OSI Systems Story

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OSIS -- USA Stock  

USD 89.79  2.10  2.39%

Given the investment horizon of 90 days, OSI Systems is expected to generate 1.36 times more return on investment than the market. However, the company is 1.36 times more volatile than its market benchmark. It trades about 0.21 of its potential returns per unit of risk. The DOW is currently generating roughly 0.1 per unit of risk. While some risk-seeking retail investors are getting worried about technology space, it is reasonable to sum up OSI Systems as a possible investment alternative. What exactly are OSI Systems shareholders getting in November? OSI Systems' very low volatility may have no significant impact on the stock's value as we estimate OSI Systems as currently fairly valued. The real value, based on our calculations, is getting close to 81.13 per share.
Published over a month ago
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Breaking down OSI Systems volatility
OSI Systems currently holds roughly 76.1 M in cash with 129.18 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 4.21.
Volatility is a rate at which the price of OSI Systems or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of OSI Systems may increase or decrease. In other words, similar to OSI Systems's beta indicator, it measures the risk of OSI Systems and helps estimate the fluctuations that may happen in a short period of time. So if prices of OSI Systems fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is OSI Systems's Liquidity

OSI Systems financial leverage refers to using borrowed capital as a funding source to finance OSI Systems ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. OSI Systems financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between OSI Systems's total debt and its cash.

How OSI Systems utilizes its cash?

To perform a cash flow analysis of OSI Systems, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash OSI Systems is receiving and how much cash it distributes out in a given period. The OSI Systems cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. OSI Systems Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. OSI Systems reported last year Net Cash Flow from Operations of 129.18 Million

OSI Systems Volatility Drivers

OSI Systems unsystematic risk is unique to OSI Systems and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in OSI Systems you can also buy MURATA MANUFACTURING CO. You can also mitigate this risk by investing in the electronic components sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing OSI Systems important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in OSI Systems income statement and balance sheet. Here are more details about OSI Systems volatility.