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RISK CONCERN
Investment Strategy, Risk Analysis, and Insights by Chartered Professionals
Masimo Corporation (XNAS:MASI) In-Depth Stock/Fundamental/Options Analysis Today
Primary Facts
MASI
Name:
MASIMO CORPORATION (XNAS:MASI)
Sector:
219.00K
Industry:
Medical Instruments & Supplies
CEO:
Mr. Joseph Kiani
Total Employees:
2,200
Our Technological Advancement Rating
Our Rating:
A+
Technological advancement compared to industry is 2428.02% higher
ANALYSIS OF ALL CRITICAL FACTORS & RISKS RELATED TO THE STOCK & FUNDAMENTAL/LONG-TERM ANALYSIS OF MASIMO CORPORATION(MASI) AS PER DATA ANALYSIS OF LAST 3 YEARS AND COMPARISON WITH COMPETITORS/PEERS, AND MEDICAL INSTRUMENTS & SUPPLIES INDUSTRY. DATE: 07/09/2022
Primary Targets/Price Insights
Previous Close ($) :
144.27
One Month Price Target:
$145.04
Six Month Price Target :
$148.91
Likely Price in One Year's Time:
Ticker:
$153.56
Likely Trading Range Today Under (Normal Volatility)
$143.65
Price Upper limit ($) :
$144.98
Price Lower limit ($) :
Crash Risk Prep/Key Price Levels (High Volatility/Risk)
Price, as per data analysis, isn't likely to fall below:
Today:
$136.27
This week:
$126.38
This month :
$108.49
Other Primary facts
Market Cap:
7.47B
Market Cap Classification:
Mid Cap
Number of Shares
IPO Date:
52.53M
Best/Worst Daily Performance (Last 3+ Years)
Highest Daily Appreciation:
9.02%
-36.99%
Worst Daily Decline:
Our Options Trading Entry Points
Iron Condor entry points for options expiring in 1 week's time
Low risk (<2%) entry points
Buy Call:
Sell Call:
Buy Put:
Sell Put:
$181.41
$164.43
$107.13
$124.11
Medium risk (<10%) entry points
Buy Call
Sell Call
$158.90
Buy Put:
Sell Put:
$155.28
$129.59
$133.26
These entry points can be used for other strategies, such as butterflies, straddles, etc.
Risk-Adjusted returns (Sharpe Ratio) of
MASI
Sharpe Ratio:
0.80%
Comparison:
MASI, is amongst the top 60% stocks with highest risk-adjusted returns
Sharpe ratio is -50.20% lower than the industry
& is -65.02% lower than the market/S&P 500 average
Average Returns/Yield of
MASI
Daily returns:
0.03%
Weekly returns:
0.15%
Monthly returns:
0.61%
Yearly returns:
14.68%
Comparison of returns:
Average annual returns/yield (last 3 years) is -50.15% below industry average
Classification:
MASI, is amongst the top 60% highest yielding stocks in terms of daily returns
Results of T-Test of Returns:
0.07
Statistical test of Returns:
MASI has yielded a lower return than the market, the results are statistically significant
Volatility (measured by Standard Deviation)
Daily Volatility:
2.72%
Weekly Volatility:
6.07%
Monthly Volatility:
12.14%
Yearly Volatility:
42.06%
Volitlilty of last five days (Measured by Standard Deviation)
Average Volatility of this Week:
0.63%
Volatility in last five trading days has been -76.91% below long-term volatility
Value at Risk Analysis (VaR)
Daily VaR:
-5.55%
Weekly VaR:
-12.40%
Monthly VaR:
-24.80%
How Much Can the price of
MASI
Decline in a Recession?
Likely price decline in a recession:
Base case (decline):
-22%
Worst case (decline):
-85.91%
This translates to price declining to:
$113.13
This translates to price declining to:
$20.32
Severe Crash Probability
Risk of crash in next 6/12 months: Medium (<50%)
What is Value at Risk (VaR)?
Risk Fundamentals
MASI is a 75.04% riskier investment compared to the market/S&P 500 & is 49.96% riskier than Nasdaq (IXIC)
Risk (measured by volatility) is -6.47% below industry average
Overall, it is amongst the top 50% most risky stocks
Beta Examination of
MASI
Beta in relation to market/S&P 500--0.96
Expected beta in 1 year's time:
0.712
Expected beta in 3 year's time:
1.007
Unlevered (debt free) Beta:
0.943
Beta in relation to Nasdaq (XNAS):
0.732
Beta in relation to all global stocks::
0.442
Beta Comparison & Analysis
Beta of competitors/peers::
1.072
Beta is -10.65% lower than peers
Average Industry Beta:
0.989
Beta is -3.17% below industry average
Sustainable Growth Rate Analysis
Sustainable growth rate for this stock/firm:
16.59%
Sustainable growth rate is 12.89% above industry average
Alpha provided | Alpha Analysis
Alpha provided:
-0.024
Alpha is -150.30% below industry average alpha yield
Alpha is -152% below the market average
Analysis of Cost of Capital of
MASI
Equity cost of capital:
0.097
Equity cost of capital is -2.16% below industry mean WACC
Unlevered (without debt) cost of capital:
9.56%
Before-tax cost of debt:
0.96%
After-tax cost of debt:
0.76%
Overall debt rating:
Highest AAA investment grade
Weighted average cost of capital (WACC):
0.76%
WACC is 9.25% above industry mean WACC
Key Per-Share Metrics & Analysis
Revenue per share:
$23.69
Revenue growth rate per share of (3Y):
4.79
Annual revenue growth rate is -28.81% below industry average
EPS:
$3.87
Expected Annual growth rate of EPS (3Y):
2.74%
Expected future EPS growth rate is -76.31% lower than the Medical Instruments & Supplies industry
Free cash flow (FCF) per share:
$3.14
-
-
Debt per share
$0.59
EBITDA per share
$5.81
Valuation Analysis Today of
MASI
P/E Ratio:
43.41
P/E Ratio of Competitors/Peers:
43.27
P/E ratio is 0.33% higher than main peers & is -12.99% lower than the industry
Stock price/value with industry average P/E ratio: $193.07
MASI is -25.28% undervalued if valued using industry average P/E ratio
-
-
P/S (Price to Sales ratio):
6.09
Price to sales ratio is -17.87% below the industry mean
P/B (Price to book value ratio):
4.79
Price to free cash flow: 45.88
Price to free cash flow ratio is -47.00% lower than the industry
Net income growth rate (3Y):
81.36%
Net income growth rate is -176.99% lower than the industry average net income growth rate
Dividend Analysis
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividend History:
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
--$0.00
-
In-depth Debt & Leverage Analysis
Debt to equity ratio:
1.95%
Net debt to equity ratio:
-43.06%
Debt to assets ratio:
1.61%
Net debt to assets ratio:
-35.69%
Debt-to-asset ratio is -95.50% below industry average
Ability to repay debt:
Interest coverage ratio:
818.29
Interest coverage ratio is 1053.58% more than industry average
Looking forward:
Debt growth rate:
0.00%
-
Debt repayment rate in last quarter: 0.00%
Analysis of Key Statistics
Correlation of price movement with the market:
0.434
Statistical significance of correlation:
MASI has a statistically significant correlation with the market
Average Correlation of the industry with the market:
0.505
Stock price is -14.08% less correlated with the market compared to the industry average correlation
R Squared (percentage of price movement explained by movement of the market):
0.505
Correlation of price movement with Nasdaq (^IXIC):
-0.052
Covariance of price movement with the market:
-0.083
Kurtosis
50.141
Returns have severe fat-tails (leptokurtic), i.e., returns considerably higher or lower than the mean returns are considerably more likely, compared to assets with normally distributed returns
Skewness of returns:
-3.62
Returns are left (negative) skewed; mean returns are lower than median and mode returns
Fundamental Analysis & Dupont Analysis of
MASI
Gross Profit Margin Ratio:
262%
Operating Profit Margin Ratio:
21.69%
Operating profit margin is 62.04% higher than the industry
Net Profit Margin Ratio:
262%
Effective Tax Rate:
17.03%
Effective tax rate is -48.19% lower than the industry
Dupont Method
Net Profit Margin
Return on Equity Ratio (ROE):
×
ROA
=
×
14.09%
Return on equity (ROE) is -130.89% lower than the industry
Financial Leverage
Asset Turnover Ratio (ROA):
11.68%
Return on assets (ROA) is 63.02% higher than the industry
Financial Leverage:
1.0x
Current Ratio:
4.82
Current ratio is 31.89% above industry average
Cash Conversion Cycle (days):
-64.1
Cash conversion cycle is -221.53% below industry average
The remaining useful life of property plant & equipment is: 7.7 years
Stock based compensation to net income ratio:
4.88%
In-depth Efficiency Analysis
Revenue generated per employee:
565.6K
Each employee generates 60% more revenue than industry average revenue per employee
EBITDA generated per employee:
138.7K
Each employee generates 25% more EBITDA than industry average revenue per employee
Profit generated per employee:
101.3K
Each employee generates 30% more net income/profit than industry average revenue per employee
Free cash flow (FCF) generated per employee:
0.1K
Each employee generates -102% less free cash flow than industry average revenue per employee
Assets/Capital per employee
310.9K
Each employee generates -102% less free cash flow than industry average revenue per employee
Research & Development (R&D) Analysis
Research & development (R&D) investment growth rate-- 27.19%
Growth rate in R&D investment/expenditure is 10399.97% higher than the industry
Competitors/Peer firms of
MASI
10X GENOMICS, INC. (XNAS:TXG)
ABIOMED, INC. (XNAS:ABMD)
EXACT SCIENCES CORPORATION (XNAS:EXAS)
DENTSPLY SIRONA INC. (XNAS:XRAY)
INCYTE CORPORATION (XNAS:INCY)
BIO-TECHNE CORPORATION (XNAS:TECH)
argenx SE (XNAS:ARGX)
PPD
REPLIGEN CORPORATION (XNAS:RGEN)
Current Analyst Ratings
Strong buy�13%
Buy�0%
Hold�13%
Sell�0%
Strong sell�0%
Overall analyst sentiment is: Strong buy
Income Statement
Period:
TTM
Date:
4/2/22
Revenue:
1.24B
Cost of Revenue:
Gross Profit:
R&D Expense
General & Admin Expenses:
Selling, General & Admin Expenses
Sales and Marketing Expenses
Other Expenses :
Operating Expenses :
Cost & Expenses :
Interest Income:
Interest Expenses:
Depreciation & Amortization:
EBITDA:
Operating Income:
Other Income Expenses:
Income Before Tax:
Income Tax Expense:
Net Income:
Balance Sheet
Date:
Calendar Year:
Period:
Cash & Cash Equivalents:
Short Term Investments:
Cash & Short Term Investments:
Net Receivables:
Inventory:
Other Current Assets:
Total Current Assets:
PP&E:
Goodwill:
Intangible Assets:
Long Term Investments:
Tax Assets:
Other Non-Current Assets:
Total Non-Current Assets:
Other Assets:
Total Assets:
Accounts Payable:
Short Term Debt:
Tax Payables:
Deferred Revenue:
Other Current Liabilities:
Total Current Liabilities:
Long Term Debt:
Other Non-Current Liabilities:
Total Non Current Liabilities:
Other Liabilities:
Total Liabilities:
Common Stock:
Retained Earnings:
Accumulated Other Comprehensive Loss:
Other Total Stockholders' Equity:
Total Stockholders' Equity:
Total Liabilities and Stockholders' Equity:
Total Investments:
Total Debt:
Net Debt:
428.12M
816.24M
138.84M
-
407.49M
-
-
546.33M
1.01M
373.00K
36.26M
305.22M
269.90M
222.86M
268.59M
45.73M
222.86M
Statement of Cash Flow
Date:
Period:
9.13M
Differed Income Tax :
-
Stock Based Compensation :
10.87M
Change in Working Capital :
- 44150.00K
Accounts Receivables:
402.00K
Other Working Capital:
- 37368.00K
Other Non-Cash Items:
710.00K
Net Cash Provided by Operating Activities:
23.16M
Investments in PP&E:
- 20479.00K
Net Acquisitions:
-
Purchases of Investments:
-
Sales/Maturities of Investments:
Other Investing Activities:
Net Cash Used for Investing Activities:
Debt Repayment:
Common Stock Issued:
Common Stock Repurchased:
Dividend Paid:
Other Financing Activities:
Net Cash Used Provided by Financing Activities:
Effect of FOREX on Changes in Cash:
Net Changes in Cash:
Cash at End of Period:
Cash at Beginning of Period:
Operating Cash Flow:
Capital Expenditure:
Free Cash Flow (FCF):
4/2/22
2022
Q1
720.11M
-
720.11M
243.28M
213.49M
47.87M
1.22B
337.65M
99.33M
72.28M
13.83M
51.33M
109.64M
684.05M
-
1.91B
87.45M
8.08M
28.60M
26.61M
132.18M
254.31M
30.82M
38.24M
72.35M
-
326.66M
56.00K
1.62B
- 8455.0K
- 26920.00K
April 2, 2022 at 6:00:00 AM
974.45M
1.58B
1.91B
-
38.90M
- 681207.0K
-
- 3310.00K
- 23789.00K
-
3.15M
-
-
- 25376.00K
- 22223.00K
- 2505.00K
- 25359.00K
723.02M
748.38M
23.16M
- 22939.00K
219.00K
Our Proprietary Portfolio Rating
Our Rating:
A+
Price Forecast/Expected Price in Next 5 Years of
MASI
2023
2024
2025
2026
2027
$182.13
$193.85
$206.33
$219.62
$233.75