NasdaqGS:MASI

Stock Analysis Report

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Executive Summary

Masimo Corporation, a medical technology company, develops, manufactures, and markets noninvasive monitoring technologies and hospital automation solutions worldwide.


Snowflake Analysis

Flawless balance sheet with limited growth.


Similar Companies

Share Price & News

How has Masimo's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MASI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-8.3%

MASI

-7.8%

US Medical Equipment

3.8%

US Market


1 Year Return

59.7%

MASI

10.9%

US Medical Equipment

9.7%

US Market

Return vs Industry: MASI exceeded the US Medical Equipment industry which returned 13.5% over the past year.

Return vs Market: MASI exceeded the US Market which returned 8.5% over the past year.


Shareholder returns

MASIIndustryMarket
7 Day-8.3%-7.8%3.8%
30 Day-5.6%2.7%11.4%
90 Day22.4%7.4%6.8%
1 Year59.7%59.7%11.8%10.9%12.1%9.7%
3 Year147.7%147.7%58.9%54.6%36.2%27.2%
5 Year467.0%467.0%106.6%85.3%63.7%45.4%

Price Volatility Vs. Market

How volatile is Masimo's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Masimo undervalued compared to its fair value and its price relative to the market?

55.85x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MASI ($226.99) is trading above our estimate of fair value ($159.73)

Significantly Below Fair Value: MASI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: MASI is poor value based on its PE Ratio (57.6x) compared to the Medical Equipment industry average (48.1x).

PE vs Market: MASI is poor value based on its PE Ratio (57.6x) compared to the US market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: MASI is poor value based on its PEG Ratio (4.8x)


Price to Book Ratio

PB vs Industry: MASI is overvalued based on its PB Ratio (9.8x) compared to the US Medical Equipment industry average (3.8x).


Next Steps

Future Growth

How is Masimo forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

11.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MASI's forecast earnings growth (11.9% per year) is above the savings rate (2.2%).

Earnings vs Market: MASI's earnings (11.9% per year) are forecast to grow slower than the US market (22.1% per year).

High Growth Earnings: MASI's earnings are forecast to grow, but not significantly.

Revenue vs Market: MASI's revenue (9% per year) is forecast to grow faster than the US market (8.9% per year).

High Growth Revenue: MASI's revenue (9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MASI's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has Masimo performed over the past 5 years?

12.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MASI has high quality earnings.

Growing Profit Margin: MASI's current net profit margins (21.7%) are lower than last year (22.5%).


Past Earnings Growth Analysis

Earnings Trend: MASI's earnings have grown by 12.7% per year over the past 5 years.

Accelerating Growth: MASI's earnings growth over the past year (7.2%) is below its 5-year average (12.7% per year).

Earnings vs Industry: MASI earnings growth over the past year (7.2%) underperformed the Medical Equipment industry 7.2%.


Return on Equity

High ROE: MASI's Return on Equity (16.9%) is considered low.


Next Steps

Financial Health

How is Masimo's financial position?


Financial Position Analysis

Short Term Liabilities: MASI's short term assets ($980.2M) exceed its short term liabilities ($157.3M).

Long Term Liabilities: MASI's short term assets ($980.2M) exceed its long term liabilities ($64.0M).


Debt to Equity History and Analysis

Debt Level: MASI is debt free.

Reducing Debt: MASI has no debt compared to 5 years ago when its debt to equity ratio was 38.6%.

Debt Coverage: MASI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: MASI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet


Next Steps

Dividend

What is Masimo's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate MASI's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MASI's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MASI's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MASI's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MASI's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.3yrs

Average management tenure


CEO

Joe Kiani (54yo)

31.42yrs

Tenure

US$14,996,101

Compensation

Mr. Joseph E. Kiani, also known as Joe, founded Masimo Corporation in 1989 and has been its Chairman and Chief Executive Officer since 1989. Mr. Kiani serves as the Chairman and Chief Executive Officer of  ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD15.00M) is about average for companies of similar size in the US market ($USD11.58M).

Compensation vs Earnings: Joe's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Kiani
Founder31.42yrsUS$15.00m7.24% $863.4m
Micah Young
Executive VP of Finance & CFO2.67yrsUS$1.91mno data
Bilal Muhsin
Chief Operating Officer1.08yrsUS$4.23mno data
Steven Barker
Chairman of Scientific Advisory Boardno dataUS$369.89k0.12% $14.9m
Thomas McClenahan
Executive VP7.17yrsUS$1.92m0.012% $1.4m
Anand Sampath
Executive Vice President of Operations & Clinical Research1.08yrsUS$1.97m0.025% $3.0m
David Van Ramshorst
Chief Accounting Officer & Senior VP of Finance5.33yrsno data0.0019% $220.5k
Yongsam Lee
Executive VP & Chief Information Officer18.17yrsUS$1.49m0.14% $16.5m
Eli Kammerman
Vice President of Business Development & Investor Relations11yrsno datano data
Jon Coleman
President of Worldwide Sales9.33yrsUS$1.78m0.023% $2.7m

6.3yrs

Average Tenure

54yo

Average Age

Experienced Management: MASI's management team is seasoned and experienced (6.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Kiani
Founder31.42yrsUS$15.00m7.24% $863.4m
Steven Barker
Chairman of Scientific Advisory Boardno dataUS$369.89k0.12% $14.9m
Craig Reynolds
Independent Director6.17yrsUS$274.89k0.0080% $947.5k
Julie Shimer
Independent Director1.42yrsUS$259.26k0.0024% $287.2k
H. Cohen
Independent Director1.83yrsUS$262.39k0.0024% $287.2k
Thomas Harkin
Independent Director4.5yrsUS$274.89k0.014% $1.7m
Adam Mikkelson
Independent Director3.67yrsUS$277.39k0.0080% $947.5k

4.1yrs

Average Tenure

66yo

Average Age

Experienced Board: MASI's board of directors are considered experienced (4.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Masimo Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Masimo Corporation
  • Ticker: MASI
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Health Care Equipment
  • Sector: Healthcare
  • Market Cap: US$11.918b
  • Shares outstanding: 54.12m
  • Website: https://www.masimo.com

Number of Employees


Location

  • Masimo Corporation
  • 52 Discovery
  • Irvine
  • California
  • 92618
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MASINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDAug 2007
3M4DB (Deutsche Boerse AG)YesCommon StockDEEURAug 2007
0JZ2LSE (London Stock Exchange)YesCommon StockGBUSDAug 2007
MASI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNAug 2007

Biography

Masimo Corporation, a medical technology company, 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. In addition, the company 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; and O3 regional oximetry for tissue oxygen saturation measurement. Further, it provides Patient SafetyNet, a surveillance, remote monitoring, and clinician notification solution; MyView, a wireless presence-detection system; and connectivity devices. Additionally, the company offers Trace, a patient data visualization and reporting software for Masimo Root and Radical-7 monitors. The company provides its products directly, as well as through distributors and original equipment manufacturers partners to hospitals, emergency medical service providers, physician offices, home care providers, long term care facilities, veterinarians, and consumers. Masimo Corporation was founded in 1989 and is headquartered in Irvine, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 02:10
End of Day Share Price2020/06/05 00:00
Earnings2020/03/28
Annual Earnings2019/12/28


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.