GARMIN LTD (GRMN) Stock Fundamental Analysis
NYSE:GRMN - New York Stock Exchange, Inc. - CH0114405324 - Common Stock - Currency: USD
We assign a fundamental rating of 7 out of 10 to GRMN. GRMN was compared to 64 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
In the past year GRMN was profitable.
In the past year GRMN had a positive cash flow from operations.
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 (15.00%) is better than 93.75% of its industry peers.
With an excellent Return On Equity value of 17.95%, GRMN belongs to the best of the industry, outperforming 81.25% of the companies in the same industry.
The Return On Invested Capital of GRMN (16.03%) is better than 89.06% of its industry peers.
GRMN had an Average Return On Invested Capital over the past 3 years of 13.98%. This is above the industry average of 10.34%.
The last Return On Invested Capital (16.03%) for GRMN is above the 3 year average (13.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15% | ||
| ROE | 17.95% | ||
| ROIC | 16.03% |
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
GRMN has a better Profit Margin (22.76%) than 98.44% of its industry peers.
GRMN's Profit Margin has declined in the last couple of years.
GRMN's Operating Margin of 25.25% 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 remained more or less at the same level.
GRMN's Gross Margin of 58.59% is amongst the best of the industry. GRMN outperforms 96.88% of its industry peers.
GRMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.25% | ||
| PM (TTM) | 22.76% | ||
| GM | 58.59% |
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
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 has been increased 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.
2.2 Solvency
An Altman-Z score of 18.05 indicates that GRMN is not in any danger for bankruptcy at the moment.
The Altman-Z score of GRMN (18.05) is better than 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 | 18.05 |
ROIC/WACC3.27
WACC4.9%
2.3 Liquidity
A Current Ratio of 4.10 indicates that GRMN has no problem at all paying its short term obligations.
GRMN's Current ratio of 4.10 is fine compared to the rest of the industry. GRMN outperforms 70.31% of its industry peers.
GRMN has a Quick Ratio of 2.91. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
GRMN has a Quick ratio of 2.91. This is amongst the best in the industry. GRMN outperforms 96.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.50% 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.
The Revenue has grown by 18.09% in the past year. This is quite good.
The Revenue has been growing by 10.88% on average over the past years. This is quite good.
EPS 1Y (TTM)26.5%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%13.38%
Revenue 1Y (TTM)18.09%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.11%
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 9.75% yearly.
Based on estimates for the next years, GRMN will show a quite strong growth in Revenue. The Revenue will grow by 9.10% on average per year.
EPS Next Y9.25%
EPS Next 2Y8.88%
EPS Next 3Y8.6%
EPS Next 5Y9.75%
Revenue Next Year11.31%
Revenue Next 2Y9.37%
Revenue Next 3Y9.25%
Revenue Next 5Y9.1%
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 quite expensively with a Price/Earnings ratio of 28.30.
GRMN's Price/Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 67.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of GRMN to the average of the S&P500 Index (27.45), we can say GRMN is valued inline with the index average.
GRMN is valuated rather expensively with a Price/Forward Earnings ratio of 24.48.
GRMN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 67.19% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. GRMN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.3 | ||
| Fwd PE | 24.48 |
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 68.75% of the companies in the same industry.
GRMN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.96 | ||
| EV/EBITDA | 21.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GRMN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.06
PEG (5Y)2.64
EPS Next 2Y8.88%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.68%.
Compared to an average industry Dividend Yield of 3.29, GRMN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.38, GRMN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
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.
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
39.28% of the earnings are spent on dividend by GRMN. This is a low number and sustainable payout ratio.
The dividend of GRMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.28%
EPS Next 2Y8.88%
EPS Next 3Y8.6%
214.77
+1.38 (+0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.26%
Inst Owner Change-0.76%
Ins Owners15.56%
Ins Owner Change1.64%
Market Cap41.35B
Analysts52
Price Target207.63 (-3.32%)
Short Float %1.33%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.68% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP39.28%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.65%
Min EPS beat(2)-5.23%
Max EPS beat(2)16.53%
EPS beat(4)3
Avg EPS beat(4)13.59%
Min EPS beat(4)-5.23%
Max EPS beat(4)35.48%
EPS beat(8)7
Avg EPS beat(8)15.05%
EPS beat(12)10
Avg EPS beat(12)11.46%
EPS beat(16)13
Avg EPS beat(16)11.36%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)0.01%
Max Revenue beat(2)5.17%
Revenue beat(4)4
Avg Revenue beat(4)4.15%
Min Revenue beat(4)0.01%
Max Revenue beat(4)7.67%
Revenue beat(8)8
Avg Revenue beat(8)4.33%
Revenue beat(12)9
Avg Revenue beat(12)1.72%
Revenue beat(16)13
Avg Revenue beat(16)2.53%
PT rev (1m)0.06%
PT rev (3m)-4.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)1.05%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.3 | ||
| Fwd PE | 24.48 | ||
| P/S | 6.41 | ||
| P/FCF | 33.96 | ||
| P/OCF | 29.16 | ||
| P/B | 5.06 | ||
| P/tB | 5.58 | ||
| EV/EBITDA | 21.1 |
EPS(TTM)7.59
EY3.53%
EPS(NY)8.77
Fwd EY4.08%
FCF(TTM)6.32
FCFY2.94%
OCF(TTM)7.36
OCFY3.43%
SpS33.5
BVpS42.48
TBVpS38.5
PEG (NY)3.06
PEG (5Y)2.64
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15% | ||
| ROE | 17.95% | ||
| ROCE | 19.25% | ||
| ROIC | 16.03% | ||
| ROICexc | 23.44% | ||
| ROICexgc | 27.02% | ||
| OM | 25.25% | ||
| PM (TTM) | 22.76% | ||
| GM | 58.59% | ||
| FCFM | 18.87% |
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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 110.63% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.36% | ||
| Profit Quality | 82.92% | ||
| Current Ratio | 4.1 | ||
| Quick Ratio | 2.91 | ||
| Altman-Z | 18.05 |
F-Score7
WACC4.9%
ROIC/WACC3.27
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)26.5%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%13.38%
EPS Next Y9.25%
EPS Next 2Y8.88%
EPS Next 3Y8.6%
EPS Next 5Y9.75%
Revenue 1Y (TTM)18.09%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.11%
Revenue Next Year11.31%
Revenue Next 2Y9.37%
Revenue Next 3Y9.25%
Revenue Next 5Y9.1%
EBIT growth 1Y36.42%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year27.83%
EBIT Next 3Y14.74%
EBIT Next 5Y13.85%
FCF growth 1Y87.62%
FCF growth 3Y20.8%
FCF growth 5Y16.47%
OCF growth 1Y60.78%
OCF growth 3Y12.27%
OCF growth 5Y15.45%