GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GRMN - CH0114405324 - Common Stock
203.59 USD
+1.5 (+0.74%)
203.59 USD
0 (0%)
GRMN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 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 expensively, but it does show have an excellent growth rating. With these ratings, GRMN could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
GRMN had positive earnings in the past year.
GRMN had a positive operating cash flow in the past year.
GRMN had positive earnings in each of the past 5 years.
In the past 5 years GRMN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GRMN (14.93%) is better than 98.36% of its industry peers.
GRMN's Return On Equity of 18.53% is amongst the best of the industry. GRMN outperforms 81.97% of its industry peers.
GRMN has a better Return On Invested Capital (16.88%) than 95.08% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GRMN is above the industry average of 9.75%.
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
With an excellent Profit Margin value of 22.63%, GRMN belongs to the best of the industry, outperforming 98.36% of the companies in the same industry.
GRMN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 25.61%, GRMN belongs to the best of the industry, outperforming 98.36% of the companies in the same industry.
In the last couple of years the Operating Margin of GRMN has remained more or less at the same level.
GRMN has a Gross Margin of 58.73%. This is amongst the best in the industry. GRMN outperforms 96.72% of its industry peers.
In the last couple of years the Gross Margin of GRMN has remained more or less at the same level.
| 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
GRMN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, GRMN has more shares outstanding
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 13.94. This indicates that GRMN is financially healthy and has little risk of bankruptcy at the moment.
GRMN's Altman-Z score of 13.94 is amongst the best of the industry. GRMN outperforms 98.36% 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 | 13.94 |
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 has a better Current ratio (3.32) than 62.30% of its industry peers.
A Quick Ratio of 2.24 indicates that GRMN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.24, GRMN belongs to the top of the industry, outperforming 90.16% of the companies in the same industry.
| 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.
The Earnings Per Share has been growing by 10.71% 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 16.56% in the last year.
GRMN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.88% yearly.
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.
The Revenue is expected to grow by 8.92% on average over the next years. This is quite good.
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
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
A Price/Earnings ratio of 24.89 indicates a rather expensive valuation of GRMN.
Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than 68.85% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.46. GRMN is around the same levels.
GRMN is valuated rather expensively with a Price/Forward Earnings ratio of 22.91.
Based on the Price/Forward Earnings ratio, GRMN is valued a bit more expensive than the industry average as 63.93% of the companies are valued more cheaply.
GRMN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 22.91 |
4.2 Price Multiples
72.13% 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 | 29.39 | ||
| EV/EBITDA | 18.23 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GRMN does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of GRMN may justify a higher PE ratio.
PEG (NY)1.99
PEG (5Y)2.32
EPS Next 2Y9.59%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.78%, GRMN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.05, GRMN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.32, GRMN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
The dividend of GRMN is nicely growing with an annual growth rate of 6.30%!
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)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.
GRMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.42%
EPS Next 2Y9.59%
EPS Next 3Y9.22%
203.59
+1.5 (+0.74%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.47%
Inst Owner Change0.4%
Ins Owners15.09%
Ins Owner Change-0.7%
Market Cap39.16B
Revenue(TTM)6.94B
Net Income(TTM)1.57B
Analysts50
Price Target225.86 (10.94%)
Short Float %1.85%
Short Ratio3.27
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
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)0.39%
PT rev (3m)5.41%
EPS NQ rev (1m)3.28%
EPS NQ rev (3m)4.18%
EPS NY rev (1m)0.69%
EPS NY rev (3m)1.92%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-1.45%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.89 | ||
| Fwd PE | 22.91 | ||
| P/S | 5.64 | ||
| P/FCF | 29.39 | ||
| P/OCF | 25.04 | ||
| P/B | 4.62 | ||
| P/tB | 5.21 | ||
| EV/EBITDA | 18.23 |
EPS(TTM)8.18
EY4.02%
EPS(NY)8.89
Fwd EY4.37%
FCF(TTM)6.93
FCFY3.4%
OCF(TTM)8.13
OCFY3.99%
SpS36.1
BVpS44.08
TBVpS39.07
PEG (NY)1.99
PEG (5Y)2.32
Graham Number90.07
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 | 13.94 |
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%.