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OSI SystemsSTU:OS2 -0.19%87 ROE % is 18.61% as of Mar. 2026, which is 44% above its 10-year median of 12.92. 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 2,430 Hardware companies, OSI Systems ranks better than 85.1% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. OSI Systems's annualized net income for the quarter that ended in Mar. 2026 was €139 Mil. OSI Systems's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €748 Mil. Therefore, OSI Systems's annualized ROE % for the quarter that ended in Mar. 2026 was 18.61%.
The historical rank and industry rank for OSI Systems's ROE % or its related term are showing as below:
STU:OS2'
s ROE % Range Over the Past 10 Years
Min: -5.5 Med: 12.92 Max: 18.05
Current: 16.85
During the past 13 years, OSI Systems's highest ROE % was 18.05%. The lowest was -5.50%. And the median was 12.92%.
STU:OS2's ROE % is ranked better than 85.1% of 2430
companies
in the Hardware industry
Industry Median: 4.965
vs STU:OS2: 16.85
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* 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.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.
OSI Systems ROE % Related Terms
OSI Systems ROE % Historical Data
* Premium members only.
The historical data trend for OSI Systems's ROE % 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.
For the Electronic Components subindustry, OSI Systems's ROE %, along with its competitors' market caps and ROE % 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 ROE % vs Hardware Industry
For the Hardware industry and Technology sector, OSI Systems's ROE % distribution charts can be found below:
* The bar in red indicates where OSI Systems's ROE % 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 ROE %, the net income of the last fiscal year and the average total shareholder 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.
ROE % is displayed in the 30-year financial page.
OSI Systems (STU:OS2) has a ROE % of 18.61% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on OSI Systems and its competitors. This is 44% above median its historical median of 12.92. According to the industry distribution chart, OSI Systems ranks #362 out of 2430 companies in the Hardware industry, placing it in the top 14.9%.
Is OSI Systems' ROE % too high?
OSI Systems' current ROE % of 18.61% is 44% above median its 10-year median of 12.92. The Hardware industry median ROE % is 4.97. OSI Systems' value of 18.61% is 274.8% above this industry median. Based on the distribution chart, OSI Systems ranks #362 out of 2430 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' ROE % compare to OLED and BELFB?
According to the Hardware industry distribution chart, OSI Systems ranks #362 out of 2430 companies for ROE %. This places OSI Systems in the top 15% of its industry — outperforming the majority of peers. The industry median ROE % is 4.97. OSI Systems' value of 18.61% is 274.8% above this benchmark. While the company's 10-year median is 12.92 vs. the industry median of 4.97, 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 ROE % for a Hardware company?
The median ROE % among Hardware companies is 4.97, based on 2,430 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. OSI Systems's current ROE % of 18.61% is 274.8% 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 ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on OSI Systems and its competitors. For the Hardware industry, the median ROE % is 4.97 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. OSI Systems's current ROE % is 18.61%, which is 44% above median its own 10-year median of 12.92. 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 €188.35 — trading 13.6% above its estimated fair value. The current ROE % is 18.61%, which is 44% above median its 10-year median of 12.92 and 274.8% above the Hardware industry median of 4.97. 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 ROE % calculated?
ROE % is calculated from a company's financial statements. For OSI Systems (STU:OS2), the current ROE % is 18.61% 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 €188.35 is trading 13.6% above its estimated GF Value™ of €165.84.
GuruFocus considers OSI Systems to be Modestly Overvalued.
Key valuation signals for STU:OS2:
ROE %: 18.61% (44% above median its 10-year median of 12.92)
GF Value™: €165.84 vs. price of €188.35 (13.6% above fair value)
Industry Position: 274.8% above the Hardware median (#362 of 2430)
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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