Is OSI SYSTEMS INC (OSIS) Halal?

NASDAQ Technology United States $4.6B
✓ HALAL
Confidence: 95/100
OSI SYSTEMS INC (OSIS) is Halal under 4 of 5 Shariah screening standards, including AAOIFI Standard 21. With a debt ratio of just 14.3% against the AAOIFI threshold of 30%, OSI SYSTEMS INC comfortably passes the key financial ratio tests. The company operates in the Technology sector (Electronic Components), which is not a prohibited industry under Islamic finance principles.

Shariah Screening — 5 Standards

Based on financial data from June 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 14.3%
/ 30%
2.3%
/ 30%
18.5%
/ 30%
0.31%
/ 5%
✓ HALAL
DJIM 14.3%
/ 33%
2.3%
/ 33%
18.5%
/ 33%
0.31%
/ 5%
✓ HALAL
MSCI 29.0%
/ 33%
4.7%
/ 33%
37.4%
/ 33%
0.31%
/ 5%
✗ NOT HALAL
S&P 14.3%
/ 33%
2.3%
/ 33%
18.5%
/ 33%
0.31%
/ 5%
✓ HALAL
FTSE 29.0%
/ 33%
4.7%
/ 33%
37.4%
/ 50%
0.31%
/ 5%
✓ HALAL

Financial Highlights

P/E Ratio
30.9
Forward: 23.6
EPS
$8.82
P/B Ratio
5.3
EV/EBITDA
19.6
EV: $5.2B
Revenue
$1.7B
Growth: 10.5%
Beta
1.3
High volatility
Current Ratio
3.2

Profitability

Gross Margin 33.0%
Operating Margin 13.3%
Net Margin 8.5%
Return on Equity (ROE) 18.3%
Return on Assets (ROA) 6.0%

Cash Flow & Balance Sheet

Operating Cash Flow$98M
Free Cash Flow$56M
Total Debt$650M
Debt-to-Equity123.9
Current Ratio3.2
Total Assets$2.2B

Price & Trading

Last Close$274.70
50-Day MA$277.19
200-Day MA$252.88
Avg Volume271K
Beta1.3
52-Week Range
$164.08
$306.12

About OSI SYSTEMS INC (OSIS)

CEO
Mr. Ajay Mehra
Employees
7,337
Sector
Technology
Industry
Electronic Components
Country
United States
Exchange
NASDAQ
Market Cap
$4.6B
Currency
USD

OSI Systems, Inc. designs and manufactures electronic systems and components in the United States and internationally. It operates in three segments: Security, Healthcare, and Optoelectronics and Manufacturing. The company offers baggage and parcel inspection, cargo and vehicle inspection, hold baggage and people screening, radiation monitoring, explosive and narcotics trace detection systems, and optical inspection systems, and radio frequency (RF) equipment under the Rapiscan name. It also provides site design, installation, training, and technical support services; and turnkey security screening solutions under the S2 name. In addition, the company offers patient monitoring, cardiology and remote monitoring, and connected care systems and accessories under the Spacelabs name for use in critical care, emergency, and perioperative areas within hospitals, physicians' offices, medical clinics, and ambulatory surgery centers. Further, it provides optoelectronic devices and flex circuits under the OSI Optoelectronics, OSI LaserDiode, and Advanced Photonix names for the aerospace and defense, avionics, medical imaging and diagnostics, biochemistry analysis, pharmaceutical, nanotechnology, telecommunications, construction, and homeland security markets. Additionally, the company offers electronics manufacturing services to original equipment manufacturers and end users for medical, automotive, defense, aerospace, industrial, and consumer applications under the OSI Electronics, APlus Products, Altaflex, and PFC Flexible Circuits names; and LCD displays for medical, industrial, and consumer electronics applications. The company was incorporated in 1987 and is headquartered in Hawthorne, California.

Purification Calculator

As a halal stock with 0.31% impermissible income, you need to purify your dividends.

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Frequently Asked Questions

Is OSI SYSTEMS INC (OSIS) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), OSI SYSTEMS INC is Halal. The company passes all financial ratio thresholds for debt, cash, receivables, and impermissible income. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is OSI SYSTEMS INC's debt ratio?

OSI SYSTEMS INC's debt ratio is 14.3% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 29.0%.

Does OSI SYSTEMS INC require dividend purification?

Yes, OSI SYSTEMS INC has an impermissible income ratio of 0.31%, which means 0.31% of any dividends received should be donated to charity as purification. This is because a small portion of the company's revenue comes from non-Shariah-compliant sources.

What are OSI SYSTEMS INC's key financial metrics?

OSI SYSTEMS INC has a market capitalization of $4.6B, trailing P/E ratio of 30.9, and revenue of $1.7B. The company maintains a gross margin of 33.0% and a net margin of 8.5%. Return on equity stands at 18.3%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.