Masimo (MASI) AI Stock Analysis

• Market Cap: $8.93B
• Dividend Yield: N/A
• Average Volume (3M): 559.97K
• Price to Earnings (P/E): 116.7
• Beta (1Y): 0.89
• Revenue Growth: 2.26%
• EPS Growth: -467.23%
• Country: US
• Employees: 3,800
• Sector: Healthcare
• Sector Strength: 78
• Industry: Medical Equipment & Supplies
• EPS (TTM): -5.70
• Shares Outstanding: 53,948,790
• 10 Day Avg. Volume: 766,461
• 30 Day Avg. Volume: 559,969
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 4.26
• Price to Cash Flow (P/CF): 44.20
• P/FCF Ratio: 44.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $195.83
• Price Target Upside: 17.60% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

Masimo's overall stock score reflects a mixed outlook. Strengths include strong cash flow and positive market momentum, while challenges are seen in high valuation metrics and profitability issues. The positive earnings call provides some optimism, but concerns remain regarding asset decline and the performance of non-core operations.

Positive Factors

Financial Performance

Masimo reported Q4 revenue of $601M, in line with preannounced Q4 revenue of $601M and roughly $10M above consensus.

Leadership

Investors are expected to react favorably to the announcement of Katie Szyman as the new CEO.

Negative Factors

Tariffs

Potential tariffs could impact approximately 25% of healthcare costs of goods sold, creating some uncertainty.

Masimo Business Overview & Revenue Model

Company Description

Masimo Corporation (MASI) is a global medical technology company that develops, manufactures, and markets innovative noninvasive monitoring technologies. The company is primarily known for its signal extraction technology (SET) pulse oximetry, which is used for monitoring blood oxygen levels in patients. Masimo's product portfolio includes a variety of advanced noninvasive monitoring devices and sensors that are used across multiple healthcare settings, including hospitals, emergency medical services, and homecare. The company operates within the healthcare and medical device sectors and is committed to improving patient outcomes through accurate and reliable monitoring solutions.

How the Company Makes Money

Masimo makes money by selling its advanced medical devices and sensor technologies directly to healthcare providers, hospitals, and other medical facilities. The company's primary revenue stream comes from the sales of its proprietary pulse oximetry and advanced monitoring solutions, which include devices, sensors, and consumables that require regular replacement. Masimo also generates revenue through long-term contracts and licensing agreements with other healthcare companies and organizations. Additionally, strategic partnerships with key players in the medical device industry further contribute to its earnings, as these collaborations help expand the reach and adoption of Masimo's technologies worldwide.

Masimo Financial Statement Overview

Summary

Masimo's financial performance is mixed, with challenges in profitability indicated by a negative EBIT and net margin. Despite this, the company maintains a stable gross profit margin and strong cash flow, which provides a buffer against short-term financial volatility. The balance sheet shows manageable debt levels but declining stockholders' equity and total assets raise concerns.

Income Statement

Masimo's income statement shows a decline in profitability with a negative EBIT and net margin for 2024. Gross profit margin remains stable, but revenue growth has slowed significantly compared to past years.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio, indicating manageable leverage. However, the decline in stockholders' equity and total assets raises concerns about long-term financial stability.

Cash Flow

Masimo's cash flow is strong with positive free cash flow growth and an improving operating cash flow to net income ratio. This suggests effective cash management despite a challenging profit environment.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
2.09B	2.05B	2.04B	1.24B	1.14B
	Gross Profit
1.00B	1.00B	1.06B	808.35M	743.07M
	EBIT
-266.70M	136.50M	210.00M	275.82M	255.82M
	EBITDA
-266.70M	236.70M	355.20M	310.86M	293.77M
	Net Income Common Stockholders
-304.90M	81.50M	143.50M	229.60M	240.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
177.60M	163.00M	202.90M	745.25M	641.45M
	Total Assets
2.63B	3.04B	3.21B	1.89B	1.71B
	Total Debt
727.90M	970.00M	975.40M	32.66M	34.35M
	Net Debt
550.30M	807.00M	772.50M	-712.59M	-607.10M
	Total Liabilities
1.57B	1.68B	1.87B	336.76M	304.91M
	Stockholders Equity
1.05B	1.36B	1.34B	1.55B	1.41B
Cash Flow		Free Cash Flow
176.40M	6.40M	-26.80M	229.82M	131.01M
	Operating Cash Flow
196.40M	94.10M	29.50M	264.75M	210.96M
	Investing Cash Flow
-51.20M	-81.20M	-1.06B	-37.53M	-82.79M
	Financing Cash Flow
-125.60M	-57.10M	520.30M	-122.40M	-54.31M

Masimo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 166.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MASI, the sentiment is Neutral. The current price of 166.52 is below the 20-day moving average (MA) of 178.62, below the 50-day MA of 174.68, and above the 200-day MA of 144.72, indicating a neutral trend. The MACD of -0.56 indicates Positive momentum. The RSI at 40.35 is Neutral, neither overbought nor oversold. The STOCH value of 15.92 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MASI.

Masimo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SYK	82 Outperform	$139.39B	47.68	15.26%	0.88%	10.23%	-5.74%
ABT	79 Outperform	$238.23B	17.96	30.95%	1.63%	4.59%	134.50%
BSX	78 Outperform	$140.97B	76.57	9.03%	―	17.60%	16.84%
MDT	77 Outperform	$119.64B	28.51	8.42%	2.97%	2.72%	4.48%
EW	68 Neutral	$40.29B	28.76	17.17%	―	-4.67%	3.34%
MASI	64 Neutral	$8.93B	116.65	-25.23%	―	2.26%	-467.23%
Sector *	49 Neutral	$6.90B	-0.08	-53.01%	2.43%	24.84%	-3.06%

Masimo Corporate Events

Masimo Reports Q4 2024 Financial Results and 2025 Guidance

On February 25, 2025, Masimo announced its financial results for the fourth quarter and full-year 2024, reporting a 9% increase in consolidated revenue for the quarter. The company also provided updated guidance for 2025, highlighting strategic realignment efforts expected to boost earnings and cash flow. The healthcare segment showed strong growth, while the non-healthcare segment experienced a decline. The company plans to classify its Sound United business as ‘held for sale’ and focus on its core healthcare operations.

Masimo Sets Date for 2025 Annual Stockholders Meeting

Masimo has scheduled its 2025 Annual Meeting of Stockholders for April 29, 2025, with details to be provided in their proxy statement. The company has outlined deadlines for stockholder proposals and nominations, emphasizing compliance with SEC rules and Masimo’s Restated Bylaws, with a submission deadline of March 1, 2025, for any proposals to be considered.

Masimo Announces Executive Leadership Change

On February 6, 2025, Masimo Corporation terminated the employment of Tom McClenahan, who served as the company’s Executive Vice President, General Counsel, and Corporate Secretary. This change marks a significant shift in the company’s leadership, potentially impacting its legal and corporate governance strategies.

Masimo Board Member Robert Chapek Announces Resignation

On January 30, 2025, Robert Chapek, a member of the Board of Directors and Audit Committee of Masimo Corporation, notified the Board of his irrevocable resignation, effective as of the company’s 2025 annual meeting. Chapek’s departure is stated to be without any disagreements regarding Masimo’s operations, policies, or practices, and he will continue his roles until the resignation becomes effective.

Masimo Appoints New CEO Amid Leadership Transition

On January 21, 2025, Masimo announced the appointment of Catherine Szyman as its new Chief Executive Officer, effective February 12, 2025, following an extensive search process. Michelle Brennan, who served as interim CEO, will transition to Chairman of the Board. Szyman, with over 35 years of experience, brings a track record of accelerating growth and innovation in patient monitoring, having previously led the Critical Care business at Edwards Lifesciences. Her leadership is expected to drive Masimo’s next phase of innovation, focusing on large opportunities in patient monitoring technologies, while Brennan’s move to Chairman ensures continuity in leadership.

Masimo Announces 2024 Financial Results and 2025 Guidance

Masimo Corporation, a company known for its non-invasive monitoring technologies, announced select preliminary financial results for the fourth quarter and full-year 2024, along with estimates for its 2025 financial guidance during the J.P. Morgan Healthcare Conference on January 16, 2025. The company projects a consolidated revenue growth of 9% for the fourth quarter, with healthcare revenue up by 8% and non-healthcare revenue seeing an 11% increase. For the full year 2024, consolidated revenue growth is expected to be 2%, with healthcare revenue showing a 9% increase while non-healthcare revenue declined by 10%. Masimo also provided guidance for 2025, anticipating healthcare revenue growth between 8% to 11% and non-GAAP earnings per share between $4.90 to $5.10.