Masimo Corporation
Masimo Corporation Fundamental Analysis
Masimo Corporation (MASI) shows weak financial fundamentals with a PE ratio of -62.09, profit margin of -9.92%, and ROE of -17.21%. The company generates $1.5B in annual revenue with weak year-over-year growth of 2.26%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 5.3/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MASI's fundamental strength across five key dimensions:
Efficiency Score
WeakMASI struggles to generate sufficient returns from assets.
Valuation Score
ExcellentMASI trades at attractive valuation levels.
Growth Score
WeakMASI faces weak or negative growth trends.
Financial Health Score
ExcellentMASI maintains a strong and stable balance sheet.
Profitability Score
WeakMASI struggles to sustain strong margins.
Key Financial Metrics
Is MASI Expensive or Cheap?
P/E Ratio
MASI trades at -62.09 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, MASI's PEG of -0.85 indicates potential undervaluation.
Price to Book
The market values Masimo Corporation at 13.04 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 26.16 times EBITDA. This signals the market has high growth expectations.
How Well Does MASI Make Money?
Net Profit Margin
For every $100 in sales, Masimo Corporation keeps $-9.92 as profit after all expenses.
Operating Margin
Core operations generate 20.30 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-17.21 in profit for every $100 of shareholder equity.
ROA
Masimo Corporation generates $-8.92 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Masimo Corporation produces operating cash flow of $218.26M, showing steady but balanced cash generation.
Free Cash Flow
Masimo Corporation generates strong free cash flow of $196.22M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $3.65 in free cash annually.
FCF Yield
MASI converts 2.08% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-62.09
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.85
vs 25 benchmark
P/B Ratio
Price to book value ratio
13.04
vs 25 benchmark
P/S Ratio
Price to sales ratio
6.17
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.78
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.49
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.17
vs 25 benchmark
ROA
Return on assets percentage
-0.09
vs 25 benchmark
ROCE
Return on capital employed
0.23
vs 25 benchmark
How MASI Stacks Against Its Sector Peers
| Metric | MASI Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -62.09 | 28.25 | Better (Cheaper) |
| ROE | -17.21% | 780.00% | Weak |
| Net Margin | -9.92% | -20122.00% (disorted) | Weak |
| Debt/Equity | 0.78 | 0.30 | Weak (High Leverage) |
| Current Ratio | 2.49 | 4.66 | Strong Liquidity |
| ROA | -8.92% | -14687.00% (disorted) | Weak |
MASI outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Masimo Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
123.88%
Industry Style: Defensive, Growth, Innovation
High GrowthEPS CAGR
-255.78%
Industry Style: Defensive, Growth, Innovation
DecliningFCF CAGR
-11.17%
Industry Style: Defensive, Growth, Innovation
Declining