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Masimo (MASI)

Masimo is a global medical technology company that develops and produces a wide array of industry-leading monitoring technologies, including innovative measurements, sensors, patient monitors, and automation and connectivity solutions. Masimo's mission is to improve patient outcomes and reduce the cost of care. Masimo SET® Measure-through Motion and Low Perfusion™ pulse oximetry, introduced in 1995, has been shown in over 100 independent and objective studies to outperform other pulse oximetry technologies.4 Masimo SET® has also been shown to help clinicians reduce severe retinopathy of prematurity in neonates,5 improve CCHD screening in newborns,6 and, when used for continuous monitoring with Masimo Patient SafetyNet™ in post-surgical wards, reduce rapid response team activations, ICU transfers, and costs.7-10 Masimo SET® is estimated to be used on more than 200 million patients in leading hospitals and other healthcare settings around the world,11 and is the primary pulse oximetry at 9 of the top 10 hospitals according to the 2020-21 U.S. News and World Report Best Hospitals Honor Roll.12 Masimo continues to refine SET® and in 2018, announced that SpO2 accuracy on RD SET® sensors during conditions of motion has been significantly improved, providing clinicians with even greater confidence that the SpO2 values they rely on accurately reflect a patient's physiological status. In 2005, Masimo introduced rainbow® Pulse CO-Oximetry technology, allowing noninvasive and continuous monitoring of blood constituents that previously could only be measured invasively, including total hemoglobin (SpHb®), oxygen content (SpOC™), carboxyhemoglobin (SpCO®), methemoglobin (SpMet®), Pleth Variability Index (PVi®), RPVi™ (rainbow® PVi), and Oxygen Reserve Index (ORi™). In 2013, Masimo introduced the Root® Patient Monitoring and Connectivity Platform, built from the ground up to be as flexible and expandable as possible to facilitate the addition of other Masimo and third-party monitoring technologies; key Masimo additions include Next Generation SedLine® Brain Function Monitoring, O3® Regional Oximetry, and ISA™ Capnography with NomoLine® sampling lines. Masimo's family of continuous and spot-check monitoring Pulse CO-Oximeters® includes devices designed for use in a variety of clinical and non-clinical scenarios, including tetherless, wearable technology, such as Radius-7® and Radius PPG™, portable devices like Rad-67™, fingertip pulse oximeters like MightySat® Rx, and devices available for use both in the hospital and at home, such as Rad-97®. Masimo hospital automation and connectivity solutions are centered around the Masimo Hospital Automation™ platform, and include Iris® Gateway, iSirona™, Patient SafetyNet, Replica™, Halo ION™, UniView™, UniView :60™, and Masimo SafetyNet™.

Company profile

Ticker
MASI
Exchange
Website
CEO
Joe Kiani
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Masimo Americas, Inc. • Masimo de Mexico Holdings I LLC • Masimo de Mexico Holdings II LLC • Masimo Holdings LLC • SpO2.com, Inc. • SEDLine, Inc. • Masimo Australia Pty Ltd • Masimo Öesterreich GmbH • Masimo Importacao e Distribuicao de Produtos Medicos Ltda • Masimo Holdings LP ...
IRS number
330368882

MASI stock data

Analyst ratings and price targets

Last 3 months
Current price
Average target
$157.00
Low target
$135.00
High target
$179.00
Needham
Maintains
Buy
$179.00
10 Aug 22
Piper Sandler
Maintains
Neutral
$135.00
10 Aug 22

Calendar

3 May 22
12 Aug 22
31 Dec 22
Quarter (USD) Apr 22 Jan 22 Oct 21 Jul 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Jan 22 Jan 21 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 723.02M 723.02M 723.02M 723.02M 723.02M 723.02M
Cash burn (monthly) 8.45M (no burn) (no burn) (no burn) (no burn) (no burn)
Cash used (since last report) 36.78M n/a n/a n/a n/a n/a
Cash remaining 686.24M n/a n/a n/a n/a n/a
Runway (months of cash) 81.2 n/a n/a n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
26 May 22 Cohen H Michael Common Stock Option exercise Acquire M No No 139.34 922 128.47K 2,388
26 May 22 Cohen H Michael RSU Common Stock Grant Acquire A No No 0 1,435 0 1,435
26 May 22 Cohen H Michael RSU Common Stock Option exercise Dispose M No No 139.34 922 128.47K 0
26 May 22 Mikkelson Adam Common Stock Option exercise Acquire M No No 139.34 922 128.47K 2,673
26 May 22 Mikkelson Adam RSU Common Stock Grant Acquire A No No 0 1,435 0 1,435
26 May 22 Mikkelson Adam RSU Common Stock Option exercise Dispose M No No 139.34 922 128.47K 0
26 May 22 Reynolds Craig B Common Stock Option exercise Acquire M No No 139.34 922 128.47K 5,222
26 May 22 Reynolds Craig B RSU Common Stock Grant Acquire A No No 0 1,435 0 1,435
26 May 22 Reynolds Craig B RSU Common Stock Option exercise Dispose M No No 139.34 922 128.47K 0
26 May 22 Shimer Julie Ann Common Stock Option exercise Acquire M No No 139.34 922 128.47K 2,975
86.2% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 443 506 -12.5%
Opened positions 71 94 -24.5%
Closed positions 134 50 +168.0%
Increased positions 173 177 -2.3%
Reduced positions 131 149 -12.1%
13F shares Current Prev Q Change
Total value 6.64B 13.41B -50.5%
Total shares 45.27M 45.8M -1.2%
Total puts 93.5K 55.6K +68.2%
Total calls 173.5K 196.5K -11.7%
Total put/call ratio 0.5 0.3 +90.5%
Largest owners Shares Value Change
BLK Blackrock 6.88M $1B -23.8%
Vanguard 4.78M $695.05M +1.5%
FMR 2.07M $301.2M +0.7%
STT State Street 1.73M $251.93M +1.6%
RTW Investments 1.13M $164.11M +32.7%
Liontrust Investment Partners 1.01M $146.65M NEW
Champlain Investment Partners 975.55K $141.98M +0.6%
Marshall Wace 968.09K $140.9M +856620.4%
Millennium Management 964.69K $140.4M +300.7%
Ownership Capital B.V. 928.63K $135.15M -52.7%
Largest transactions Shares Bought/sold Change
BLK Blackrock 6.88M -2.15M -23.8%
IVZ Invesco 140.39K -1.17M -89.3%
Ownership Capital B.V. 928.63K -1.03M -52.7%
Liontrust Investment Partners 1.01M +1.01M NEW
Marshall Wace 968.09K +967.98K +856620.4%
Massachusetts Financial Services 0 -855.58K EXIT
Fundsmith 761.1K +761.1K NEW
Vaughan Nelson Investment Management 0 -745.8K EXIT
Millennium Management 964.69K +723.95K +300.7%
D. E. Shaw & Co. 716.6K +701.62K +4683.4%

Financial report summary

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Risks
  • Summary of Material Risk Factors
  • Some of our products are in development or have been recently introduced into the market and may not achieve market acceptance, which could limit our growth and adversely affect our business, financial condition and results of operations.
  • We face competition from other companies, many of which have substantially greater resources than we do. If we do not successfully develop and commercialize enhanced or new products that remain competitive with products or alternative technologies developed by others, we could lose revenue opportunities and customers, and our ability to grow our business would be impaired, adversely affecting our financial condition and results of operations.
  • We depend on our domestic and international OEM partners for a portion of our revenue. If they do not devote sufficient resources to the promotion of products that use our technologies, our business would be harmed.
  • Consolidation in the healthcare industry could lead to demands for price concessions or to the exclusion of existing market participants from certain markets, which could have an adverse effect on our business, results of operations or financial condition.
  • Our customers may reduce, delay or cancel purchases due to a variety of factors, such as lower hospital census levels or third-party guidelines, which could adversely affect our business, financial condition and results of operations.
  • The loss of any large customer or distributor, or any cancellation or delay of a significant purchase by a large customer, could reduce our net sales and harm our operating results.
  • Counterfeit Masimo sensors and third-party reprocessed single-patient-use Masimo sensors may harm our reputation. Also, these counterfeit and third-party reprocessed sensors, as well as genuine Masimo reprocessed sensors, are sold at lower prices than new Masimo sensors and could cause our revenue to decline, which may adversely affect our business, financial condition and results of operations.
  • If the patents we own or license, or our other intellectual property rights, do not adequately protect our technologies, we may lose market share to our competitors and be unable to operate our business profitably.
  • If third parties claim that we infringe their intellectual property rights, we may incur liabilities and costs and may have to redesign or discontinue selling certain products.
  • We believe competitors may currently be violating and may in the future violate our intellectual property rights. As a result, we may initiate litigation to protect and enforce our intellectual property rights, which may result in substantial expense and may divert management’s attention from implementing our business strategy.
  • The laws of foreign countries may not adequately protect our intellectual property rights.
  • Our failure to obtain and maintain FDA clearances or approvals on a timely basis, or at all, would prevent us from commercializing our current, upgraded or new products in the U.S., which could severely harm our business.
  • The failure of our OEM partners to obtain required FDA clearances or approvals for products that incorporate our technologies could have a negative impact on our revenue.
  • If we or our suppliers fail to comply with ongoing regulatory requirements, or if we experience unanticipated problems with our products, these products could be subject to restrictions or withdrawal from the market.
  • Failure to obtain regulatory authorizations in foreign jurisdictions may prevent us from marketing our products abroad.
  • Modifications to our marketed devices may require new regulatory clearances or premarket approvals, or may require us to cease marketing or to recall the modified devices until clearances or approvals are obtained.
  • Regulatory reforms may impact our ability to develop and commercialize our products and technologies.
  • If our products cause or contribute to a death or serious injury, or malfunction in a way that would likely cause or contribute to a death or serious injury, we will be subject to medical device reporting regulations, and may need to initiate voluntary corrective actions or in certain circumstances be required to take corrective actions, such as the recall of our products.
  • Promotion of our products using claims that are off-label, unsubstantiated, false or misleading could subject us to substantial penalties.
  • The regulatory environment governing information, cybersecurity and privacy is increasingly demanding and continues to evolve.
  • We may be subject to or otherwise affected by federal and state healthcare laws, including fraud and abuse laws, and could face substantial penalties if we are unable to fully comply with these laws.
  • Legislative and regulatory changes in the healthcare industry could have a negative impact on our financial performance. Furthermore, our business, financial condition, results of operations and cash flows could be significantly and adversely affected by healthcare reform legislation in the U.S. or in our key international markets.
  • *Our business, financial condition and results of operations may be adversely affected by the COVID-19 pandemic.
  • If our employees become ill or otherwise incapacitated, our operations may be adversely impacted.
  • We may experience conflicts of interest with Cercacor with respect to business opportunities and other matters.
  • Rights provided to Cercacor in the Cross-Licensing Agreement may impede a change in control of our company.
  • Concentration of ownership of our stock among our existing directors, executive officers and principal stockholders may prevent new investors from influencing significant corporate decisions.
  • Our corporate documents and Delaware law contain provisions that could discourage, delay or prevent a change in control of our company, prevent attempts to replace or remove current management and reduce the market price of our stock.
  • Our bylaws provide that the state or federal courts located within the State of Delaware are the exclusive forum for substantially all disputes between us and our stockholders, which could limit our stockholders’ ability to obtain a favorable judicial forum for disputes with us or our directors, officers or employees.
  • We may experience significant fluctuations in our periodic financial results and may not maintain our current levels of profitability in the future.
  • Future changes in accounting pronouncements and tax laws, or the interpretation thereof, could have a significant impact on our reported results, and may affect our historical reporting of previous transactions.
  • If we lose the services of our key personnel, or if we are unable to attract and retain other key personnel, we may not be able to manage our operations or meet our growth objectives.
  • *We are involved, and may become involved in the future, in disputes and other legal or regulatory proceedings that, if adversely decided or settled, could materially and adversely affect our business, financial condition and results of operations.
  • Changes to government immigration regulations may materially affect our workforce and limit our supply of qualified professionals, or increase our cost of securing workers.
  • *The risks inherent in operating internationally, including the purchase, sale and shipment of our components and products across international borders, may adversely impact our business, financial condition and results of operations.
  • We currently manufacture our products at a limited number of locations and any disruption to, expansion of, or changes in trade programs related to such manufacturing operations could adversely affect our business, financial condition and results of operations.
  • If we do not accurately forecast customer demand, we may hold suboptimal inventory levels that could adversely affect our business, financial condition and results of operations.
  • If we fail to comply with the reporting obligations of the Exchange Act or if we fail to maintain adequate internal control over financial reporting, our business, results of operations and financial condition and investors’ confidence in us could be adversely affected.
  • Changing laws and increasingly complex corporate governance and public disclosure requirements could have an adverse effect on our business and operating results.
  • *If product liability claims are brought against us, we could face substantial liability and costs.
  • We may incur environmental and personal injury liabilities related to certain hazardous materials used in our operations.
  • We rely significantly on information technology and any failure, inadequacy, interruption or security lapse of that technology, including any cybersecurity incidents, could harm our ability to operate our business effectively.
  • *The impact of the Russian invasion of Ukraine on the global economy, energy supplies and raw materials is uncertain, but may prove to negatively impact our business and operations.
  • *Our stock price may be volatile, and your investment in our stock could suffer a decline in value.
  • *Our investors could experience substantial dilution of their investments as a result of subsequent exercises of our outstanding options, vesting of outstanding restricted stock units (RSUs) and performance stock units (PSUs), or the grant of future equity awards by us.
  • Future resales of our stock, including those by our insiders and a few investment funds, may cause our stock price to decline.
  • *Environmental, social and corporate governance (ESG) regulations, global climate change, corporate citizenship and related matters/provisions may make our supply chain more complex, and our reporting of such matters and may adversely affect our business.
Management Discussion
  • Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
  • This Quarterly Report on Form 10-Q contains “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, in connection with the Private Securities Litigation Reform Act of 1995 that involve risks and uncertainties, as well as assumptions that, if they never materialize or prove incorrect, could cause our results to differ materially and adversely from those expressed or implied by such forward-looking statements. Such forward-looking statements include any expectation of earnings, revenues or other financial items; any statements of the plans, strategies and objectives of management for future operations; factors that may affect our operating results or financial condition; statements concerning new products, technologies or services; statements related to future capital expenditures; statements related to future economic conditions or performance; statements related to our stock repurchase program; statements as to industry trends and other matters that do not relate strictly to historical facts or statements of assumptions underlying any of the foregoing. These statements are often identified by the use of words such as “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “intend,” “may” or “will,” the negative versions of these terms and similar expressions or variations. These statements are based on the beliefs and assumptions of our management based on information currently available to management. Such forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results and the timing of certain events to differ materially and adversely from future results expressed or implied by such forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, those identified below, and those discussed in the section titled “Risk Factors” included elsewhere in this Quarterly Report on Form 10-Q and in our other Securities and Exchange Commission (SEC) filings, including our Annual Report on Form 10-K for the fiscal year ended January 1, 2022, which we filed with the SEC on February 15, 2022. Furthermore, such forward-looking statements speak only as of the date of this report. We undertake no obligation to update any forward-looking statements to reflect events or circumstances occurring after the date of such statements.
  • We are a global medical technology company that develops, manufactures and markets a variety of noninvasive monitoring technologies and hospital automation™ solutions. Our mission is to improve patient outcomes and reduce the cost of patient care. Our patient monitoring solutions generally incorporate a monitor or circuit board, proprietary single-patient use or reusable sensors, software and/or cables. We provide our products to hospitals, emergency medical service (EMS) providers, home care providers, long-term care facilities, physician offices, veterinarians and consumers through our direct sales force, distributors and original equipment manufacturers (OEM) partners. We were incorporated in California in May 1989 and reincorporated in Delaware in May 1996.

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