MASIMO CORP (MASI) Stock Fundamental Analysis
NASDAQ:MASI - Nasdaq - US5747951003 - Common Stock - Currency: USD
Overall MASI gets a fundamental rating of 4 out of 10. We evaluated MASI against 190 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. While showing a medium growth rate, MASI is valued expensive at the moment.
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 each of the past 5 years.
In the past 5 years MASI always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of MASI (2.55%) is better than 75.53% of its industry peers.
The Return On Equity of MASI (5.37%) is better than 78.72% of its industry peers.
With a decent Return On Invested Capital value of 5.48%, MASI is doing good in the industry, outperforming 78.72% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for MASI is in line with the industry average of 8.19%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.55% | ||
| ROE | 5.37% | ||
| ROIC | 5.48% |
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
MASI has a better Profit Margin (3.85%) than 74.47% of its industry peers.
MASI's Profit Margin has declined in the last couple of years.
MASI has a Operating Margin of 7.89%. This is in the better half of the industry: MASI outperforms 76.06% of its industry peers.
In the last couple of years the Operating Margin of MASI has declined.
The Gross Margin of MASI (50.05%) is comparable to the rest of the industry.
MASI's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 7.89% | ||
| PM (TTM) | 3.85% | ||
| GM | 50.05% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so MASI is still creating some value.
The number of shares outstanding for MASI has been increased compared to 1 year ago.
The number of shares outstanding for MASI has been reduced compared to 5 years ago.
Compared to 1 year ago, MASI has about the same debt to assets ratio.
2.2 Solvency
MASI has an Altman-Z score of 5.28. This indicates that MASI is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.28, MASI is doing good in the industry, outperforming 79.26% of the companies in the same industry.
The Debt to FCF ratio of MASI is 5.16, which is a neutral value as it means it would take MASI, 5.16 years of fcf income to pay off all of its debts.
MASI has a Debt to FCF ratio of 5.16. This is in the better half of the industry: MASI outperforms 79.26% of its industry peers.
MASI has a Debt/Equity ratio of 0.50. This is a neutral value indicating MASI is somewhat dependend on debt financing.
The Debt to Equity ratio of MASI (0.50) is worse than 62.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.16 | ||
| Altman-Z | 5.28 |
ROIC/WACC0.62
WACC8.79%
2.3 Liquidity
A Current Ratio of 2.01 indicates that MASI has no problem at all paying its short term obligations.
MASI has a worse Current ratio (2.01) than 65.43% of its industry peers.
MASI has a Quick Ratio of 1.11. This is a normal value and indicates that MASI is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.11, MASI is doing worse than 73.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.11 |
3. Growth
3.1 Past
The Earnings Per Share has been growing slightly by 6.69% over the past year.
Measured over the past 5 years, MASI shows a small growth in Earnings Per Share. The EPS has been growing by 0.58% on average per year.
The Revenue has decreased by -3.48% 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)6.69%
EPS 3Y-4.05%
EPS 5Y0.58%
EPS Q2Q%55.56%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y21.44%
Revenue growth 5Y19%
Sales Q2Q%5.37%
3.2 Future
The Earnings Per Share is expected to grow by 13.80% 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 5.11% on average per year.
EPS Next Y29.38%
EPS Next 2Y22.69%
EPS Next 3Y18.08%
EPS Next 5Y13.8%
Revenue Next Year2.01%
Revenue Next 2Y2.11%
Revenue Next 3Y3.59%
Revenue Next 5Y5.11%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 46.31, 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 68.62% of the companies in the same industry.
When comparing the Price/Earnings ratio of MASI to the average of the S&P500 Index (29.63), we can say MASI is valued expensively.
A Price/Forward Earnings ratio of 35.51 indicates a quite expensive valuation of MASI.
MASI's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. MASI is cheaper than 72.34% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.68, MASI is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.31 | ||
| Fwd PE | 35.51 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, MASI is valued a bit cheaper than 68.09% of the companies in the same industry.
MASI's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. MASI is cheaper than 72.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 60.83 | ||
| EV/EBITDA | 37.97 |
4.3 Compensation for Growth
MASI's 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 18.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.58
PEG (5Y)80.42
EPS Next 2Y22.69%
EPS Next 3Y18.08%
5. Dividend
5.1 Amount
MASI does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
169.96
-7.25 (-4.09%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners97.77%
Inst Owner Change-92.52%
Ins Owners0.15%
Ins Owner Change2.04%
Market Cap9.10B
Analysts81.33
Price Target188.08 (10.66%)
Short Float %5.92%
Short Ratio6.37
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
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)12.58%
Min EPS beat(2)10.26%
Max EPS beat(2)14.9%
EPS beat(4)4
Avg EPS beat(4)13.28%
Min EPS beat(4)9.62%
Max EPS beat(4)18.36%
EPS beat(8)8
Avg EPS beat(8)9.82%
EPS beat(12)12
Avg EPS beat(12)8.94%
EPS beat(16)16
Avg EPS beat(16)7.68%
Revenue beat(2)0
Avg Revenue beat(2)-1.5%
Min Revenue beat(2)-1.58%
Max Revenue beat(2)-1.42%
Revenue beat(4)0
Avg Revenue beat(4)-1.32%
Min Revenue beat(4)-1.58%
Max Revenue beat(4)-0.9%
Revenue beat(8)1
Avg Revenue beat(8)-2.27%
Revenue beat(12)4
Avg Revenue beat(12)-1.35%
Revenue beat(16)7
Avg Revenue beat(16)-0.83%
PT rev (1m)3.52%
PT rev (3m)9.02%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)0.35%
EPS NY rev (1m)0.16%
EPS NY rev (3m)2.37%
Revenue NQ rev (1m)4.43%
Revenue NQ rev (3m)4.43%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.31 | ||
| Fwd PE | 35.51 | ||
| P/S | 4.45 | ||
| P/FCF | 60.83 | ||
| P/OCF | 40.81 | ||
| P/B | 6.22 | ||
| P/tB | 22.2 | ||
| EV/EBITDA | 37.97 |
EPS(TTM)3.67
EY2.16%
EPS(NY)4.79
Fwd EY2.82%
FCF(TTM)2.79
FCFY1.64%
OCF(TTM)4.17
OCFY2.45%
SpS38.15
BVpS27.33
TBVpS7.66
PEG (NY)1.58
PEG (5Y)80.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.55% | ||
| ROE | 5.37% | ||
| ROCE | 6.57% | ||
| ROIC | 5.48% | ||
| ROICexc | 5.86% | ||
| ROICexgc | 10.84% | ||
| OM | 7.89% | ||
| PM (TTM) | 3.85% | ||
| GM | 50.05% | ||
| FCFM | 7.32% |
ROA(3y)6.44%
ROA(5y)9.48%
ROE(3y)10.5%
ROE(5y)13.07%
ROIC(3y)9.01%
ROIC(5y)11.3%
ROICexc(3y)13.39%
ROICexc(5y)19.99%
ROICexgc(3y)19.77%
ROICexgc(5y)25.89%
ROCE(3y)10.81%
ROCE(5y)13.56%
ROICexcg growth 3Y-30.3%
ROICexcg growth 5Y-23.96%
ROICexc growth 3Y-38.48%
ROICexc growth 5Y-31.11%
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%
F-Score5
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.5 | ||
| Debt/FCF | 5.16 | ||
| Debt/EBITDA | 2.87 | ||
| Cap/Depr | 77.51% | ||
| Cap/Sales | 3.59% | ||
| Interest Coverage | 3.62 | ||
| Cash Conversion | 87.18% | ||
| Profit Quality | 190.33% | ||
| Current Ratio | 2.01 | ||
| Quick Ratio | 1.11 | ||
| Altman-Z | 5.28 |
F-Score5
WACC8.79%
ROIC/WACC0.62
Cap/Depr(3y)76.21%
Cap/Depr(5y)162.03%
Cap/Sales(3y)3.29%
Cap/Sales(5y)4.92%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)6.69%
EPS 3Y-4.05%
EPS 5Y0.58%
EPS Q2Q%55.56%
EPS Next Y29.38%
EPS Next 2Y22.69%
EPS Next 3Y18.08%
EPS Next 5Y13.8%
Revenue 1Y (TTM)-3.48%
Revenue growth 3Y21.44%
Revenue growth 5Y19%
Sales Q2Q%5.37%
Revenue Next Year2.01%
Revenue Next 2Y2.11%
Revenue Next 3Y3.59%
Revenue Next 5Y5.11%
EBIT growth 1Y-7.68%
EBIT growth 3Y-13.66%
EBIT growth 5Y-4.64%
EBIT Next Year45.97%
EBIT Next 3Y23.21%
EBIT Next 5Y13.2%
FCF growth 1Y92.54%
FCF growth 3Y-63.44%
FCF growth 5Y-50.57%
OCF growth 1Y66.92%
OCF growth 3Y-23.6%
OCF growth 5Y-17.04%