GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - NYSE:GRMN - CH0114405324 - Common Stock
236.67 USD
+0.84 (+0.36%)
236.67 USD
0 (0%)
GRMN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 63 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 valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make GRMN a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year GRMN was profitable.
GRMN had a positive operating cash flow in the past year.
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
With an excellent Return On Assets value of 15.19%, GRMN belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
GRMN has a Return On Equity of 19.30%. This is amongst the best in the industry. GRMN outperforms 82.54% of its industry peers.
GRMN has a better Return On Invested Capital (17.45%) than 93.65% 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 10.51%.
The last Return On Invested Capital (17.45%) for GRMN is above the 3 year average (13.98%), which is a sign of increasing profitability.
| 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
GRMN has a Profit Margin of 23.21%. This is amongst the best in the industry. GRMN outperforms 98.41% of its industry peers.
In the last couple of years the Profit Margin of GRMN has declined.
GRMN has a better Operating Margin (26.02%) than 98.41% of its industry peers.
GRMN's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 58.94%, GRMN belongs to the best of the industry, outperforming 96.83% 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 | 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.
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
GRMN has an Altman-Z score of 14.92. This indicates that GRMN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GRMN (14.92) is better than 100.00% 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 | 14.92 |
ROIC/WACC3.48
WACC5.02%
2.3 Liquidity
A Current Ratio of 3.01 indicates that GRMN has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.01, GRMN is doing good in the industry, outperforming 65.08% of the companies in the same industry.
A Quick Ratio of 2.09 indicates that GRMN has no problem at all paying its short term obligations.
The Quick ratio of GRMN (2.09) is better than 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.01 | ||
| Quick Ratio | 2.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.44% over the past year.
The Earnings Per Share has been growing by 10.71% on average over the past years. This is quite good.
Looking at the last year, GRMN shows a quite strong growth in Revenue. The Revenue has grown by 19.65% in the last year.
Measured over the past years, GRMN shows a quite strong growth in Revenue. The Revenue has been growing by 10.88% on average per year.
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.
The Revenue is expected to grow by 9.05% on average over the next years. This is quite good.
EPS Next Y10.41%
EPS Next 2Y8.85%
EPS Next 3Y8.51%
EPS Next 5Y8.56%
Revenue Next Year15.57%
Revenue Next 2Y10.96%
Revenue Next 3Y9.45%
Revenue Next 5Y9.05%
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 decreasing.
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
Based on the Price/Earnings ratio of 28.93, the valuation of GRMN can be described as expensive.
Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than the industry average as 66.67% of the companies are valued more cheaply.
When comparing the Price/Earnings ratio of GRMN to the average of the S&P500 Index (27.20), we can say GRMN is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 26.99, the valuation of GRMN can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GRMN indicates a slightly more expensive valuation: GRMN is more expensive than 69.84% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 22.71. GRMN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.93 | ||
| Fwd PE | 26.99 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRMN is valued a bit more expensive than the industry average as 69.84% of the companies are valued more cheaply.
The rest of the industry has a similar Price/Free Cash Flow ratio as GRMN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.43 | ||
| EV/EBITDA | 21.85 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of GRMN may justify a higher PE ratio.
PEG (NY)2.78
PEG (5Y)2.7
EPS Next 2Y8.85%
EPS Next 3Y8.51%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.49%, GRMN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.02, 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 | 1.49% |
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.
GRMN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
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 2Y8.85%
EPS Next 3Y8.51%
236.67
+0.84 (+0.36%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.66%
Inst Owner Change-0.84%
Ins Owners15.09%
Ins Owner Change-0.7%
Market Cap45.56B
Analysts50
Price Target216.99 (-8.32%)
Short Float %1.86%
Short Ratio3.61
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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)2.09%
PT rev (3m)4.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)1.07%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.56%
Revenue NY rev (1m)3.62%
Revenue NY rev (3m)3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.93 | ||
| Fwd PE | 26.99 | ||
| P/S | 6.74 | ||
| P/FCF | 40.43 | ||
| P/OCF | 34.1 | ||
| P/B | 5.61 | ||
| P/tB | 6.21 | ||
| EV/EBITDA | 21.85 |
EPS(TTM)8.18
EY3.46%
EPS(NY)8.77
Fwd EY3.7%
FCF(TTM)5.85
FCFY2.47%
OCF(TTM)6.94
OCFY2.93%
SpS35.11
BVpS42.21
TBVpS38.12
PEG (NY)2.78
PEG (5Y)2.7
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 | 14.92 |
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 Y10.41%
EPS Next 2Y8.85%
EPS Next 3Y8.51%
EPS Next 5Y8.56%
Revenue 1Y (TTM)19.65%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%20.44%
Revenue Next Year15.57%
Revenue Next 2Y10.96%
Revenue Next 3Y9.45%
Revenue Next 5Y9.05%
EBIT growth 1Y40.55%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year30.82%
EBIT Next 3Y14.9%
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%