GARMIN LTD (GRMN) Fundamental Analysis & Valuation

NYSE:GRMN • CH0114405324

Current stock price

260.8 USD
-5.79 (-2.17%)
At close:
260.8 USD
0 (0%)
After Hours:

This GRMN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. GRMN Profitability Analysis

1.1 Basic Checks

  • In the past year GRMN was profitable.
  • GRMN had a positive operating cash flow in the past year.
  • Each year in the past 5 years GRMN has been profitable.
  • Each year in the past 5 years GRMN had a positive operating cash flow.
GRMN Yearly Net Income VS EBIT VS OCF VS FCFGRMN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • With an excellent Return On Assets value of 15.13%, GRMN belongs to the best of the industry, outperforming 98.33% of the companies in the same industry.
  • GRMN has a better Return On Equity (18.54%) than 88.33% of its industry peers.
  • GRMN has a Return On Invested Capital of 16.78%. This is amongst the best in the industry. GRMN outperforms 95.00% of its industry peers.
  • GRMN had an Average Return On Invested Capital over the past 3 years of 15.16%. This is significantly above the industry average of 9.08%.
  • The 3 year average ROIC (15.16%) for GRMN is below the current ROIC(16.78%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 15.13%
ROE 18.54%
ROIC 16.78%
ROA(3y)14.93%
ROA(5y)14.23%
ROE(3y)18.31%
ROE(5y)17.66%
ROIC(3y)15.16%
ROIC(5y)14.86%
GRMN Yearly ROA, ROE, ROICGRMN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • GRMN's Profit Margin of 22.96% is amongst the best of the industry. GRMN outperforms 98.33% of its industry peers.
  • In the last couple of years the Profit Margin of GRMN has remained more or less at the same level.
  • GRMN's Operating Margin of 25.89% is amongst the best of the industry. GRMN outperforms 98.33% of its industry peers.
  • In the last couple of years the Operating Margin of GRMN has remained more or less at the same level.
  • With an excellent Gross Margin value of 58.74%, GRMN belongs to the best of the industry, outperforming 98.33% of the companies in the same industry.
  • GRMN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 25.89%
PM (TTM) 22.96%
GM 58.74%
OM growth 3Y6.98%
OM growth 5Y0.56%
PM growth 3Y4.66%
PM growth 5Y-0.63%
GM growth 3Y0.57%
GM growth 5Y-0.18%
GRMN Yearly Profit, Operating, Gross MarginsGRMN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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9

2. GRMN Health Analysis

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.
  • The number of shares outstanding for GRMN has been increased compared to 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.
GRMN Yearly Shares OutstandingGRMN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
GRMN Yearly Total Debt VS Total AssetsGRMN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • GRMN has an Altman-Z score of 17.51. This indicates that GRMN is financially healthy and has little risk of bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 17.51, GRMN belongs to the top of the industry, outperforming 98.33% of the companies in the same industry.
  • 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 17.51
ROIC/WACC3.38
WACC4.96%
GRMN Yearly LT Debt VS Equity VS FCFGRMN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • GRMN has a Current Ratio of 3.63. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
  • The Current ratio of GRMN (3.63) is better than 66.67% of its industry peers.
  • A Quick Ratio of 2.60 indicates that GRMN has no problem at all paying its short term obligations.
  • GRMN's Quick ratio of 2.60 is amongst the best of the industry. GRMN outperforms 90.00% of its industry peers.
Industry RankSector Rank
Current Ratio 3.63
Quick Ratio 2.6
GRMN Yearly Current Assets VS Current LiabilitesGRMN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. GRMN Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 15.68% 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 10.78% yearly.
  • GRMN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.06%.
  • GRMN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.59% yearly.
EPS 1Y (TTM)15.68%
EPS 3Y18.53%
EPS 5Y10.78%
EPS Q2Q%15.77%
Revenue 1Y (TTM)15.06%
Revenue growth 3Y14.24%
Revenue growth 5Y11.59%
Sales Q2Q%16.59%

3.2 Future

  • Based on estimates for the next years, GRMN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.62% on average per year.
  • GRMN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 7.80% yearly.
EPS Next Y11.83%
EPS Next 2Y10.09%
EPS Next 3Y9.07%
EPS Next 5Y8.62%
Revenue Next Year11.47%
Revenue Next 2Y10.07%
Revenue Next 3Y9.4%
Revenue Next 5Y7.8%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
GRMN Yearly Revenue VS EstimatesGRMN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
GRMN Yearly EPS VS EstimatesGRMN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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1

4. GRMN Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 30.47, which means the current valuation is very expensive for GRMN.
  • Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than 70.00% of the companies in the same industry.
  • GRMN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.47, which is the current average of the S&P500 Index.
  • GRMN is valuated quite expensively with a Price/Forward Earnings ratio of 27.25.
  • Based on the Price/Forward Earnings ratio, GRMN is valued a bit more expensive than the industry average as 65.00% of the companies are valued more cheaply.
  • When comparing the Price/Forward Earnings ratio of GRMN to the average of the S&P500 Index (22.62), we can say GRMN is valued slightly more expensively.
Industry RankSector Rank
PE 30.47
Fwd PE 27.25
GRMN Price Earnings VS Forward Price EarningsGRMN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, GRMN is valued a bit more expensive than the industry average as 73.33% of the companies are valued more cheaply.
  • Based on the Price/Free Cash Flow ratio, GRMN is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Industry RankSector Rank
P/FCF 36.83
EV/EBITDA 22.76
GRMN Per share dataGRMN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

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)2.58
PEG (5Y)2.83
EPS Next 2Y10.09%
EPS Next 3Y9.07%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. GRMN Dividend Analysis

5.1 Amount

  • GRMN has a Yearly Dividend Yield of 1.59%.
  • Compared to an average industry Dividend Yield of 1.29, GRMN pays a bit more dividend than its industry peers.
  • GRMN's Dividend Yield is comparable with the S&P500 average which is at 1.81.
Industry RankSector Rank
Dividend Yield 1.59%

5.2 History

  • On average, the dividend of GRMN grows each year by 7.90%, which is quite nice.
  • GRMN has paid a dividend for at least 10 years, which is 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)7.9%
Div Incr Years8
Div Non Decr Years8
GRMN Yearly Dividends per shareGRMN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • GRMN pays out 39.90% 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.
DP39.9%
EPS Next 2Y10.09%
EPS Next 3Y9.07%
GRMN Yearly Income VS Free CF VS DividendGRMN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
GRMN Dividend Payout.GRMN Dividend Payout, showing the Payout Ratio.GRMN Dividend Payout.PayoutRetained Earnings

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GRMN Fundamentals: All Metrics, Ratios and Statistics

GARMIN LTD

NYSE:GRMN (4/23/2026, 8:15:01 PM)

After market: 260.8 0 (0%)

260.8

-5.79 (-2.17%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)02-18
Earnings (Next)04-29
Inst Owners58.05%
Inst Owner Change0.08%
Ins Owners14.98%
Ins Owner Change-0.3%
Market Cap50.20B
Revenue(TTM)7.25B
Net Income(TTM)1.66B
Analysts54.67
Price Target253.15 (-2.93%)
Short Float %1.75%
Short Ratio2.97
Dividend
Industry RankSector Rank
Dividend Yield 1.59%
Yearly Dividend3.45
Dividend Growth(5Y)7.9%
DP39.9%
Div Incr Years8
Div Non Decr Years8
Ex-Date06-15
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.8%
Min EPS beat(2)-0.56%
Max EPS beat(2)14.17%
EPS beat(4)2
Avg EPS beat(4)5.17%
Min EPS beat(4)-5.23%
Max EPS beat(4)14.17%
EPS beat(8)6
Avg EPS beat(8)14.71%
EPS beat(12)9
Avg EPS beat(12)11.71%
EPS beat(16)12
Avg EPS beat(16)10%
Revenue beat(2)1
Avg Revenue beat(2)1.01%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)3.2%
Revenue beat(4)3
Avg Revenue beat(4)1.65%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)4.59%
Revenue beat(8)7
Avg Revenue beat(8)3.94%
Revenue beat(12)11
Avg Revenue beat(12)3.8%
Revenue beat(16)12
Avg Revenue beat(16)1.74%
PT rev (1m)2.55%
PT rev (3m)12.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.64%
EPS NY rev (1m)0%
EPS NY rev (3m)7.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.76%
Valuation
Industry RankSector Rank
PE 30.47
Fwd PE 27.25
P/S 6.93
P/FCF 36.83
P/OCF 30.73
P/B 5.59
P/tB 6.26
EV/EBITDA 22.76
EPS(TTM)8.56
EY3.28%
EPS(NY)9.57
Fwd EY3.67%
FCF(TTM)7.08
FCFY2.72%
OCF(TTM)8.49
OCFY3.25%
SpS37.64
BVpS46.62
TBVpS41.64
PEG (NY)2.58
PEG (5Y)2.83
Graham Number94.7531 (-63.67%)
Profitability
Industry RankSector Rank
ROA 15.13%
ROE 18.54%
ROCE 20.23%
ROIC 16.78%
ROICexc 23.8%
ROICexgc 27.89%
OM 25.89%
PM (TTM) 22.96%
GM 58.74%
FCFM 18.81%
ROA(3y)14.93%
ROA(5y)14.23%
ROE(3y)18.31%
ROE(5y)17.66%
ROIC(3y)15.16%
ROIC(5y)14.86%
ROICexc(3y)21.44%
ROICexc(5y)20.66%
ROICexgc(3y)25.02%
ROICexgc(5y)24.32%
ROCE(3y)18.28%
ROCE(5y)17.92%
ROICexgc growth 3Y12.24%
ROICexgc growth 5Y0.37%
ROICexc growth 3Y12.27%
ROICexc growth 5Y1.83%
OM growth 3Y6.98%
OM growth 5Y0.56%
PM growth 3Y4.66%
PM growth 5Y-0.63%
GM growth 3Y0.57%
GM growth 5Y-0.18%
F-Score8
Asset Turnover0.66
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 143.28%
Cap/Sales 3.73%
Interest Coverage 250
Cash Conversion 79.1%
Profit Quality 81.91%
Current Ratio 3.63
Quick Ratio 2.6
Altman-Z 17.51
F-Score8
WACC4.96%
ROIC/WACC3.38
Cap/Depr(3y)120.27%
Cap/Depr(5y)142.22%
Cap/Sales(3y)3.51%
Cap/Sales(5y)4.36%
Profit Quality(3y)87.09%
Profit Quality(5y)76.38%
High Growth Momentum
Growth
EPS 1Y (TTM)15.68%
EPS 3Y18.53%
EPS 5Y10.78%
EPS Q2Q%15.77%
EPS Next Y11.83%
EPS Next 2Y10.09%
EPS Next 3Y9.07%
EPS Next 5Y8.62%
Revenue 1Y (TTM)15.06%
Revenue growth 3Y14.24%
Revenue growth 5Y11.59%
Sales Q2Q%16.59%
Revenue Next Year11.47%
Revenue Next 2Y10.07%
Revenue Next 3Y9.4%
Revenue Next 5Y7.8%
EBIT growth 1Y17.7%
EBIT growth 3Y22.21%
EBIT growth 5Y12.22%
EBIT Next Year25.31%
EBIT Next 3Y14.45%
EBIT Next 5Y12.48%
FCF growth 1Y10.01%
FCF growth 3Y35.98%
FCF growth 5Y7.54%
OCF growth 1Y14.02%
OCF growth 3Y27.49%
OCF growth 5Y7.55%

GARMIN LTD / GRMN Fundamental Analysis 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 of GARMIN LTD (GRMN) stock?

ChartMill assigns a valuation rating of 1 / 10 to GARMIN LTD (GRMN). This can be considered as Overvalued.


What is the profitability of GRMN stock?

GARMIN LTD (GRMN) has a profitability rating of 9 / 10.


Can you provide the expected EPS growth for GRMN stock?

The Earnings per Share (EPS) of GARMIN LTD (GRMN) is expected to grow by 11.83% in the next year.


How sustainable is the dividend of GARMIN LTD (GRMN) stock?

The dividend rating of GARMIN LTD (GRMN) is 6 / 10 and the dividend payout ratio is 39.9%.