MASIMO CORP (MASI)

US5747951003 - Common Stock

144.48  +3.83 (+2.72%)

After market: 140.85 -3.63 (-2.51%)

Fundamental Rating

4

MASI gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 196 industry peers in the Health Care Equipment & Supplies industry. Both the profitability and the financial health of MASI get a neutral evaluation. Nothing too spectacular is happening here. MASI is quite expensive at the moment. It does show a decent growth rate.



5

1. Profitability

1.1 Basic Checks

In the past year MASI was profitable.
In the past year MASI had a positive cash flow from operations.
Each year in the past 5 years MASI has been profitable.
Each year in the past 5 years MASI had a positive operating cash flow.

1.2 Ratios

MASI's Return On Assets of 2.68% is fine compared to the rest of the industry. MASI outperforms 76.02% of its industry peers.
MASI's Return On Equity of 5.97% is fine compared to the rest of the industry. MASI outperforms 78.57% of its industry peers.
The Return On Invested Capital of MASI (5.58%) is better than 79.59% of its industry peers.
The Average Return On Invested Capital over the past 3 years for MASI is in line with the industry average of 8.51%.
Industry RankSector Rank
ROA 2.68%
ROE 5.97%
ROIC 5.58%
ROA(3y)6.44%
ROA(5y)9.48%
ROE(3y)10.5%
ROE(5y)13.07%
ROIC(3y)9.01%
ROIC(5y)11.3%

1.3 Margins

Looking at the Profit Margin, with a value of 3.98%, MASI is in the better half of the industry, outperforming 73.98% of the companies in the same industry.
MASI's Profit Margin has declined in the last couple of years.
The Operating Margin of MASI (8.11%) is better than 75.00% of its industry peers.
MASI's Operating Margin has declined in the last couple of years.
MASI has a Gross Margin (49.00%) which is comparable to the rest of the industry.
MASI's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 8.11%
PM (TTM) 3.98%
GM 49%
OM growth 3Y-28.9%
OM growth 5Y-19.87%
PM growth 3Y-42.57%
PM growth 5Y-29.31%
GM growth 3Y-8.98%
GM growth 5Y-6.06%

5

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so MASI is destroying value.
Compared to 1 year ago, MASI has more shares outstanding
Compared to 5 years ago, MASI has less shares outstanding
The debt/assets ratio for MASI has remained at the same level compared to a year ago.

2.2 Solvency

An Altman-Z score of 4.68 indicates that MASI is not in any danger for bankruptcy at the moment.
MASI's Altman-Z score of 4.68 is fine compared to the rest of the industry. MASI outperforms 75.51% of its industry peers.
The Debt to FCF ratio of MASI is 141.56, which is on the high side as it means it would take MASI, 141.56 years of fcf income to pay off all of its debts.
MASI has a better Debt to FCF ratio (141.56) than 68.37% of its industry peers.
MASI has a Debt/Equity ratio of 0.64. This is a neutral value indicating MASI is somewhat dependend on debt financing.
MASI has a Debt to Equity ratio of 0.64. This is in the lower half of the industry: MASI underperforms 71.94% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF 141.56
Altman-Z 4.68
ROIC/WACC0.6
WACC9.38%

2.3 Liquidity

A Current Ratio of 2.18 indicates that MASI has no problem at all paying its short term obligations.
With a Current ratio value of 2.18, MASI is not doing good in the industry: 70.92% of the companies in the same industry are doing better.
MASI has a Quick Ratio of 1.22. This is a normal value and indicates that MASI is financially healthy and should not expect problems in meeting its short term obligations.
MASI has a worse Quick ratio (1.22) than 77.04% of its industry peers.
Industry RankSector Rank
Current Ratio 2.18
Quick Ratio 1.22

4

3. Growth

3.1 Past

MASI shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -30.87%.
MASI shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 0.58% yearly.
The Revenue has been growing slightly by 0.60% in the past year.
MASI shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 19.00% yearly.
EPS 1Y (TTM)-30.87%
EPS 3Y-4.05%
EPS 5Y0.58%
EPS growth Q2Q-19.7%
Revenue 1Y (TTM)0.6%
Revenue growth 3Y21.44%
Revenue growth 5Y19%
Revenue growth Q2Q-11.04%

3.2 Future

The Earnings Per Share is expected to grow by 12.76% on average over the next years. This is quite good.
Based on estimates for the next years, MASI will show a small growth in Revenue. The Revenue will grow by 5.39% on average per year.
EPS Next Y12.85%
EPS Next 2Y12.2%
EPS Next 3Y12.76%
EPS Next 5YN/A
Revenue Next Year2.78%
Revenue Next 2Y4.34%
Revenue Next 3Y5.39%
Revenue Next 5YN/A

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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

3

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 45.43, MASI can be considered very expensive at the moment.
MASI's Price/Earnings ratio is a bit cheaper when compared to the industry. MASI is cheaper than 72.45% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.42. MASI is valued rather expensively when compared to this.
MASI is valuated quite expensively with a Price/Forward Earnings ratio of 40.26.
Based on the Price/Forward Earnings ratio, MASI is valued a bit cheaper than 74.49% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.74. MASI is valued rather expensively when compared to this.
Industry RankSector Rank
PE 45.43
Fwd PE 40.26

4.2 Price Multiples

71.94% of the companies in the same industry are more expensive than MASI, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of MASI indicates a somewhat cheap valuation: MASI is cheaper than 68.88% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 1194.44
EV/EBITDA 31.73

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates MASI does not grow enough to justify the current Price/Earnings ratio.
MASI's earnings are expected to grow with 12.76% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.53
PEG (5Y)78.9
EPS Next 2Y12.2%
EPS Next 3Y12.76%

0

5. Dividend

5.1 Amount

MASI does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

MASIMO CORP

NASDAQ:MASI (3/27/2024, 8:26:35 PM)

After market: 140.85 -3.63 (-2.51%)

144.48

+3.83 (+2.72%)

Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap7.64B
Analysts
Price Target
Dividend
Industry RankSector Rank
Dividend Yield N/A
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
Industry RankSector Rank
PE 45.43
Fwd PE 40.26
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.53
PEG (5Y)78.9
Profitability
Industry RankSector Rank
ROA 2.68%
ROE 5.97%
ROCE
ROIC
ROICexc
ROICexgc
OM 8.11%
PM (TTM) 3.98%
GM 49%
FCFM
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.67
Health
Industry RankSector Rank
Debt/Equity 0.64
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 2.18
Quick Ratio 1.22
Altman-Z
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)-30.87%
EPS 3Y-4.05%
EPS 5Y
EPS growth Q2Q
EPS Next Y12.85%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.6%
Revenue growth 3Y21.44%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y