GARMIN LTD (GRMN)
CH0114405324 - Common Stock
Overall GRMN gets a fundamental rating of 8 out of 10. We evaluated GRMN against 66 industry peers in the Household Durables industry. GRMN gets an excellent profitability rating and is at the same time showing great financial health properties. GRMN is valued quite expensively, but it does show have an excellent growth rating. This makes GRMN very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
GRMN had positive earnings in the past year.
In the past year GRMN had a positive cash flow from operations.
Each year in the past 5 years GRMN has been profitable.
GRMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GRMN's Return On Assets of 16.24% is amongst the best of the industry. GRMN outperforms 95.31% of its industry peers.
GRMN's Return On Equity of 20.22% is amongst the best of the industry. GRMN outperforms 81.25% of its industry peers.
GRMN has a Return On Invested Capital of 16.69%. This is amongst the best in the industry. GRMN outperforms 87.50% of its industry peers.
GRMN had an Average Return On Invested Capital over the past 3 years of 15.16%. This is above the industry average of 12.01%.
The last Return On Invested Capital (16.69%) for GRMN is above the 3 year average (15.16%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.24% | ||
| ROE | 20.22% | ||
| ROIC | 16.69% |
ROA(3y)13.79%
ROA(5y)14.18%
ROE(3y)17.26%
ROE(5y)17.93%
ROIC(3y)15.16%
ROIC(5y)15.75%
1.3 Margins
Looking at the Profit Margin, with a value of 25.48%, GRMN belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
In the last couple of years the Profit Margin of GRMN has grown nicely.
GRMN's Operating Margin of 23.81% is amongst the best of the industry. GRMN outperforms 98.44% of its industry peers.
In the last couple of years the Operating Margin of GRMN has declined.
Looking at the Gross Margin, with a value of 58.43%, GRMN belongs to the top of the industry, outperforming 98.44% of the companies in the same industry.
GRMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.81% | ||
| PM (TTM) | 25.48% | ||
| GM | 58.43% |
OM growth 3Y-6.04%
OM growth 5Y-2.12%
PM growth 3Y1.34%
PM growth 5Y3.53%
GM growth 3Y-1.02%
GM growth 5Y-0.57%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GRMN is creating value.
The number of shares outstanding for GRMN remains at a similar level compared to 1 year ago.
GRMN has more shares outstanding than it did 5 years ago.
There is no outstanding debt for GRMN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
GRMN has an Altman-Z score of 15.64. This indicates that GRMN is financially healthy and has little risk of bankruptcy at the moment.
GRMN has a Altman-Z score of 15.64. This is amongst the best in the industry. GRMN outperforms 100.00% of its industry peers.
There is no outstanding debt for GRMN. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 15.64 |
ROIC/WACC3.39
WACC4.93%
2.3 Liquidity
A Current Ratio of 3.30 indicates that GRMN has no problem at all paying its short term obligations.
GRMN has a Current ratio of 3.30. This is in the better half of the industry: GRMN outperforms 60.94% of its industry peers.
GRMN has a Quick Ratio of 2.35. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
GRMN has a better Quick ratio (2.35) than 89.06% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
GRMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.30%, which is quite impressive.
The Earnings Per Share has been growing by 8.70% on average over the past years. This is quite good.
Looking at the last year, GRMN shows a quite strong growth in Revenue. The Revenue has grown by 17.91% in the last year.
Measured over the past years, GRMN shows a quite strong growth in Revenue. The Revenue has been growing by 9.33% on average per year.
EPS 1Y (TTM)28.3%
EPS 3Y2.97%
EPS 5Y8.7%
EPS Q2Q%41.13%
Revenue 1Y (TTM)17.91%
Revenue growth 3Y7.69%
Revenue growth 5Y9.33%
Sales Q2Q%24.15%
3.2 Future
The Earnings Per Share is expected to grow by 13.37% on average over the next years. This is quite good.
The Revenue is expected to grow by 10.85% on average over the next years. This is quite good.
EPS Next Y26.86%
EPS Next 2Y18.07%
EPS Next 3Y14.44%
EPS Next 5Y13.37%
Revenue Next Year19.1%
Revenue Next 2Y13.87%
Revenue Next 3Y11.96%
Revenue Next 5Y10.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 31.40, the valuation of GRMN can be described as expensive.
Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than 65.63% of the companies in the same industry.
GRMN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.55.
GRMN is valuated quite expensively with a Price/Forward Earnings ratio of 26.99.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GRMN indicates a slightly more expensive valuation: GRMN is more expensive than 70.31% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.00, GRMN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.4 | ||
| Fwd PE | 26.99 |
4.2 Price Multiples
70.31% of the companies in the same industry are cheaper than GRMN, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as GRMN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.19 | ||
| EV/EBITDA | 23.6 |
4.3 Compensation for Growth
GRMN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of GRMN may justify a higher PE ratio.
A more expensive valuation may be justified as GRMN's earnings are expected to grow with 14.44% in the coming years.
PEG (NY)1.17
PEG (5Y)3.61
EPS Next 2Y18.07%
EPS Next 3Y14.44%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.46%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.95, GRMN pays a bit more dividend than its industry peers.
GRMN's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
On average, the dividend of GRMN grows each year by 13.20%, which is quite nice.
GRMN has been paying a dividend for at least 10 years, so it has a reliable track record.
As GRMN did not decrease their dividend in the past 5 years, we can say the dividend looks stable.
Dividend Growth(5Y)13.2%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
GRMN pays out 37.42% of its income as dividend. This is a sustainable payout ratio.
GRMN's earnings are growing around the same pace than its dividend. As long as the earnings growth is kept the dividend growth is sustainable.
DP37.42%
EPS Next 2Y18.07%
EPS Next 3Y14.44%
GARMIN LTD
NYSE:GRMN (12/26/2024, 8:18:33 PM)
After market: 210.67 0 (0%)210.67
-0.35 (-0.17%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners56.47%
Inst Owner Change2.09%
Ins Owners19.35%
Ins Owner Change-0.32%
Market Cap40.45B
Analysts52
Price Target189.57 (-10.02%)
Short Float %1.85%
Short Ratio3.15
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Dividend Growth(5Y)13.2%
DP37.42%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.53%
Min EPS beat(2)7.57%
Max EPS beat(2)35.48%
EPS beat(4)4
Avg EPS beat(4)25.32%
Min EPS beat(4)7.57%
Max EPS beat(4)37.4%
EPS beat(8)7
Avg EPS beat(8)14.71%
EPS beat(12)10
Avg EPS beat(12)10.79%
EPS beat(16)14
Avg EPS beat(16)13.88%
Revenue beat(2)2
Avg Revenue beat(2)5.72%
Min Revenue beat(2)3.77%
Max Revenue beat(2)7.67%
Revenue beat(4)4
Avg Revenue beat(4)5.61%
Min Revenue beat(4)2.74%
Max Revenue beat(4)8.28%
Revenue beat(8)7
Avg Revenue beat(8)4.05%
Revenue beat(12)9
Avg Revenue beat(12)1.37%
Revenue beat(16)13
Avg Revenue beat(16)3.71%
PT rev (1m)23.34%
PT rev (3m)25.34%
EPS NQ rev (1m)0%
EPS NQ rev (3m)30.28%
EPS NY rev (1m)0.59%
EPS NY rev (3m)14.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.42%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.4 | ||
| Fwd PE | 26.99 | ||
| P/S | 6.79 | ||
| P/FCF | 32.19 | ||
| P/OCF | 28.6 | ||
| P/B | 5.39 | ||
| P/tB | 6.01 | ||
| EV/EBITDA | 23.6 |
EPS(TTM)6.71
EY3.19%
EPS(NY)7.81
Fwd EY3.71%
FCF(TTM)6.54
FCFY3.11%
OCF(TTM)7.37
OCFY3.5%
SpS31.02
BVpS39.09
TBVpS35.03
PEG (NY)1.17
PEG (5Y)3.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.24% | ||
| ROE | 20.22% | ||
| ROCE | 18.26% | ||
| ROIC | 16.69% | ||
| ROICexc | 24.26% | ||
| ROICexgc | 28.4% | ||
| OM | 23.81% | ||
| PM (TTM) | 25.48% | ||
| GM | 58.43% | ||
| FCFM | 21.1% |
ROA(3y)13.79%
ROA(5y)14.18%
ROE(3y)17.26%
ROE(5y)17.93%
ROIC(3y)15.16%
ROIC(5y)15.75%
ROICexc(3y)20.57%
ROICexc(5y)21.78%
ROICexgc(3y)24.45%
ROICexgc(5y)26.34%
ROCE(3y)16.59%
ROCE(5y)17.23%
ROICexcg growth 3Y-9.95%
ROICexcg growth 5Y-3.8%
ROICexc growth 3Y-7.86%
ROICexc growth 5Y-4.11%
OM growth 3Y-6.04%
OM growth 5Y-2.12%
PM growth 3Y1.34%
PM growth 5Y3.53%
GM growth 3Y-1.02%
GM growth 5Y-0.57%
F-Score8
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 88.42% | ||
| Cap/Sales | 2.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.58% | ||
| Profit Quality | 82.8% | ||
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z | 15.64 |
F-Score8
WACC4.93%
ROIC/WACC3.39
Cap/Depr(3y)153.38%
Cap/Depr(5y)144.3%
Cap/Sales(3y)5%
Cap/Sales(5y)4.54%
Profit Quality(3y)70.74%
Profit Quality(5y)73.68%
High Growth Momentum
Growth
EPS 1Y (TTM)28.3%
EPS 3Y2.97%
EPS 5Y8.7%
EPS Q2Q%41.13%
EPS Next Y26.86%
EPS Next 2Y18.07%
EPS Next 3Y14.44%
EPS Next 5Y13.37%
Revenue 1Y (TTM)17.91%
Revenue growth 3Y7.69%
Revenue growth 5Y9.33%
Sales Q2Q%24.15%
Revenue Next Year19.1%
Revenue Next 2Y13.87%
Revenue Next 3Y11.96%
Revenue Next 5Y10.85%
EBIT growth 1Y39.19%
EBIT growth 3Y1.19%
EBIT growth 5Y7.01%
EBIT Next Year64.37%
EBIT Next 3Y24.28%
EBIT Next 5Y20.12%
FCF growth 1Y345.66%
FCF growth 3Y7.62%
FCF growth 5Y9.25%
OCF growth 1Y140.37%
OCF growth 3Y6.63%
OCF growth 5Y8.4%