health care; patient monitoringiStockphoto/Getty Images/iStockphoto
Validea's pick of the week provides a detailed report on a company that scores well in the stock-screening service's model portfolios. On Validea.ca, investors can analyze 1,000 Canadian stocks through 12 different guru-based models and get individual reports on each company. Globe Investor provides marketing and data services to Validea.ca and receives compensation. Try it.
Masimo (MASI-Q) is a maker of non-invasive patient monitoring technologies. The company is the largest hospital supplier of pulse oximetry, a non-invasive method for monitoring a patient's oxygen saturation.
With a $4.5-billion market cap, the company is a mid-cap stock. Over the past 12 months, shares have exhibited significant strength and momentum.
Despite the strong run, the stock still scores a 93 per cent, on Validea's Buffett model, due to the company's 10-year track record of consistent profits, as well as its above-average return on equity and return on capital. The company carries no debt and is producing positive free cash flow per share.
The stock also gets a high score from The Motley Fool model, which is the best-performing Validea model since 2003. The firm's profit margins, relative strength and insider holdings all work in MASI's favour.
The stock also achieves a 70 per cent or higher score from the Ben Graham and Peter Lynch models. The Graham strategy, which is based on The Intelligent Investor, screens for stocks that have low P/B and P/E ratios, along with low debt and solid long-term earnings growth. The Lynch model, based on One Up on Wall Street, looks for stocks trading at a reasonable price relative to earnings growth that also possess strong balance sheets.
Click here for a complete breakdown of Validea's investing guru report.
Globe app users click here.
Read other research reports here.