Unveiling Key Insights into Masimo Stocks

Masimo logged a 2.9% change during today's afternoon session, and is now trading at a price of $124.1 per share.

Masimo returned losses of -23.8% last year, with its stock price reaching a high of $169.58 and a low of $75.22. Over the same period, the stock underperformed the S&P 500 index by -50.3%. AThe company's 50-day average price was $134.51. Masimo Corporation develops, manufactures, and markets various patient monitoring technologies, and automation and connectivity solutions worldwide. Based in Irvine, CA, the Mid-Cap Health Care company has 3,800 full time employees. Masimo has not offered a dividend during the last year.

Increasing Revenues but Narrowing Margins:

2017 2018 2019 2021 2022 2023
Revenue (M) $790 $858 $938 $1,144 $1,239 $2,048
Gross Margins 66% 67% 67% 65% 65% 49%
Net Margins 16% 23% 21% 21% 19% 4%
Net Income (M) $125 $194 $196 $240 $230 $82
Net Interest Expense (M) $2 $6 $13 $8 -$1 -$48
Depreciation & Amort. (M) $20 $21 $23 $29 $36 $98
Diluted Shares (M) 56 56 57 58 55 54
Earnings Per Share $2.23 $3.45 $3.44 $4.14 $3.98 $1.51
EPS Growth n/a 54.71% -0.29% 20.35% -3.86% -62.06%
Avg. Price $87.49 $101.26 $141.45 $259.04 $161.89 $124.1
P/E Ratio 36.15 27.37 38.54 59.01 38.92 80.58
Free Cash Flow (M) $12 $222 $153 $139 $239 $50
CAPEX (M) $44 $17 $68 $72 $26 $44
Current Ratio 4.32 5.39 5.78 4.98 2.08 2.18

Masimo has slimmer gross margins than its peers, declining EPS growth, and positive cash flows. On the other hand, the company benefits from rapidly growing revenues and increasing reinvestment in the business and an excellent current ratio of 2.18.

Masimo's Valuation Is in Line With Its Sector Averages:

Masimo has a trailing twelve month P/E ratio of 92.1, compared to an average of 30.21 for the Health Care sector. Based on its EPS guidance of $3.93, the company has a forward P/E ratio of 34.2. The 8.4% compound average growth rate of Masimo's historical and projected earnings per share yields a PEG ratio of 10.93. This suggests that these shares are overvalued. Furthermore, Masimo is likely overvalued compared to the book value of its equity, since its P/B ratio of 4.83 is higher than the sector average of 4.08. The company's shares are currently trading 323.8% below their Graham number.

Masimo Has an Average Rating of Buy:

The 7 analysts following Masimo have set target prices ranging from $125.0 to $170.0 per share, for an average of $151.89 with a buy rating. The company is trading -18.3% away from its average target price, indicating that there is an analyst consensus of some upside potential.

Masimo has an above average percentage of its shares sold short because 12.6% of the company's shares are sold short. Institutions own 95.9% of the company's shares, and the insider ownership rate stands at 7.65%, suggesting a decent amount of insider shareholders. The largest shareholder is Blackrock Inc., whose 15% stake in the company is worth $977,954,401.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.