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Masimo Corp (MASI)
NASDAQ:MASI
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Masimo (MASI) AI Stock Analysis

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MASI

Masimo

(NASDAQ:MASI)

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Neutral 54 (OpenAI - 4o)
Rating:54Neutral
Price Target:
$157.00
▲(11.03% Upside)
Masimo's overall stock score is primarily impacted by its financial challenges and bearish technical indicators. However, strong earnings call highlights and strategic corporate events provide some positive outlook.
Positive Factors
Leadership Expansion
The expansion of the leadership team with experienced executives strengthens Masimo's strategic capabilities and operational execution, positioning the company for sustained growth and innovation.
Tariff Mitigation
Effective tariff mitigation demonstrates Masimo's ability to manage external economic pressures, preserving margins and ensuring competitive pricing, which supports long-term financial health.
FDA Clearance
The FDA clearance for expanded indications enhances Masimo's product offerings, potentially increasing market share and revenue by addressing broader clinical needs across diverse patient populations.
Negative Factors
Declining Revenue
Declining revenue growth poses a challenge to Masimo's market position and financial stability, potentially impacting its ability to invest in innovation and compete effectively.
Cybersecurity Risks
Cybersecurity incidents can lead to significant financial, legal, and reputational risks, potentially disrupting operations and eroding stakeholder trust, affecting long-term business continuity.
Rising Debt Levels
Increasing debt levels may strain Masimo's cash flow and limit its financial flexibility, potentially hindering its ability to invest in growth opportunities and manage economic downturns.

Masimo (MASI) vs. SPDR S&P 500 ETF (SPY)

Masimo Business Overview & Revenue Model

Company DescriptionMasimo 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 MoneyMasimo 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 Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 11, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth and significant leadership team expansion, with effective tariff mitigation strategies. However, there were challenges with a decline in capital equipment revenue, cybersecurity expenses, and a decrease in the true incremental metric. Overall, the highlights significantly outweigh the lowlights.
Q2-2025 Updates
Positive Updates
Strong Revenue and Earnings Performance
The core Healthcare business delivered revenue of $370 million and earnings per share of $1.33, with 600 basis points of operating margin expansion.
Leadership Team Expansion
Masimo added several key leaders, including a Chief Commercial Officer, President of Japan and Asia Pacific, Chief Marketing and Strategy Officer, Executive Vice President of Quality and Regulatory, and Chief Information Technology Officer.
EPS Guidance Exceeds Original Projections
Despite the impact of tariffs, Masimo projects 24% to 30% EPS growth this year, exceeding original projections before tariffs.
Tariff Mitigation Success
The company reduced the tariff impact by more than 50% from the original estimate through effective mitigation measures.
Intelligent Monitoring and Wearable Technologies
Masimo focuses on accelerating intelligent monitoring with AI-based algorithms and innovating wearable technologies to expand long-term growth potential.
Negative Updates
Decline in Capital Equipment and Other Revenue
Capital equipment and other revenue declined by 2% due to a transition from capital lease to operating lease accounting.
Cybersecurity Event and Related Expenses
The company incurred approximately $4.5 million in net expenses to recover and fortify systems after a cybersecurity event.
Challenges with True Incremental Metric
The true incremental metric was down over 20% in Q1 and 40% in Q2, attributed to the timing of large deals.
Company Guidance
During Masimo's second quarter 2025 earnings call, the company reported strong financial performance and provided updated guidance. Revenue for the quarter was $370 million, with earnings per share (EPS) reaching $1.33, and an impressive 600 basis points of operating margin expansion. Despite facing tariffs, the company projects a 24% to 30% EPS growth for the year, and has successfully reduced its tariff impact by more than 50% from initial estimates. Masimo updated its fiscal 2025 financial guidance, projecting revenue between $1.505 billion and $1.535 billion, reflecting constant currency growth of 8% to 11%. Non-GAAP EPS guidance was adjusted to a range of $5.20 to $5.45, incorporating the impact of tariffs. The company highlighted its strategic focus on elevating commercial excellence, accelerating intelligent monitoring, and innovating wearable technologies to drive long-term growth.

Masimo Financial Statement Overview

Summary
Masimo faces significant financial challenges with declining revenue and profitability, negative margins, and increasing leverage. However, positive free cash flow growth provides some resilience.
Income Statement
45
Neutral
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
55
Neutral
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
60
Neutral
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.85B2.09B2.05B2.04B1.24B1.14B
Gross Profit975.20M1.00B1.00B1.06B808.40M743.00M
EBITDA-89.20M-158.70M236.70M355.20M310.30M293.30M
Net Income-459.20M-304.90M81.50M143.50M229.60M240.30M
Balance Sheet
Total Assets2.40B2.63B3.04B3.21B1.89B1.71B
Cash, Cash Equivalents and Short-Term Investments149.60M177.60M163.00M202.90M745.30M641.45M
Total Debt642.20M846.10M970.00M1.03B32.70M34.35M
Total Liabilities1.36B1.57B1.68B1.87B336.80M304.91M
Stockholders Equity1.04B1.05B1.36B1.34B1.55B1.41B
Cash Flow
Free Cash Flow148.40M176.40M6.40M-26.80M229.82M131.01M
Operating Cash Flow176.60M196.40M94.10M29.50M264.75M210.96M
Investing Cash Flow-28.50M-51.20M-81.20M-1.06B-37.53M-82.79M
Financing Cash Flow-95.80M-125.60M-57.10M520.30M-122.40M-54.31M

Masimo Technical Analysis

Technical Analysis Sentiment
Negative
Last Price141.40
Price Trends
50DMA
148.63
Negative
100DMA
155.24
Negative
200DMA
162.27
Negative
Market Momentum
MACD
-2.16
Negative
RSI
44.15
Neutral
STOCH
33.66
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 141.4 is below the 20-day moving average (MA) of 142.91, below the 50-day MA of 148.63, and below the 200-day MA of 162.27, indicating a bearish trend. The MACD of -2.16 indicates Negative momentum. The RSI at 44.15 is Neutral, neither overbought nor oversold. The STOCH value of 33.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MASI.

Masimo Risk Analysis

Masimo disclosed 69 risk factors in its most recent earnings report. Masimo reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Masimo Peers Comparison

Overall Rating
UnderperformOutperform
Sector (51)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$39.57B28.4323.47%0.81%9.84%37.48%
73
Outperform
$5.30B28.251.63%1.13%1.11%-23.73%
72
Outperform
$8.72B22.8214.50%1.36%1.51%21.70%
70
Outperform
$52.91B33.206.30%2.25%7.86%14.24%
69
Neutral
$14.95B27.8911.50%1.28%-17.73%
54
Neutral
$7.68B116.65-20.54%-8.36%-669.36%
51
Neutral
$7.86B-0.30-43.30%2.27%22.53%-2.21%
* Healthcare Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
MASI
Masimo
141.40
8.07
6.05%
ATR
AptarGroup
132.29
-26.09
-16.47%
HAE
Haemonetics
48.17
-32.21
-40.07%
HOLX
Hologic
67.21
-14.25
-17.49%
MMSI
Merit Medical Systems
80.20
-18.63
-18.85%
TFX
Teleflex
119.99
-124.93
-51.01%

Masimo Corporate Events

Executive/Board Changes
Masimo Board Member William Jellison Resigns
Neutral
Aug 19, 2025

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.

Business Operations and StrategyFinancial Disclosures
Masimo Reports Strong Q2 2025 Financial Results
Positive
Aug 5, 2025

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.

Executive/Board ChangesBusiness Operations and Strategy
Masimo Announces Key Leadership Changes in June 2025
Neutral
Jun 12, 2025

Masimo Corporation has made strategic leadership changes to enhance its commercial operations, appointing Tim Benner as Chief Marketing and Strategy Officer, Huimin Wang as President of Japan & Asia Pacific, and Lisa Hellmann as Chief Human Resources Officer in 2025. Additionally, Micah Young has expanded his role to include corporate development. The company is also seeking a Chief Commercial Officer. Meanwhile, Chief Operating Officer Bilal Muhsin announced his resignation effective July 1, 2025, and the company will not fill the COO role immediately.

Legal ProceedingsBusiness Operations and StrategyRegulatory Filings and Compliance
Masimo Addresses Cybersecurity Incident Risks
Negative
May 27, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025