Masimo Corporation (MASI) - Stock Analysis
Last updated: Jan 13, 2026
Research Idea
Research content for general circulation. Not individualized advice. Methodology & Disclosures
Q3 2025 earnings beat with strong margin expansion, increased free cash flow, positive patent infringement ruling, extended FDA clearances, and constructive technical trends near moving averages underpin Masimo as a near-term growth opportunity.
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AI Analyst Overview
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Valuation Metrics
Fundamental Analysis
Key Financial Insights: ⢠Liquidity improvement ⢠Persistent losses ⢠High valuation multiples MASI shows materially improved liquidity and positive free cash flow, but persistent operating losses, negative margins and high leverage against rich valuation create solvency and valuation risk until operating profitability returns.
Price Behavior
Key Price Behavior Insights: ⢠Steady downward trend ⢠Support near $130 ⢠Resistance $138â$140 Support Level: $130 Resistance Level: $138â$140 Over the last month MASI has trended down from a midâDecember peak near $151 to close at $132.23 on 2026-01-12, repeatedly testing support around $130 and risking steeper losses if that level breaks.
Sentiment & News
Key News Insights: ⢠Q3/Q4 growth ⢠Apple patent win ⢠Reimbursement/SET risk Masimo showed accelerating revenue and market momentumâQ3 strength, FDA clearance and ~12% Q4 growth plus a $634M patent win vs Appleâyet faces SET dependence, reimbursement pressure and weakening fundamentals that have left analysts largely cautious.
AI Summary
Masimo's investment thesis has shifted from a consumables cashâengine to a highâmargin, AI/platformâdriven upside where valuation now depends on successful commercialization of software/algorithmic features and realization of adjudicated IP value; the primary actionable signal is consistent sequential improvement in operating EBITDA and demonstrable recurring software revenue rather than oneâtime legal proceeds. Watch quarterly EBITDA margins, software/subscription revenue rollout metrics, and enforceable cash realization of the patent award as the key triggers that will reârate the stock or expose downside.
Description
Masimo designs and manufactures noninvasive physiological monitoring devices and hospital automation software sold worldwide. Its clinical product set includes advanced pulse oximetry that addresses motion and low-perfusion limits of conventional oximeters, a multi-parameter platform for hemoglobin species and oxygen-related metrics, EEG-based brain function monitoring, capnography and gas analyzers, regional oximetry and hemodynamic tools, as well as connectivity and hospital surveillance solutions. The company sells through direct sales, distributors and OEM partners to hospitals, emergency and home care providers, long-term care facilities, physician offices, veterinarians and consumers; it was founded in 1989 and is headquartered in Irvine, California.
Idea History
| Date | Close | Ticker | Company | Summary | Status | P/L |
|---|---|---|---|---|---|---|
| Nov 17 | Nov 24 | MASI | Masimo Corporation | Q3 2025 earnings beat with strong margin expansion, increased free cash flow, positive patent infringement ruling, extended FDA clearances, and constructive technical trends near moving averages underpin Masimo as a near-term growth opportunity. | Closed | -1.0% |