📊 MASI Key Takeaways
Is MASI a Good Investment? Thesis Analysis
Masimo demonstrates solid operational fundamentals with strong revenue growth (+9.4% YoY), excellent gross margins (61.9%), and positive free cash flow generation ($198.4M). However, the company is currently unprofitable with a -$151.5M net loss and negative returns on equity and assets, suggesting significant challenges despite operational cash generation.
Why Buy MASI? Key Strengths
- Strong revenue growth at 9.4% YoY demonstrates market demand for products
- Excellent gross margin of 61.9% indicates strong pricing power and operational efficiency
- Robust free cash flow of $198.4M with 13% FCF margin shows cash generation capability despite net losses
- Healthy liquidity position with 2.49x current ratio and $152.3M cash
- Strong interest coverage ratio of 25.8x indicates manageable debt service
- Operating income of $310.0M positive, showing core business profitability before non-operating items
MASI Investment Risks to Consider
- Significant net loss of -$151.5M indicates substantial non-operating charges or one-time expenses impacting profitability
- Negative ROE (-21.0%) and ROA (-8.9%) suggest poor capital efficiency and shareholder value destruction
- Negative net margin of -9.9% despite 20.3% operating margin raises questions about non-operating expenses or loss items
- High long-term debt of $524.3M represents 72.6% of equity, limiting financial flexibility
- 14 Form 4 insider filings in 90 days warrants investigation into transaction nature and intent
- Gap between operating profitability and net profitability suggests potential acquisition integration costs, restructuring charges, or impairments
Key Metrics to Watch
- Reconciliation of operating income to net income to understand source of $460.0M loss
- Trend in operating margin sustainability and cost management
- Nature and timing of non-operating charges and one-time items
- Free cash flow conversion and cash burn trajectory
- Insider transaction patterns and materiality
- Debt refinancing plans and long-term leverage reduction strategy
- Sequential revenue growth and margin expansion path to profitability
MASI Financial Metrics
💡 AI Analyst Insight
Strong liquidity with a 2.49x current ratio provides a solid financial cushion.
MASI Profitability Ratios
MASI vs Healthcare Sector
How MASIMO CORP compares to Healthcare sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is MASI Overvalued or Undervalued?
Based on fundamental analysis, MASIMO CORP shows some fundamental concerns 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.
MASI Balance Sheet & Liquidity
MASI 5-Year Financial Trend & Growth Analysis
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 Growth Metrics (YoY)
MASI Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| 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 |
| Q2 2023 | $455.3M | N/A | $0.29 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
MASI Capital Allocation
MASI SEC 10-K & 10-Q Filing Analysis
Access official SEC EDGAR filings for MASIMO CORP (CIK: 0000937556)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773696057.xml | View → |
| Mar 16, 2026 | 4 | xslF345X05/wk-form4_1773695996.xml | View → |
| Mar 13, 2026 | 4 | xslF345X05/tm268814d1_4seq1.xml | View → |
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773186386.xml | View → |
| Mar 10, 2026 | 4 | xslF345X05/wk-form4_1773186232.xml | View → |
❓ Frequently Asked Questions about MASI
What is the AI rating for MASI?
MASIMO CORP (MASI) has an AI rating of HOLD with 62% confidence, based on fundamental analysis of SEC EDGAR filings.
What are MASI's key strengths?
Claude: Strong revenue growth at 9.4% YoY demonstrates market demand for products. Excellent gross margin of 61.9% indicates strong pricing power and operational efficiency.
What are the risks of investing in MASI?
Claude: Significant net loss of -$151.5M indicates substantial non-operating charges or one-time expenses impacting profitability. Negative ROE (-21.0%) and ROA (-8.9%) suggest poor capital efficiency and shareholder value destruction.
What is MASI's revenue and growth?
MASIMO CORP reported revenue of $1.5B.
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 $-2.80.
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 April 2026, MASIMO CORP has a HOLD rating with 62% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is MASI stock overvalued or undervalued?
Valuation metrics for MASI: ROE of -21.0% (sector avg: 15%), net margin of -9.9% (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 HOLD rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is MASI's free cash flow?
MASIMO CORP's operating cash flow is $217.8M, with capital expenditures of $19.4M. FCF margin is 13.0%.
How does MASI compare to other Healthcare stocks?
Vs Healthcare sector averages: Net margin -9.9% (avg: 12%), ROE -21.0% (avg: 15%), current ratio 2.49 (avg: 2).