (TTM)
20.8x
Growth-priced — P/E 20.8

P/E above the market average. People are paying up for expected growth.

P/E vs Forward
+1.3
GROWING
Earnings expected to grow — slightly cheaper on forward P/E

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Dividends

Not applicable for this business.
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