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Masimo Corp (MASI)
NASDAQ:MASI
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Masimo
(NASDAQ:MASI)
Rating:57Neutral
Price Target:
$160.00
▼(-6.96%Downside)
Positive Factors
Financial Performance
MASI's 1Q25 revenue and EPS beat consensus.
Innovation
MASI is focused on taking share in growth markets, refreshing its installed base with next-gen technology, and bringing AI capabilities to its sensors.
Leadership
New CEO is focused on driving commercial excellence; building and retaining top talent; and innovation to improve patient care.
Negative Factors
Cybersecurity
Certain manufacturing facilities have been operating at less than normal levels due to a cyber attack on MASI's network.
Tariffs
Tariffs will result in a significant headwind to cost of goods sold.
Valuation Concerns
Analyst maintains Hold rating given MASI's valuation and concern that significant cost reductions may have compromised future earnings growth.
Masimo (MASI) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$9.32B
Dividend YieldN/A
Average Volume (3M)680.98K
Price to Earnings (P/E)116.7
Beta (1Y)0.98
Revenue Growth-0.12%
EPS Growth-713.82%
CountryUS
Employees3,600
SectorHealthcare
Sector Strength42
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)1.36
Shares Outstanding54,219,116
10 Day Avg. Volume666,275
30 Day Avg. Volume680,980
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)7.98
Price to Sales (P/S)0.00
P/FCF Ratio58.42
Enterprise Value/Market Cap0.98
Enterprise Value/Revenue1.13
Enterprise Value/Gross Profit9.12
Enterprise Value/Ebitda19.26
Forecast
1Y Price Target
$189.60Price Target Upside10.25% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
Masimo Business Overview & Revenue Model
Company DescriptionMasimo Corporation (MASI) is a global medical technology company that develops and manufactures innovative noninvasive monitoring technologies. Headquartered in Irvine, California, Masimo is a leader in pulse oximetry and other advanced noninvasive monitoring solutions, including devices for measuring and monitoring oxygen saturation, carbon monoxide levels, hemoglobin levels, and brain function. Masimo's products are widely used in hospitals, emergency medical services, and home health care settings to improve patient care and safety.
How the Company Makes MoneyMasimo makes money primarily through the sale of its proprietary medical devices and systems, which include pulse oximeters, patient monitoring systems, and related sensors and accessories. The company generates revenue by selling these products directly to hospitals, healthcare providers, and distributors worldwide. Additionally, Masimo benefits from recurring revenue streams through the sale of disposable sensors and other consumables that are necessary for the ongoing use of its monitoring systems. The company may also engage in strategic partnerships and collaborations with healthcare organizations and technology firms to expand its market reach and enhance its product offerings. These partnerships can contribute to revenue through joint ventures, licensing agreements, and shared technological advancements.
Masimo Earnings Call Summary
Earnings Call Date:May 06, 2025
(Q1-2025)
| % Change Since: 6.50%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Neutral
Masimo's Q1 2025 earnings call highlighted strong financial performance and strategic moves, such as the divestiture of Sound United and leadership appointments. However, challenges such as new tariffs and a recent security incident present potential headwinds. Overall, the company demonstrates resilience and a strong position to manage these challenges.Q1-2025 Updates
Positive Updates
Strong Financial Performance
Masimo's healthcare revenue for Q1 2025 was $371 million, a 10% growth on a constant currency basis, with EPS growth of more than 50%. Operating margin expanded by 750 basis points.
Successful Divestiture
Masimo reached an agreement to divest its consumer audio business, Sound United, allowing the company to refocus on its professional healthcare business.
New Leadership
Lisa Hellmann joined as the new Chief Human Resources Officer, bringing exceptional talent to help drive Masimo's growth.
Product Development and Strategy
Plans to upgrade existing sensors and create next-generation monitors enabled with AI-based advanced algorithms to further strengthen positions in pulse oximetry, capnography, hemodynamics, and brain monitoring.
Negative Updates
Tariff Challenges
New tariffs have been introduced, impacting operating margins by 210 to 250 basis points and EPS by $0.45 to $0.50. The projected $33 million to $37 million increase in cost of sales for fiscal 2025 due to tariffs.
Security Incident
An incident impacted Masimo's website and several systems, necessitating an ongoing investigation. However, it is not expected to impact guidance.
Loss from Discontinued Operations
Net loss from discontinued operations was $218 million, including an impairment charge of $295 million for the audio business.
Company Guidance
During Masimo's First Quarter 2025 earnings call, the company reported strong financial performance with healthcare revenue of $371 million, reflecting a 10% growth on a constant currency basis. Operating margins expanded by 750 basis points year-over-year, and the non-GAAP earnings per share saw a remarkable 56% increase to $1.36. The company maintained its fiscal 2025 revenue guidance at $1,500 million to $1,530 million, indicating 8% to 11% constant currency growth. Despite new tariffs, Masimo anticipates operating margins to be in the range of 25.5% to 26.4%, with earnings per share projected between $4.80 and $5.15, factoring in a $33 million to $37 million increase in cost of sales due to tariffs. Additionally, the company announced its decision to divest its consumer audio business, Sound United, and prioritize share repurchases with the proceeds, reinforcing its focus on its core healthcare business.Masimo Financial Statement Overview
Summary
Masimo's financial performance is mixed. While profitability is challenged with a negative EBIT and net margin, cash flow is strong, indicating effective cash management. The balance sheet shows manageable debt, but declining assets and equity suggest long-term concerns.Income Statement
Masimo's income statement shows a decline in profitability with a negative EBIT and net margin for 2024. Gross profit margin remains stable, but revenue growth has slowed significantly compared to past years.45
Neutral
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio, indicating manageable leverage. However, the decline in stockholders' equity and total assets raises concerns about long-term financial stability.60
Neutral
Cash Flow
Masimo's cash flow is strong with positive free cash flow growth and an improving operating cash flow to net income ratio. This suggests effective cash management despite a challenging profit environment.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 2.09B | 2.05B | 2.04B | 1.24B | 1.14B | Gross Profit |
| 1.00B | 1.00B | 1.06B | 808.35M | 743.07M | EBIT |
| -266.70M | 136.50M | 210.00M | 275.82M | 255.82M | EBITDA |
| -158.70M | 236.70M | 355.20M | 310.86M | 293.77M | Net Income Common Stockholders |
| -304.90M | 81.50M | 143.50M | 229.60M | 240.30M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 177.60M | 163.00M | 202.90M | 745.25M | 641.45M | Total Assets |
| 2.63B | 3.04B | 3.21B | 1.89B | 1.71B | Total Debt |
| 846.10M | 970.00M | 975.40M | 32.66M | 34.35M | Net Debt |
| 668.50M | 807.00M | 772.50M | -712.59M | -607.10M | Total Liabilities |
| 1.57B | 1.68B | 1.87B | 336.76M | 304.91M | Stockholders Equity |
| 1.05B | 1.36B | 1.34B | 1.55B | 1.41B |
| Cash Flow | Free Cash Flow | |||
| 176.40M | 6.40M | -26.80M | 229.82M | 131.01M | Operating Cash Flow |
| 196.40M | 94.10M | 29.50M | 264.75M | 210.96M | Investing Cash Flow |
| -51.20M | -81.20M | -1.06B | -37.53M | -82.79M | Financing Cash Flow |
| -125.60M | -57.10M | 520.30M | -122.40M | -54.31M |
Masimo Technical Analysis
Positive
171.97
Price Trends
158.14
Positive
166.41
Positive
156.90
Positive
Market Momentum
2.05
Negative
64.26
Neutral
86.18
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 171.97 is above the 20-day moving average (MA) of 158.29, above the 50-day MA of 158.14, and above the 200-day MA of 156.90, indicating a bullish trend. The MACD of 2.05 indicates Negative momentum. The RSI at 64.26 is Neutral, neither overbought nor oversold. The STOCH value of 86.18 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 3 New Risks
1.
We may be unable to accurately forecast our financial and operating results and appropriately plan our expenses in the future or we may fail to meet our publicly announced guidance about our business and future operating results. Q3, 2023
2.
We have incurred impairment charges for other intangible assets, and may incur further impairment charges in the future, which would negatively impact our operating results. Q3, 2023
3.
Adverse developments affecting the financial services industry, such as actual events or concerns involving liquidity, defaults or non-performance by financial institutions or transactional counterparties, could adversely affect our current and projected business operations and its financial condition and results of operations. Q3, 2023
Masimo Peers Comparison
Overall Rating
UnderperformOutperform
Sector (54)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
85 Outperform | $36.98B | 28.32 | 25.81% | 0.84% | 9.54% | 37.23% | |
70 Outperform | $14.34B | 27.16 | 11.77% | ― | 1.66% | 21.95% | |
70 Outperform | $10.12B | 28.03 | 15.15% | 1.17% | 0.34% | 17.27% | |
68 Neutral | $49.71B | 33.10 | 5.97% | 2.29% | 5.84% | 15.12% | |
58 Neutral | $5.43B | 38.70 | 3.48% | 1.11% | 0.29% | -48.98% | |
57 Neutral | $9.32B | 116.65 | -23.93% | ― | -0.12% | -713.82% | |
54 Neutral | $5.31B | 3.28 | -45.10% | 2.80% | 16.76% | 0.02% |
* Healthcare Sector Average
Performance Comparison
MASI
Masimo
171.97
44.81
35.24%
ATR
AptarGroup
153.31
8.98
6.22%
BDX
Becton Dickinson
173.45
-62.88
-26.61%
HOLX
Hologic
64.33
-9.64
-13.03%
RMD
Resmed
252.20
42.43
20.23%
TFX
Teleflex
122.80
-82.56
-40.20%
Masimo Corporate Events
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.
The most recent analyst rating on (MASI) stock is a Buy with a $170.00 price target. To see the full list of analyst forecasts on Masimo stock, see the MASI Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
Masimo Reports Strong Q1 2025 Financial Results
Positive
May 6, 2025
On May 6, 2025, Masimo Corporation announced its financial results for the first quarter of 2025, reporting a 10% increase in GAAP revenue to $372 million and a 56% rise in non-GAAP net income per diluted share compared to the previous year. The company also provided an updated outlook for fiscal 2025, anticipating non-GAAP revenue growth of 8% to 11% and addressing the impact of new tariffs with mitigation strategies, highlighting its strong market position and operational resilience.
M&A TransactionsBusiness Operations and Strategy
Masimo Sells Sound United to HARMAN for $350M
Positive
May 6, 2025
On May 6, 2025, Masimo Corporation announced a definitive agreement to sell its Sound United consumer audio business to HARMAN International for $350 million in cash. This divestiture supports Masimo’s strategic focus on its core professional healthcare segment, aiming to drive innovation and accelerate revenue growth. The transaction is expected to close by the end of 2025, subject to regulatory approvals, and represents a strategic step for HARMAN in expanding its audio business.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.