Masimo (MASI) AI Stock Analysis

• Market Cap: $7.69B
• Dividend Yield: N/A
• Average Volume (3M): 720.99K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -16.03%
• EPS Growth: -813.48%
• Country: US
• Employees: 3,600
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.32
• Shares Outstanding: 53,713,947
• 10 Day Avg. Volume: 886,344
• 30 Day Avg. Volume: 720,985
• PEG Ratio: 0.06
• Price to Book (P/B): 8.66
• Price to Sales (P/S): 4.35
• P/FCF Ratio: 51.66
• Enterprise Value/Market Cap: 1.04
• Enterprise Value/Revenue: 7.15
• Enterprise Value/Gross Profit: 11.41
• Enterprise Value/Ebitda: 31.89
• 1Y Price Target: $168.25
• Price Target Upside: 18.37% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): 5.35
• Revenue Forecast (FY): $1.52B

• Rating: 56 Neutral
• Price Target: $153.00 ▲(7.64% Upside)

Masimo's overall stock score reflects significant financial challenges, with declining revenue and profitability being the most impactful factors. The earnings call provided some positive insights with strong revenue growth and strategic partnerships, but these are offset by valuation concerns due to negative earnings and lack of dividends. Technical analysis shows mixed signals, with short-term bullish momentum but longer-term bearish trends.

Positive Factors

Revenue Growth

The 8% revenue growth indicates strong demand for Masimo's innovative technology, suggesting a robust market position and potential for sustained growth.

Strategic Partnerships

The expansion of the partnership with Philips enhances Masimo's market reach and integration capabilities, potentially driving long-term revenue and innovation.

Operating Margin Expansion

The significant expansion in operating margin reflects improved operational efficiency, which can enhance profitability and financial stability over time.

Negative Factors

Declining Revenue

Declining revenue suggests challenges in maintaining market share or product demand, which could impact long-term growth and financial health.

Negative Profit Margins

Negative profit margins indicate operational inefficiencies and cost challenges, potentially affecting the company's ability to generate sustainable profits.

Increasing Leverage

Rising leverage can strain financial resources and limit flexibility, posing risks to long-term financial stability and growth potential.

Masimo Business Overview & Revenue Model

Company Description

Masimo Corporation (NASDAQ: MASI) is a global medical technology company that specializes in noninvasive monitoring technologies, primarily focusing on the measurement of blood oxygen levels and other vital signs. Founded in 1989, Masimo is known for its innovative products that enhance patient care and improve clinical outcomes across various healthcare settings, including hospitals and home care. The company's core products include its pulse oximetry devices, brain function monitoring systems, and noninvasive hemoglobin measurement technologies, which are widely used in anesthesia, critical care, and emergency medicine.

How the Company Makes Money

Masimo generates revenue primarily through the sale of its medical devices and accessories, as well as through recurring revenue from product disposables and software subscriptions. The company has a diverse range of revenue streams, including direct sales to hospitals, healthcare systems, and distributors. Key revenue components include the sale of pulse oximeters, sensors, and other monitoring devices, which are often sold alongside consumable products that require replenishment. Significant partnerships with healthcare organizations and integration of its technologies into electronic medical record systems further enhance its revenue potential. Additionally, Masimo's commitment to research and development allows it to continuously innovate, introducing new products and solutions that contribute to its earnings.

Masimo Financial Statement Overview

Summary

Masimo is facing significant financial challenges. The income statement reveals declining revenue and profitability, with negative margins indicating operational difficulties. The balance sheet shows increasing leverage and negative returns on equity, raising concerns about financial stability. While the cash flow statement provides some positive signals with free cash flow growth, the company needs to address its profitability and leverage issues to ensure long-term viability.

Income Statement

Masimo's income statement shows a concerning trend with declining revenue and profitability. The TTM data indicates a negative revenue growth rate of -6.35%, and the net profit margin has turned negative at -25.06%. The gross profit margin remains moderate at 50.50%, but the company is experiencing operational challenges, as evidenced by negative EBIT and EBITDA margins. This suggests significant pressure on profitability and cost management.

Balance Sheet

The balance sheet reflects moderate leverage with a debt-to-equity ratio of 0.72, which is manageable but has increased over time. The return on equity is negative at -40.95%, indicating that the company is not generating returns for shareholders. The equity ratio stands at 43.40%, showing a reasonable level of equity financing. However, the declining equity and increasing debt levels pose potential risks.

Cash Flow

Masimo's cash flow statement shows some resilience with a positive free cash flow growth rate of 3.24% in the TTM period. The operating cash flow to net income ratio is 0.33, indicating that cash flows are still being generated despite net losses. The free cash flow to net income ratio is 0.80, suggesting that the company is managing to convert a portion of its earnings into cash. However, the overall cash flow position needs improvement to support long-term sustainability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2019	Dec 2018
Income Statement
Total Revenue	1.11B	2.09B	2.05B	2.04B	937.84M	858.29M
Gross Profit	697.90M	1.00B	1.00B	1.06B	629.17M	574.89M
EBITDA	249.70M	-158.70M	236.70M	355.20M	257.98M	229.60M
Net Income	-219.80M	-304.90M	81.50M	143.50M	196.22M	193.54M
Balance Sheet
Total Assets	1.82B	2.63B	3.04B	3.21B	1.40B	1.15B
Cash, Cash Equivalents and Short-Term Investments	312.30M	177.60M	163.00M	202.90M	687.69M	552.49M
Total Debt	559.10M	846.10M	970.00M	1.03B	20.49M	0.00
Total Liabilities	1.01B	1.57B	1.68B	1.87B	228.25M	185.75M
Stockholders Equity	810.00M	1.05B	1.36B	1.34B	1.17B	969.07M
Cash Flow
Free Cash Flow	142.40M	145.30M	6.40M	-26.90M	149.15M	216.84M
Operating Cash Flow	157.30M	196.40M	94.10M	29.40M	221.64M	239.53M
Investing Cash Flow	283.80M	-51.20M	-81.20M	-1.06B	-197.68M	-26.15M
Financing Cash Flow	-306.10M	-125.60M	-57.10M	520.40M	-9.34M	25.78M

Masimo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 142.14
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MASI, the sentiment is Negative. The current price of 142.14 is below the 20-day moving average (MA) of 145.99, below the 50-day MA of 145.03, and below the 200-day MA of 158.65, indicating a bearish trend. The MACD of -0.76 indicates Positive momentum. The RSI at 46.03 is Neutral, neither overbought nor oversold. The STOCH value of 23.46 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MASI.

Masimo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMSI	78 Outperform	$5.19B	44.81	8.30%	―	11.49%	-2.89%
HAE	70 Outperform	$3.20B	19.94	19.47%	―	-2.45%	41.50%
HOLX	69 Neutral	$16.49B	29.84	11.12%	―	1.74%	-25.29%
TFX	60 Neutral	$4.83B	―	-7.90%	1.09%	5.43%	-245.18%
MASI	56 Neutral	$7.69B	―	-17.93%	―	-16.03%	-813.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
ATR	50 Neutral	$7.63B	18.63	15.80%	1.57%	2.50%	25.05%

Masimo Corporate Events

Masimo Corp. Reports Strong Q3 2025 Growth

Masimo Corporation is a global medical technology company specializing in innovative monitoring technologies, including sensors and patient monitors, primarily serving the healthcare sector. The company is renowned for its Masimo SET pulse oximetry technology, widely used in hospitals worldwide.

Masimo Reports Strong Q3 2025 Financial Results

On November 4, 2025, Masimo Corporation announced its financial results for the third quarter of 2025, reporting a GAAP revenue of $371.5 million, an 8.2% increase, and a non-GAAP net income per diluted share growth of 38% compared to the previous year. The company highlighted its strategic moves, including the sale of Sound United and an expanded partnership with Philips, positioning itself for sustainable long-term growth.

The most recent analyst rating on (MASI) stock is a Hold with a $152.00 price target. To see the full list of analyst forecasts on Masimo stock, see the MASI Stock Forecast page.

Masimo’s Study on Pulse Oximetry and Skin Pigmentation: A Potential Game-Changer

Masimo Corp. is conducting a study titled ‘Investigation of Skin Pigmentation Effect on Performance of Masimo Pulse Oximetry (INSPIRE).’ The study aims to evaluate how skin pigmentation affects the performance of Masimo RD SET® SpO2 sensors, particularly in patients with hypoxemia in intensive care settings. This research is significant as it seeks to ensure the accuracy of pulse oximetry across diverse skin tones, which is crucial for patient safety and care.

Masimo Corp. Explores New Frontiers in Sleep Therapy with PROSOMNIA Study

Study Overview: The clinical trial titled Evaluating the Efficacy and Safety of PROSOMNIA Sleep Therapy™ in Patients With Sleep Deprivation and Chronic Insomnia aims to assess the safety and effectiveness of PROSOMNIA Sleep Therapy (PSTx) for individuals suffering from chronic insomnia and sleep deprivation. The study is significant as it targets improving sleep quality and duration, particularly REM sleep, which is crucial for cognitive function and overall health.

Masimo Sells Sound United to HARMAN for $328M

On September 23, 2025, Masimo completed the sale of its consumer audio business, Sound United, to HARMAN International for approximately $328 million in cash. This transaction marks a strategic move for Masimo to focus on its core professional healthcare business, with plans to use the proceeds for share repurchases, thereby enhancing growth and delivering stronger margins.

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

Masimo Board Member William Jellison Resigns

On August 18, 2025, William Jellison resigned from the Board of Directors of Masimo Corporation, with no disagreements cited regarding company operations. The Chairman of the Board, Michelle Brennan, expressed gratitude for his contributions during a transformative period for the company.

The most recent analyst rating on (MASI) stock is a Hold with a $157.00 price target. To see the full list of analyst forecasts on Masimo stock, see the MASI Stock Forecast page.

Masimo Corp. Earnings Call Highlights Growth and Resilience

Masimo Corp. recently held its earnings call, revealing a positive sentiment driven by strong performance in its core healthcare business. The company showcased strategic leadership expansions and effective tariff mitigation strategies, leading to increased revenue guidance and EPS projections. Despite facing challenges such as a cybersecurity event and a decline in capital equipment revenue, Masimo remains well-positioned for continued growth.

Masimo Corp. Reports Strong Q2 2025 Growth

Masimo Corporation is a global medical technology company specializing in innovative monitoring technologies, including pulse oximetry, sensors, and patient monitors, primarily serving the healthcare sector with a focus on improving patient outcomes and reducing care costs.

Masimo Reports Strong Q2 2025 Financial Results

On August 5, 2025, Masimo Corporation announced its financial results for the second quarter of 2025, reporting a GAAP revenue of $371 million, an 8% growth, and a non-GAAP revenue of $370 million, a 7% growth on a constant currency basis. The company’s non-GAAP net income per diluted share grew by 46% compared to the previous year. CEO Katie Szyman highlighted the company’s strong performance and strategic focus on expanding its leadership in pulse oximetry and implementing effective tariff mitigation measures, which have positively impacted its growth strategy and market position.

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.