Masimo (MASI) AI Stock Analysis

• Market Cap: $7.43B
• Dividend Yield: N/A
• Average Volume (3M): 696.42K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• 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: 575,687
• 30 Day Avg. Volume: 696,420
• 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: 1.07
• Enterprise Value/Revenue: 4.64
• Enterprise Value/Gross Profit: 8.45
• Enterprise Value/Ebitda: -111.85
• 1Y Price Target: $188.40
• Price Target Upside: 36.12% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 6
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 58 Neutral
• Price Target: $143.00 ▲(3.32% Upside)

The score is held back primarily by weak trailing profitability and revenue pressure reflected in the financial statements, with mixed technical trend signals and limited valuation support due to losses. Offsetting these, management’s recent guidance and execution signals (margin expansion, raised EPS outlook) plus positive corporate updates provide meaningful upside support, but not enough to overcome the weaker trailing fundamentals.

Positive Factors

Strategic Partnerships

Expanding partnerships with major players like Philips enhances Masimo's market reach and integration capabilities, supporting long-term growth.

Intellectual Property Protection

Protecting IP rights strengthens Masimo's competitive position, ensuring continued innovation and safeguarding revenue from proprietary technologies.

Long-Term Strategy

The long-term strategy focusing on innovation and patient outcomes positions Masimo for sustained growth and operational efficiency.

Negative Factors

Declining Revenues

Declining revenues indicate challenges in market demand or competitive pressures, potentially impacting future growth and profitability.

Profitability Challenges

Sustained profitability issues can limit reinvestment in innovation and growth, affecting long-term business sustainability.

Gross Margin Decline

Decreasing gross margins from tariffs can erode profitability, necessitating cost management strategies to maintain financial health.

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, sensors, and related consumables. The company's key revenue streams include the sale of proprietary pulse oximetry devices and sensors, which are utilized in hospitals and other healthcare facilities to measure blood oxygen levels and other vital signs. Additionally, Masimo benefits from recurring revenue through the sale of single-use sensors that require regular replacement, creating a consistent income stream. The company also earns revenue from software solutions that enhance monitoring capabilities and improve clinical decision-making. Significant partnerships with healthcare providers and integration of its technologies into various medical systems further contribute to Masimo's earnings, as they expand the reach of its products and enhance clinical workflow efficiency.

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 2021	Dec 2020
Income Statement
Total Revenue	1.72B	2.09B	2.05B	2.04B	1.24B	1.14B
Gross Profit	942.60M	1.00B	1.00B	1.06B	808.40M	743.00M
EBITDA	-71.20M	-158.70M	236.70M	355.20M	310.30M	293.30M
Net Income	-569.40M	-304.90M	81.50M	143.50M	229.60M	240.30M
Balance Sheet
Total Assets	1.82B	2.63B	3.04B	3.21B	1.89B	1.71B
Cash, Cash Equivalents and Short-Term Investments	314.70M	177.60M	163.00M	202.90M	745.30M	641.45M
Total Debt	586.20M	846.10M	970.00M	1.03B	32.70M	34.35M
Total Liabilities	1.01B	1.57B	1.68B	1.87B	336.80M	304.91M
Stockholders Equity	810.00M	1.05B	1.36B	1.34B	1.55B	1.41B
Cash Flow
Free Cash Flow	189.90M	145.30M	6.40M	-26.90M	229.70M	131.20M
Operating Cash Flow	207.80M	196.40M	94.10M	29.40M	264.60M	211.10M
Investing Cash Flow	267.30M	-51.20M	-81.20M	-1.06B	-37.50M	-82.80M
Financing Cash Flow	-312.60M	-125.60M	-57.10M	520.40M	-122.40M	-54.30M

Masimo Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 138.41
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MASI, the sentiment is Neutral. The current price of 138.41 is above the 20-day moving average (MA) of 134.11, below the 50-day MA of 139.94, and below the 200-day MA of 150.67, indicating a neutral trend. The MACD of -1.25 indicates Negative momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 52.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MASI.

Masimo Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MMSI	77 Outperform	$4.85B	41.84	8.30%	―	11.49%	-2.89%
HOLX	76 Outperform	$16.77B	30.27	11.12%	―	1.74%	-25.29%
HAE	74 Outperform	$3.54B	22.09	19.47%	―	-2.45%	41.50%
TFX	61 Neutral	$4.55B	-14.01	-7.90%	1.11%	5.43%	-245.18%
ATR	60 Neutral	$8.32B	20.33	15.80%	1.50%	2.50%	25.05%
MASI	58 Neutral	$7.43B	-13.05	-17.93%	―	-16.03%	-813.48%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%

Masimo Corporate Events

Masimo Issues Strong Preliminary Results for 2025 Performance

On January 12, 2026, Masimo announced select preliminary financial results for the fourth quarter and full year 2025, ahead of its full earnings release scheduled for February 26, 2026. For the fourth quarter of 2025, the company expects revenue of about $411 million, up roughly 12% on a reported basis and 11% in constant currency, non-GAAP earnings per diluted share above $1.54 despite the impact of new tariffs, and shipments of approximately 69,000 noninvasive technology boards and instruments. For full-year 2025, Masimo projects revenue of about $1.523 billion, representing around 9% growth on both a reported and constant currency basis, non-GAAP earnings per diluted share above $5.55 at the high end of its guidance range, and shipments of about 270,000 noninvasive technology boards and instruments. Management highlighted that record incremental contract value from new customers and expanded hospital agreements underpinned the year’s performance, suggesting strengthened competitive positioning and a foundation for sustained operational momentum, though the figures remain subject to adjustment upon completion of the annual audit.

The most recent analyst rating on (MASI) stock is a Hold with a $135.00 price target. To see the full list of analyst forecasts on Masimo stock, see the MASI Stock Forecast page.

Masimo Unveils Long-Term Strategy at Investor Day

On December 3, 2025, Masimo Corporation held its 2025 Investor Day, where CEO Katie Szyman and other executives presented the company’s long-term strategy and financial targets. The company reaffirmed its 2025 financial guidance and announced ambitious growth targets through 2028, including a revenue CAGR of 7%-10%, operating margin of 30%, and cumulative operating cash flow of approximately $1 billion from 2026-2028. Masimo emphasized its focus on patient outcomes, technology innovation, and commercial execution as key pillars for future growth.

The most recent analyst rating on (MASI) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on Masimo stock, see the MASI Stock Forecast page.

Masimo Secures New $1 Billion Credit Facility

On December 1, 2025, Masimo Corporation successfully refinanced its credit obligations by terminating its previous credit agreement and entering into a new Credit Facility. The new agreement includes a $250 million unsecured term loan and $750 million in revolving commitments, with the potential to increase borrowing capacity by an additional $400 million. This strategic financial move is expected to support Masimo’s general corporate purposes, capital investment, and working capital needs, potentially strengthening its financial stability and operational flexibility.

The most recent analyst rating on (MASI) stock is a Buy with a $210.00 price target. To see the full list of analyst forecasts on Masimo stock, see the MASI Stock Forecast page.

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.