Masimo (MASI) AI Stock Analysis

• Market Cap: $13.01B
• Dividend Yield: N/A
• Average Volume (3M): 1.71M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.00
• Revenue Growth: -16.03%
• EPS Growth: -813.48%
• Country: US
• Employees: 3,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): -0.18
• Shares Outstanding: 74,218,780
• 10 Day Avg. Volume: 3,750,277
• 30 Day Avg. Volume: 1,708,358
• PEG Ratio: 0.89
• Price to Book (P/B): 9.47
• Price to Sales (P/S): 4.47
• P/FCF Ratio: 34.52
• Enterprise Value/Market Cap: 0.75
• Enterprise Value/Revenue: 6.41
• Enterprise Value/Gross Profit: 10.35
• Enterprise Value/Ebitda: 26.95
• 1Y Price Target: $180.00
• Price Target Upside: 2.65% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 6
• EPS Forecast (FY): 5.9
• Revenue Forecast (FY): $1.63B

• Rating: 63 Neutral
• Price Target: $187.00 ▲(6.64% Upside)
• Action: Reiterated Date: 02/28/26
• Date: Action: Reiterated 02/28/26

The score is driven primarily by mixed financial performance (strong and improving cash generation but inconsistent/negative profitability and a recent revenue decline). Technicals are supportive with a strong trend, though momentum looks stretched. The Danaher all-cash acquisition is a notable positive, while valuation is constrained by negative earnings and the lack of a dividend metric.

Positive Factors

Strong cash generation

Masimo's recent operating cash flow (~$217M) and strong free cash flow (~$198M) show durable cash-generation capacity even during loss years. Reliable FCF supports R&D, capital expenditures, debt reduction or strategic investments and underpins operational resilience over the next 2–6 months.

Improved gross margins

A sustained gross margin improvement to ~61.9% indicates better mix and/or cost control in core monitoring products and software. Higher gross margins create structural room to absorb SG&A or pricing pressures and improve the odds of converting operational gains into long-term profitable growth if maintained.

Strategic acquisition / integration optionality

The announced Danaher acquisition is a structural change that places Masimo within a larger diagnostics platform while preserving its autonomy. This offers durable upside via scale, distribution, and planned synergies, potentially accelerating product adoption and long-term commercial reach under stable ownership.

Negative Factors

Recent revenue decline

An ~11% top-line decline in 2026 signals persistent demand or execution challenges in core markets. Durable revenue weakness erodes operating leverage, threatens recurring consumables income, and makes it harder to sustain investment in innovation and commercial expansion without material recovery in sales.

Inconsistent profitability

Intermittent losses and a ~-9.9% net margin in 2026 illustrate volatility in converting strong gross margins into consistent net profit. This undermines retained-earnings build-up, weakens ROE, and limits organic capital available for long-term initiatives unless profitability stabilizes.

Moderate leverage and equity compression

Debt/equity around 0.72 and a halving of equity over several years reduce financial flexibility. Compressed equity and moderate leverage constrain the company's ability to weather shocks, pursue large organic investments, or finance slower growth without depending on external financing or strategic transactions.

Masimo Business Overview & Revenue Model

Company Description

Masimo Corporation develops, manufactures, and markets noninvasive monitoring technologies and hospital automation solutions worldwide. The company offers masimo signal extraction technology (SET) pulse oximetry with measure-through motion and low perfusion pulse oximetry monitoring to address the primary limitations of conventional pulse oximetry. It also provides Masimo rainbow SET platform that includes rainbow SET Pulse CO-Oximetry products that noninvasively monitor hemoglobin species, including oxygen saturation, pulse rate, perfusion index, pleth variability index, and respiration rate from the pleth; noninvasively monitor hemoglobin concentration, and carboxyhemoglobin and methemoglobin; monitor arterial oxygen saturation and acoustic respiration rate; and calculates oxygen content and oxygen reserve index. It offers SedLine brain function monitoring technology to measure the brain's electrical activity by detecting EEG signals; capnography and gas monitoring products comprising external plug-in-and-measure capnography and gas analyzers, integrated modules, handheld capnograph and capnometer devices, and capnography sampling lines; O3 regional oximetry for tissue oxygen saturation measurement; and hemodynamic monitoring solutions. Its Masimo Hospital Automation platform includes Patient SafetyNet, Patient SafetyNet surveillance, Kite, UniView, Replica, UniView : 60, and MyView. It offers connectivity devices; and nasal high flow ventilation and neuromodulation solutions. It provides its products through direct sales force, distributors, and original equipment manufacturers partners to hospitals, emergency medical service and home care providers, long-term care facilities, physician offices, veterinarians, and consumers; and non-medical/consumer products through e-commerce site, masimopersonalhealth.com. The company was incorporated in 1989 and is headquartered in Irvine, California.

How the Company Makes Money

Masimo generates revenue primarily through the sale of its medical devices, sensors, and related consumables. The company's key revenue streams include the sale of proprietary pulse oximetry devices and sensors, which are utilized in hospitals and other healthcare facilities to measure blood oxygen levels and other vital signs. Additionally, Masimo benefits from recurring revenue through the sale of single-use sensors that require regular replacement, creating a consistent income stream. The company also earns revenue from software solutions that enhance monitoring capabilities and improve clinical decision-making. Significant partnerships with healthcare providers and integration of its technologies into various medical systems further contribute to Masimo's earnings, as they expand the reach of its products and enhance clinical workflow efficiency.

Masimo Financial Statement Overview

Summary

Mixed fundamentals: cash flow is strong and improving (2026 operating cash flow ~$217M; free cash flow ~$198M), but profitability has been inconsistent and recently negative (loss-making in 2024 and 2026) with a notable revenue decline in 2026 (~-11%). Balance sheet leverage is manageable (~0.72 debt/equity) and debt has come down from prior peaks, but equity compression and negative ROE in 2024–2026 remain key constraints.

Income Statement

Profitability has deteriorated meaningfully versus the company’s earlier profile. After solid profitability in 2020–2023 (net margins ~4%–21%), results turned sharply negative in 2024 (EBIT margin ~-12.5%) and remained loss-making in 2026 (annual net margin ~-9.9%) despite a rebound to positive operating profit (EBIT margin ~17.9%). Top-line momentum is also a concern: revenue declined ~11.0% in 2026 after being roughly flat in 2022–2024, indicating pressure on growth and absorption. A key positive is the 2026 gross margin improvement (~61.9% vs ~48.0% in 2024), suggesting better mix and/or cost control, but the business still needs to convert this into consistent bottom-line profitability.

Balance Sheet

Leverage is moderate but has increased structurally versus 2020–2021. Debt-to-equity sits around ~0.72 in 2026 (similar to 2022–2024 levels), which is manageable for the industry but reduces flexibility compared with the very low leverage seen earlier. Equity has also compressed from ~$1.55B (2021) to ~$0.72B (2026), and returns on equity are negative in 2024–2026, reflecting the recent losses. Offsetting this, total assets remain substantial (~$1.70B in 2026) and the debt load has come down from the 2023–2024 peak, improving balance sheet directionally even if profitability remains the primary constraint.

Cash Flow

Cash generation is a clear bright spot. Operating cash flow stayed positive across all periods and improved in 2026 (~$217M), with free cash flow also strong (~$198M) and growing (~+4.2%). Importantly, cash flow quality looks resilient even during loss years: free cash flow remained positive in 2024 and 2026 and was sizable relative to earnings, signaling good conversion and working-capital discipline. The main weakness is volatility earlier in the period (notably negative free cash flow in 2022 and very low free cash flow in 2023), but the most recent year shows a materially stronger cash profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	1.53B	2.09B	2.05B	2.04B	1.24B
Gross Profit	945.20M	1.00B	1.00B	1.06B	808.40M
EBITDA	311.40M	-158.70M	236.70M	355.20M	310.30M
Net Income	-151.50M	-304.90M	81.50M	143.50M	229.60M
Balance Sheet
Total Assets	1.70B	2.63B	3.04B	3.21B	1.89B
Cash, Cash Equivalents and Short-Term Investments	152.30M	177.60M	163.00M	202.90M	745.30M
Total Debt	518.00M	846.10M	970.00M	1.03B	32.70M
Total Liabilities	977.70M	1.57B	1.68B	1.87B	336.80M
Stockholders Equity	721.20M	1.05B	1.36B	1.34B	1.55B
Cash Flow
Free Cash Flow	197.80M	145.30M	6.40M	-26.90M	229.70M
Operating Cash Flow	217.20M	196.40M	94.10M	29.40M	264.60M
Investing Cash Flow	275.10M	-51.20M	-81.20M	-1.06B	-37.50M
Financing Cash Flow	0.00	-125.60M	-57.10M	520.40M	-122.40M

Masimo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 175.35
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MASI, the sentiment is Positive. The current price of 175.35 is above the 20-day moving average (MA) of 153.50, above the 50-day MA of 143.21, and above the 200-day MA of 149.42, indicating a bullish trend. The MACD of 10.47 indicates Negative momentum. The RSI at 76.01 is Negative, neither overbought nor oversold. The STOCH value of 86.96 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MASI.

Masimo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ATR	74 Outperform	$9.25B	24.43	15.28%	1.50%	2.50%	25.05%
MMSI	68 Neutral	$4.59B	36.30	8.67%	―	11.49%	-2.89%
HOLX	66 Neutral	$16.82B	31.27	10.86%	―	1.74%	-25.29%
MASI	63 Neutral	$13.01B	-16.53	-17.93%	―	-16.03%	-813.48%
HAE	61 Neutral	$2.94B	17.40	19.30%	―	-2.45%	41.50%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
TFX	50 Neutral	$5.39B	-5.94	-5.26%	1.11%	5.43%	-245.18%

Masimo Corporate Events

Masimo to Be Acquired by Danaher in Merger

On February 16, 2026, Masimo Corporation agreed to be acquired by Danaher Corporation in an all-cash merger that values Masimo at $180 per share, or about $9.9 billion, with the deal unanimously approved by both companies’ boards and announced publicly on February 17, 2026. Masimo will become a standalone business unit within Danaher’s Diagnostics segment, with detailed terms covering treatment of equity awards, a support agreement securing votes from major shareholder Politan Capital Management, customary regulatory and shareholder conditions, and provisions for potential competing bids, positioning Danaher to strengthen its acute-care diagnostics offering while delivering a cash exit at a premium valuation to Masimo shareholders.

If completed in the second half of 2026 as expected, the merger will take Masimo private under Danaher’s ownership, delist its shares from Nasdaq, and more tightly align its monitoring technologies with a larger diagnostics portfolio. The transaction includes a substantial termination fee, extensive no-shop and matching rights, and a framework for Masimo’s continued autonomous operation within Danaher, signaling a strategic consolidation in the patient-monitoring space with implications for customers, employees, and investors amid regulatory and execution risks typical of large healthcare deals.

The most recent analyst rating on (MASI) stock is a Hold with a $180.00 price target. To see the full list of analyst forecasts on Masimo stock, see the MASI Stock Forecast page.

Masimo Issues Strong Preliminary Results for 2025 Performance

On January 12, 2026, Masimo announced select preliminary financial results for the fourth quarter and full year 2025, ahead of its full earnings release scheduled for February 26, 2026. For the fourth quarter of 2025, the company expects revenue of about $411 million, up roughly 12% on a reported basis and 11% in constant currency, non-GAAP earnings per diluted share above $1.54 despite the impact of new tariffs, and shipments of approximately 69,000 noninvasive technology boards and instruments. For full-year 2025, Masimo projects revenue of about $1.523 billion, representing around 9% growth on both a reported and constant currency basis, non-GAAP earnings per diluted share above $5.55 at the high end of its guidance range, and shipments of about 270,000 noninvasive technology boards and instruments. Management highlighted that record incremental contract value from new customers and expanded hospital agreements underpinned the year’s performance, suggesting strengthened competitive positioning and a foundation for sustained operational momentum, though the figures remain subject to adjustment upon completion of the annual audit.

The most recent analyst rating on (MASI) stock is a Hold with a $135.00 price target. To see the full list of analyst forecasts on Masimo stock, see the MASI Stock Forecast page.

Masimo Unveils Long-Term Strategy at Investor Day

On December 3, 2025, Masimo Corporation held its 2025 Investor Day, where CEO Katie Szyman and other executives presented the company’s long-term strategy and financial targets. The company reaffirmed its 2025 financial guidance and announced ambitious growth targets through 2028, including a revenue CAGR of 7%-10%, operating margin of 30%, and cumulative operating cash flow of approximately $1 billion from 2026-2028. Masimo emphasized its focus on patient outcomes, technology innovation, and commercial execution as key pillars for future growth.

The most recent analyst rating on (MASI) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on Masimo stock, see the MASI Stock Forecast page.

Masimo Secures New $1 Billion Credit Facility

On December 1, 2025, Masimo Corporation successfully refinanced its credit obligations by terminating its previous credit agreement and entering into a new Credit Facility. The new agreement includes a $250 million unsecured term loan and $750 million in revolving commitments, with the potential to increase borrowing capacity by an additional $400 million. This strategic financial move is expected to support Masimo’s general corporate purposes, capital investment, and working capital needs, potentially strengthening its financial stability and operational flexibility.

The most recent analyst rating on (MASI) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on Masimo stock, see the MASI Stock Forecast page.