MASIMO CORP (MASI) Stock Fundamental Analysis
NASDAQ:MASI - Nasdaq - US5747951003 - Common Stock - Currency: USD
We assign a fundamental rating of 4 out of 10 to MASI. MASI was compared to 187 industry peers in the Health Care Equipment & Supplies industry. MASI has only an average score on both its financial health and profitability. MASI is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
MASI had positive earnings in the past year.
MASI had a positive operating cash flow in the past year.
MASI had positive earnings in 4 of the past 5 years.
MASI had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
MASI has a Return On Assets (-21.56%) which is comparable to the rest of the industry.
MASI's Return On Equity of -52.25% is in line compared to the rest of the industry. MASI outperforms 47.06% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.74%, MASI is in the better half of the industry, outperforming 73.80% of the companies in the same industry.
MASI had an Average Return On Invested Capital over the past 3 years of 4.58%. This is below the industry average of 7.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.56% | ||
| ROE | -52.25% | ||
| ROIC | 3.74% |
ROA(3y)-1.49%
ROA(5y)4.35%
ROE(3y)-4.1%
ROE(5y)3.92%
ROIC(3y)4.58%
ROIC(5y)8.17%
1.3 Margins
With a decent Operating Margin value of 4.19%, MASI is doing good in the industry, outperforming 68.98% of the companies in the same industry.
MASI's Operating Margin has declined in the last couple of years.
MASI has a Gross Margin (50.50%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of MASI has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.19% | ||
| PM (TTM) | N/A | ||
| GM | 50.5% |
OM growth 3Y-55.93%
OM growth 5Y-39.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.74%
GM growth 5Y-6.5%
2. Health
2.1 Basic Checks
MASI has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, MASI has more shares outstanding
MASI has about the same amout of shares outstanding than it did 5 years ago.
MASI has a better debt/assets ratio than last year.
2.2 Solvency
MASI has an Altman-Z score of 6.01. This indicates that MASI is financially healthy and has little risk of bankruptcy at the moment.
MASI's Altman-Z score of 6.01 is amongst the best of the industry. MASI outperforms 82.35% of its industry peers.
MASI has a debt to FCF ratio of 4.48. This is a neutral value as MASI would need 4.48 years to pay back of all of its debts.
MASI has a Debt to FCF ratio of 4.48. This is amongst the best in the industry. MASI outperforms 83.42% of its industry peers.
A Debt/Equity ratio of 0.67 indicates that MASI is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.67, MASI is not doing good in the industry: 68.98% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.48 | ||
| Altman-Z | 6.01 |
ROIC/WACC0.44
WACC8.59%
2.3 Liquidity
MASI has a Current Ratio of 2.17. This indicates that MASI is financially healthy and has no problem in meeting its short term obligations.
MASI has a Current ratio of 2.17. This is in the lower half of the industry: MASI underperforms 60.96% of its industry peers.
A Quick Ratio of 1.62 indicates that MASI should not have too much problems paying its short term obligations.
MASI has a Quick ratio of 1.62. This is comparable to the rest of the industry: MASI outperforms 45.45% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.62 |
3. Growth
3.1 Past
MASI shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 58.12%, which is quite impressive.
MASI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 5.86% yearly.
The Revenue has decreased by -0.12% in the past year.
MASI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 17.43% yearly.
EPS 1Y (TTM)58.12%
EPS 3Y2.37%
EPS 5Y5.86%
EPS Q2Q%76.62%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y19.12%
Revenue growth 5Y17.43%
Sales Q2Q%-24.51%
3.2 Future
Based on estimates for the next years, MASI will show a quite strong growth in Earnings Per Share. The EPS will grow by 10.87% on average per year.
The Revenue is expected to decrease by -0.41% on average over the next years.
EPS Next Y22.78%
EPS Next 2Y15.37%
EPS Next 3Y15.06%
EPS Next 5Y10.87%
Revenue Next Year-27.16%
Revenue Next 2Y-11.41%
Revenue Next 3Y-5.32%
Revenue Next 5Y-0.41%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 33.38, the valuation of MASI can be described as expensive.
72.19% of the companies in the same industry are more expensive than MASI, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.57. MASI is valued slightly more expensive when compared to this.
MASI is valuated quite expensively with a Price/Forward Earnings ratio of 28.53.
Compared to the rest of the industry, the Price/Forward Earnings ratio of MASI indicates a somewhat cheap valuation: MASI is cheaper than 70.59% of the companies listed in the same industry.
MASI is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.41, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.38 | ||
| Fwd PE | 28.53 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MASI is valued a bit cheaper than 65.24% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, MASI is valued a bit cheaper than 72.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.65 | ||
| EV/EBITDA | 54.47 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
MASI's earnings are expected to grow with 15.06% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.47
PEG (5Y)5.7
EPS Next 2Y15.37%
EPS Next 3Y15.06%
5. Dividend
5.1 Amount
MASI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
162.54
+1.34 (+0.83%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners101.51%
Inst Owner Change5.51%
Ins Owners0.17%
Ins Owner Change3.35%
Market Cap8.81B
Analysts81.33
Price Target185.71 (14.25%)
Short Float %6.07%
Short Ratio4.54
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)12.57%
Min EPS beat(2)10.25%
Max EPS beat(2)14.9%
EPS beat(4)4
Avg EPS beat(4)12.57%
Min EPS beat(4)10.25%
Max EPS beat(4)14.9%
EPS beat(8)8
Avg EPS beat(8)11.42%
EPS beat(12)12
Avg EPS beat(12)10.04%
EPS beat(16)16
Avg EPS beat(16)8.47%
Revenue beat(2)0
Avg Revenue beat(2)-0.68%
Min Revenue beat(2)-0.77%
Max Revenue beat(2)-0.59%
Revenue beat(4)0
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-0.59%
Revenue beat(8)0
Avg Revenue beat(8)-2.4%
Revenue beat(12)3
Avg Revenue beat(12)-1.34%
Revenue beat(16)6
Avg Revenue beat(16)-0.91%
PT rev (1m)-6.96%
PT rev (3m)-6.03%
EPS NQ rev (1m)-1.31%
EPS NQ rev (3m)-1.99%
EPS NY rev (1m)0%
EPS NY rev (3m)9.79%
Revenue NQ rev (1m)-0.23%
Revenue NQ rev (3m)-0.62%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-4.2%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.38 | ||
| Fwd PE | 28.53 | ||
| P/S | 4.47 | ||
| P/FCF | 60.65 | ||
| P/OCF | 48.5 | ||
| P/B | 9.31 | ||
| P/tB | 11.19 | ||
| EV/EBITDA | 54.47 |
EPS(TTM)4.87
EY3%
EPS(NY)5.7
Fwd EY3.5%
FCF(TTM)2.68
FCFY1.65%
OCF(TTM)3.35
OCFY2.06%
SpS36.4
BVpS17.45
TBVpS14.53
PEG (NY)1.47
PEG (5Y)5.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -21.56% | ||
| ROE | -52.25% | ||
| ROCE | 4.73% | ||
| ROIC | 3.74% | ||
| ROICexc | 4.04% | ||
| ROICexgc | 4.48% | ||
| OM | 4.19% | ||
| PM (TTM) | N/A | ||
| GM | 50.5% | ||
| FCFM | 7.36% |
ROA(3y)-1.49%
ROA(5y)4.35%
ROE(3y)-4.1%
ROE(5y)3.92%
ROIC(3y)4.58%
ROIC(5y)8.17%
ROICexc(3y)4.95%
ROICexc(5y)12.77%
ROICexgc(3y)9.27%
ROICexgc(5y)17.89%
ROCE(3y)5.8%
ROCE(5y)10.34%
ROICexcg growth 3Y-55.81%
ROICexcg growth 5Y-40.49%
ROICexc growth 3Y-58.97%
ROICexc growth 5Y-44.46%
OM growth 3Y-55.93%
OM growth 5Y-39.54%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-9.74%
GM growth 5Y-6.5%
F-Score5
Asset Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.67 | ||
| Debt/FCF | 4.48 | ||
| Debt/EBITDA | 3.74 | ||
| Cap/Depr | 41.7% | ||
| Cap/Sales | 1.84% | ||
| Interest Coverage | 2.13 | ||
| Cash Conversion | 106.88% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.17 | ||
| Quick Ratio | 1.62 | ||
| Altman-Z | 6.01 |
F-Score5
WACC8.59%
ROIC/WACC0.44
Cap/Depr(3y)60.07%
Cap/Depr(5y)110.25%
Cap/Sales(3y)3.16%
Cap/Sales(5y)3.86%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)58.12%
EPS 3Y2.37%
EPS 5Y5.86%
EPS Q2Q%76.62%
EPS Next Y22.78%
EPS Next 2Y15.37%
EPS Next 3Y15.06%
EPS Next 5Y10.87%
Revenue 1Y (TTM)-0.12%
Revenue growth 3Y19.12%
Revenue growth 5Y17.43%
Sales Q2Q%-24.51%
Revenue Next Year-27.16%
Revenue Next 2Y-11.41%
Revenue Next 3Y-5.32%
Revenue Next 5Y-0.41%
EBIT growth 1Y-49.63%
EBIT growth 3Y-47.5%
EBIT growth 5Y-29%
EBIT Next Year47.29%
EBIT Next 3Y17.22%
EBIT Next 5Y14.45%
FCF growth 1Y422.89%
FCF growth 3Y-14.18%
FCF growth 5Y-0.52%
OCF growth 1Y2653.03%
OCF growth 3Y-9.48%
OCF growth 5Y-2.39%