Masimo (MASI) AI Stock Analysis

• Market Cap: $7.48B
• Dividend Yield: N/A
• Average Volume (3M): 788.48K
• Price to Earnings (P/E): 116.7
• Beta (1Y): 1.01
• Revenue Growth: -8.36%
• EPS Growth: -669.36%
• Country: US
• Employees: 3,600
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Instruments & Supplies
• EPS (TTM): 1.33
• Shares Outstanding: 54,324,814
• 10 Day Avg. Volume: 598,662
• 30 Day Avg. Volume: 788,477
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.30
• Enterprise Value/Revenue: 5.25
• Enterprise Value/Gross Profit: 9.95
• Enterprise Value/Ebitda: -108.83
• 1Y Price Target: $188.83
• Price Target Upside: 28.29% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 54 Neutral
• Price Target: $157.00 ▲(6.66% 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

Financial Performance

MASI's 2Q25 revenue and EPS beat consensus.

Management Strategies

Management highlighted the company's strong free cash flow generation capabilities, noting the potential for tuck-in M&A as appropriate.

Negative Factors

Legal Challenges

Masimo's patent infringement complaint against Apple in the Central District of California is set to begin a jury trial.

Tariff Impact

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

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 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 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

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 2021	Dec 2020
Income Statement
Total Revenue	1.85B	2.09B	2.05B	2.04B	1.24B	1.14B
Gross Profit	975.20M	1.00B	1.00B	1.06B	808.40M	743.00M
EBITDA	-89.20M	-158.70M	236.70M	355.20M	310.30M	293.30M
Net Income	-459.20M	-304.90M	81.50M	143.50M	229.60M	240.30M
Balance Sheet
Total Assets	2.40B	2.63B	3.04B	3.21B	1.89B	1.71B
Cash, Cash Equivalents and Short-Term Investments	149.60M	177.60M	163.00M	202.90M	745.30M	641.45M
Total Debt	642.20M	846.10M	970.00M	1.03B	32.70M	34.35M
Total Liabilities	1.36B	1.57B	1.68B	1.87B	336.80M	304.91M
Stockholders Equity	1.04B	1.05B	1.36B	1.34B	1.55B	1.41B
Cash Flow
Free Cash Flow	148.40M	176.40M	6.40M	-26.80M	229.82M	131.01M
Operating Cash Flow	176.60M	196.40M	94.10M	29.50M	264.75M	210.96M
Investing Cash Flow	-28.50M	-51.20M	-81.20M	-1.06B	-37.53M	-82.79M
Financing Cash Flow	-95.80M	-125.60M	-57.10M	520.30M	-122.40M	-54.31M

Masimo Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 147.19
• 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 147.19 is above the 20-day moving average (MA) of 145.86, below the 50-day MA of 155.40, and below the 200-day MA of 164.28, indicating a bearish trend. The MACD of -4.49 indicates Positive momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 26.90 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	79 Outperform	$5.37B	45.77	8.60%	―	10.14%	0.04%
HOLX	75 Outperform	$14.82B	27.48	11.38%	―	1.28%	-17.73%
TFX	73 Outperform	$5.70B	29.67	4.36%	1.05%	1.11%	-23.73%
ATR	71 Outperform	$9.12B	23.32	15.36%	1.30%	1.51%	21.70%
HAE	68 Neutral	$2.61B	16.51	18.27%	―	0.91%	45.81%
MASI	54 Neutral	$7.48B	116.65	-20.54%	―	-8.36%	-669.36%
Sector *	51 Neutral	$7.91B	-0.36	-41.71%	2.23%	23.45%	-1.86%

Masimo Corporate Events

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.

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.

Masimo Announces Key Leadership Changes in June 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.

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.