📊 MASI Key Takeaways
Is Masimo Corp. (MASI) a Good Investment?
Masimo demonstrates strong operational fundamentals with exceptional 62.1% gross margins and 19.2% operating margins, coupled with conservative leverage (0.57x Debt/Equity) and excellent liquidity (2.68x current ratio). However, the material divergence between revenue growth (9.4%) and net income growth (50.3%) raises sustainability concerns about earnings quality, and low ROE (7.2%) suggests capital deployment inefficiency that must improve.
Masimo shows solid core operating fundamentals, with 9.4% revenue growth, strong 61.9% gross margin, 20.3% operating margin, and healthy free cash flow generation. Liquidity is strong and debt appears manageable given 25.8x interest coverage, but the company still reports negative net income, ROE, and ROA, which keeps the overall fundamental picture mixed rather than clearly bullish.
Why Buy Masimo Corp. Stock? MASI Key Strengths
- Exceptional gross margin of 62.1% indicating strong competitive moat and pricing power in medical device market
- Conservative balance sheet with Debt/Equity ratio of 0.57x, Interest Coverage of 6.5x, and Current Ratio of 2.68x providing financial flexibility
- Solid operating margin of 19.2% and net margin of 14.1% demonstrating operational efficiency and cost control
- Positive free cash flow generation of $41M with low capital intensity (CapEx only $4.3M), enabling shareholder returns or debt reduction
- Operating leverage evident in earnings growth (+50.3% YoY) outpacing revenue growth (+9.4% YoY)
- Strong core profitability at the gross and operating level
- Healthy cash generation with $198.4M of free cash flow
- Solid liquidity and manageable leverage supported by strong interest coverage
MASI Stock Risks: Masimo Corp. Investment Risks
- Moderate revenue growth of 9.4% limits business expansion and future earning potential sustainability
- Significant earnings growth-to-revenue growth divergence (50.3% vs 9.4%) suggests one-time gains, unsustainable margin expansion, or earnings quality concerns
- Low ROE of 7.2% and ROA of 3.5% indicate inefficient capital deployment despite profitable operations
- Operating cash flow to net income conversion ratio suggests potential future cash flow pressure or earnings quality issues
- Negative net income and net margin indicate earnings quality remains under pressure
- Negative ROE and ROA suggest weak bottom-line returns on capital
- Balance sheet leverage is still meaningful with $524.3M in long-term debt relative to equity
Key Metrics to Watch
- Revenue growth rate acceleration and sustainability beyond 9.4% to validate long-term business momentum
- Gross and operating margin trends to confirm whether current levels are maintainable or inflated by temporary factors
- Return on Equity trajectory improvement to demonstrate better capital efficiency and utilization
- Net income and net margin normalization
- Free cash flow consistency versus revenue growth
Masimo Corp. (MASI) Financial Metrics & Key Ratios
💡 AI Analyst Insight
Strong liquidity with a 2.68x current ratio provides a solid financial cushion.
MASI Profit Margin, ROE & Profitability Analysis
MASI vs Healthcare Sector: How Masimo Corp. Compares
How Masimo Corp. compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Masimo Corp. Stock Overvalued? MASI Valuation Analysis 2026
Based on fundamental analysis, Masimo Corp. has mixed fundamental signals relative to the Healthcare sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Masimo Corp. Balance Sheet: MASI Debt, Cash & Liquidity
MASI Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Masimo Corp.'s revenue has declined by 25% over the 5-year period, indicating business contraction. The most recent EPS of $1.51 reflects profitable operations.
MASI Revenue Growth, EPS Growth & YoY Performance
MASI Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $372.0M | $57.1M | $1.09 |
| Q3 2025 | $343.3M | $9.8M | $0.18 |
| Q2 2025 | $343.9M | $16.0M | $0.30 |
| Q1 2025 | $339.6M | $18.9M | $0.35 |
| Q3 2024 | $478.9M | $9.8M | $0.18 |
| Q2 2024 | $455.3M | $15.7M | $0.29 |
| Q1 2024 | $492.8M | $18.9M | $0.35 |
| Q3 2023 | $478.9M | $10.6M | $0.20 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Masimo Corp. Dividends, Buybacks & Capital Allocation
MASI SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Masimo Corp. (CIK: 0000937556)
📋 Recent SEC Filings
❓ Frequently Asked Questions about MASI
What is the AI rating for MASI?
Masimo Corp. (MASI) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (HOLD) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are MASI's key strengths?
Claude: Exceptional gross margin of 62.1% indicating strong competitive moat and pricing power in medical device market. Conservative balance sheet with Debt/Equity ratio of 0.57x, Interest Coverage of 6.5x, and Current Ratio of 2.68x providing financial flexibility. ChatGPT: Strong core profitability at the gross and operating level. Healthy cash generation with $198.4M of free cash flow.
What are the risks of investing in MASI?
Claude: Moderate revenue growth of 9.4% limits business expansion and future earning potential sustainability. Significant earnings growth-to-revenue growth divergence (50.3% vs 9.4%) suggests one-time gains, unsustainable margin expansion, or earnings quality concerns. ChatGPT: Negative net income and net margin indicate earnings quality remains under pressure. Negative ROE and ROA suggest weak bottom-line returns on capital.
What is MASI's revenue and growth?
Masimo Corp. reported revenue of $403.6M.
Does MASI pay dividends?
Masimo Corp. does not currently pay dividends.
Where can I find MASI SEC filings?
Official SEC filings for Masimo Corp. (CIK: 0000937556) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is MASI's EPS?
Masimo Corp. has a diluted EPS of $1.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is MASI a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Masimo Corp. has a BUY rating with 76% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is MASI stock overvalued or undervalued?
Valuation metrics for MASI: ROE of 7.2% (sector avg: 15%), net margin of 14.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy MASI stock in 2026?
Our dual AI analysis gives Masimo Corp. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is MASI's free cash flow?
Masimo Corp.'s operating cash flow is $45.3M, with capital expenditures of $4.3M. FCF margin is 10.2%.
How does MASI compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin 14.1% (avg: 12%), ROE 7.2% (avg: 15%), current ratio 2.68 (avg: 2).