GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - NYSE:GRMN - CH0114405324 - Common Stock
203.98 USD
-1.5 (-0.73%)
203.98 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to GRMN. GRMN was compared to 61 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making GRMN a very profitable company, without any liquidiy or solvency issues. GRMN is valued quite expensive, but it does show an excellent growth. With these ratings, GRMN could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year GRMN was profitable.
GRMN had a positive operating cash flow in the past year.
In the past 5 years GRMN has always been profitable.
In the past 5 years GRMN always reported a positive cash flow from operatings.
1.2 Ratios
GRMN has a better Return On Assets (14.93%) than 98.36% of its industry peers.
The Return On Equity of GRMN (18.53%) is better than 81.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.88%, GRMN belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GRMN is above the industry average of 10.21%.
The 3 year average ROIC (13.98%) for GRMN is below the current ROIC(16.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.93% | ||
| ROE | 18.53% | ||
| ROIC | 16.88% |
ROA(3y)14.08%
ROA(5y)14.03%
ROE(3y)17.36%
ROE(5y)17.55%
ROIC(3y)13.98%
ROIC(5y)14.54%
1.3 Margins
The Profit Margin of GRMN (22.63%) is better than 98.36% of its industry peers.
In the last couple of years the Profit Margin of GRMN has declined.
GRMN's Operating Margin of 25.61% is amongst the best of the industry. GRMN outperforms 98.36% of its industry peers.
In the last couple of years the Operating Margin of GRMN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 58.73%, GRMN belongs to the top of the industry, outperforming 96.72% 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 | 25.61% | ||
| PM (TTM) | 22.63% | ||
| GM | 58.73% |
OM growth 3Y1.16%
OM growth 5Y0.12%
PM growth 3Y1.06%
PM growth 5Y-2.43%
GM growth 3Y0.4%
GM growth 5Y-0.25%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GRMN is creating value.
Compared to 1 year ago, GRMN has more shares outstanding
Compared to 5 years ago, GRMN has more shares outstanding
GRMN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
An Altman-Z score of 14.14 indicates that GRMN is not in any danger for bankruptcy at the moment.
GRMN has a better Altman-Z score (14.14) than 98.36% of its industry peers.
GRMN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 14.14 |
ROIC/WACC3.4
WACC4.96%
2.3 Liquidity
GRMN has a Current Ratio of 3.32. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
GRMN's Current ratio of 3.32 is fine compared to the rest of the industry. GRMN outperforms 62.30% of its industry peers.
GRMN has a Quick Ratio of 2.24. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of GRMN (2.24) is better than 90.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.91% over the past year.
GRMN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.71% yearly.
GRMN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.56%.
Measured over the past years, GRMN shows a quite strong growth in Revenue. The Revenue has been growing by 10.88% on average per year.
EPS 1Y (TTM)21.91%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%0%
Revenue 1Y (TTM)16.56%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.66%
3.2 Future
GRMN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.78% yearly.
GRMN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.92% yearly.
EPS Next Y12.53%
EPS Next 2Y9.59%
EPS Next 3Y9.22%
EPS Next 5Y8.78%
Revenue Next Year15.64%
Revenue Next 2Y11.12%
Revenue Next 3Y9.77%
Revenue Next 5Y8.92%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
GRMN is valuated rather expensively with a Price/Earnings ratio of 24.94.
Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than 70.49% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 25.67, GRMN is valued at the same level.
A Price/Forward Earnings ratio of 22.95 indicates a rather expensive valuation of GRMN.
Based on the Price/Forward Earnings ratio, GRMN is valued a bit more expensive than 65.57% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 31.86. GRMN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 22.95 |
4.2 Price Multiples
GRMN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 73.77% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GRMN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.47 | ||
| EV/EBITDA | 18.58 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of GRMN may justify a higher PE ratio.
PEG (NY)1.99
PEG (5Y)2.33
EPS Next 2Y9.59%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.76%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.29, GRMN pays a bit more dividend than its industry peers.
GRMN's Dividend Yield is slightly below the S&P500 average, which is at 2.40.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
The dividend of GRMN is nicely growing with an annual growth rate of 6.30%!
GRMN has paid a dividend for at least 10 years, which is a reliable track record.
GRMN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.3%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
GRMN pays out 40.42% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GRMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.42%
EPS Next 2Y9.59%
EPS Next 3Y9.22%
203.98
-1.5 (-0.73%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.34%
Inst Owner Change-0.3%
Ins Owners15.08%
Ins Owner Change-0.7%
Market Cap39.26B
Revenue(TTM)6.94B
Net Income(TTM)1.57B
Analysts53.33
Price Target224.98 (10.3%)
Short Float %1.53%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP40.42%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.86%
Min EPS beat(2)-0.56%
Max EPS beat(2)12.29%
EPS beat(4)2
Avg EPS beat(4)5.76%
Min EPS beat(4)-5.23%
Max EPS beat(4)16.53%
EPS beat(8)6
Avg EPS beat(8)15.54%
EPS beat(12)9
Avg EPS beat(12)11.72%
EPS beat(16)12
Avg EPS beat(16)9.53%
Revenue beat(2)1
Avg Revenue beat(2)1.7%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)4.59%
Revenue beat(4)3
Avg Revenue beat(4)2.15%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)5.17%
Revenue beat(8)7
Avg Revenue beat(8)3.88%
Revenue beat(12)10
Avg Revenue beat(12)3.42%
Revenue beat(16)12
Avg Revenue beat(16)1.56%
PT rev (1m)3.68%
PT rev (3m)8.36%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-3.3%
EPS NY rev (1m)0%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)3.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.94 | ||
| Fwd PE | 22.95 | ||
| P/S | 5.66 | ||
| P/FCF | 29.47 | ||
| P/OCF | 25.11 | ||
| P/B | 4.63 | ||
| P/tB | 5.22 | ||
| EV/EBITDA | 18.58 |
EPS(TTM)8.18
EY4.01%
EPS(NY)8.89
Fwd EY4.36%
FCF(TTM)6.92
FCFY3.39%
OCF(TTM)8.12
OCFY3.98%
SpS36.07
BVpS44.05
TBVpS39.04
PEG (NY)1.99
PEG (5Y)2.33
Graham Number90.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.93% | ||
| ROE | 18.53% | ||
| ROCE | 20.27% | ||
| ROIC | 16.88% | ||
| ROICexc | 23.76% | ||
| ROICexgc | 28.1% | ||
| OM | 25.61% | ||
| PM (TTM) | 22.63% | ||
| GM | 58.73% | ||
| FCFM | 19.19% |
ROA(3y)14.08%
ROA(5y)14.03%
ROE(3y)17.36%
ROE(5y)17.55%
ROIC(3y)13.98%
ROIC(5y)14.54%
ROICexc(3y)19.19%
ROICexc(5y)20.33%
ROICexgc(3y)22.39%
ROICexgc(5y)24.31%
ROCE(3y)16.79%
ROCE(5y)17.47%
ROICexgc growth 3Y0.45%
ROICexgc growth 5Y1.23%
ROICexc growth 3Y1.99%
ROICexc growth 5Y2.25%
OM growth 3Y1.16%
OM growth 5Y0.12%
PM growth 3Y1.06%
PM growth 5Y-2.43%
GM growth 3Y0.4%
GM growth 5Y-0.25%
F-Score7
Asset Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 122.18% | ||
| Cap/Sales | 3.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.48% | ||
| Profit Quality | 84.82% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | 14.14 |
F-Score7
WACC4.96%
ROIC/WACC3.4
Cap/Depr(3y)122.61%
Cap/Depr(5y)143.16%
Cap/Sales(3y)3.96%
Cap/Sales(5y)4.51%
Profit Quality(3y)78.35%
Profit Quality(5y)79.1%
High Growth Momentum
Growth
EPS 1Y (TTM)21.91%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%0%
EPS Next Y12.53%
EPS Next 2Y9.59%
EPS Next 3Y9.22%
EPS Next 5Y8.78%
Revenue 1Y (TTM)16.56%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.66%
Revenue Next Year15.64%
Revenue Next 2Y11.12%
Revenue Next 3Y9.77%
Revenue Next 5Y8.92%
EBIT growth 1Y25.36%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year32.12%
EBIT Next 3Y15.19%
EBIT Next 5Y13.25%
FCF growth 1Y24.18%
FCF growth 3Y20.8%
FCF growth 5Y16.47%
OCF growth 1Y22.24%
OCF growth 3Y12.27%
OCF growth 5Y15.45%
GARMIN LTD / GRMN FAQ
What is the ChartMill fundamental rating of GARMIN LTD (GRMN) stock?
ChartMill assigns a fundamental rating of 7 / 10 to GRMN.
What is the valuation status for GRMN stock?
ChartMill assigns a valuation rating of 2 / 10 to GARMIN LTD (GRMN). This can be considered as Overvalued.
Can you provide the profitability details for GARMIN LTD?
GARMIN LTD (GRMN) has a profitability rating of 8 / 10.
How financially healthy is GARMIN LTD?
The financial health rating of GARMIN LTD (GRMN) is 9 / 10.
Can you provide the dividend sustainability for GRMN stock?
The dividend rating of GARMIN LTD (GRMN) is 6 / 10 and the dividend payout ratio is 40.42%.