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Relative valuation derived from Healthcare sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
-13.6%
Sector: -43.5%
Dividend Analysis audit
No Dividend
This company does not currently pay a dividend.
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, MASIMO CORP (MASI) receives a "Hold" rating with a composite score of 48.4/100, ranked #951 out of 4446 stocks. Key factor scores: Quality 50/100, Value 49/100, Momentum 52/100. This is quantitative analysis only — not investment advice.
MASIMO CORP (MASI) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does MASIMO CORP Do?
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. MASIMO CORP (MASI) is classified as a mid-cap stock in the Healthcare sector, specifically within the Medical Equipment industry. The company is led by CEO Joe E. Kiani and employs approximately 6,200 people, headquartered in Wilmington, California. With a market capitalization of $9.3B, MASI is one of the notable companies in the Healthcare sector.
MASIMO CORP (MASI) Stock Rating — Hold (April 2026)
As of April 2026, MASIMO CORP receives a Hold rating with a composite score of 48.4/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.MASI ranks #951 out of 4,446 stocks in our coverage universe. Within the Healthcare sector, MASIMO CORP ranks #67 of 838 stocks, placing it in the top 10% of its Healthcare peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
MASI Stock Price and 52-Week Range
MASIMO CORP (MASI) currently trades at $178.46. The stock gained $0.13 (0.1%) in the most recent trading session. The 52-week high for MASI is $176.42, which means the stock is currently trading 1.2% from its annual peak. The 52-week low is $125.94, putting the stock 41.7% above its annual trough. Recent trading volume was 494K shares, suggesting relatively thin trading activity.
Is MASI Overvalued or Undervalued? — Valuation Analysis
MASIMO CORP (MASI) carries a value factor score of 49/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The price-to-book ratio stands at 12.98x, versus the sector average of 2.75x. The price-to-sales ratio is 6.30x, compared to 1.66x for the average Healthcare stock. On an enterprise value basis, MASI trades at 33.30x EV/EBITDA, versus 6.34x for the sector.
Overall, MASI's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
MASIMO CORP Profitability — ROE, Margins, and Quality Score
MASIMO CORP (MASI) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is -13.6%, compared to the Healthcare sector average of -43.5%, which is below typical expectations for high-quality companies. Return on assets (ROA) comes in at -5.8% versus the sector average of -33.1%.
On a margin basis, MASIMO CORP reports gross margins of 62.5%, compared to 71.5% for the sector. The operating margin is 19.9% (sector: -66.1%). Net profit margin stands at -6.6%, versus -58.7% for the average Healthcare stock. Revenue growth is running at -0.1% on a trailing basis, compared to 10.6% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
MASI Debt, Balance Sheet, and Financial Health
MASIMO CORP has a debt-to-equity ratio of 73.0%, compared to the Healthcare sector average of 32.0%. Leverage is within a manageable range for the industry, though investors should monitor debt trends over time. The current ratio is 2.49x, indicating strong short-term liquidity. Total debt on the balance sheet is $524M.
MASI has a beta of 0.98, meaning it is roughly in line with the broader market in terms of price volatility. The stability factor score for MASIMO CORP is 59/100, reflecting average volatility within the normal range for its sector.
MASIMO CORP Revenue and Earnings History — Quarterly Trend
In TTM 2026, MASIMO CORP reported revenue of $1.48B and earnings per share (EPS) of $-2.83. Net income for the quarter was $-98M. Gross margin was 62.5%. Operating income came in at $296M.
In FY 2025, MASIMO CORP reported revenue of $1.53B and earnings per share (EPS) of $-2.83. Net income for the quarter was $-152M. Gross margin was 61.9%. Operating income came in at $310M.
In Q3 2025, MASIMO CORP reported revenue of $372M and earnings per share (EPS) of $-1.86. Net income for the quarter was $-100M. Gross margin was 62.1%. Operating income came in at $84M.
In Q3 2026, MASIMO CORP reported revenue of $372M and earnings per share (EPS) of $-1.86. Net income for the quarter was $-100M. Gross margin was 62.1%. Revenue grew 0.0% year-over-year compared to Q3 2025. Operating income came in at $84M.
Over the past 8 quarters, MASIMO CORP has demonstrated a growth trajectory, with revenue expanding from $372M to $1.48B. Investors analyzing MASI stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
MASI Dividend Yield and Income Analysis
MASIMO CORP (MASI) does not currently pay a dividend. This is common among smaller companies in the Medical Equipment industry that prefer to reinvest cash flows into business expansion rather than returning capital to shareholders. Income-focused investors looking for Healthcare dividend stocks may want to explore other Healthcare stocks or use the stock screener to filter by dividend yield.
MASI Momentum and Technical Analysis Profile
MASIMO CORP (MASI) has a momentum factor score of 52/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 34/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 39/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
MASI vs Competitors — Healthcare Sector Ranking and Peer Comparison
Comparing MASI against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full MASI vs S&P 500 (SPY) comparison to assess how MASIMO CORP stacks up against the broader market across all factor dimensions.
MASI Next Earnings Date
No upcoming earnings date has been announced for MASIMO CORP (MASI) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy MASI? — Investment Thesis Summary
MASIMO CORP presents a balanced picture with arguments on both sides.
In summary, MASIMO CORP (MASI) earns a Hold rating with a composite score of 48.4/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on MASI stock.
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Institutional Research Dossier
MASIMO CORP (MASI) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain our Hold rating on Masimo (MASI), driven by a mixed outlook. While the company possesses a strong technological foundation in noninvasive monitoring and hospital automation, recent financial performance has been volatile, marked by significant net losses and revenue stagnation. The acquisition of Sound United has further complicated the picture, introducing integration challenges and diluting focus on the core healthcare business. The current valuation appears stretched relative to near-term earnings potential, warranting caution despite the company's long-term growth prospects.
The key takeaway is that Masimo's future hinges on its ability to successfully integrate Sound United, restore profitability, and reignite revenue growth in its core medical technology segment. Until there is clearer evidence of progress on these fronts, a Hold rating is justified, reflecting both the company's inherent strengths and its current challenges.
Business Strategy & Overview
Masimo Corporation operates primarily in the medical technology sector, focusing on noninvasive patient monitoring solutions and hospital automation. Its core business revolves around its Signal Extraction Technology (SET) pulse oximetry, which aims to provide accurate measurements even in challenging conditions like patient motion and low perfusion. This technology forms the basis for a range of products used in hospitals, emergency medical services, and home care settings. Masimo generates revenue through direct sales, distributors, and partnerships with original equipment manufacturers (OEMs).
The company's strategic positioning involves expanding its product portfolio beyond pulse oximetry to include other noninvasive monitoring technologies, such as brain function monitoring (SedLine), capnography, and regional oximetry. Masimo also offers hospital automation solutions designed to improve patient safety and workflow efficiency. A key element of its strategy is continuous innovation, with ongoing efforts to develop new monitoring parameters and improve the accuracy and reliability of its existing technologies.
Masimo's acquisition of Sound United, a consumer audio company, represents a significant strategic shift. This move aims to diversify the company's revenue streams and leverage its signal processing expertise in the consumer market. However, it also introduces new challenges related to integrating a business with a different customer base, distribution channels, and competitive landscape. The success of this acquisition will depend on Masimo's ability to effectively manage these challenges and realize synergies between its medical and consumer businesses.
The company's product pipeline includes ongoing development of new noninvasive monitoring technologies and enhancements to its existing product lines. Masimo is also focused on expanding its presence in emerging markets and leveraging its technology to address unmet needs in areas such as remote patient monitoring and telehealth. The company's long-term growth prospects depend on its ability to maintain its technological leadership, expand its market share, and successfully execute its diversification strategy.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
-0.1%
Sector: 10.6%
-101% VS SCTR
Economic Moat Analysis
Masimo possesses a Narrow economic moat, primarily derived from intangible assets and switching costs. The company's patented Signal Extraction Technology (SET) pulse oximetry provides a level of accuracy and reliability that is difficult for competitors to replicate, creating a technological advantage. This technology is protected by a portfolio of patents, which provides a degree of exclusivity and allows Masimo to command premium pricing. The company's brand reputation for innovation and quality also contributes to its intangible asset moat.
Switching costs also play a role in Masimo's moat. Hospitals and healthcare providers that have integrated Masimo's monitoring systems into their workflows face costs associated with switching to alternative systems. These costs include retraining staff, reconfiguring IT infrastructure, and validating the performance of new equipment. While not insurmountable, these switching costs provide a degree of customer stickiness and make it more difficult for competitors to displace Masimo.
However, the moat is not wide due to several factors. The medical device industry is highly competitive, with numerous companies developing and marketing similar products. While Masimo's SET technology offers advantages, competitors are constantly innovating and developing their own solutions. The expiration of key patents could also erode Masimo's technological advantage over time. Furthermore, the increasing commoditization of certain monitoring technologies could put pressure on pricing and margins.
The acquisition of Sound United introduces uncertainty regarding the company's moat. While the consumer audio business may offer growth opportunities, it is also subject to intense competition and rapid technological change. It is unclear whether Masimo can successfully leverage its existing technological expertise to create a sustainable competitive advantage in the consumer market. The integration of Sound United could also divert resources and management attention away from the core medical technology business, potentially weakening its moat.
Overall, Masimo's narrow moat provides a degree of competitive protection, but it is not impenetrable. The company faces ongoing challenges from competitors, patent expirations, and the need to adapt to evolving market dynamics. The success of the Sound United acquisition will be a key factor in determining whether Masimo can strengthen its moat over time.
Financial Health & Profitability
Masimo's financial health presents a mixed picture. While the company has historically generated strong revenue growth and profitability, recent performance has been volatile. The TTM revenue of $1.53 billion represents a decline compared to the $2.09 billion in FY2024 and $2.05 billion in FY2023. The company's net income has also deteriorated significantly, with a TTM net loss of $151.50 million compared to net losses of $304.90 million in FY2024 and net income of $81.50 million in FY2023. This decline in profitability is reflected in the company's negative ROE of -13.6%, which is significantly below the sector average of -42.5%.
Gross margins remain relatively strong at 62.5%, although lower than the sector average of 71.9%. Operating margin, while positive at 19.9%, has declined significantly from historical levels. The company's debt-to-equity ratio of 73.00 is higher than the sector average of 30.00, indicating a higher level of financial leverage. The current ratio of 2.49 suggests adequate liquidity to meet short-term obligations.
Looking at the quarterly financial history, the trend is concerning. While gross margins have remained relatively stable, operating margins have fluctuated significantly. The company has reported net losses in several recent quarters, driven by a combination of lower revenue and higher operating expenses. The free cash flow data is unavailable, making it difficult to assess the company's cash generation capabilities.
Compared to the healthcare sector, Masimo's revenue growth is significantly weaker, and its profitability metrics are below average. While the company's operating margin is higher than the sector average, this is primarily due to the sector's overall poor profitability. Masimo's higher debt-to-equity ratio also raises concerns about its financial risk profile.
Overall, Masimo's financial health has deteriorated in recent periods, driven by declining revenue, increased operating expenses, and net losses. The company's higher debt levels and weaker profitability metrics raise concerns about its financial stability. The lack of free cash flow data further complicates the assessment of its financial health. The company needs to improve its revenue growth and profitability to restore investor confidence.
Valuation Assessment
Masimo's valuation is complex, given its recent financial performance and the strategic shift towards consumer audio. The company's TTM P/E ratio is not meaningful due to the net loss. The EV/EBITDA multiple of 7.9x is higher than the sector average of 6.4x, suggesting that the stock is relatively expensive compared to its peers. However, EV/EBITDA can be misleading when EBITDA is depressed, as is the case with Masimo.
Given the lack of free cash flow data, it is difficult to assess the company's valuation based on FCF yield. However, the company's declining revenue and profitability raise concerns about its ability to generate strong free cash flow in the near term. The company's historical valuation multiples may not be relevant given the significant changes in its business and financial performance.
Compared to its historical valuation, Masimo's current valuation appears stretched. The stock has traded at lower multiples in the past when its revenue growth and profitability were stronger. The acquisition of Sound United has also introduced uncertainty, making it difficult to assess the company's long-term growth prospects and valuation.
The BCR proprietary quant model assigns a Value score of 49/100, indicating that the stock is fairly valued based on its multiples. However, the model's reliance on historical data and sector averages may not fully capture the company's current challenges and strategic changes. The model's Composite Score of 46.9/100 and Rank of #877 of 4446 also suggest that the stock is not particularly attractive from a valuation perspective.
Overall, Masimo's valuation appears stretched relative to its near-term earnings potential and historical performance. The company's declining revenue, net losses, and strategic shift towards consumer audio make it difficult to justify a premium valuation. While the company may have long-term growth potential, the current valuation does not appear to reflect the risks and uncertainties associated with its business.
Risk & Uncertainty
Masimo faces several specific, idiosyncratic risks that could negatively impact its business and financial performance. One of the most significant risks is the integration of Sound United. This acquisition represents a major strategic shift, and there is no guarantee that Masimo will be able to successfully integrate the consumer audio business into its existing operations. Integration challenges could include cultural differences, operational inefficiencies, and difficulties in realizing synergies between the two businesses. A failure to successfully integrate Sound United could lead to lower revenue, higher expenses, and a distraction from the core medical technology business.
Another key risk is competition in the medical device industry. Masimo operates in a highly competitive market, with numerous companies developing and marketing similar products. Competitors may introduce new technologies or products that could erode Masimo's market share and pricing power. The expiration of key patents could also increase competition and put pressure on margins. The company's ability to maintain its technological leadership and differentiate its products will be critical to its long-term success.
Regulatory risks also pose a threat to Masimo's business. The medical device industry is subject to extensive regulation by government agencies such as the FDA. Changes in regulations could increase the cost of developing and marketing new products, delay product approvals, or require the company to modify its existing products. The company's compliance with regulatory requirements is essential to its ability to operate in the market.
The company's reliance on a limited number of key customers and suppliers also presents a concentration risk. The loss of a major customer or the disruption of a key supply chain could have a significant impact on its revenue and profitability. The company's ability to diversify its customer base and supply chain will be important to mitigating this risk.
Bulls Say / Bears Say
The Bull Case
BULL VIEWMasimo's core SET pulse oximetry technology remains the gold standard, providing a durable competitive advantage in patient monitoring.
BULL VIEWThe Sound United acquisition diversifies revenue streams and leverages Masimo's signal processing expertise in a large consumer market, creating significant long-term growth potential.
BULL VIEWMasimo's hospital automation solutions are gaining traction, driving efficiency and improving patient safety, which will lead to increased adoption and recurring revenue.
The Bear Case
BEAR VIEWThe Sound United acquisition is a costly distraction from Masimo's core medical technology business, diluting focus and increasing execution risk.
BEAR VIEWDeclining revenue growth and net losses indicate fundamental problems with Masimo's business model, suggesting a potential loss of market share and competitive advantage.
BEAR VIEWMasimo's valuation is unjustified given its recent financial performance and the uncertainty surrounding the Sound United integration, making it significantly overvalued.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score MASI and 4,400+ other equities.
MASIMO CORP exhibits a 143% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
-5.8%
Sector: -33.1%
Gross Margin
Pricing power and cost efficiency
62.5%
Sector: 71.5%
Operating Margin
Core business profitability
19.9%
Sector: -66.1%
Net Margin
Bottom-line profitability
-6.6%
Sector: -58.7%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
