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Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments.
OSI Systems's 5-Year RORE % for the quarter that ended in Mar. 2026 was 8.05%.
The industry rank for OSI Systems's 5-Year RORE % or its related term are showing as below:
OSIS's 5-Year RORE % is ranked better than 56.02% of 2249
companies
in the Hardware industry
Industry Median: 2.74
vs OSIS: 8.05
Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.
There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 5-year period is chosen.
Be Aware
Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.
OSI Systems 5-Year RORE % Related Terms
OSI Systems 5-Year RORE % Historical Data
* Premium members only.
The historical data trend for OSI Systems's 5-Year RORE % 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 5-Year RORE %, along with its competitors' market caps and 5-Year RORE % 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 5-Year RORE % vs Hardware Industry
For the Hardware industry and Technology sector, OSI Systems's 5-Year RORE % distribution charts can be found below:
* The bar in red indicates where OSI Systems's 5-Year RORE % 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 5-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Mar. 2026 and 5-year before.
OSI Systems (OSIS) has a 5-Year RORE % of 8.05 as of Mar. 2026. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on OSI Systems and its competitors. According to the industry distribution chart, OSI Systems ranks #989 out of 2249 companies in the Hardware industry, placing it in the top 44%.
Is OSI Systems' 5-Year RORE % too high?
OSI Systems' current 5-Year RORE % is 8.05. The Hardware industry median 5-Year RORE % is 2.74. OSI Systems' value of 8.05 is 193.8% above this industry median. Based on the distribution chart, OSI Systems ranks #989 out of 2249 companies in the Hardware industry, which is above the industry midpoint. Overall, OSI Systems has a GF Score™ of 91/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does OSI Systems' 5-Year RORE % compare to OLED and BELFB?
According to the Hardware industry distribution chart, OSI Systems ranks #989 out of 2249 companies for 5-Year RORE %. This puts OSI Systems in the upper half of its industry. The industry median 5-Year RORE % is 2.74. OSI Systems' value of 8.05 is 193.8% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good 5-Year RORE % for a Hardware company?
The median 5-Year RORE % among Hardware companies is 2.74, based on 2,249 companies in the industry. Companies in the top quartile (top 25%) have a 5-Year RORE % significantly above this median, while those in the bottom quartile fall well below. However, 5-Year RORE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. OSI Systems's current 5-Year RORE % of 8.05 is 193.8% 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 5-Year RORE % mean?
A high 5-Year RORE % can signal that a stock is expensive relative to its fundamentals. 5-Year RORE % shows how much a company earns by reinvesting its retained earnings in 5-year. View historical data on OSI Systems and its competitors. For the Hardware industry, the median 5-Year RORE % is 2.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. OSI Systems's current 5-Year RORE % is 8.05. 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 (OSIS) is currently considered Modestly Overvalued. The stock's GF Value™ is $192.50, compared to a current price of $220.95 — trading 14.8% above its estimated fair value. The current 5-Year RORE % is 8.05 and 193.8% above the Hardware industry median of 2.74. OSI Systems' overall GF Score™ is 91/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is 5-Year RORE % calculated?
5-Year RORE % is calculated from a company's financial statements. For OSI Systems (OSIS), the current 5-Year RORE % is 8.05 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 (OSIS) Overvalued in 2026?
Based on GuruFocus' analysis, OSI Systems stock appears to be overvalued.
The current stock price of $220.95 is trading 14.8% above its estimated GF Value™ of $192.50.
GuruFocus considers OSI Systems to be Modestly Overvalued.
Key valuation signals for OSIS:
5-Year RORE %: 8.05
GF Value™: $192.50 vs. price of $220.95 (14.8% above fair value)
Industry Position: 193.8% above the Hardware median (#989 of 2249)
No single metric tells the full story. See the OSIS 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.
91GF Score
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