GARMIN LTD (GRMN) Stock Fundamental Analysis
NYSE:GRMN - New York Stock Exchange, Inc. - CH0114405324 - Common Stock - Currency: USD
GRMN gets a fundamental rating of 8 out of 10. The analysis compared the fundamentals against 67 industry peers in the Household Durables industry. GRMN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GRMN is valued quite expensive, but it does show an excellent growth. This makes GRMN very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
GRMN had positive earnings in the past year.
In the past year GRMN had a positive cash flow from operations.
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 (16.24%) than 95.38% of its industry peers.
GRMN has a Return On Equity of 20.22%. This is amongst the best in the industry. GRMN outperforms 81.54% of its industry peers.
With an excellent Return On Invested Capital value of 16.69%, GRMN belongs to the best of the industry, outperforming 87.69% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for GRMN is above the industry average of 11.99%.
The 3 year average ROIC (15.16%) for GRMN is below the current ROIC(16.69%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.24% | ||
| ROE | 20.22% | ||
| ROIC | 16.69% |
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's Profit Margin of 25.48% is amongst the best of the industry. GRMN outperforms 98.46% of its industry peers.
In the last couple of years the Profit Margin of GRMN has grown nicely.
Looking at the Operating Margin, with a value of 23.81%, GRMN belongs to the top of the industry, outperforming 98.46% of the companies in the same industry.
In the last couple of years the Operating Margin of GRMN has declined.
GRMN's Gross Margin of 58.43% is amongst the best of the industry. GRMN outperforms 98.46% of its industry peers.
GRMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.81% | ||
| PM (TTM) | 25.48% | ||
| GM | 58.43% |
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
GRMN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GRMN has about the same amout of shares outstanding than it did 1 year ago.
GRMN has more shares outstanding than it did 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
An Altman-Z score of 16.02 indicates that GRMN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 16.02, GRMN belongs to the best 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 | 16.02 |
ROIC/WACC3.36
WACC4.96%
2.3 Liquidity
A Current Ratio of 3.30 indicates that GRMN has no problem at all paying its short term obligations.
The Current ratio of GRMN (3.30) is better than 61.54% of its industry peers.
GRMN has a Quick Ratio of 2.35. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
GRMN's Quick ratio of 2.35 is amongst the best of the industry. GRMN outperforms 89.23% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.30% over the past year.
Measured over the past years, GRMN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.70% on average per year.
Looking at the last year, GRMN shows a quite strong growth in Revenue. The Revenue has grown by 17.91% in the last year.
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)28.3%
EPS 3Y2.97%
EPS 5Y8.7%
EPS Q2Q%41.13%
Revenue 1Y (TTM)17.91%
Revenue growth 3Y7.69%
Revenue growth 5Y9.33%
Sales Q2Q%24.15%
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 13.37% yearly.
Based on estimates for the next years, GRMN will show a quite strong growth in Revenue. The Revenue will grow by 10.85% on average per year.
EPS Next Y26.86%
EPS Next 2Y18.07%
EPS Next 3Y14.44%
EPS Next 5Y13.37%
Revenue Next Year19.1%
Revenue Next 2Y13.87%
Revenue Next 3Y11.96%
Revenue Next 5Y10.85%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
GRMN is valuated quite expensively with a Price/Earnings ratio of 32.16.
Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than 66.15% of the companies in the same industry.
When comparing the Price/Earnings ratio of GRMN to the average of the S&P500 Index (28.51), we can say GRMN is valued inline with the index average.
A Price/Forward Earnings ratio of 27.65 indicates a quite expensive valuation of GRMN.
Based on the Price/Forward Earnings ratio, GRMN is valued a bit more expensive than 73.85% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 93.88, GRMN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.16 | ||
| Fwd PE | 27.65 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRMN indicates a slightly more expensive valuation: GRMN is more expensive than 69.23% of the companies listed 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 | 32.98 | ||
| EV/EBITDA | 24.32 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
GRMN has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as GRMN's earnings are expected to grow with 14.44% in the coming years.
PEG (NY)1.2
PEG (5Y)3.7
EPS Next 2Y18.07%
EPS Next 3Y14.44%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.39%. Purely for dividend investing, there may be better candidates out there.
GRMN's Dividend Yield is a higher than the industry average which is at 2.90.
GRMN's Dividend Yield is slightly below the S&P500 average, which is at 2.27.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
5.2 History
On average, the dividend of GRMN grows each year by 13.20%, 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)13.2%
Div Incr Years7
Div Non Decr Years7
5.3 Sustainability
37.42% of the earnings are spent on dividend by GRMN. This is a low number and sustainable payout ratio.
The dividend of GRMN is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP37.42%
EPS Next 2Y18.07%
EPS Next 3Y14.44%
GARMIN LTD
NYSE:GRMN (1/31/2025, 3:55:01 PM)
215.825
-1.22 (-0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners56.47%
Inst Owner Change-0.23%
Ins Owners19.35%
Ins Owner Change-0.39%
Market Cap41.44B
Analysts52
Price Target198.07 (-8.23%)
Short Float %1.98%
Short Ratio3.34
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.39% |
Yearly Dividend2.92
Dividend Growth(5Y)13.2%
DP37.42%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)21.53%
Min EPS beat(2)7.57%
Max EPS beat(2)35.48%
EPS beat(4)4
Avg EPS beat(4)25.32%
Min EPS beat(4)7.57%
Max EPS beat(4)37.4%
EPS beat(8)7
Avg EPS beat(8)14.71%
EPS beat(12)10
Avg EPS beat(12)10.79%
EPS beat(16)14
Avg EPS beat(16)13.88%
Revenue beat(2)2
Avg Revenue beat(2)5.72%
Min Revenue beat(2)3.77%
Max Revenue beat(2)7.67%
Revenue beat(4)4
Avg Revenue beat(4)5.61%
Min Revenue beat(4)2.74%
Max Revenue beat(4)8.28%
Revenue beat(8)7
Avg Revenue beat(8)4.05%
Revenue beat(12)9
Avg Revenue beat(12)1.37%
Revenue beat(16)13
Avg Revenue beat(16)3.71%
PT rev (1m)4.48%
PT rev (3m)28.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)30.28%
EPS NY rev (1m)0%
EPS NY rev (3m)14.96%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.42%
Revenue NY rev (1m)0%
Revenue NY rev (3m)3.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 32.16 | ||
| Fwd PE | 27.65 | ||
| P/S | 6.96 | ||
| P/FCF | 32.98 | ||
| P/OCF | 29.3 | ||
| P/B | 5.52 | ||
| P/tB | 6.16 | ||
| EV/EBITDA | 24.32 |
EPS(TTM)6.71
EY3.11%
EPS(NY)7.81
Fwd EY3.62%
FCF(TTM)6.54
FCFY3.03%
OCF(TTM)7.37
OCFY3.41%
SpS31.02
BVpS39.09
TBVpS35.03
PEG (NY)1.2
PEG (5Y)3.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.24% | ||
| ROE | 20.22% | ||
| ROCE | 18.26% | ||
| ROIC | 16.69% | ||
| ROICexc | 24.26% | ||
| ROICexgc | 28.4% | ||
| OM | 23.81% | ||
| PM (TTM) | 25.48% | ||
| GM | 58.43% | ||
| FCFM | 21.1% |
ROA(3y)13.79%
ROA(5y)14.18%
ROE(3y)17.26%
ROE(5y)17.93%
ROIC(3y)15.16%
ROIC(5y)15.75%
ROICexc(3y)20.57%
ROICexc(5y)21.78%
ROICexgc(3y)24.45%
ROICexgc(5y)26.34%
ROCE(3y)16.59%
ROCE(5y)17.23%
ROICexcg growth 3Y-9.95%
ROICexcg growth 5Y-3.8%
ROICexc growth 3Y-7.86%
ROICexc growth 5Y-4.11%
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%
F-Score8
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 88.42% | ||
| Cap/Sales | 2.65% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 88.58% | ||
| Profit Quality | 82.8% | ||
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z | 16.02 |
F-Score8
WACC4.96%
ROIC/WACC3.36
Cap/Depr(3y)153.38%
Cap/Depr(5y)144.3%
Cap/Sales(3y)5%
Cap/Sales(5y)4.54%
Profit Quality(3y)70.74%
Profit Quality(5y)73.68%
High Growth Momentum
Growth
EPS 1Y (TTM)28.3%
EPS 3Y2.97%
EPS 5Y8.7%
EPS Q2Q%41.13%
EPS Next Y26.86%
EPS Next 2Y18.07%
EPS Next 3Y14.44%
EPS Next 5Y13.37%
Revenue 1Y (TTM)17.91%
Revenue growth 3Y7.69%
Revenue growth 5Y9.33%
Sales Q2Q%24.15%
Revenue Next Year19.1%
Revenue Next 2Y13.87%
Revenue Next 3Y11.96%
Revenue Next 5Y10.85%
EBIT growth 1Y39.19%
EBIT growth 3Y1.19%
EBIT growth 5Y7.01%
EBIT Next Year65.71%
EBIT Next 3Y25.47%
EBIT Next 5Y20.12%
FCF growth 1Y345.66%
FCF growth 3Y7.62%
FCF growth 5Y9.25%
OCF growth 1Y140.37%
OCF growth 3Y6.63%
OCF growth 5Y8.4%