TacticScaleWhat OSI Systems Does & How It Makes Money (OSIS)
Updated October 2026 · reflects OSI Systems's latest reported financials
Maker of security scanners, patient monitors, and optoelectronic components. It makes money selling and servicing security inspection systems, medical monitoring devices, and electronic and optical components.
How OSI Systems makes money
It makes money selling and servicing security inspection systems, medical monitoring devices, and electronic and optical components. It also earns service revenue from turnkey screening services, including staffing and running security checkpoints under the S2 brand.
What OSI Systems does
OSI Systems, founded in 1987 and headquartered in Hawthorne, California, makes specialized electronic systems for critical applications. Its largest and best-known business is security: X-ray and other inspection systems for baggage, parcels, cargo, and vehicles; people screening such as walk-through metal detectors; radiation monitoring; and explosives and narcotics trace detection. Under the S2 brand it also sells turnkey screening services, which can include training operators and staffing and running checkpoints. The company also has a healthcare arm under the Spacelabs name, which sells bedside monitors, telemetry, clinical decision support analytics, ambulatory ECG and blood pressure recorders, and cardiology information software. A third business, OSI Optoelectronics, makes light-sensing detectors, lasers, and optical components, and it also offers printed circuit board, cable, and harness assemblies as well as complete systems for other manufacturers. The company sells across the Americas, Europe, the Middle East, Africa, and Asia-Pacific.
Products & services
- Baggage, cargo and vehicle inspection systems
- S2 turnkey security screening services
- Spacelabs Xprezzon and Qube bedside monitors
- Spacelabs SafeNSound
- OSI Optoelectronics components
- Eclipse Pro Holter and Eclipse Mini ECG recorders
What is OSI Systems worth?
On an owner-earnings DCF, OSI Systems's most-likely value is about $276 versus a recent price near $195 (42% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$127) with a margin of safety — so the honest verdict here is “Fairly priced — no edge.” Fair value earns its keep only at the extremes, not in the wide middle.
Price sits in the normal range — fair value isn't actionable here; it earns its keep only when price drops below the no-growth floor, or runs to roughly double the optimistic case.
Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →
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