GARMIN LTD (GRMN)
CH0114405324 - Common Stock
Overall GRMN gets a fundamental rating of 7 out of 10. We evaluated GRMN against 67 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. With these ratings, GRMN could be worth investigating further for 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.
In the past 5 years GRMN has always been profitable.
Each year in the past 5 years GRMN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 15.79%, GRMN belongs to the top of the industry, outperforming 93.94% of the companies in the same industry.
GRMN has a better Return On Equity (18.81%) than 78.79% of its industry peers.
With an excellent Return On Invested Capital value of 14.52%, GRMN belongs to the best of the industry, outperforming 87.88% 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%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.79% | ||
| ROE | 18.81% | ||
| ROIC | 14.52% |
ROA(3y)13.79%
ROA(5y)14.18%
ROE(3y)17.26%
ROE(5y)17.93%
ROIC(3y)15.16%
ROIC(5y)15.75%
1.3 Margins
GRMN has a Profit Margin of 24.96%. This is amongst the best in the industry. GRMN outperforms 96.97% of its industry peers.
In the last couple of years the Profit Margin of GRMN has grown nicely.
GRMN's Operating Margin of 21.85% is amongst the best of the industry. GRMN outperforms 98.48% of its industry peers.
GRMN's Operating Margin has declined in the last couple of years.
GRMN has a better Gross Margin (57.74%) than 95.45% 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 | 21.85% | ||
| PM (TTM) | 24.96% | ||
| GM | 57.74% |
OM growth 3Y-6.04%
OM growth 5Y-2.12%
PM growth 3Y1.34%
PM growth 5Y3.53%
GM growth 3Y-1.02%
GM growth 5Y-0.57%
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 about the same amount of 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 16.64. 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 16.64, GRMN belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 | 16.64 |
ROIC/WACC2.75
WACC5.28%
2.3 Liquidity
A Current Ratio of 4.04 indicates that GRMN has no problem at all paying its short term obligations.
With a decent Current ratio value of 4.04, GRMN is doing good in the industry, outperforming 74.24% of the companies in the same industry.
A Quick Ratio of 2.88 indicates that GRMN has no problem at all paying its short term obligations.
GRMN has a better Quick ratio (2.88) than 92.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.04 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
GRMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.81%, which is quite good.
The Earnings Per Share has been growing by 8.70% on average over the past years. This is quite good.
GRMN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.98%.
GRMN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.33% yearly.
EPS 1Y (TTM)18.81%
EPS 3Y2.97%
EPS 5Y8.7%
EPS growth Q2Q39.22%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y7.69%
Revenue growth 5Y9.33%
Revenue growth Q2Q20.41%
3.2 Future
The Earnings Per Share is expected to grow by 8.27% on average over the next years. This is quite good.
Based on estimates for the next years, GRMN will show a quite strong growth in Revenue. The Revenue will grow by 10.50% on average per year.
EPS Next Y-1.94%
EPS Next 2Y4.75%
EPS Next 3Y5.54%
EPS Next 5Y8.27%
Revenue Next Year10.91%
Revenue Next 2Y9.84%
Revenue Next 3Y10.04%
Revenue Next 5Y10.5%
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
GRMN is valuated quite expensively with a Price/Earnings ratio of 28.49.
GRMN's Price/Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 68.18% 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 28.60, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 27.82, which means the current valuation is very expensive for GRMN.
Based on the Price/Forward Earnings ratio, GRMN is valued a bit more expensive than 71.21% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 20.15, GRMN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.49 | ||
| Fwd PE | 27.82 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRMN is valued a bit more expensive than 68.18% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, GRMN is valued a bit more expensive than 65.15% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 24.3 | ||
| EV/EBITDA | 22.12 |
4.3 Compensation for Growth
The excellent profitability rating of GRMN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)3.27
EPS Next 2Y4.75%
EPS Next 3Y5.54%
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.
GRMN's Dividend Yield is rather good when compared to the industry average which is at 2.40. GRMN pays more dividend than 87.88% of the companies in the same industry.
GRMN's Dividend Yield is slightly below the S&P500 average, which is at 2.32.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
On average, the dividend of GRMN grows each year by 13.20%, which is quite nice.
GRMN has paid a dividend for at least 10 years, which is a reliable track record.
GRMN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.2%
Div Incr Years7
Div Non Decr Years20
5.3 Sustainability
GRMN pays out 41.02% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GRMN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP41.02%
EPS Next 2Y4.75%
EPS Next 3Y5.54%
GARMIN LTD
NYSE:GRMN (5/17/2024, 7:04:01 PM)
After market: 170.94 0 (0%)170.94
+0.96 (+0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap32.83B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.49 | ||
| Fwd PE | 27.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)3.27
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.79% | ||
| ROE | 18.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.85% | ||
| PM (TTM) | 24.96% | ||
| GM | 57.74% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.04 | ||
| Quick Ratio | 2.88 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)18.81%
EPS 3Y2.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.98%
Revenue growth 3Y7.69%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
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OCF growth 1Y
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OCF growth 5Y