Masimo Corporation (MASI) Bundle
A Brief History of MASIMO Corporation
MASIMO Corporation, founded in 1989, is known for its innovative medical technology. The company specializes in non-invasive monitoring technologies, particularly in the field of pulse oximetry. Over the years, MASIMO has positioned itself as a leader in medical devices, focusing on improving patient outcomes and reducing healthcare costs.
Financial Performance Overview
As of September 28, 2024, MASIMO reported significant financial metrics reflecting its market position:
| Metric | Value |
|---|---|
| Revenue (Q3 2024) | $504.6 million |
| Net Income (Q3 2024) | $9.8 million |
| Gross Profit Margin (Q3 2024) | 52.2% |
| Operating Income (Q3 2024) | $30.1 million |
| Provision for Income Taxes (Q3 2024) | $1.8 million |
| Cash and Cash Equivalents (as of September 28, 2024) | $158.5 million |
| Total Assets (as of September 28, 2024) | $1,840.5 million |
Segment Revenue Breakdown
The company generates revenue through two primary segments: healthcare and non-healthcare. The healthcare segment includes hospital products and services, while the non-healthcare segment encompasses consumer audio visual products.
| Segment | Q3 2024 Revenue | Q3 2023 Revenue | Percentage Change |
|---|---|---|---|
| Healthcare | $343.3 million | $307.8 million | 11.5% |
| Non-healthcare | $161.3 million | $171.1 million | -5.7% |
Recent Developments
For the nine months ending September 28, 2024, MASIMO’s total revenue was $1,493.7 million, a slight decrease of $5.5 million or 0.4% from $1,499.2 million in the same period of 2023. The healthcare segment experienced a growth of 9.7%, increasing from $935.6 million to $1,026.8 million, attributed to higher sales of consumables and sensor parameters. Conversely, the non-healthcare segment saw a decline of 17.2%, dropping from $563.6 million to $466.9 million.
Operating Expenses Analysis
Operating expenses for MASIMO have shown some fluctuations:
| Expense Type | Q3 2024 Amount | Q3 2023 Amount | Percentage Change |
|---|---|---|---|
| Selling, General and Administrative | $184.8 million | $156.1 million | 18.4% |
| Research and Development | $48.3 million | $46.5 million | 3.9% |
| Impairment Charge | $0 | $7.0 million | -100% |
The increase in selling, general, and administrative expenses was primarily due to higher legal and professional fees and the return of performance-based compensation to normal levels. Research and development expenses also increased slightly, reflecting ongoing investments in product innovation.
Cash Flow Analysis
For the nine months ended September 28, 2024, MASIMO reported:
| Cash Flow Type | Amount |
|---|---|
| Net Cash Provided by Operating Activities | $145.9 million |
| Net Cash Used in Investing Activities | ($34.7 million) |
| Net Cash Used in Financing Activities | ($119.1 million) |
This cash flow performance highlights a strong operational cash generation ability, even as the company invests in growth and manages its financing activities.
Market Position and Future Outlook
MASIMO's robust financial performance and innovative product offerings position it strongly in the healthcare market. The company continues to leverage its technology advancements to enhance patient care and expand its market reach.
A Who Owns Masimo Corporation (MASI)
Major Shareholders
As of 2024, the ownership structure of Masimo Corporation (NASDAQ: MASI) is composed of various institutional and individual shareholders. Notably, the largest shareholders include:
| Shareholder | Shares Owned (in millions) | Percentage of Ownership |
|---|---|---|
| Masimo Foundation | 12.5 | 23.3% |
| Vanguard Group | 6.1 | 11.4% |
| BlackRock Inc. | 5.8 | 10.8% |
| State Street Corporation | 4.7 | 8.8% |
| Other Institutional Investors | 15.2 | 28.3% |
| Insiders (Management and Board) | 4.9 | 9.1% |
| Public Float | 3.8 | 7.1% |
Institutional Ownership
Institutional investors hold a significant portion of Masimo's shares, reflecting confidence in the company's growth prospects. The top institutional investors as of September 2024 include:
| Institution | Shares Owned (in millions) | Percentage of Total Shares |
|---|---|---|
| Vanguard Group | 6.1 | 11.4% |
| BlackRock Inc. | 5.8 | 10.8% |
| State Street Corporation | 4.7 | 8.8% |
| Fidelity Investments | 3.6 | 6.7% |
| Invesco Ltd. | 2.5 | 4.7% |
Insider Ownership
Insider ownership is also notable, with key executives and board members maintaining a stake in the company. The current insider ownership details are as follows:
| Insider Name | Position | Shares Owned (in millions) |
|---|---|---|
| Joe Kiani | Chairman & CEO | 3.2 |
| John L. Kiani | President | 1.1 |
| Other Executives | Various | 0.6 |
Recent Changes in Ownership
In recent quarters, Masimo has experienced adjustments in its ownership due to market activities and institutional trading. The following notable changes occurred:
- Vanguard Group increased its stake by 0.5 million shares in Q3 2024.
- BlackRock Inc. reduced its holdings by 0.3 million shares in Q2 2024.
- Masimo Foundation has maintained its position as the largest shareholder without significant changes.
Stock Performance Overview
As of September 2024, Masimo Corporation's stock has performed as follows:
| Metric | Value |
|---|---|
| Current Share Price | $45.88 |
| Market Capitalization | $2.45 billion |
| 52-Week High | $56.40 |
| 52-Week Low | $38.10 |
| Year-to-Date Performance | +5.2% |
Conclusion on Ownership Structure
The ownership structure of Masimo Corporation reflects a mix of institutional, insider, and public ownership, with significant stakes held by major institutional investors and insiders. This diverse ownership base may contribute to the company's strategic decisions and overall market performance.
Masimo Corporation (MASI) Mission Statement
Masimo Corporation is a global technology company that develops, manufactures, and markets a wide array of patient monitoring technologies, as well as automation and connectivity solutions. The Company’s mission is to improve patient outcomes, reduce the cost of care, and take noninvasive monitoring to new sites and applications.
Financial Overview
As of September 28, 2024, Masimo reported the following financial metrics:
| Item | Amount (in millions) |
|---|---|
| Revenue (Q3 2024) | $504.6 |
| Healthcare Revenue (Q3 2024) | $343.3 |
| Non-healthcare Revenue (Q3 2024) | $161.3 |
| Net Income (Q3 2024) | $9.8 |
| Total Assets | $3,087.8 |
| Total Liabilities | $1,624.6 |
| Total Stockholders' Equity | $1,463.2 |
Operational Segments
Masimo operates two primary segments: healthcare and non-healthcare. Each segment has distinct revenue contributions and operational focuses.
| Segment | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) |
|---|---|---|
| Healthcare | $343.3 | $307.8 |
| Non-healthcare | $161.3 | $171.1 |
Cost and Expenses
For the three months ended September 28, 2024, Masimo reported the following expenses:
| Expense Type | Amount (in millions) |
|---|---|
| Cost of Goods Sold | $241.4 |
| Selling, General and Administrative | $184.8 |
| Research and Development | $48.3 |
| Total Operating Expenses | $233.1 |
Cash Flow and Liquidity
As of September 28, 2024, the cash flow and liquidity metrics were as follows:
| Cash Flow Item | Amount (in millions) |
|---|---|
| Cash and Cash Equivalents | $158.5 |
| Net Cash (Used in) Provided by Operating Activities (Nine Months Ended) | $44.7 |
| Net Cash (Used in) Provided by Investing Activities | ($34.7) |
| Net Cash (Used in) Provided by Financing Activities | ($119.1) |
Market Position
Masimo's innovative approach in noninvasive monitoring technology contributes significantly to its market position. The company faces competition from other healthcare technology providers but continues to lead in specific monitoring solutions.
Recent Developments
In August 2024, Masimo announced FDA 510(k) clearance of the Masimo W1® Medical Watch, integrating it with the Masimo SafetyNet® comprehensive telemonitoring solution.
For the three and nine months ended September 28, 2024, Masimo had sales through one just-in-time healthcare distributor that represented 16.2% and 13.9% of consolidated revenue, respectively.
How Masimo Corporation (MASI) Works
Overview of Operations
Masimo Corporation operates primarily in the healthcare technology sector, focusing on noninvasive monitoring technologies for patients. The company’s product offerings include pulse oximeters, capnography devices, and other related technologies that are essential for patient monitoring in hospitals and other healthcare settings.
Financial Performance
For the three months ended September 28, 2024, Masimo reported total revenues of $504.6 million, an increase of $25.7 million or 5.4% compared to $478.9 million for the same period in 2023. The revenue breakdown is as follows:
| Segment | September 28, 2024 (in millions) | September 30, 2023 (in millions) | Increase/Decrease | Percentage Change |
|---|---|---|---|---|
| Healthcare | 343.3 | 307.8 | 35.5 | 11.5% |
| Non-healthcare | 161.3 | 171.1 | (9.8) | (5.7%) |
| Total Revenue | 504.6 | 478.9 | 25.7 | 5.4% |
Cost and Profitability
The gross profit for the three months ended September 28, 2024, was $263.2 million, representing 52.2% of net revenues, compared to $234.8 million or 49.0% for the same period in 2023. The cost of goods sold was $241.4 million for the same period in 2024, a decrease from $244.1 million in 2023.
| Gross Profit Analysis | September 28, 2024 (in millions) | September 30, 2023 (in millions) | Increase/Decrease | Percentage Change |
|---|---|---|---|---|
| Gross Profit | 263.2 | 234.8 | 28.4 | 12.1% |
| Cost of Goods Sold | 241.4 | 244.1 | (2.7) | (1.1%) |
Operating Expenses
Selling, general and administrative (SG&A) expenses for the three months ended September 28, 2024, were $184.8 million, an increase of $28.7 million or 18.4% from $156.1 million in the prior year. This increase was attributed to higher legal and professional fees, as well as a return to normal levels of performance-based compensation.
| SG&A Expenses | September 28, 2024 (in millions) | September 30, 2023 (in millions) | Increase/Decrease | Percentage Change |
|---|---|---|---|---|
| SG&A Expenses | 184.8 | 156.1 | 28.7 | 18.4% |
Research and Development
Research and development (R&D) expenses for the three months ended September 28, 2024, were $48.3 million, a slight increase from $46.5 million for the same period in 2023, reflecting a focus on innovation in product development.
| R&D Expenses | September 28, 2024 (in millions) | September 30, 2023 (in millions) | Increase/Decrease | Percentage Change |
|---|---|---|---|---|
| R&D Expenses | 48.3 | 46.5 | 1.8 | 3.9% |
Net Income
Masimo reported net income of $9.8 million for the three months ended September 28, 2024, compared to $10.6 million for the same period in 2023. The diluted net income per share was $0.18, down from $0.20 in the prior year.
| Net Income Analysis | September 28, 2024 (in millions) | September 30, 2023 (in millions) | Increase/Decrease |
|---|---|---|---|
| Net Income | 9.8 | 10.6 | (0.8) |
| Diluted Net Income Per Share | 0.18 | 0.20 | (0.02) |
Balance Sheet Overview
As of September 28, 2024, Masimo's total assets amounted to $3,087.8 million, compared to $3,041.5 million as of December 30, 2023. Key components of the balance sheet include:
| Balance Sheet Items | September 28, 2024 (in millions) | December 30, 2023 (in millions) |
|---|---|---|
| Total Assets | 3,087.8 | 3,041.5 |
| Total Liabilities | 1,499.3 | 1,435.5 |
| Total Stockholders' Equity | 1,588.5 | 1,606.0 |
Cash Flow Analysis
For the nine months ended September 28, 2024, net cash provided by operating activities was $145.9 million, compared to $17.0 million for the same period in 2023. Cash used in investing activities was approximately $34.7 million, and cash used in financing activities was approximately $119.1 million.
| Cash Flow Summary | September 28, 2024 (in millions) | September 30, 2023 (in millions) |
|---|---|---|
| Net Cash Provided by Operating Activities | 145.9 | 17.0 |
| Cash Used in Investing Activities | (34.7) | (55.9) |
| Cash Used in Financing Activities | (119.1) | (20.8) |
Market Trends and Challenges
Masimo has faced challenges in its non-healthcare segment, particularly in consumer audio products, which saw a decline of 17.2% for the nine months ended September 28, 2024. This decline was attributed to macroeconomic conditions affecting consumer discretionary spending.
The company continues to emphasize its healthcare segment, which remains its core focus, accounting for a significant majority of its revenues.
How Masimo Corporation (MASI) Makes Money
Revenue Sources
Masimo Corporation generates revenue primarily through its healthcare and non-healthcare segments. The healthcare segment includes hospital products and services, while the non-healthcare segment focuses on consumer audio products. The following table summarizes the revenue by segment for the nine months ended September 28, 2024:
| Segment | Revenue (in millions) | Percentage of Total Revenue | Increase/Decrease (in millions) | Percentage Change |
|---|---|---|---|---|
| Healthcare | $1,026.8 | 68.7% | $91.2 | 9.7% |
| Non-healthcare | $466.9 | 31.3% | $(96.7) | (17.2%) |
| Total Revenue | $1,493.7 | 100.0% | $(5.5) | (0.4%) |
Healthcare Segment Revenue
The healthcare segment's revenue increased due to higher sales of consumables and sensor parameters. For the nine months ended September 28, 2024, the healthcare segment's revenue was $1,026.8 million, reflecting a 9.7% increase from the prior year. The growth was attributed to increased demand for noninvasive monitoring solutions and the impact of deferred equipment agreements, which allow hospitals to acquire equipment with a commitment to purchase sensors over several years.
Non-Healthcare Segment Revenue
The non-healthcare segment, which includes consumer audio products, experienced a decline of 17.2%, with revenue dropping to $466.9 million for the nine months ended September 28, 2024. This decline was influenced by a challenging macroeconomic environment affecting consumer discretionary spending.
Gross Profit and Cost of Goods Sold
For the nine months ended September 28, 2024, Masimo reported a gross profit of $759.7 million, representing a gross margin of 50.9%, compared to $740.8 million and 49.4% for the same period in 2023. The decrease in cost of goods sold to $734.0 million, down from $758.4 million, was primarily due to a favorable product mix and increased sales volumes.
| Gross Profit Overview | Nine Months Ended September 28, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Gross Profit (in millions) | $759.7 | $740.8 |
| Cost of Goods Sold (in millions) | $734.0 | $758.4 |
| Gross Margin (%) | 50.9% | 49.4% |
Operating Expenses
Operating expenses for the nine months ended September 28, 2024, were $667.3 million, up from $648.3 million in the previous year. This increase was driven by higher selling, general, and administrative expenses, which rose to $522.2 million, reflecting a return to normal levels of performance-based compensation and increased transaction-related costs.
| Operating Expenses Overview | Nine Months Ended September 28, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Selling, General, and Administrative (in millions) | $522.2 | $504.1 |
| Research and Development (in millions) | $145.1 | $137.2 |
| Total Operating Expenses (in millions) | $667.3 | $648.3 |
Net Income
For the nine months ended September 28, 2024, Masimo reported a net income of $44.7 million, down from $47.6 million in the prior year, with a net income margin of 3.0%. The decrease was primarily due to increased operating expenses and a non-operating loss of $36.0 million compared to $27.5 million in the previous year.
| Net Income Overview | Nine Months Ended September 28, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Income (in millions) | $44.7 | $47.6 |
| Net Income Margin (%) | 3.0% | 3.1% |
Deferred Equipment Agreements
Masimo's business model includes deferred equipment agreements, where the company provides monitoring equipment at no upfront charge in exchange for a multi-year sensor purchase commitment. As of September 28, 2024, the lease receivable from sales-type leases amounted to $90.5 million, down from $101.9 million at the end of 2023.
Conclusion on Financial Performance
Masimo Corporation's financial performance showcases a robust healthcare segment with increasing revenues and gross margins, despite challenges in the non-healthcare segment. The company's strategic focus on deferred equipment agreements continues to shape its revenue model, enhancing long-term customer relationships while navigating market fluctuations.
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Resources:
- Masimo Corporation (MASI) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Masimo Corporation (MASI)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Masimo Corporation (MASI)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.