Masimo Corp. (MASI)
NASDAQ:MASI
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Masimo
(NASDAQ:MASI)
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Rating:63Neutral
Price Target:
$187.00
▲(6.60% Upside)
Action:ReiteratedDate:02/28/26
The score is driven primarily by mixed financial performance (strong and improving cash generation but inconsistent/negative profitability and a recent revenue decline). Technicals are supportive with a strong trend, though momentum looks stretched. The Danaher all-cash acquisition is a notable positive, while valuation is constrained by negative earnings and the lack of a dividend metric.
Positive Factors
Strong cash generation
Masimo's recent operating cash flow (~$217M) and strong free cash flow (~$198M) show durable cash-generation capacity even during loss years. Reliable FCF supports R&D, capital expenditures, debt reduction or strategic investments and underpins operational resilience over the next 2–6 months.
Negative Factors
Recent revenue decline
An ~11% top-line decline in 2026 signals persistent demand or execution challenges in core markets. Durable revenue weakness erodes operating leverage, threatens recurring consumables income, and makes it harder to sustain investment in innovation and commercial expansion without material recovery in sales.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Masimo's recent operating cash flow (~$217M) and strong free cash flow (~$198M) show durable cash-generation capacity even during loss years. Reliable FCF supports R&D, capital expenditures, debt reduction or strategic investments and underpins operational resilience over the next 2–6 months.
Read all positive factors
Masimo (MASI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.32B
Dividend YieldN/A
Average Volume (3M)2.45M
Price to Earnings (P/E)―
Beta (1Y)0.98
Revenue Growth-16.03%
EPS Growth-813.48%
CountryUS
Employees3,600
SectorHealthcare
Sector Strength45
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)-0.18
Shares Outstanding52,204,370
10 Day Avg. Volume2,435,199
30 Day Avg. Volume2,452,230
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 Cap1.07
Enterprise Value/Revenue6.55
Enterprise Value/Gross Profit10.59
Enterprise Value/Ebitda29.02
Forecast
1Y Price Target
$180.00Price Target Upside2.61% Upside
Rating ConsensusHold
Number of Analyst Covering6
EPS Forecast (FY)5.9
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 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...
Masimo Key Performance Indicators (KPIs)
Masimo Earnings Call Summary
Earnings Call Date:Nov 04, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 12, 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
43
Neutral
Balance Sheet
55
Neutral
Cash Flow
72
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.53B | 2.09B | 2.05B | 2.04B | 1.24B |
| Gross Profit | 945.20M | 1.00B | 1.00B | 1.06B | 808.40M |
| EBITDA | 344.60M | -158.70M | 236.70M | 355.20M | 310.30M |
| Net Income | -151.50M | -304.90M | 81.50M | 143.50M | 229.60M |
Balance Sheet | |||||
| Total Assets | 1.70B | 2.63B | 3.04B | 3.21B | 1.89B |
| Cash, Cash Equivalents and Short-Term Investments | 152.30M | 177.60M | 163.00M | 202.90M | 745.30M |
| Total Debt | 559.30M | 846.10M | 970.00M | 1.03B | 32.70M |
| Total Liabilities | 977.70M | 1.57B | 1.68B | 1.87B | 336.80M |
| Stockholders Equity | 721.20M | 1.05B | 1.36B | 1.34B | 1.55B |
Cash Flow | |||||
| Free Cash Flow | 197.80M | 145.30M | 6.40M | -26.90M | 229.70M |
| Operating Cash Flow | 217.20M | 196.40M | 94.10M | 29.40M | 264.60M |
| Investing Cash Flow | 275.10M | -51.20M | -81.20M | -1.06B | -37.50M |
| Financing Cash Flow | -520.70M | -125.60M | -57.10M | 520.40M | -122.40M |
Masimo Technical Analysis
Positive
175.42
Price Trends
156.70
Positive
148.64
Positive
150.96
Positive
Market Momentum
5.68
Positive
78.05
Negative
88.33
Negative
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 175.42 is below the 20-day moving average (MA) of 175.91, above the 50-day MA of 156.70, and above the 200-day MA of 150.96, indicating a bullish trend. The MACD of 5.68 indicates Positive momentum. The RSI at 78.05 is Negative, neither overbought nor oversold. The STOCH value of 88.33 is Negative, 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 | $4.05B | 40.58 | 8.52% | ― | 11.49% | -2.89% | |
67 Neutral | $2.72B | 20.99 | 20.26% | ― | -2.45% | 41.50% | |
66 Neutral | $16.89B | 23.34 | 11.01% | ― | 1.74% | -25.29% | |
65 Neutral | $7.99B | 20.41 | 14.67% | 1.50% | 2.50% | 25.05% | |
63 Neutral | $9.32B | -45.07 | -17.21% | ― | -16.03% | -813.48% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
47 Neutral | $4.68B | -6.01 | -23.70% | 1.11% | 5.43% | -245.18% |
* Healthcare Sector Average
MASI
Masimo
178.44
8.74
5.15%
ATR
AptarGroup
124.14
-21.12
-14.54%
HAE
Haemonetics
58.46
-4.89
-7.72%
HOLX
Hologic
75.64
14.84
24.41%
MMSI
Merit Medical Systems
68.13
-36.61
-34.95%
TFX
Teleflex
105.85
-31.81
-23.11%
Masimo Corporate Events
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...
Business Operations and StrategyFinancial Disclosures
Masimo Issues Strong Preliminary Results for 2025 Performance
Positive
Jan 12, 2026
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 o...
Business Operations and StrategyFinancial Disclosures
Masimo Unveils Long-Term Strategy at Investor Day
Positive
Dec 3, 2025
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 announce...
Business Operations and StrategyPrivate Placements and Financing
Masimo Secures New $1 Billion Credit Facility
Positive
Dec 1, 2025
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 mil...
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.