Forensic Analysis · Semiconductors · as of Sep 25, 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
6.6
Distress distance
Clean
Earnings quality
5
Forensic signals
20.4
P / E (ttm)
18.6%
ROE
$3.2B
Market cap
4.3%
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, going concern, valuation). 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 6.6, placing it in the Safe zone. 5 forensic signals were flagged in its latest SEC filings, led by cash conversion.
What the filings flag
0.66×
FY2024–FY2026
Cash conversion.Over FY2024–FY2026, cumulative operating cash flow was 0.66× 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.
111% of FCF
FY2026
Shareholder returns.Returned $272M to shareholders (buybacks + dividends) in FY2026 — 111% of free cash flow. That is $27M (11%) more than free cash flow covered. New debt covered it: total debt rose $529M over FY2026, while cash rose $253M. A payout past free cash flow draws the balance sheet down in every year it continues, which isn't sustainable indefinitely. Counting the $26M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 122%.
+11.3%
FY2025→FY2026
Accruals ratio (% of NOA).Net operating assets grew +11.3% relative to their own average in FY2026 — scaled by NOA itself, not by total assets, which is what the Forensic Screens card's own accrual row divides by. Accruals are building faster than is comfortable — part of profit is sitting in the balance sheet rather than turning to cash. The build is led by payables paid down 18% against +6% in cost of sales. A cash-flow measure on the same base disagrees: reported earnings ran behind operating cash by 9% of net operating assets, against an accruals ratio of 11.3%. The two are computed differently: the accruals ratio is the change in net operating assets over average net operating assets, while the cash-flow figure is net income less operating cash flow over that same average. Read them as two results, not one.
10.8%
FY2026
Return on invested capital.Return on invested capital is 10.8% in the latest fiscal year and slipping across FY2024–FY2026 from 14.5%. After-tax operating profit was $150M in FY2024 and $176M in FY2026, with operating income at 12.3% of revenue in FY2024, 12.7% in FY2025 and 12.3% in FY2026. The capital base behind it grew +58% across FY2024–FY2026, from $1.0B to $1.6B, while the return fell 3.7 points, so the dollars added over that window earned less than the 14.5% the older base was already earning.
Key fundamentals
Latest Revenue$1.79B
Revenue Growth YoY+4.3%
Revenue CAGR (2yr)+7.7%
Net Margin8.7%
Free Cash Flow$245.3M
Return on Equity18.6%
Debt / Equity1.20x
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 Sep 25, 2026. Forensic signals flag probability, not certainty.
Osi Systems Inc (OSIS) Stock — Forensic Analysis, Red Flags & Rating | Stockonomy · Stockonomy
-0.2%/yr
FY2024–FY2026
Share count.Diluted share count changed 0% over the last 2 years to FY2026 (-0.2%/yr). Roughly flat — buybacks ($272M) are about offsetting stock comp ($26M), not shrinking the count. Per-share value isn't being meaningfully helped or hurt by the count.