$OSI Systems (OSIS.US)$In the analysis two years ago, it was...

The American company, which was listed in 1997, mainly manufactures electronic systems for homeland security, healthcare and aerospace companies. Most markets are in the US and the UK, and the current price is 128.87.

In the past 5 years, revenue has grown for 3 years except 2020 and 2021, with an average growth rate of 3.2%. Operating profit has increased for 4 years except 2020, with an average growth rate of 9.4%, and net profit with an average growth rate of 9.1% in the past 4 years. Interest expenses account for 14% of operating profit in 2023, and the interest burden is heavy. The gross margin fell from 36.4% to 33.7% in the past 5 years, and the return on net assets increased from 12.5% to 13.5%.

In the first two quarters of 2024, revenue increased 15.8%, operating profit increased 71%, and net profit increased 79.2%.

The balance ratio has declined from 56.4% to 53.3% in the past 5 years. Currently, it is 55.4%, and total assets and net assets have increased. The ratio and growth rate of accounts receivable and inventory is quite normal. Goodwill and other intangible assets are at $490 million, accounting for 67.2% of net assets of 726 million, and long-term loans of $136 million, accounting for 18.7% of net assets.

Over the past five years, net operating cash flow has been significantly higher than net investment, generating a large number of shareholders' surpluses.

Currently, the price-earnings ratio is 23.9, and the price-earnings ratio has dropped to 19.3. If net profit increases by 60% for the whole year, the price-earnings ratio will drop to 14.9, and you can set up some observation positions (👀)