MeritValue

OSI SYSTEMS INC

OSISdata completeness 100%17 fiscal years on file

Data notes: no data for concept 'investmentsAtFairValue'; no data for concept 'netInvestmentIncome'; no data for concept 'gainsOnRealEstateSales'; no data for concept 'realEstateImpairment'; no data for concept 'dividendsPaid'

The thesis, from the filings

OSI SYSTEMS INC earns about 9% on invested capital, and has bought back 3% of its shares over 5 years. The applicable estimate puts fair value near $75.68 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2022FY 2023FY 2024FY 2025FY 2026
Revenue$1.18B1$1.28B2$1.54B3$1.71B3$1.79B3
Net income$115.3M4$91.8M5$128.2M6$149.6M6$154.7M6
Operating cash flow$63.8M7$94.8M8−$87.5M9$97.6M9$275.9M9
Capital expenditure$14.9M10$15.8M11$22.1M12$23.8M12$30.6M12
Free cash flow (derived)$48.9M7$79M8−$109.6M9$73.8M9$245.3M9
Total debt$586.7M13$289.1M14$275.1M15$943.3M16$2B16
Cash & equivalents$64.2M17$76.8M18$95.4M19$106.4M20$359.8M20
Diluted shares17.9M17.2M17.4M17.2M17.3M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$482.04
your share of equity
Profit it earned you last year
$89.53
Free cash flow it threw off
$141.98
Debt you’d be carrying
$1,158.62

10 shares is a claim on $482.04 of net worth that earned you $89.53 and generated $141.98 of cash last year, against $1,158.62 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
9% avg · 5y
FY22 10%FY23 10%FY24 12%FY25 8%FY26 6%

It earned an average 9% on invested capital over 5 years. Compare that to what it costs to fund the business.

seeing a moat in the numbers →
Management signal · capital allocation
−3% shares · 5y

Share count is down 3% over 5 years — management has been buying back stock, quietly handing owners a bigger slice. Total debt has risen 241% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.5.0
DCF · Growth Exit 10Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth0.0%
  • fcfBase$73.8M
DCF · Growth Exit 5Y
not applicable
negative equity value — refusing to publish per-share figure
assumptions (10)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth0.0%
  • fcfBase$73.8M
Earnings Power Value
$75.68
assumptions (8)
  • riskFreeRate4.8%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • normalizedEarnings$128.2M
  • growthAssumed0.0%
Graham Number
$102.65
assumptions (1)
  • grahamMultiplier2250.0%

Different models answer different questions — which to trust when →

Sources — the receipts
  1. 10-K · period ending 2022-06-30 · accession 0001410578-24-001571 (RevenueFromContractWithCustomerIncludingAssessedTax)
  2. 10-K · period ending 2023-06-30 · accession 0001410578-25-001887 (RevenueFromContractWithCustomerIncludingAssessedTax)
  3. 10-K · period ending 2024-06-30 · accession 0001104659-26-099752 (RevenueFromContractWithCustomerIncludingAssessedTax)
  4. 10-K · period ending 2022-06-30 · accession 0001410578-24-001571 (ProfitLoss)
  5. 10-K · period ending 2023-06-30 · accession 0001410578-25-001887 (NetIncomeLoss)
  6. 10-K · period ending 2024-06-30 · accession 0001104659-26-099752 (NetIncomeLoss)
  7. 10-K · period ending 2022-06-30 · accession 0001410578-24-001571 (NetCashProvidedByUsedInOperatingActivities)
  8. 10-K · period ending 2023-06-30 · accession 0001410578-25-001887 (NetCashProvidedByUsedInOperatingActivities)
  9. 10-K · period ending 2024-06-30 · accession 0001104659-26-099752 (NetCashProvidedByUsedInOperatingActivities)
  10. 10-K · period ending 2022-06-30 · accession 0001410578-24-001571 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 10-K · period ending 2023-06-30 · accession 0001410578-25-001887 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 10-K · period ending 2024-06-30 · accession 0001104659-26-099752 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 10-K · period ending 2022-06-30 · accession 0001104659-23-096477 (LongTermDebtNoncurrent)
  14. 10-K · period ending 2023-06-30 · accession 0001410578-24-001571 (LongTermDebtNoncurrent)
  15. 10-K · period ending 2024-06-30 · accession 0001410578-25-001887 (LongTermDebtNoncurrent)
  16. 10-K · period ending 2025-06-30 · accession 0001104659-26-099752 (LongTermDebtNoncurrent)
  17. 10-K · period ending 2022-06-30 · accession 0001104659-23-096477 (CashAndCashEquivalentsAtCarryingValue)
  18. 10-K · period ending 2023-06-30 · accession 0001410578-24-001571 (CashAndCashEquivalentsAtCarryingValue)
  19. 10-K · period ending 2024-06-30 · accession 0001410578-25-001887 (CashAndCashEquivalentsAtCarryingValue)
  20. 10-K · period ending 2025-06-30 · accession 0001104659-26-099752 (CashAndCashEquivalentsAtCarryingValue)