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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Osi Systems, Inc. (XNAS:OSIS) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
OSIS
Name:
OSI SYSTEMS, INC. (XNAS:OSIS)
Sector:
- 18747.00K
Industry:
Electronic Components
CEO:
Mr. Deepak Chopra
Total Employees:
6,298
Our Technological Advancement Rating
Our Rating:
D
Technological advancement compared to industry is -157.10% lower
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF OSI SYSTEMS, INC.(OSIS) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND ELECTRONIC COMPONENTS INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
81.21
One Month Price Target:
$81.55
Six Month Price Target :
$83.27
Likely Price in One Year's Time:
Ticker:
$85.33
Likely Trading Range Today Under (Normal Volatility)
$80.93
Price Upper limit ($) :
$81.47
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$77.95
This week:
$73.93
This month :
$66.65
Other Primary facts
Market Cap:
1.35B
Market Cap Classification:
Small Cap
Number of Shares
IPO Date:
16.91M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
9.07%
-12.64%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$96.34
$89.48
$66.08
$72.94
Medium risk (<10%) entry points
Buy Call
Sell Call
$87.25
Buy Put:
Sell Put:
$85.79
$75.15
$76.63
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
OSIS
Sharpe Ratio:
-1.06%
Comparison:
OSIS, is amongst the top 40% stocks with lowest risk-adjusted returns
Sharpe ratio is -152.17% lower than the industry
& is -146.43% lower than the market/S&P 500 average
Average Returns/Yield of
OSIS
Daily returns:
-0.01%
Weekly returns:
-0.06%
Monthly returns:
-0.24%
Yearly returns:
15.78%
Comparison of returns:
Average annual returns/yield (last 3 years) is -117.89% below industry average
Classification:
OSIS, is amongst the top 40% lowest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.66
Statistical test of Returns:
OSIS has yielded returns statistically similar to the market
Volatility (measured by Standard Deviation)
Daily Volatility:
1.95%
Weekly Volatility:
4.35%
Monthly Volatility:
8.71%
Yearly Volatility:
30.16%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.65%
Volatility in last five trading days has been -66.80% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-4.01%
Weekly VaR:
-8.97%
Monthly VaR:
-17.93%
How Much Can the price of
OSIS
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-16%
Worst case (decline):
-62.13%
This translates to price declining to:
$68.22
This translates to price declining to:
$30.76
Severe Crash Probability
Risk of crash in next 6/12 months: Low (<25%)
What is Value at Risk (VaR)?
Risk Fundamentals
OSIS is a 26.58% riskier investment compared to the market/S&P 500 & is 8.44% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -26.75% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
OSIS
Beta in relation to market/S&P 500--0.76
Expected beta in 1 year's time:
0.6
Expected beta in 3 year's time:
0.848
Unlevered (debt free) Beta:
0.755
Beta in relation to Nasdaq (XNAS):
0.444
Beta in relation to all global stocks::
0.573
Beta Comparison & Analysis
Beta of competitors/peers::
1.124
Beta is -32.80% lower than peers
Average Industry Beta:
1.174
Beta is -35.65% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
13.37%
Sustainable growth rate is -12.23% below industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.111
Alpha is -343.14% below industry average alpha yield
Alpha is -710% below the market average
Analysis of Cost of Capital of
OSIS
Equity cost of capital:
0.083
Equity cost of capital is -25.61% below industry mean WACC
Unlevered (without debt) cost of capital:
8.32%
Before-tax cost of debt:
3.40%
After-tax cost of debt:
2.69%
Overall debt rating:
High AA grade (second highest grade)
Weighted average cost of capital (WACC):
2.69%
WACC is -23.54% below industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$69.68
Revenue growth rate per share of (3Y):
2.2
Annual revenue growth rate is -77.09% below industry average
EPS:
$5.93
Expected Annual growth rate of EPS (3Y):
8.38%
Expected future EPS growth rate is -57.71% lower than the Electronic Components industry
Free cash flow (FCF) per share:
$1.06
-
-
Debt per share
$0.04
EBITDA per share
$10.93
Valuation Analysis Today of
OSIS
P/E Ratio:
12.51
P/E Ratio of Competitors/Peers:
78.86
P/E ratio is -84.13% lower than main peers & is -47.83% lower than the industry
Stock price/value with industry average P/E ratio: $142.22
OSIS is -42.90% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
1.17
Price to sales ratio is -55.71% below the industry mean
P/B (Price to book value ratio):
2.2
Price to free cash flow: 76.42
Price to free cash flow ratio is 5.02% higher than the industry
Net income growth rate (3Y):
-354.52%
Net income growth rate is -288.30% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
0.11%
Net debt to equity ratio:
41.55%
Debt to assets ratio:
0.05%
Net debt to assets ratio:
18.36%
Debt-to-asset ratio is -99.91% below industry average
Ability to repay debt:
Interest coverage ratio:
17.31
Interest coverage ratio is 24.94% more than industry average
Looking forward:
Debt growth rate:
-15.21%
Annual debt growth is 2341% higher than industry average debt growth rate
Debt repayment rate in last quarter: 29.24%
Analysis of Key Statistics
Correlation of price movement with the market:
0.506
Statistical significance of correlation:
OSIS has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.614
Stock price is -17.61% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.614
Correlation of price movement with Nasdaq (^IXIC):
0.004
Covariance of price movement with the market:
0.004
Kurtosis
6.419
Returns have a significant fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are more probable, compared to assets with normally distributed returns
Skewness of returns:
-0.695
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Fundamental Analysis & Dupont Analysis of
OSIS
Gross Profit Margin Ratio:
143%
Operating Profit Margin Ratio:
9.85%
Operating profit margin is 13.72% higher than the industry
Net Profit Margin Ratio:
143%
Effective Tax Rate:
19.03%
Effective tax rate is 27.75% higher than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
17.24%
Return on equity (ROE) is -0.15% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
7.62%
Return on assets (ROA) is 8.88% higher than the industry
Financial Leverage:
1.0x
Current Ratio:
1.11
Current ratio is -56.59% below industry average
Cash Conversion Cycle (days):
67.5
Cash conversion cycle is -5.97% below industry average
The remaining useful life of property plant & equipment is: 7.6 years
Stock based compensation to net income ratio:
6.62%
In-depth Efficiency Analysis
Revenue generated per employee:
187.1K
Each employee generates 4% more revenue than industry average revenue per employee
EBITDA generated per employee:
29.3K
Each employee generates 4% more EBITDA than industry average revenue per employee
Profit generated per employee:
17.1K
Each employee generates 4% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
- 3.0K
Each employee generates 8% more free cash flow than industry average revenue per employee
Assets/Capital per employee
108.0K
Each employee generates 8% more free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- -6.30%
Growth rate in R&D investment/expenditure is 27.01% higher than the industry
Competitors/Peer firms of
OSIS
REPAY HOLDINGS CORPORATION (XNAS:RPAY)
BOTTOMLINE TECHNOLOGIES, INC. (XNAS:EPAY)
SYKE
Sumo Logic Inc (XNAS:SUMO)
INFINERA CORPORATION (XNAS:INFN)
GOPRO, INC (XNAS:GPRO)
NANO DIMENSION LTD (XNAS:NNDM)
SUPER MICRO COMPUTER, INC. (XNAS:SMCI)
Canaan Inc (XNAS:CAN)
Current Analyst Ratings
Strong buy�8%
Buy�17%
Hold�0%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Buy
Income Statement
Period:
TTM
Date:
3/31/22
Revenue:
1.18B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
758.59M
420.03M
58.84M
-
238.14M
-
-
296.98M
-
10.68M
41.40M
184.82M
116.05M
107.48M
132.74M
25.27M
107.48M
Statement of Cash Flow
Date:
Period:
9.70M
Differed Income Tax :
82.00K
Stock Based Compensation :
7.11M
Change in Working Capital :
- 46014.00K
Accounts Receivables:
- 850.00K
Other Working Capital:
14.20M
Other Non-Cash Items:
- 949.00K
Net Cash Provided by Operating Activities:
- 11019.00K
Investments in PP&E:
- 3474.00K
Net Acquisitions:
-
Purchases of Investments:
- 106.00K
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
9/30/21
2022
Q1
54.66M
-
54.66M
292.00M
320.67M
62.87M
730.21M
116.81M
319.35M
127.26M
-
-
117.01M
680.43M
-
1.41B
140.54M
312.95M
-
34.56M
168.73M
656.79M
692.00K
125.16M
130.54M
-
787.33M
53.38M
586.85M
- 16915.0K
-
September 30, 2021 at 6:00:00 AM
1.06B
623.31M
1.41B
-
313.65M
259.0M
-
- 4254.00K
- 7834.00K
- 286.00K
-
- 16231.00K
-
9.31M
- 7205.00K
108.00K
- 25950.00K
54.66M
80.61M
- 11019.00K
- 7728.00K
- 18747.00K
Our Proprietary Portfolio Rating
Our Rating:
B
Price Forecast/Expected Price in Next 5 Years of
OSIS
2023
2024
2025
2026
2027
$85.76
$210.29
$220.96
$232.18
$243.96