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1. Company Snapshot

1.a. Company Description

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.

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1.b. Last Insights on MASI

Masimo Corporation faced negative drivers in recent months. A law firm, Halper Sadeh LLC, investigated potential breaches of fiduciary duties by certain officers and directors, which may have led to uncertainty among investors. Additionally, Oppenheimer Asset Management Inc. decreased its stake in the company by 47.7%, potentially signaling a loss of confidence. However, the company reported strong Q3 earnings, beating estimates with $1.32 per share, and revenue growth of 8.2%. The divestment of its consumer audio business to HARMAN also aimed to sharpen its focus on core healthcare and boost margins.

1.c. Company Highlights

2. Masimo's Q3 2025 Earnings: Strong Execution and Growth

Masimo reported revenue growth of 8% in Q3 2025, driven by strong underlying demand for its innovative technology. The company achieved 450 basis points of operating margin expansion and increased adjusted earnings per share by 38% year-over-year. Actual EPS came out at $1.32, beating estimates of $1.19. The strength in operating margin is a direct result of higher revenue and cost efficiencies over the past year.

Publication Date: Nov -10

📋 Highlights
  • Revenue & Margin Growth:: 8% revenue growth (Y-o-Y), 450 bps operating margin expansion, and 38% adjusted EPS increase driven by demand and cost efficiencies.
  • Strategic Milestones:: Closed Sound United sale ($0.5B+ implied value) and expanded Philips partnership to boost advanced monitoring market presence.
  • 2025 Financial Guidance:: Revenue $1.51B–$1.53B, operating margin 27.3%–27.7%, and raised EPS guidance to $5.40–$5.55 (up 19–22% Y-o-Y).
  • Advanced Monitoring Growth:: Targeting double-digit growth in advanced monitoring categories, leveraging pulse oximetry leadership and AI-driven innovations like opioid detection tech.
  • Operational Shifts:: $6M headwind from distributor model shift in international markets, offset by sustainable growth potential and increased consumables shipments in Q4.

Financial Performance

The company's financial results for Q3 2025 were robust, with revenue growth driven by strong demand. The operating margin expansion is a testament to the company's ability to execute on its cost-saving initiatives. As Micah Young, CFO, stated, "the strength in operating margin is a direct result of higher revenue and cost efficiencies over the past year."

Growth Strategy

Masimo's growth strategy consists of three waves: elevating commercial excellence, accelerating intelligent monitoring, and innovating wearables. The company is focused on driving growth in advanced monitoring, leveraging its leadership position in pulse oximetry to broaden its impact on patients across other advanced monitoring categories. The company is making progress in its intelligent monitoring strategy, with plans to launch new technologies, including an opioid-monitoring algorithm, towards the end of next year.

Valuation Metrics

Masimo's current valuation metrics indicate that the market has high expectations for the company's future growth. The P/S Ratio is 4.51, and the EV/EBITDA is -111.99, indicating that the market is pricing in significant revenue growth. Analysts estimate next year's revenue growth at 6.8%. The ROE is -59.14%, and the ROIC is -11.49%, indicating that the company's profitability is a concern.

Outlook

The company expects a strong finish in Q4 2025, driven by increased shipments in consumables and a good acceleration in revenue growth. The guidance for Q4 2025 is around 10% growth at the midpoint, adjusted for extra weekdays. The company's capital allocation framework focuses on share repurchases and tuck-in technologies to augment its portfolio.

3. NewsRoom

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Masimo Pitches 2028 Plan With 30% Operating Margins

Dec -04

Source: benzinga.com

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Masimo Corporation (MASI) Analyst/Investor Day Transcript

Dec -04

Source: seekingalpha.com

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Masimo Hosts 2025 Investor Day and Details Strategic Roadmap for Durable Growth

Dec -03

Source: businesswire.com

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iPhone Pocket, China Sales, $600 Million Patent Case And More: This Week In Appleverse

Nov -23

Source: feeds.benzinga.com

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Wall Street Analysts Believe Masimo (MASI) Could Rally 26.6%: Here's is How to Trade

Nov -18

Source: zacks.com

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Knobbe Martens Guides Masimo to $634M Win Against Apple in Patent Infringement Case

Nov -18

Source: prnewswire.com

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Bridger Management LLC Lowers Holdings in Masimo Corporation $MASI

Nov -18

Source: defenseworld.net

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DRC Congratulates Knobbe Martens on its $634 Million Win for Masimo

Nov -17

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (6.12%)

6. Segments

Healthcare

Expected Growth: 6.5%

Masimo Corporation's 6.5% growth in Healthcare is driven by increasing adoption of noninvasive patient monitoring technologies, rising demand for remote patient monitoring, and growing need for cost-effective solutions. Additionally, advancements in sensor technologies, expansion into emerging markets, and strategic partnerships are contributing to the company's growth in the healthcare segment.

Non-healthcare

Expected Growth: 5.5%

Masimo's non-healthcare segment growth of 5.5% is driven by increasing adoption of its monitoring technologies in industrial and aerospace markets, expansion into new geographies, and growing demand for its sensors and connectivity solutions. Additionally, strategic partnerships and collaborations are contributing to the segment's growth.

7. Detailed Products

Rad-97 Pulse CO-Oximeter

A noninvasive, portable, and compact device that provides continuous, real-time monitoring of oxygen saturation, pulse rate, and other vital signs.

Root Patient Monitoring and Connectivity Platform

A platform that integrates Masimo's monitoring technologies with third-party devices and electronic medical records (EMRs) to provide a comprehensive view of patient data.

SedLine Brain Function Monitoring

A noninvasive, electroencephalography (EEG)-based monitor that provides real-time, quantitative data on brain activity and sedation levels.

O3 Regional Oximetry

A noninvasive, near-infrared spectroscopy (NIRS) technology that measures tissue oxygen saturation in specific regions of the body.

Masimo SET Pulse Oximetry

A pulse oximetry technology that provides accurate, motion-tolerant measurements of oxygen saturation and pulse rate.

8. Masimo Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Masimo Corporation's products are highly specialized and patented, making it difficult for substitutes to enter the market. However, there is still a threat from alternative medical devices and technologies.

Bargaining Power Of Customers

Masimo Corporation's customers are primarily hospitals and healthcare providers, who have limited bargaining power due to the specialized nature of Masimo's products.

Bargaining Power Of Suppliers

Masimo Corporation has a diversified supply chain, and its suppliers have limited bargaining power due to the company's strong market position.

Threat Of New Entrants

The medical device industry has high barriers to entry, including regulatory hurdles and significant R&D investments, making it difficult for new entrants to compete with Masimo Corporation.

Intensity Of Rivalry

The medical device industry is highly competitive, with several established players competing for market share. Masimo Corporation faces intense competition from companies like Medtronic and Philips Healthcare.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.38%
Debt Cost 5.61%
Equity Weight 59.62%
Equity Cost 8.89%
WACC 7.57%
Leverage 67.72%

11. Quality Control: Masimo Corporation passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
DENTSPLY SIRONA

A-Score: 4.0/10

Value: 7.7

Growth: 1.4

Quality: 3.1

Yield: 6.0

Momentum: 0.0

Volatility: 5.7

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Envista

A-Score: 3.9/10

Value: 4.5

Growth: 1.2

Quality: 5.1

Yield: 0.0

Momentum: 7.0

Volatility: 5.7

1-Year Total Return ->

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Stock-Card
Masimo

A-Score: 3.8/10

Value: 4.6

Growth: 4.2

Quality: 3.8

Yield: 0.0

Momentum: 5.0

Volatility: 5.3

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ICU Medical

A-Score: 3.1/10

Value: 5.6

Growth: 4.4

Quality: 3.2

Yield: 0.0

Momentum: 1.0

Volatility: 4.7

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Stock-Card
Cooper

A-Score: 2.9/10

Value: 2.9

Growth: 1.2

Quality: 5.9

Yield: 0.0

Momentum: 1.0

Volatility: 6.3

1-Year Total Return ->

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Azenta

A-Score: 2.8/10

Value: 5.1

Growth: 2.6

Quality: 4.2

Yield: 0.0

Momentum: 1.5

Volatility: 3.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

141.46$

Current Price

141.46$

Potential

-0.00%

Expected Cash-Flows