MasimoBSP:M2AS34 +27.16%55 Return-on-Tangible-Equity is 37.15% as of Mar. 2026, which is 87% above its 10-year median of 19.87. GuruFocus rates BSP:M2AS34 with a GF Score™ of 55/100 and a GF Value™ of R$36.87 (Fairly Valued). The stock has 9 warning signs investors should review. Among 760 Medical Devices & Instruments companies, Masimo ranks better than 68.42% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Masimo's annualized net income for the quarter that ended in Mar. 2026 was R$1,194 Mil. Masimo's average shareholder tangible equity for the quarter that ended in Mar. 2026 was R$3,215 Mil. Therefore, Masimo's annualized Return-on-Tangible-Equity for the quarter that ended in Mar. 2026 was 37.15%.
The historical rank and industry rank for Masimo's Return-on-Tangible-Equity or its related term are showing as below:
BSP:M2AS34'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: -50.88 Med: 19.87 Max: 84.25
Current: 10.81
During the past 13 years, Masimo's highest Return-on-Tangible-Equity was 84.25%. The lowest was -50.88%. And the median was 19.87%.
BSP:M2AS34's Return-on-Tangible-Equity is ranked better than 68.42% of 760
companies
in the Medical Devices & Instruments industry
Industry Median: 4.115
vs BSP:M2AS34: 10.81
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Masimo Return-on-Tangible-Equity Related Terms
Masimo Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Masimo's Return-on-Tangible-Equity can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
BSP:M2AS34 vs BRKR, PODD, BIO: Return-on-Tangible-Equity Comparison
For the Medical Devices subindustry, Masimo's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Masimo Return-on-Tangible-Equity vs Medical Devices & Instruments Industry
For the Medical Devices & Instruments industry and Healthcare sector, Masimo's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Masimo's Return-on-Tangible-Equity falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 37.15% mean?
Masimo (BSP:M2AS34) has a Return-on-Tangible-Equity of 37.15% as of Mar. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Masimo and its competitors. This is 87% above median its historical median of 19.87. According to the industry distribution chart, Masimo ranks #240 out of 760 companies in the Medical Devices & Instruments industry, placing it in the top 31.6%.
Is Masimo's Return-on-Tangible-Equity too high?
Masimo's current Return-on-Tangible-Equity of 37.15% is 87% above median its 10-year median of 19.87. The Medical Devices & Instruments industry median Return-on-Tangible-Equity is 4.12. Masimo's value of 37.15% is 802.8% above this industry median. Based on the distribution chart, Masimo ranks #240 out of 760 companies in the Medical Devices & Instruments industry, which is above the industry midpoint. Overall, Masimo has a GF Score™ of 55/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Masimo's Return-on-Tangible-Equity compare to BRKR and PODD?
According to the Medical Devices & Instruments industry distribution chart, Masimo ranks #240 out of 760 companies for Return-on-Tangible-Equity. This puts Masimo in the upper half of its industry. The industry median Return-on-Tangible-Equity is 4.12. Masimo's value of 37.15% is 802.8% above this benchmark. While the company's 10-year median is 19.87 vs. the industry median of 4.12, Masimo has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a Medical Devices & Instruments company?
The median Return-on-Tangible-Equity among Medical Devices & Instruments companies is 4.12, based on 760 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Masimo's current Return-on-Tangible-Equity of 37.15% is 802.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Masimo and its competitors. For the Medical Devices & Instruments industry, the median Return-on-Tangible-Equity is 4.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Masimo's current Return-on-Tangible-Equity is 37.15%, which is 87% above median its own 10-year median of 19.87. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Masimo stock overvalued right now?
Based on GuruFocus' analysis, Masimo (BSP:M2AS34) is currently considered Fairly Valued. The stock's GF Value™ is R$36.87, compared to a current price of R$39.00 — trading 5.8% above its estimated fair value. The current Return-on-Tangible-Equity is 37.15%, which is 87% above median its 10-year median of 19.87 and 802.8% above the Medical Devices & Instruments industry median of 4.12. Masimo's overall GF Score™ is 55/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Masimo (BSP:M2AS34), the current Return-on-Tangible-Equity is 37.15% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Masimo (BSP:M2AS34) Overvalued in 2026?
Based on GuruFocus' analysis, Masimo stock appears to be overvalued.
The current stock price of R$39.00 is trading 5.8% above its estimated GF Value™ of R$36.87.
GuruFocus considers Masimo to be Fairly Valued.
Key valuation signals for BSP:M2AS34:
Return-on-Tangible-Equity: 37.15% (87% above median its 10-year median of 19.87)
GF Value™: R$36.87 vs. price of R$39.00 (5.8% above fair value)
Industry Position: 802.8% above the Medical Devices & Instruments median (#240 of 760)
No single metric tells the full story. See the BSP:M2AS34 stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Masimo Corp is a medical technology company. The company oepates in single segment namely Healthcare. The healthcare business segment is a key revenue driver, develops, manufactures, and markets a variety of noninvasive patient monitoring technologies, hospital automation and connectivity solutions, remote monitoring devices and consumer health products. The company sells its products to hospitals, emergency medical service providers, home care providers, physician offices, veterinarians, and others.
55GF Score
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