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 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 shows excellent growth, but is valued quite expensive already. These ratings would make GRMN suitable 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.
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
GRMN has a Return On Assets of 14.66%. This is amongst the best in the industry. GRMN outperforms 93.85% of its industry peers.
GRMN's Return On Equity of 17.98% is fine compared to the rest of the industry. GRMN outperforms 73.85% of its industry peers.
GRMN's Return On Invested Capital of 16.34% is amongst the best of the industry. GRMN outperforms 87.69% of its industry peers.
GRMN had an Average Return On Invested Capital over the past 3 years of 13.98%. This is in line with the industry average of 12.10%.
The last Return On Invested Capital (16.34%) for GRMN is above the 3 year average (13.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.66% | ||
| ROE | 17.98% | ||
| ROIC | 16.34% |
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 22.41%. This is amongst the best in the industry. GRMN outperforms 98.46% of its industry peers.
GRMN's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 25.31%, GRMN belongs to the best of the industry, outperforming 98.46% of the companies in the same industry.
GRMN's Operating Margin has been stable in the last couple of years.
GRMN's Gross Margin of 58.70% is amongst the best of the industry. GRMN outperforms 98.46% 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 | 25.31% | ||
| PM (TTM) | 22.41% | ||
| GM | 58.7% |
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.
GRMN has more shares outstanding than it did 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 17.35 indicates that GRMN is not in any danger for bankruptcy at the moment.
GRMN's Altman-Z score of 17.35 is amongst the best of the industry. GRMN outperforms 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 | 17.35 |
ROIC/WACC3.25
WACC5.02%
2.3 Liquidity
A Current Ratio of 3.54 indicates that GRMN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.54, GRMN is in the better half of the industry, outperforming 63.08% of the companies in the same industry.
A Quick Ratio of 2.56 indicates that GRMN has no problem at all paying its short term obligations.
With an excellent Quick ratio value of 2.56, GRMN belongs to the best of the industry, outperforming 92.31% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.56 |
3. Growth
3.1 Past
GRMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 32.14%, which is quite impressive.
GRMN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.71% yearly.
Looking at the last year, GRMN shows a very strong growth in Revenue. The Revenue has grown by 20.44%.
The Revenue has been growing by 10.88% on average over the past years. This is quite good.
EPS 1Y (TTM)32.14%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%40.12%
Revenue 1Y (TTM)20.44%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%22.94%
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 9.10% yearly.
Based on estimates for the next years, GRMN will show a quite strong growth in Revenue. The Revenue will grow by 8.84% on average per year.
EPS Next Y6.7%
EPS Next 2Y6.59%
EPS Next 3Y9.33%
EPS Next 5Y9.1%
Revenue Next Year8.95%
Revenue Next 2Y8.84%
Revenue Next 3Y9.23%
Revenue Next 5Y8.84%
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
Based on the Price/Earnings ratio of 31.09, the valuation of GRMN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of GRMN indicates a slightly more expensive valuation: GRMN is more expensive than 64.62% of the companies listed in the same industry.
GRMN's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 29.98.
GRMN is valuated quite expensively with a Price/Forward Earnings ratio of 29.13.
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 73.85% of the companies listed in the same industry.
GRMN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 22.66.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.09 | ||
| Fwd PE | 29.13 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRMN is valued a bit more expensive than the industry average as 69.23% of the companies are valued more cheaply.
GRMN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.66 | ||
| EV/EBITDA | 23.14 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GRMN does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of GRMN may justify a higher PE ratio.
PEG (NY)4.64
PEG (5Y)2.9
EPS Next 2Y6.59%
EPS Next 3Y9.33%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.34%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 3.10, GRMN pays a bit more dividend than its industry peers.
With a Dividend Yield of 1.34, GRMN pays less dividend than the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
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.
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 Years7
Div Non Decr Years7
5.3 Sustainability
GRMN pays out 40.55% of its income as dividend. 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.
DP40.55%
EPS Next 2Y6.59%
EPS Next 3Y9.33%
NYSE:GRMN (3/3/2025, 12:46:37 PM)
230.05
+1.12 (+0.49%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners56.86%
Inst Owner Change1.04%
Ins Owners19.3%
Ins Owner Change1.98%
Market Cap44.17B
Analysts54.67
Price Target207.42 (-9.84%)
Short Float %1.77%
Short Ratio3.7
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.34% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP40.55%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.01%
Min EPS beat(2)16.53%
Max EPS beat(2)35.48%
EPS beat(4)4
Avg EPS beat(4)24.25%
Min EPS beat(4)7.57%
Max EPS beat(4)37.4%
EPS beat(8)7
Avg EPS beat(8)14.97%
EPS beat(12)10
Avg EPS beat(12)11.62%
EPS beat(16)14
Avg EPS beat(16)13.53%
Revenue beat(2)2
Avg Revenue beat(2)6.42%
Min Revenue beat(2)5.17%
Max Revenue beat(2)7.67%
Revenue beat(4)4
Avg Revenue beat(4)6.22%
Min Revenue beat(4)3.77%
Max Revenue beat(4)8.28%
Revenue beat(8)8
Avg Revenue beat(8)4.88%
Revenue beat(12)9
Avg Revenue beat(12)1.77%
Revenue beat(16)13
Avg Revenue beat(16)3.29%
PT rev (1m)-0.12%
PT rev (3m)18.81%
EPS NQ rev (1m)8.95%
EPS NQ rev (3m)8.95%
EPS NY rev (1m)0.65%
EPS NY rev (3m)1.14%
Revenue NQ rev (1m)3%
Revenue NQ rev (3m)3%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)0.22%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.09 | ||
| Fwd PE | 29.13 | ||
| P/S | 7.02 | ||
| P/FCF | 35.66 | ||
| P/OCF | 30.84 | ||
| P/B | 5.63 | ||
| P/tB | 6.23 | ||
| EV/EBITDA | 23.14 |
EPS(TTM)7.4
EY3.22%
EPS(NY)7.9
Fwd EY3.43%
FCF(TTM)6.45
FCFY2.8%
OCF(TTM)7.46
OCFY3.24%
SpS32.79
BVpS40.87
TBVpS36.92
PEG (NY)4.64
PEG (5Y)2.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.66% | ||
| ROE | 17.98% | ||
| ROCE | 19.62% | ||
| ROIC | 16.34% | ||
| ROICexc | 23.6% | ||
| ROICexgc | 27.28% | ||
| OM | 25.31% | ||
| PM (TTM) | 22.41% | ||
| GM | 58.7% | ||
| FCFM | 19.67% |
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-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 107.7% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.76% | ||
| Profit Quality | 87.78% | ||
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.56 | ||
| Altman-Z | 17.35 |
F-Score8
WACC5.02%
ROIC/WACC3.25
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)32.14%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%40.12%
EPS Next Y6.7%
EPS Next 2Y6.59%
EPS Next 3Y9.33%
EPS Next 5Y9.1%
Revenue 1Y (TTM)20.44%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%22.94%
Revenue Next Year8.95%
Revenue Next 2Y8.84%
Revenue Next 3Y9.23%
Revenue Next 5Y8.84%
EBIT growth 1Y45.94%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year24.25%
EBIT Next 3Y16.19%
EBIT Next 5Y14.22%
FCF growth 1Y4.88%
FCF growth 3Y20.8%
FCF growth 5Y16.47%
OCF growth 1Y4.08%
OCF growth 3Y12.27%
OCF growth 5Y15.45%