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OSI SystemsSTU:OS2 -4.50%87 Return-on-Tangible-Equity is 53.73% as of Mar. 2026, which is 23% above its 10-year median of 43.85. GuruFocus rates STU:OS2 with a GF Score™ of 87/100 and a GF Value™ of €165.84 (Modestly Overvalued). The stock has 4 warning signs investors should review. Among 2,383 Hardware companies, OSI Systems ranks better than 94.88% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. OSI Systems's annualized net income for the quarter that ended in Mar. 2026 was €139 Mil. OSI Systems's average shareholder tangible equity for the quarter that ended in Mar. 2026 was €259 Mil. Therefore, OSI Systems's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 53.73%.
The historical rank and industry rank for OSI Systems's Return-on-Tangible-Equity or its related term are showing as below:
STU:OS2'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -22.08 Med: 43.85 Max: 77.65
Current: 45.48
During the past 13 years, OSI Systems's highest Return-on-Tangible-Equity was 77.65%. The lowest was -22.08%. And the median was 43.85%.
STU:OS2's Return-on-Tangible-Equity is ranked better than 94.88% of 2383
companies
in the Hardware industry
Industry Median: 5.76
vs STU:OS2: 45.48
OSI Systems (STU:OS2) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
OSI Systems Return-on-Tangible-Equity Related Terms
OSI Systems Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for OSI Systems's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:OS2 vs OLED, BELFB, KN: Return-on-Tangible-Equity Comparison
For the Electronic Components subindustry, OSI Systems's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
OSI Systems Return-on-Tangible-Equity vs Hardware Industry
For the Hardware industry and Technology sector, OSI Systems's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where OSI Systems's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 53.73% mean?
OSI Systems (STU:OS2) has a Return-on-Tangible-Equity of 53.73% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on OSI Systems and its competitors. This is 23% above median its historical median of 43.85. According to the industry distribution chart, OSI Systems ranks #122 out of 2383 companies in the Hardware industry, placing it in the top 5.1%.
Is OSI Systems' Return-on-Tangible-Equity too high?
OSI Systems' current Return-on-Tangible-Equity of 53.73% is 23% above median its 10-year median of 43.85. The Hardware industry median Return-on-Tangible-Equity is 5.76. OSI Systems' value of 53.73% is 832.8% above this industry median. Based on the distribution chart, OSI Systems ranks #122 out of 2383 companies in the Hardware industry, which is in the top quartile — a strong position relative to peers. Overall, OSI Systems has a GF Score™ of 87/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does OSI Systems' Return-on-Tangible-Equity compare to OLED and BELFB?
According to the Hardware industry distribution chart, OSI Systems ranks #122 out of 2383 companies for Return-on-Tangible-Equity. This places OSI Systems in the top 5% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 5.76. OSI Systems' value of 53.73% is 832.8% above this benchmark. While the company's 10-year median is 43.85 vs. the industry median of 5.76, OSI Systems has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Hardware company?
The median Return-on-Tangible-Equity among Hardware companies is 5.76, based on 2,383 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. OSI Systems's current Return-on-Tangible-Equity of 53.73% is 832.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on OSI Systems and its competitors. For the Hardware industry, the median Return-on-Tangible-Equity is 5.76 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. OSI Systems's current Return-on-Tangible-Equity is 53.73%, which is 23% above median its own 10-year median of 43.85. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is OSI Systems stock overvalued right now?
Based on GuruFocus' analysis, OSI Systems (STU:OS2) is currently considered Modestly Overvalued. The stock's GF Value™ is €165.84, compared to a current price of €188.70 — trading 13.8% above its estimated fair value. The current Return-on-Tangible-Equity is 53.73%, which is 23% above median its 10-year median of 43.85 and 832.8% above the Hardware industry median of 5.76. OSI Systems' overall GF Score™ is 87/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For OSI Systems (STU:OS2), the current Return-on-Tangible-Equity is 53.73% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is OSI Systems (STU:OS2) Overvalued in 2026?
Based on GuruFocus' analysis, OSI Systems stock appears to be overvalued.
The current stock price of €188.70 is trading 13.8% above its estimated GF Value™ of €165.84.
GuruFocus considers OSI Systems to be Modestly Overvalued.
Key valuation signals for STU:OS2:
Return-on-Tangible-Equity: 53.73% (23% above median its 10-year median of 43.85)
GF Value™: €165.84 vs. price of €188.70 (13.8% above fair value)
Industry Position: 832.8% above the Hardware median (#122 of 2383)
No single metric tells the full story. See the STU:OS2 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
OSI Systems Inc is a designer and manufacturer of electronic systems and components for businesses in the homeland security, healthcare, defense, and aerospace markets. The firm is organized in three business segments: Security, which derives maximum revenue, provides security and inspection systems; Healthcare, which provides patient monitoring, diagnostic, cardiology, ventilation systems, and defibrillators; and Optoelectronics and Manufacturing, which provides specialized electronic components and manufacturing services for the Security and Healthcare segments and external original equipment manufacturers. The majority of the firm's revenue is generated in the United States, and the rest from Mexico, Europe, the Middle East and Africa, and the Asia Pacific regions.
87GF Score
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