GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - NYSE:GRMN - CH0114405324 - Common Stock
248.99 USD
+2.25 (+0.91%)
248.99 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to GRMN. GRMN was compared to 63 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 quite expensive at the moment. It does show a decent growth rate. These ratings could make GRMN a good candidate for 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.
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 (15.19%) than 96.72% of its industry peers.
GRMN's Return On Equity of 19.30% is amongst the best of the industry. GRMN outperforms 81.97% of its industry peers.
With an excellent Return On Invested Capital value of 17.45%, GRMN belongs to the best of the industry, outperforming 93.44% 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 10.32%.
The 3 year average ROIC (13.98%) for GRMN is below the current ROIC(17.45%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 19.3% | ||
| ROIC | 17.45% |
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 (23.21%) is better than 98.36% of its industry peers.
In the last couple of years the Profit Margin of GRMN has declined.
GRMN has a Operating Margin of 26.02%. This is amongst the best in the industry. GRMN outperforms 98.36% of its industry peers.
GRMN's Operating Margin has been stable in the last couple of years.
GRMN's Gross Margin of 58.94% is amongst the best of the industry. GRMN outperforms 96.72% of its industry peers.
GRMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 26.02% | ||
| PM (TTM) | 23.21% | ||
| GM | 58.94% |
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
The number of shares outstanding for GRMN has been increased compared to 5 years ago.
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
GRMN has an Altman-Z score of 15.57. This indicates that GRMN is financially healthy and has little risk of bankruptcy at the moment.
GRMN has a better Altman-Z score (15.57) 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 | 15.57 |
ROIC/WACC3.48
WACC5.02%
2.3 Liquidity
GRMN has a Current Ratio of 3.01. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
GRMN has a Current ratio of 3.01. This is in the better half of the industry: GRMN outperforms 62.30% of its industry peers.
GRMN has a Quick Ratio of 2.09. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Quick ratio, with a value of 2.09, GRMN belongs to the top of the industry, outperforming 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.01 | ||
| Quick Ratio | 2.09 |
3. Growth
3.1 Past
GRMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.44%, which is quite impressive.
Measured over the past years, GRMN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.71% on average per year.
GRMN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.65%.
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)33.44%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%37.34%
Revenue 1Y (TTM)19.65%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%20.44%
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 8.56% on average per year.
Based on estimates for the next years, GRMN will show a quite strong growth in Revenue. The Revenue will grow by 9.05% on average per year.
EPS Next Y11.76%
EPS Next 2Y9.26%
EPS Next 3Y8.91%
EPS Next 5Y8.56%
Revenue Next Year15.73%
Revenue Next 2Y11.1%
Revenue Next 3Y9.77%
Revenue Next 5Y9.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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
With a Price/Earnings ratio of 30.44, GRMN can be considered very expensive at the moment.
68.85% of the companies in the same industry are cheaper than GRMN, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 27.40. GRMN is around the same levels.
The Price/Forward Earnings ratio is 28.18, which means the current valuation is very expensive for GRMN.
68.85% of the companies in the same industry are cheaper than GRMN, based on the Price/Forward Earnings ratio.
GRMN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 28.18 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRMN is valued a bit 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 | 42.53 | ||
| EV/EBITDA | 23.07 |
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)2.59
PEG (5Y)2.84
EPS Next 2Y9.26%
EPS Next 3Y8.91%
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.
Compared to the average S&P500 Dividend Yield of 2.36, GRMN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
5.2 History
On average, the dividend of GRMN grows each year by 6.30%, 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)6.3%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
38.63% of the earnings are spent on dividend by GRMN. This is a low number and sustainable payout ratio.
GRMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.63%
EPS Next 2Y9.26%
EPS Next 3Y8.91%
248.99
+2.25 (+0.91%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.34%
Inst Owner Change-0.03%
Ins Owners15.08%
Ins Owner Change-0.7%
Market Cap47.93B
Analysts52
Price Target218.18 (-12.37%)
Short Float %1.7%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.46% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP38.63%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.53%
Min EPS beat(2)-5.23%
Max EPS beat(2)12.29%
EPS beat(4)3
Avg EPS beat(4)14.77%
Min EPS beat(4)-5.23%
Max EPS beat(4)35.48%
EPS beat(8)7
Avg EPS beat(8)16.52%
EPS beat(12)10
Avg EPS beat(12)12.42%
EPS beat(16)13
Avg EPS beat(16)10.18%
Revenue beat(2)2
Avg Revenue beat(2)2.3%
Min Revenue beat(2)0.01%
Max Revenue beat(2)4.59%
Revenue beat(4)4
Avg Revenue beat(4)4.36%
Min Revenue beat(4)0.01%
Max Revenue beat(4)7.67%
Revenue beat(8)8
Avg Revenue beat(8)4.52%
Revenue beat(12)10
Avg Revenue beat(12)2.87%
Revenue beat(16)13
Avg Revenue beat(16)1.75%
PT rev (1m)0.55%
PT rev (3m)5.08%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)1.22%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)-1.65%
Revenue NQ rev (3m)3.82%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)3.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.44 | ||
| Fwd PE | 28.18 | ||
| P/S | 7.09 | ||
| P/FCF | 42.53 | ||
| P/OCF | 35.88 | ||
| P/B | 5.9 | ||
| P/tB | 6.53 | ||
| EV/EBITDA | 23.07 |
EPS(TTM)8.18
EY3.29%
EPS(NY)8.83
Fwd EY3.55%
FCF(TTM)5.85
FCFY2.35%
OCF(TTM)6.94
OCFY2.79%
SpS35.11
BVpS42.21
TBVpS38.12
PEG (NY)2.59
PEG (5Y)2.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 19.3% | ||
| ROCE | 20.96% | ||
| ROIC | 17.45% | ||
| ROICexc | 25.22% | ||
| ROICexgc | 29.18% | ||
| OM | 26.02% | ||
| PM (TTM) | 23.21% | ||
| GM | 58.94% | ||
| FCFM | 16.67% |
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%
ROICexcg growth 3Y0.45%
ROICexcg 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 Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 113.45% | ||
| Cap/Sales | 3.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.75% | ||
| Profit Quality | 71.84% | ||
| Current Ratio | 3.01 | ||
| Quick Ratio | 2.09 | ||
| Altman-Z | 15.57 |
F-Score7
WACC5.02%
ROIC/WACC3.48
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)33.44%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%37.34%
EPS Next Y11.76%
EPS Next 2Y9.26%
EPS Next 3Y8.91%
EPS Next 5Y8.56%
Revenue 1Y (TTM)19.65%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%20.44%
Revenue Next Year15.73%
Revenue Next 2Y11.1%
Revenue Next 3Y9.77%
Revenue Next 5Y9.05%
EBIT growth 1Y40.55%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year32.12%
EBIT Next 3Y15.19%
EBIT Next 5Y13.07%
FCF growth 1Y30.27%
FCF growth 3Y20.8%
FCF growth 5Y16.47%
OCF growth 1Y24.18%
OCF growth 3Y12.27%
OCF growth 5Y15.45%