Masimo (MASI) AI Stock Analysis

• Market Cap: $9.32B
• Dividend Yield: N/A
• Average Volume (3M): 680.98K
• Price to Earnings (P/E): 116.7
• Beta (1Y): 0.98
• Revenue Growth: -0.12%
• EPS Growth: -713.82%
• Country: US
• Employees: 3,600
• Sector: Healthcare
• Sector Strength: 41
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.36
• Shares Outstanding: 54,219,116
• 10 Day Avg. Volume: 666,275
• 30 Day Avg. Volume: 680,980
• PEG Ratio: 0.30
• Price to Book (P/B): 9.81
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 64.14
• Enterprise Value/Market Cap: 1.06
• Enterprise Value/Revenue: 1.21
• Enterprise Value/Gross Profit: 9.90
• Enterprise Value/Ebitda: 70.85
• 1Y Price Target: $189.60
• Price Target Upside: 10.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 6

• Rating: 57 Neutral
• Price Target: $160.00 ▼(-6.91%Downside)

The overall stock score of 57 reflects a combination of strong strategic moves and earnings performance, offset by technical weakness and valuation challenges. Strong cost management and strategic divestitures position Masimo well, while declining revenues and recent losses weigh on financial and valuation metrics.

Positive Factors

Financial Performance

MASI's 1Q25 revenue and EPS beat consensus.

Innovation

MASI is focused on taking share in growth markets, refreshing its installed base with next-gen technology, and bringing AI capabilities to its sensors.

Leadership

New CEO is focused on driving commercial excellence; building and retaining top talent; and innovation to improve patient care.

Negative Factors

Cybersecurity

Certain manufacturing facilities have been operating at less than normal levels due to a cyber attack on MASI's network.

Tariffs

Tariffs will result in a significant headwind to cost of goods sold.

Valuation Concerns

Analyst maintains Hold rating given MASI's valuation and concern that significant cost reductions may have compromised future earnings growth.

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 makes money primarily through the sale of its proprietary medical devices and systems, which include pulse oximeters, patient monitoring systems, and related sensors and accessories. The company generates revenue by selling these products directly to hospitals, healthcare providers, and distributors worldwide. Additionally, Masimo benefits from recurring revenue streams through the sale of disposable sensors and other consumables that are necessary for the ongoing use of its monitoring systems. The company may also engage in strategic partnerships and collaborations with healthcare organizations and technology firms to expand its market reach and enhance its product offerings. These partnerships can contribute to revenue through joint ventures, licensing agreements, and shared technological advancements.

Masimo Financial Statement Overview

Summary

Masimo's financial statements indicate strong cost management with a solid gross profit margin; however, profitability is under pressure due to negative net income and declining revenues. The balance sheet is stable with moderate leverage, but profitability issues affect returns. Cash flow remains robust relative to income, yet negative free cash flow growth is a concern.

Income Statement

Masimo's TTM (Trailing-Twelve-Months) performance shows declining revenue and negative profitability. The gross profit margin stands at 50.5%, indicating strong cost management relative to revenue. However, the net profit margin is negative due to substantial net losses, highlighting profitability challenges. Revenue has decreased from the previous year, suggesting potential demand or operational issues.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.72, indicating balanced leverage. The return on equity is negative, reflecting the company's recent losses. The equity ratio is 41.3%, showing a decent level of equity financing. Overall, the balance sheet is stable but affected by recent profitability issues.

Cash Flow

Masimo's cash flow analysis indicates a mixed performance. The operating cash flow to net income ratio is positive, suggesting strong cash generation relative to reported losses. The free cash flow to net income ratio is also positive, highlighting efficient cash flow management despite the negative net income. However, free cash flow growth is negative, pointing to potential future liquidity constraints.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Mar 2022	Mar 2021
Income Statement		Total Revenue
1.97B	2.09B	2.05B	2.04B	1.24B	1.14B
	Gross Profit
996.70M	1.00B	1.00B	1.06B	808.35M	743.07M
	EBIT
-222.60M	-266.70M	136.50M	210.00M	275.82M	255.82M
	EBITDA
-136.80M	-158.70M	236.70M	355.20M	310.86M	293.77M
	Net Income Common Stockholders
-494.50M	-304.90M	81.50M	143.50M	229.60M	240.30M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
130.80M	177.60M	163.00M	202.90M	745.25M	641.45M
	Total Assets
2.29B	2.63B	3.04B	3.21B	1.89B	1.71B
	Total Debt
681.50M	846.10M	970.00M	975.40M	32.66M	34.35M
	Net Debt
550.70M	668.50M	807.00M	772.50M	-712.59M	-607.10M
	Total Liabilities
1.35B	1.57B	1.68B	1.87B	336.76M	304.91M
	Stockholders Equity
946.40M	1.05B	1.36B	1.34B	1.55B	1.41B
Cash Flow		Free Cash Flow
145.30M	176.40M	6.40M	-26.80M	229.82M	131.01M
	Operating Cash Flow
181.70M	196.40M	94.10M	29.50M	264.75M	210.96M
	Investing Cash Flow
-21.60M	-51.20M	-81.20M	-1.06B	-37.53M	-82.79M
	Financing Cash Flow
-146.90M	-125.60M	-57.10M	520.30M	-122.40M	-54.31M

Masimo Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 171.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 171.88 is above the 20-day moving average (MA) of 159.06, above the 50-day MA of 158.21, and above the 200-day MA of 157.16, indicating a bullish trend. The MACD of 2.69 indicates Negative momentum. The RSI at 64.13 is Neutral, neither overbought nor oversold. The STOCH value of 91.08 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
RMD	85 Outperform	$36.98B	28.32	25.81%	0.84%	9.54%	37.23%
HOLX	70 Outperform	$14.34B	27.16	11.77%	―	1.66%	21.95%
ATR	70 Outperform	$10.12B	28.03	15.15%	1.17%	0.34%	17.27%
BDX	68 Neutral	$49.71B	33.10	5.97%	2.29%	5.84%	15.12%
TFX	58 Neutral	$5.43B	38.70	3.48%	1.11%	0.29%	-48.98%
MASI	57 Neutral	$9.32B	116.65	-23.93%	―	-0.12%	-713.82%
Sector *	54 Neutral	$5.31B	3.26	-45.10%	2.79%	16.76%	0.02%

Masimo Corporate Events

Masimo Addresses Cybersecurity Incident Risks

Masimo Corporation plans to engage with investors to reaffirm its financial outlook for fiscal 2025, as initially provided on May 6, 2025. The company is addressing a cybersecurity incident that may impact its operations, with potential legal, reputational, and financial risks, as well as possible regulatory inquiries and business disruptions.

The most recent analyst rating on (MASI) stock is a Buy with a $170.00 price target. To see the full list of analyst forecasts on Masimo stock, see the MASI Stock Forecast page.

Masimo Reports Strong Q1 2025 Financial Results

On May 6, 2025, Masimo Corporation announced its financial results for the first quarter of 2025, reporting a 10% increase in GAAP revenue to $372 million and a 56% rise in non-GAAP net income per diluted share compared to the previous year. The company also provided an updated outlook for fiscal 2025, anticipating non-GAAP revenue growth of 8% to 11% and addressing the impact of new tariffs with mitigation strategies, highlighting its strong market position and operational resilience.

Masimo Sells Sound United to HARMAN for $350M

On May 6, 2025, Masimo Corporation announced a definitive agreement to sell its Sound United consumer audio business to HARMAN International for $350 million in cash. This divestiture supports Masimo’s strategic focus on its core professional healthcare segment, aiming to drive innovation and accelerate revenue growth. The transaction is expected to close by the end of 2025, subject to regulatory approvals, and represents a strategic step for HARMAN in expanding its audio business.