GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GRMN - CH0114405324 - Common Stock
201.62 USD
-0.58 (-0.29%)
201.62 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to GRMN. GRMN was compared to 61 industry peers in the Household Durables industry. GRMN gets an excellent profitability rating and is at the same time showing great financial health properties. GRMN shows excellent growth, but is valued quite expensive already. 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.
Each year in the past 5 years GRMN has been profitable.
In the past 5 years GRMN always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.93%, GRMN belongs to the top of the industry, outperforming 98.36% of the companies in the same industry.
GRMN has a better Return On Equity (18.53%) than 81.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.88%, GRMN belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
GRMN had an Average Return On Invested Capital over the past 3 years of 13.98%. This is above the industry average of 9.73%.
The last Return On Invested Capital (16.88%) for GRMN is above the 3 year average (13.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.93% | ||
| ROE | 18.53% | ||
| ROIC | 16.88% |
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
Looking at the Profit Margin, with a value of 22.63%, GRMN belongs to the top of the industry, outperforming 98.36% of the companies in the same industry.
In the last couple of years the Profit Margin of GRMN has declined.
With an excellent Operating Margin value of 25.61%, GRMN belongs to the best of the industry, outperforming 98.36% of the companies in the same industry.
GRMN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 58.73%, GRMN belongs to the top of the industry, outperforming 96.72% of the companies in the same industry.
GRMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.61% | ||
| PM (TTM) | 22.63% | ||
| GM | 58.73% |
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.
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
An Altman-Z score of 13.92 indicates that GRMN is not in any danger for bankruptcy at the moment.
GRMN has a better Altman-Z score (13.92) than 98.36% 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 | 13.92 |
ROIC/WACC3.4
WACC4.96%
2.3 Liquidity
GRMN has a Current Ratio of 3.32. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
GRMN has a Current ratio of 3.32. This is in the better half of the industry: GRMN outperforms 62.30% of its industry peers.
GRMN has a Quick Ratio of 2.24. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 2.24, GRMN belongs to the best of the industry, outperforming 88.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.91% 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 10.71% on average per year.
The Revenue has grown by 16.56% in the past year. This is quite good.
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)21.91%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%0%
Revenue 1Y (TTM)16.56%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.66%
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 8.78% on average per year.
The Revenue is expected to grow by 8.92% on average over the next years. This is quite good.
EPS Next Y12.79%
EPS Next 2Y9.66%
EPS Next 3Y9.22%
EPS Next 5Y8.78%
Revenue Next Year15.83%
Revenue Next 2Y11.17%
Revenue Next 3Y10.01%
Revenue Next 5Y8.92%
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
A Price/Earnings ratio of 24.65 indicates a rather expensive valuation of GRMN.
Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than 67.21% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.39, GRMN is valued at the same level.
GRMN is valuated rather expensively with a Price/Forward Earnings ratio of 22.66.
Based on the Price/Forward Earnings ratio, GRMN is valued a bit more expensive than the industry average as 60.66% of the companies are valued more cheaply.
GRMN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 22.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRMN is valued a bit more expensive than the industry average as 68.85% of the companies are valued more cheaply.
GRMN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.1 | ||
| EV/EBITDA | 18.19 |
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)1.93
PEG (5Y)2.3
EPS Next 2Y9.66%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.78%. 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 1.19.
GRMN's Dividend Yield is comparable with the S&P500 average which is at 1.87.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
5.2 History
The dividend of GRMN is nicely growing with an annual growth rate of 6.30%!
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
40.42% of the earnings are spent on dividend by GRMN. This is a bit on the high side, but may be sustainable.
The dividend of GRMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.42%
EPS Next 2Y9.66%
EPS Next 3Y9.22%
201.62
-0.58 (-0.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.47%
Inst Owner Change0.44%
Ins Owners15.09%
Ins Owner Change-0.28%
Market Cap38.78B
Revenue(TTM)6.94B
Net Income(TTM)1.57B
Analysts50
Price Target225.86 (12.02%)
Short Float %1.76%
Short Ratio2.93
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.78% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP40.42%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.86%
Min EPS beat(2)-0.56%
Max EPS beat(2)12.29%
EPS beat(4)2
Avg EPS beat(4)5.76%
Min EPS beat(4)-5.23%
Max EPS beat(4)16.53%
EPS beat(8)6
Avg EPS beat(8)15.54%
EPS beat(12)9
Avg EPS beat(12)11.72%
EPS beat(16)12
Avg EPS beat(16)9.53%
Revenue beat(2)1
Avg Revenue beat(2)1.7%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)4.59%
Revenue beat(4)3
Avg Revenue beat(4)2.15%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)5.17%
Revenue beat(8)7
Avg Revenue beat(8)3.88%
Revenue beat(12)10
Avg Revenue beat(12)3.42%
Revenue beat(16)12
Avg Revenue beat(16)1.56%
PT rev (1m)0.39%
PT rev (3m)4.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.18%
EPS NY rev (1m)0.23%
EPS NY rev (3m)2.15%
Revenue NQ rev (1m)-0.2%
Revenue NQ rev (3m)-1.64%
Revenue NY rev (1m)0.17%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.65 | ||
| Fwd PE | 22.66 | ||
| P/S | 5.59 | ||
| P/FCF | 29.1 | ||
| P/OCF | 24.8 | ||
| P/B | 4.57 | ||
| P/tB | 5.16 | ||
| EV/EBITDA | 18.19 |
EPS(TTM)8.18
EY4.06%
EPS(NY)8.9
Fwd EY4.41%
FCF(TTM)6.93
FCFY3.44%
OCF(TTM)8.13
OCFY4.03%
SpS36.1
BVpS44.08
TBVpS39.07
PEG (NY)1.93
PEG (5Y)2.3
Graham Number90.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.93% | ||
| ROE | 18.53% | ||
| ROCE | 20.27% | ||
| ROIC | 16.88% | ||
| ROICexc | 23.76% | ||
| ROICexgc | 28.1% | ||
| OM | 25.61% | ||
| PM (TTM) | 22.63% | ||
| GM | 58.73% | ||
| FCFM | 19.19% |
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%
ROICexgc growth 3Y0.45%
ROICexgc 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 | 122.18% | ||
| Cap/Sales | 3.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.48% | ||
| Profit Quality | 84.82% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | 13.92 |
F-Score7
WACC4.96%
ROIC/WACC3.4
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)21.91%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%0%
EPS Next Y12.79%
EPS Next 2Y9.66%
EPS Next 3Y9.22%
EPS Next 5Y8.78%
Revenue 1Y (TTM)16.56%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.66%
Revenue Next Year15.83%
Revenue Next 2Y11.17%
Revenue Next 3Y10.01%
Revenue Next 5Y8.92%
EBIT growth 1Y25.36%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year32.9%
EBIT Next 3Y15.94%
EBIT Next 5Y13.25%
FCF growth 1Y24.18%
FCF growth 3Y20.8%
FCF growth 5Y16.47%
OCF growth 1Y22.24%
OCF growth 3Y12.27%
OCF growth 5Y15.45%
GARMIN LTD / GRMN 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 for GRMN stock?
ChartMill assigns a valuation rating of 2 / 10 to GARMIN LTD (GRMN). This can be considered as Overvalued.
Can you provide the profitability details for GARMIN LTD?
GARMIN LTD (GRMN) has a profitability rating of 8 / 10.
How financially healthy is GARMIN LTD?
The financial health rating of GARMIN LTD (GRMN) is 9 / 10.
Can you provide the dividend sustainability for GRMN stock?
The dividend rating of GARMIN LTD (GRMN) is 6 / 10 and the dividend payout ratio is 40.42%.