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    Does Masimo’s New US$1 Billion Credit Facility Reshape the Bull Case for MASI?

    Simply Wall St·12/09/2025 08:19:03
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    • In December 2025, Masimo entered into a new unsecured credit facility comprising a US$250 million term loan and US$750 million revolving commitments, replacing its prior agreement and extending maturities to December 2030.
    • The facility’s leverage-linked interest spreads, unused fee, and potential US$400 million accordion highlight how Masimo is reconfiguring its balance sheet to enhance financial flexibility for capital investment and working capital.
    • We’ll now examine how Masimo’s expanded unsecured borrowing capacity and refinancing may reshape its investment narrative and future financial flexibility.

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    Masimo Investment Narrative Recap

    To own Masimo, you need to believe its core hospital monitoring and newer wearable and telemonitoring efforts can translate into sustainable profitability despite past losses and contract cyclicality. The new US$1.0 billion unsecured credit facility appears more about refinancing and flexibility than changing the near term picture, so it does not materially alter the key catalyst of better execution in high growth monitoring categories or the main risk of margin pressure from tariffs and competitive pricing.

    The recent completion of Masimo’s US$197.9 million share repurchase under its 2022 plan is the announcement that most closely frames this new credit facility. With more flexible, unsecured borrowing now in place to support capital investment and working capital, investors may watch how capital deployment choices intersect with the push to grow higher value segments like capnography, brain monitoring, and hemodynamics over the next few years.

    Yet while balance sheet flexibility has improved, investors still need to be alert to the risk that rising tariffs and pricing pressure could...

    Read the full narrative on Masimo (it's free!)

    Masimo’s narrative projects $1.8 billion revenue and $293.5 million earnings by 2028. This assumes revenues decline by 5.1% per year and earnings rise by about $563 million from -$269.7 million today.

    Uncover how Masimo's forecasts yield a $183.12 fair value, a 30% upside to its current price.

    Exploring Other Perspectives

    MASI 1-Year Stock Price Chart
    MASI 1-Year Stock Price Chart

    Three fair value estimates from the Simply Wall St Community span roughly US$98 to US$183 per share, underscoring how widely individual views can differ. Against that backdrop, Masimo’s heavier use of unsecured credit highlights why it is worth comparing several perspectives on how balance sheet choices could interact with future growth and margin pressures.

    Explore 3 other fair value estimates on Masimo - why the stock might be worth 30% less than the current price!

    Build Your Own Masimo Narrative

    Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

    • A great starting point for your Masimo research is our analysis highlighting 2 key rewards that could impact your investment decision.
    • Our free Masimo research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Masimo's overall financial health at a glance.

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.