Osi Systems Inc (OSIS) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
Forensic Analysis · Semiconductors · as of Aug 11, 2026
Osi Systems Inc (OSIS)
A forensic read on Osi Systems Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
C · Mixed — selective
Forensic grade
Safe
Financial health
7.3
Distress distance
Clean
Earnings quality
5
Forensic signals
25.5
P / E (ttm)
15.7%
ROE
$3.8B
Market cap
11.3%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (red flags, auditor quality, say on pay, board independence). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Osi Systems Inc earns a C (Mixed — selective) forensic quality grade, and its balance-sheet distress test reads 7.3, placing it in the Safe zone. 5 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.28×
FY2023–FY2025
Cash conversion.Over FY2023–FY2025, operating cash flow was 0.28× cumulative net income. Reported profit is not turning into cash. The shortfall is profit tied up in working capital rather than collected — the accrual and receivables lines below show where.
+37.0%
FY2024→FY2025
Accruals ratio (% of NOA).Net operating assets grew +37.0% relative to their own average in FY2025 — scaled by NOA itself, not total assets (see the Forensic Screens card's differently-scaled Sloan Accrual Ratio for that read). Accruals are building sharply — a large slice of profit sits in operating assets, not cash; Richardson/Sloan link high accruals to weaker future returns as they reverse. The build is led by receivables up +29% against revenue +11%. The cash-flow cross-check is more mixed: reported earnings ran in line with operating cash by 5% of net operating assets, diverging from the balance-sheet accrual read.
158d DSO
FY2024→FY2025
Receivables vs revenue.Days sales outstanding moved from 122 to 158 days FY2024→FY2025 (receivables +29% vs revenue +11%). Receivables are outrunning sales — a flag for aggressive revenue recognition or slipping collections. Only 28¢ of operating cash arrived for every dollar of profit reported over FY2023–FY2025 ($104.9M against $369.6M), and the receivables balance is one of the places the rest is sitting. Across FY2021–FY2025 the day count ran 89 → 92 → 98 → 122 → 158 days — the latest step continues a climb that was already under way, which is the persistence that separates a collection problem from a busy quarter. Deferred revenue grew +66% over the same period, but billing ahead of recognition does not account for this one: that pattern leaves the day count steady and the cash arriving early, and here the day count has climbed across the years on file while the cash did not arrive. Measured against the same quarter twelve months earlier — like-for-like on the calendar, so an ordinary seasonal build cannot produce it — receivables took longer to collect in 7 consecutive quarters (Sep 2024 +77, Dec 2024 +63, Mar 2025 +23, Jun 2025 +28, Sep 2025 +14, Dec 2025 +11, Mar 2026 +37 days). In the latest of them the receivable balance grew +29% against sales +2%, so more of a quarter's billings were still outstanding at the period end than a year earlier — money the company has recognized and not yet been paid.
Key fundamentals
Latest Revenue$1.71B
Revenue Growth YoY+11.3%
Revenue CAGR (3yr)+13.1%
Net Margin8.7%
Free Cash Flow$73.8M
Return on Equity15.7%
Debt / Equity0.50x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Osi Systems Inc's actual 10-K/10-Q/8-K filings?
Data from SEC EDGAR public filings · metrics as of Aug 11, 2026. Forensic signals flag probability, not certainty.
12.1%
FY2025
Return on invested capital.Return on invested capital is 12.1% in the latest fiscal year and rising from 10% — a modest positive spread over its ~10% cost of capital — growth adds value, though not dramatically.
109% of FCF
FY2025
Shareholder returns.Returned $80M to shareholders (buybacks + dividends) in FY2025 — 109% of free cash flow. Right at the limit of what free cash flow covers — little room before it's funded by debt or the balance sheet. That ratio has been CLIMBING toward the limit — 31% of free cash flow a few years back — not just sitting there. Counting the $32M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 152%.