Masimo Corp (MASI, Financial) has recently caught the attention of investors with its notable stock performance. The company's market capitalization stands at $7.89 billion, with a current price of $149.17 per share. Over the past week, Masimo's stock has experienced a 1.62% gain, and looking at the past three months, the gain is even more impressive at 14.23%. According to GuruFocus's valuation metrics, the stock is currently modestly undervalued with a GF Value of $208.88, a decrease from the past GF Value of $258.41. This suggests that while the stock was previously considered significantly undervalued, its recent price surge has brought it closer to its intrinsic value.
Introduction to Masimo Corp
Masimo Corp operates within the medical devices and instruments industry, focusing on the development, manufacture, and marketing of noninvasive patient monitoring technologies. The company's healthcare segment, which is the primary revenue driver, offers hospital automation and connectivity solutions, remote monitoring devices, and consumer health products. Additionally, Masimo's non-healthcare segment includes a consumer audio business that develops and markets premium and luxury audio sound products. This diverse portfolio has positioned Masimo as a key player in the healthcare technology space.
Assessing Masimo's Profitability
Masimo's financial health is robust, as indicated by its high Profitability Rank of 9/10. The company's Operating Margin is 8.02%, which is better than 61.89% of its industry peers. Furthermore, Masimo's Return on Equity (ROE) stands at 6.16%, surpassing 62.87% of the industry, while its Return on Assets (ROA) at 2.65% and Return on Invested Capital (ROIC) at 6.13% also outperform a majority of competitors. Impressively, Masimo has maintained profitability for the past 10 years, a testament to its financial stability and efficient operations.
Growth Trajectory of Masimo Corp
The company's Growth Rank is 6/10, reflecting a solid trajectory in revenue expansion. Masimo's 3-Year Revenue Growth Rate per Share is an impressive 24.30%, outpacing 82.23% of the industry, while its 5-Year Revenue Growth Rate per Share is 22.30%, surpassing 83.28% of its peers. However, the 3-Year EPS without NRI Growth Rate shows a decline of 21.20%, which is still better than 16.64% of the industry, and the 5-Year EPS without NRI Growth Rate is down by 10.20%, again outperforming 15.14% of the industry. These figures highlight Masimo's strong revenue growth despite some challenges in earnings per share growth.
Key Shareholders in Masimo Corp
Notable investors have taken significant positions in Masimo Corp. Steven Cohen (Trades, Portfolio) leads the pack with 516,356 shares, representing 0.98% of the company. Baillie Gifford (Trades, Portfolio) holds 86,188 shares, accounting for 0.16%, and Mario Gabelli (Trades, Portfolio) owns 84,500 shares, also amounting to 0.16%. These shareholders demonstrate confidence in Masimo's market position and future prospects.
Competitive Landscape
When compared to its competitors, Masimo holds its ground with a market cap of $7.89 billion. Globus Medical Inc (GMED, Financial) has a market cap of $7.07 billion, Inspire Medical Systems Inc (INSP, Financial) is valued at $6.03 billion, and Penumbra Inc (PEN, Financial) stands at $8.75 billion. This places Masimo in a competitive position within the medical devices and instruments industry, reflecting its strong market presence and investor confidence.
Conclusion
In summary, Masimo Corp's recent stock performance has been impressive, with a 14.23% gain over the past three months. The company's valuation indicates it is modestly undervalued, suggesting potential for further growth. Masimo's profitability and growth metrics are strong, particularly in terms of revenue growth and operational efficiency. The company's significant shareholders, including Steven Cohen (Trades, Portfolio), Baillie Gifford (Trades, Portfolio), and Mario Gabelli (Trades, Portfolio), underscore the confidence in Masimo's market strategy and execution. Finally, when benchmarked against its competitors, Masimo's market capitalization demonstrates its solid standing in the industry. Investors may find Masimo's stock to be an attractive option given its recent performance and positive long-term prospects.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
