Masimo Corp. (MASI)
NASDAQ:MASI
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Masimo
(NASDAQ:MASI)
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Rating:64Neutral
Price Target:
$191.00
▲(7.11% Upside)
Action:Reiterated
Date:05/09/26
The score is driven primarily by improving TTM financial performance and strong free cash flow, alongside supportive technical trend signals. These positives are tempered by an expensive valuation (high P/E, no dividend) and deal-related execution risk from litigation and pending approvals despite shareholder approval of the Danaher transaction.
Positive Factors
Free Cash Flow Strength
Sustained free cash flow (~$209M TTM) provides durable internal funding for R&D, product support, and sensor inventory financing. Strong FCF cushions operational volatility, funds capital expenditures and acquisitions, and supports long-term execution without depending on external financing.
Negative Factors
Revenue Growth Volatility
Modest TTM revenue growth (~2%) coupled with prior sharp downturns reduces confidence in topline durability. Slow or unstable installed-base expansion limits the follow-on consumables upside, constrains scaling of fixed-cost leverage, and makes earnings sensitive to hospital purchasing cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sustained free cash flow (~$209M TTM) provides durable internal funding for R&D, product support, and sensor inventory financing. Strong FCF cushions operational volatility, funds capital expenditures and acquisitions, and supports long-term execution without depending on external financing.
Read all positive factors
Masimo Key Performance Indicators (KPIs)
Masimo (MASI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.36B
Dividend YieldN/A
Average Volume (3M)772.81K
Price to Earnings (P/E)40.8
Beta (1Y)0.92
Revenue Growth-21.03%
EPS GrowthN/A
CountryUS
Employees3,600
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)1.44
Shares Outstanding52,365,807
10 Day Avg. Volume857,071
30 Day Avg. Volume772,808
Financial Highlights & Ratios
PEG Ratio0.89
Price to Book (P/B)9.47
Price to Sales (P/S)4.47
P/FCF Ratio34.52
Enterprise Value/Market Cap1.04
Enterprise Value/Revenue6.24
Enterprise Value/Gross Profit10.11
Enterprise Value/Ebitda28.23
Forecast
1Y Price Target
$180.00Price Target Upside0.94% Upside
Rating ConsensusHold
Number of Analyst Covering2
EPS Forecast (FY)5.92
Revenue Forecast (FY)$1.63B
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...
How the Company Makes Money
Masimo makes money primarily by selling and servicing medical monitoring solutions used in clinical care. A major component of its revenue model is a “razor-and-blades” structure: it sells or places monitoring hardware (such as patient monitors an...
Masimo Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 11, 2026
Earnings Call Sentiment Positive
Masimo delivered strong financial performance with significant revenue growth, operating margin expansion, and increased EPS. Strategic partnerships and shareholder returns were also notable achievements. However, challenges such as a decline in gross margin due to tariffs, and lower-than-expected consumables growth, along with tightened revenue guidance, presented some concerns.Positive Updates
Strong Revenue Growth
Masimo reported an 8% revenue growth for the third quarter, driven by strong demand for their innovative technology.
Negative Updates
Decline in Gross Margin
Gross margin declined by 70 basis points compared to the prior year due to tariff impacts.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Revenue Growth
Masimo reported an 8% revenue growth for the third quarter, driven by strong demand for their innovative technology.
Read all positive updates
Company Guidance
In Masimo's third quarter 2025 earnings call, the company provided robust guidance, highlighting several key financial metrics. Revenue increased by 8% for the quarter, driven by strong demand for innovative technology, with healthcare revenue specifically reaching $371 million. The company achieved a 450 basis point expansion in operating margin and a 38% year-over-year rise in adjusted earnings per share. Despite experiencing a decline in gross margin by 70 basis points due to tariffs, operational improvements contributed positively. Masimo's strategic moves included a significant divestiture of Sound United and expansion of a strategic partnership with Philips. The company raised its full-year revenue guidance to $1.510 billion to $1.530 billion and adjusted EPS guidance to $5.40 to $5.55, reflecting confidence in sustained growth and operational efficiency.Masimo Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
62
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.56B | 1.53B | 2.09B | 2.05B | 2.04B | 1.24B |
| Gross Profit | 962.00M | 945.20M | 1.00B | 1.00B | 1.06B | 808.40M |
| EBITDA | 344.50M | 344.60M | -158.70M | 236.70M | 355.20M | 310.30M |
| Net Income | 76.30M | -151.50M | -304.90M | 81.50M | 143.50M | 229.60M |
Balance Sheet | ||||||
| Total Assets | 1.64B | 1.70B | 2.63B | 3.04B | 3.21B | 1.89B |
| Cash, Cash Equivalents and Short-Term Investments | 124.60M | 152.30M | 177.60M | 163.00M | 202.90M | 745.30M |
| Total Debt | 485.90M | 559.30M | 846.10M | 970.00M | 1.03B | 32.70M |
| Total Liabilities | 853.80M | 977.70M | 1.57B | 1.68B | 1.87B | 336.80M |
| Stockholders Equity | 788.90M | 721.20M | 1.05B | 1.36B | 1.34B | 1.55B |
Cash Flow | ||||||
| Free Cash Flow | 208.80M | 197.80M | 145.30M | 6.40M | -26.90M | 229.70M |
| Operating Cash Flow | 232.00M | 217.20M | 196.40M | 94.10M | 29.40M | 264.60M |
| Investing Cash Flow | 260.20M | 275.10M | -51.20M | -81.20M | -1.06B | -37.50M |
| Financing Cash Flow | -543.10M | -520.70M | -125.60M | -57.10M | 520.40M | -122.40M |
Masimo Technical Analysis
Positive
178.32
Price Trends
178.17
Positive
164.39
Positive
154.25
Positive
Market Momentum
0.38
Positive
63.73
Neutral
70.93
Neutral
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 178.32 is below the 20-day moving average (MA) of 178.54, above the 50-day MA of 178.17, and above the 200-day MA of 154.25, indicating a bullish trend. The MACD of 0.38 indicates Positive momentum. The RSI at 63.73 is Neutral, neither overbought nor oversold. The STOCH value of 70.93 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $3.83B | 25.02 | 8.95% | ― | 11.34% | 12.26% | |
64 Neutral | $9.36B | 40.82 | 9.08% | ― | -21.03% | ― | |
59 Neutral | $2.98B | 26.20 | 11.32% | ― | -1.97% | -38.95% | |
57 Neutral | $5.88B | -162.30 | -28.27% | 1.11% | -6.61% | -812.37% | |
55 Neutral | $7.42B | 27.77 | 14.33% | 1.50% | 8.95% | 6.13% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
MASI
Masimo
178.81
28.68
19.10%
ATR
AptarGroup
116.23
-37.50
-24.39%
HAE
Haemonetics
65.49
-0.57
-0.86%
MMSI
Merit Medical Systems
64.17
-31.21
-32.72%
TFX
Teleflex
132.75
13.34
11.17%
Masimo Corporate Events
Business Operations and StrategyM&A TransactionsShareholder Meetings
Masimo Shareholders Approve Danaher Merger Agreement Terms
Positive
May 4, 2026
On May 1, 2026, Masimo shareholders approved the company’s merger agreement with Danaher Corporation at a virtual special meeting, with roughly 70.68% of outstanding shares represented and an overwhelming majority voting in favor. Investors ...
Legal ProceedingsM&A TransactionsShareholder Meetings
Masimo Proceeds With Danaher Merger Amid Shareholder Lawsuits
Negative
Apr 23, 2026
Masimo said it remains on track to be acquired by Danaher under a February 16, 2026 merger agreement, despite a series of shareholder lawsuits and demand letters challenging the adequacy of disclosures in its proxy materials. The company has sched...
Business Operations and StrategyDelistings and Listing ChangesM&A Transactions
Masimo to Be Acquired by Danaher in Merger
Positive
Feb 17, 2026
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 announc...
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.