Latest Ratios: P/E Ratio 23.1x · EV/EBITDA 14.9x · ROE 16.5%. (1998–2025 historical series)
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $3.3B | $3.9B | $2.4B | $2.0B | $1.5B | $1.9B | $1.4B | $2.1B | $1.4B | $1.5B | $1.2B |
| Enterprise Value | $3.9B | $4.4B | $2.8B | $2.3B | $1.9B | $2.1B | $1.7B | $2.4B | $1.7B | $1.7B | $1.2B |
| P/E Ratio → | 23.06 | 25.82 | 18.63 | 22.07 | 13.25 | 25.22 | 18.43 | 32.55 | — | 70.23 | 44.72 |
| P/S Ratio | 1.93 | 2.25 | 1.55 | 1.58 | 1.29 | 1.63 | 1.19 | 1.78 | 1.32 | 1.54 | 1.41 |
| P/B Ratio | 3.63 | 4.06 | 2.76 | 2.79 | 2.39 | 2.92 | 2.43 | 3.82 | 2.94 | 2.60 | 2.16 |
| P/FCF | 59.01 | 68.86 | — | 32.38 | 45.82 | 17.06 | 14.65 | 23.72 | 16.44 | 36.50 | 32.73 |
| P/OCF | 33.92 | 39.58 | — | 21.36 | 23.93 | 13.44 | 10.75 | 17.70 | 10.80 | 23.57 | 19.71 |
P/E links to full P/E history page with 30-year chart
Enterprise-value multiples — capital-structure-neutral measures of total business value
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 2.59 | 1.85 | 1.83 | 1.57 | 1.82 | 1.43 | 2.00 | 1.58 | 1.72 | 1.44 |
| EV / EBITDA | 14.88 | 17.00 | 12.30 | 13.47 | 11.57 | 13.12 | 10.78 | 16.13 | 13.66 | 16.31 | 12.42 |
| EV / EBIT | 17.87 | 20.52 | 15.04 | 17.31 | 14.35 | 18.11 | 15.90 | 21.89 | 30.58 | 46.82 | 31.20 |
| EV / FCF | — | 79.13 | — | 37.43 | 55.70 | 19.07 | 17.60 | 26.53 | 19.63 | 40.88 | 33.55 |
Margins and return-on-capital ratios measuring operating efficiency
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 34.3% | 34.3% | 34.5% | 33.7% | 35.9% | 36.6% | 36.1% | 36.4% | 36.0% | 33.7% | 33.4% |
| Operating Margin | 12.7% | 12.7% | 12.3% | 10.6% | 10.3% | 10.1% | 9.0% | 7.6% | 5.1% | 3.5% | 4.6% |
| Net Profit Margin | 8.7% | 8.7% | 8.3% | 7.2% | 9.7% | 6.5% | 6.5% | 5.5% | -2.7% | 2.2% | 3.2% |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | 16.5% | 16.5% | 16.1% | 13.5% | 18.0% | 12.2% | 13.4% | 12.4% | -5.5% | 3.8% | 4.7% |
| ROA | 7.2% | 7.2% | 7.3% | 6.1% | 8.2% | 5.6% | 5.9% | 5.1% | -2.3% | 1.9% | 2.7% |
| ROIC | 11.5% | 11.5% | 12.0% | 10.1% | 10.0% | 10.1% | 9.5% | 8.6% | 5.5% | 3.8% | 5.2% |
| ROCE | 16.3% | 16.3% | 18.0% | 14.9% | 13.0% | 11.7% | 11.5% | 10.6% | 6.6% | 4.4% | 5.7% |
Solvency and debt-coverage ratios — lower is generally safer
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.72 | 0.72 | 0.64 | 0.54 | 0.62 | 0.47 | 0.62 | 0.63 | 0.74 | 0.61 | 0.25 |
| Debt / EBITDA | 2.61 | 2.61 | 2.39 | 2.26 | 2.45 | 1.89 | 2.30 | 2.37 | 2.90 | 3.42 | 1.39 |
| Net Debt / Equity | — | 0.61 | 0.53 | 0.44 | 0.52 | 0.34 | 0.49 | 0.45 | 0.57 | 0.31 | 0.05 |
| Net Debt / EBITDA | 2.21 | 2.21 | 1.98 | 1.82 | 2.05 | 1.38 | 1.81 | 1.71 | 2.22 | 1.75 | 0.31 |
| Debt / FCF | — | 10.27 | — | 5.06 | 9.88 | 2.01 | 2.95 | 2.81 | 3.19 | 4.38 | 0.83 |
| Interest Coverage | 6.39 | 6.39 | 6.79 | 6.75 | 14.43 | 6.90 | 5.59 | 4.99 | 2.91 | 3.68 | 13.32 |
Short-term solvency ratios and asset-utilisation metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.04 | 2.04 | 1.49 | 1.47 | 1.22 | 2.06 | 1.87 | 1.68 | 1.47 | 1.89 | 1.51 |
| Quick Ratio | 1.46 | 1.46 | 1.00 | 0.88 | 0.67 | 1.20 | 1.14 | 0.96 | 0.76 | 1.17 | 0.77 |
| Cash Ratio | 0.15 | 0.15 | 0.12 | 0.13 | 0.10 | 0.23 | 0.23 | 0.25 | 0.19 | 0.49 | 0.28 |
| Asset Turnover | — | 0.76 | 0.79 | 0.82 | 0.82 | 0.83 | 0.92 | 0.93 | 0.87 | 0.78 | 0.84 |
| Inventory Turnover | 2.77 | 2.77 | 2.53 | 2.51 | 2.27 | 2.47 | 3.09 | 2.75 | 2.22 | 2.57 | 2.02 |
| Days Sales Outstanding | — | 178.49 | 153.75 | 108.73 | 95.00 | 95.80 | 84.47 | 73.62 | 70.62 | 78.45 | 62.35 |
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | — | — | — | — | — | — | — | — | — | — | — |
| Payout Ratio | — | — | — | — | — | — | — | — | — | — | — |
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | 4.3% | 3.9% | 5.4% | 4.5% | 7.5% | 4.0% | 5.4% | 3.1% | — | 1.4% | 2.2% |
| FCF Yield | 1.7% | 1.5% | — | 3.1% | 2.2% | 5.9% | 6.8% | 4.2% | 6.1% | 2.7% | 3.1% |
| Buyback Yield | 2.4% | 2.1% | 0.0% | 1.7% | 7.3% | 2.0% | 3.7% | 1.0% | 4.4% | 3.3% | 6.3% |
| Total Shareholder Yield | 2.4% | 2.1% | 0.0% | 1.7% | 7.3% | 2.0% | 3.7% | 1.0% | 4.4% | 3.3% | 6.3% |
| Shares Outstanding | — | $17M | $17M | $17M | $18M | $18M | $19M | $19M | $19M | $20M | $20M |
Includes 30+ ratios · 28 years · Updated daily
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Quick answers to the most common questions about buying OSIS stock.
OSI Systems, Inc.'s current P/E ratio is 23.1x. The historical average is 31.8x. This places it at the 38th percentile of its historical range.
OSI Systems, Inc.'s current EV/EBITDA is 14.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 14.0x.
OSI Systems, Inc.'s return on equity (ROE) is 16.5%. The historical average is 7.4%.
Based on historical data, OSI Systems, Inc. is trading at a P/E of 23.1x. This is at the 38th percentile of its historical P/E range. Compare with industry peers and growth rates for a complete picture.
OSI Systems, Inc. has 34.3% gross margin and 12.7% operating margin. Operating margin between 10-20% is typical for established companies.
OSI Systems, Inc.'s Debt/EBITDA ratio is 2.6x, indicating moderate leverage. A ratio between 2-4x is manageable but warrants monitoring.
Key Metrics
Top Statement Risk
Volatile cash conversion and leverage
Metrics are mathematically derived from official filings.
Premium Valuation Amidst Earnings Volatility
OSI Systems trades at a forward P/E of 20.94x and an EV/EBITDA of 15.82x, representing a notable premium to most peers like Leidos and Booz Allen, implying the market is pricing in a profitability recovery that has yet to materialize consistently.
The valuation multiples appear elevated relative to the company's own historical profitability, with ROIC ranging from 1.6% to 5.2% over the last ten quarters. The P/E of 23.43x suggests the market is looking through the recent volatile earnings, potentially pricing in the Q4 2026 margin expansion as a new baseline, a sustainability that is not yet proven.
Q4 Surge Lifts Margins, Sustainability Uncertain
Gross margin expanded to a ten-quarter high of 36.7% and operating margin reached 14.4% in Q4 2026, a significant sequential improvement, though the sharp swing from a 5.3% net margin in Q1 2026 indicates this profitability level may reflect timing or mix rather than a structural shift.
The decomposition shows that the recent profitability improvement is primarily driven by gross margin expansion and SG&A leverage, as noted in the prior income statement analysis. However, the extreme volatility in net margin over the past two years, from lows near 5% to highs over 11%, suggests the company's true earning power is more modest and cyclical than the latest quarter implies.
Low ROIC Highlights Capital Intensity
Despite improving to 5.2% in Q4 2026, OSIS's ROIC remains substantially below peers like Leidos (17.1%) and Booz Allen (18.6%), indicating the business model generates weaker returns on the capital deployed, a gap that valuation multiples do not appear to fully discount.
The ROIC trend, while positive sequentially, has been volatile and consistently low, never breaking 6% in the observed period. This suggests the company's asset-heavy model, indicated by a low asset turnover of 0.19, requires significant capital investment to generate earnings, and the recent ROIC improvement is primarily a function of margin expansion rather than improved capital efficiency.
Strong Current Position Masks Project-Driven Cycles
The current ratio of 3.15 and quick ratio of 2.34 in Q4 2026 indicate robust short-term liquidity, yet these metrics have historically swung to levels below 2.0, suggesting the current strength is partly due to a large, possibly seasonal, cash build that may not persist.
The dramatic improvement in liquidity ratios is consistent with the prior balance sheet finding of a massive cash build. However, the extreme variability in these ratios over the past ten quarters points to a business with significant working capital timing issues. While the current position can easily cover near-term obligations, investors should monitor for rapid drawdowns similar to those seen in Q1 2025.
Misapplied Metric: Free Cash Flow Yield
The most misapplied ratio for OSI Systems is likely Free Cash Flow Yield, derived from its P/FCF of 59.96x, which obscures the underlying operational cash flow volatility and renders the metric nearly meaningless for valuation at any single point in time.
This metric is particularly misleading because OSIS's free cash flow margin has whipsawed from -17.9% to +35.3% over the past ten quarters, driven by erratic working capital swings rather than operational trends. Using the P/FCF ratio in isolation fails to capture this cyclicality, leading to distorted valuations; analysts should instead use a normalized or average FCF figure over a full cycle to gauge true cash generation.