Masimo Corporation (MASI)
Valuation Overview•Is Masimo Corporation Overvalued or Undervalued?
Priced at a premium to peer multiples and intrinsic cash flows, demanding strong execution to justify current levels.
Moderate quality score of 62/100, reflecting stable operating margins and manageable leverage.
Wall Street forecasts a balanced outlook with consensus price targets near the current price.
Verdict: Solid fundamental quality, though profitability presents a headwind.
Wall Street sentiment is generally neutral alongside robust expected earnings growth. This is paired with healthy capital returns, driven predominantly by aggressive share repurchases.
Returns capital exclusively via buybacks — no active dividend
MASI demonstrates adequate business quality with stable profitability. This is paired with a moderately leveraged but stable balance sheet.
The company is facing top-line contraction (-9.1% 3Y CAGR) paired with stable bottom-line earnings. The company maintains healthy operational efficiency with a 19.9% operating margin.
| Financial Metric | Trend (12Q) | Latest Qtr | 1Y Growth | 3Y CAGR | 5Y CAGR | 10Y CAGR |
|---|---|---|---|---|---|---|
| Revenue | $403.6M | -27.1% | -9.1% | +5.9% | +9.3% | |
| EBITDA | $77.4M | — | +0.5% | — | — | |
| Net Income | $57.1M | +50.3% | — | — | — | |
| EPS (Diluted) | $1.09 | +51.0% | — | — | — | |
| Free Cash Flow | $42.5M | +36.1% | — | +8.6% | — |
| Metric | TTM | 3Y Avg | 5Y Avg | 10Y Avg |
|---|---|---|---|---|
| Gross Margin | 61.7% | 53.0% | 55.2% | 60.8% |
| Operating Margin | 19.9% | 4.8% | 9.4% | 20.2% |
| Net Margin | 4.9% | -6.8% | 1.0% | 12.8% |
| FCF Margin | 13.6% | 6.7% | 7.5% | 14.7% |
| Quarter | EPS Est. | EPS Act. | Surprise | EPS | Rev |
|---|---|---|---|---|---|
| Q2'26Latest | $1.41 | $1.43 | +1.4% | ||
| Q1'26 | $1.48 | $0.18 | -87.8% | ||
| Q4'25 | $1.19 | $1.32 | +10.9% | ||
| Q3'25 | $1.23 | $1.33 | +8.1% | ||
| Q2'25 | $1.24 | $1.36 | +9.7% | ||
| Q1'25 | $1.42 | $1.80 | +26.8% | ||
| Q4'24 | $0.84 | $0.98 | +17.1% | ||
| Q3'24 | $0.77 | $0.86 | +11.7% |
Total return is +10.6% (1Y), lagging the benchmark by -14.4%
| Period | Total Return | vs S&P 500 (Alpha) | Dividend Contribution |
|---|---|---|---|
| YTD | +41.2% | +31.9% | — |
| 1Y | +10.6% | -14.4% | — |
| 3YCAGR | +3.1% | -16.5% | — |
| 5YCAGR | -5.6% | -17.3% | — |
| 10YCAGR | +13.3% | -0.1% | — |
The S&P 500 is at 31.3x trailing P/E — Expensive relative to historical averages.
Quick answers to common questions about Masimo Corporation (MASI) valuation, health, and returns.
Masimo Corporation is estimated to be overvalued under our discounted cash flow framework. relative multiples indicate the stock is Expensive versus peers compared to industry peers. overvalued (implying -56.8% downside from DCF intrinsic value of $77.79)
Masimo Corporation has multiple valuation anchors: DCF Intrinsic Value: $77.79 | Peer Relative Fair Value: $92.26 | Wall Street Analyst Target: $180.00 (implying +0.0% upside). A convergence of these signals offers higher conviction.
Masimo Corporation displays good financial health with a composite quality score of 62/100, supported by a Altman Z-Score of 8.4 (safe zone), Piotroski F-Score of 6/9, Return on Invested Capital (ROIC) of 16.5%.
Masimo Corporation returns capital via buybacks instead of dividends, carrying a 3.9% buyback yield and reducing outstanding shares by +1.7% in the last 12 months.
Masimo Corporation's current growth trajectory is Decelerating. The company achieved -27.1% 1Y revenue growth and +51.0% 1Y EPS growth, compared to its 3Y revenue CAGR of -9.1%.
Wall Street consensus is Buy based on 23 analysts, beating EPS expectations in 83% of recent quarters with a 1-quarter streak. The consensus price target represents a +0.0% change from current levels.
Investment risks for Masimo Corporation include: -25.6% 1-year max drawdown. Volatility risk is characterized by a beta of 0.38x.
No. These computations are purely quantitative model outputs for informational purposes. They do not account for qualitative management shifts or macro events. Always consult a licensed RIA before buying or selling shares.
Disclaimer: This page is for informational purposes only and does not constitute financial advice. All valuation models, scores, and target estimates are automated computations under stated assumptions and should not be relied upon as the sole basis for any investment decision.