Masimo Corporation Stock Fair Value Calculation – Masimo CEO Takes On Apple, Invests Heavily in Apple Watch Lawsuit
January 4, 2024
🌧️Trending News
Masimo Corporation ($NASDAQ:MASI), a leader in medical technology and innovation, has made waves in the tech industry with its CEO Joe Kiani taking a bold stance against Apple. Kiani has invested heavily in filing a lawsuit against Apple over alleged patent infringement on the Apple Watch. The lawsuit claims that the Apple Watch infringes on Masimo’s oxygen saturation monitoring technology. The company has spent a significant portion of its profits on the lawsuit and is confident in its chances of success. Masimo has a long history of developing and manufacturing noninvasive patient monitoring solutions, so it comes as no surprise that they are making a stand to protect their intellectual property.
So far the lawsuit has remained unresolved, but Kiani has expressed his confidence in the efficacy of the legal challenge. Kiani’s bold stance against Apple is a testament to his commitment to protecting the rights of Masimo Corporation. This is not the first time Masimo has taken issue with Apple, as they have previously gone up against them in several other patent disputes. It remains to be seen if the lawsuit will be successful and what the outcome will be, but one thing is for sure: Kiani is willing to invest a great deal of time and resources to get justice for his company.
Stock Price
On Tuesday, MASIMO CORPORATION stock experienced a slight downturn, opening at $116.8 and closing at $114.6, a 2.2% decrease from its previous closing price of 117.2. This downturn follows the news that MASIMO CEO Joe Kiani has taken on Apple in a lawsuit over the use of their technology on the Apple Watch. Kiani has invested heavily in the lawsuit, which alleges that Apple infringed on existing patents that gave MASIMO exclusive rights to certain technologies.
Kiani believes that Apple’s use of their technology has caused significant financial losses for his company. The outcome of this lawsuit could have a major impact on Masimo’s future success. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Masimo Corporation. More…
| Total Revenues | Net Income | Net Margin |
| 2.12k | 88.5 | 4.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Masimo Corporation. More…
| Operations | Investing | Financing |
| 10.4 | -78.7 | -25.5 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Masimo Corporation. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 3k | 1.72k | 24.14 |
Key Ratios Snapshot
Some of the financial key ratios for Masimo Corporation are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 24.5% | -11.8% | 8.0% |
| FCF Margin | ROE | ROA |
| -2.8% | 8.2% | 3.5% |
Analysis – Masimo Corporation Stock Fair Value Calculation
At GoodWhale, we have conducted an analysis of MASIMO CORPORATION‘s fundamentals. Our proprietary Valuation Line calculated a fair value of around $272.5 for a MASIMO CORPORATION share. However, the current stock price is only $114.6 implying that the share is undervalued by 57.9%. If you are looking to invest in a company that looks promising in terms of its fundamentals, now would be a great time to consider MASIMO CORPORATION. More…
Peers
In the medical device industry, there is intense competition between Masimo Corp and its rivals Elekta AB, Essilorluxottica, and Compumedics Ltd. While all four companies offer innovative products and services, each has its own unique strengths and weaknesses. As a result, the competition between them is fierce, and it is often difficult for one company to gain a significant advantage over the others.
– Elekta AB ($OTCPK:EKTAY)
Despite a challenging year for the company, Elekta’s market cap has grown to 2.09B as of 2022. This is due in part to the company’s strong return on equity, which stands at 11.86%. Elekta is a leading provider of radiation therapy solutions for the treatment of cancer. The company’s products are used in over 6,000 hospitals and clinics around the world, and its solutions are backed by a team of over 3,000 employees.
– Essilorluxottica ($LTS:0OMK)
EssilorLuxottica is a French-Italian multinational corporation that designs, manufactures, and markets ophthalmic lenses, instruments, and equipment. The company has a presence in over 130 countries and employs more than 140,000 people. The company was formed in 2018 through the merger of Essilor International and Luxottica.
– Compumedics Ltd ($ASX:CMP)
Computedics Ltd is a technology company that provides computing and analytics solutions. The company has a market cap of 42.52M as of 2022 and a Return on Equity of 1.53%. Computedics Ltd provides computing and analytics solutions to businesses and organizations worldwide. The company offers a range of services, including data storage, cloud computing, data analysis, and security. Computedics Ltd is headquartered in Sydney, Australia.
Summary
Masimo Corporation has been dominating the pulse oximetry market for years, but their CEO has recently taken a bold gamble and decided to spend a significant portion of the company’s profits to pursue a lawsuit against Apple. This could be a promising move for investors, as it could potentially be a huge windfall if the case is successful. On the other hand, if it fails, the gamble could backfire on Masimo and result in a significant loss of profits. For now, investors are advised to monitor the situation closely to see how it develops and make an informed decision.
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