GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GRMN - CH0114405324 - Common Stock
211.8 USD
-0.8 (-0.38%)
206.07 USD
-5.73 (-2.71%)
GRMN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 60 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 valued quite expensive, but it does show an excellent growth. These ratings could make GRMN a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- GRMN had positive earnings in the past year.
- GRMN had a positive operating cash flow in the past year.
- Each year in the past 5 years GRMN has been profitable.
- GRMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of GRMN (14.93%) is better than 98.33% of its industry peers.
- With a decent Return On Equity value of 18.53%, GRMN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
- The Return On Invested Capital of GRMN (16.88%) is better than 95.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GRMN is above the industry average of 9.71%.
- The 3 year average ROIC (13.98%) for GRMN is below the current ROIC(16.88%), indicating increased profibility in the last year.
| 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
- With an excellent Profit Margin value of 22.63%, GRMN belongs to the best of the industry, outperforming 98.33% of the companies in the same industry.
- GRMN's Profit Margin has declined in the last couple of years.
- GRMN has a Operating Margin of 25.61%. This is amongst the best in the industry. GRMN outperforms 98.33% of its industry peers.
- GRMN's Operating Margin has been stable in the last couple of years.
- GRMN has a Gross Margin of 58.73%. This is amongst the best in the industry. GRMN outperforms 96.67% 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 | 25.61% | ||
| 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
- GRMN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- 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 14.49 indicates that GRMN is not in any danger for bankruptcy at the moment.
- GRMN has a Altman-Z score of 14.49. This is amongst the best in the industry. GRMN outperforms 98.33% 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 | 14.49 |
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 better Current ratio (3.32) than 61.67% 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.
- GRMN's Quick ratio of 2.24 is amongst the best of the industry. GRMN outperforms 88.33% of its industry peers.
| 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.
- The Revenue has been growing by 10.88% on average over the past years. This is quite good.
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
- GRMN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.78% yearly.
- GRMN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.92% yearly.
EPS Next Y12.79%
EPS Next 2Y9.53%
EPS Next 3Y9.22%
EPS Next 5Y8.78%
Revenue Next Year15.83%
Revenue Next 2Y11.08%
Revenue Next 3Y10.15%
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
- With a Price/Earnings ratio of 25.89, GRMN can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of GRMN indicates a slightly more expensive valuation: GRMN is more expensive than 63.33% of the companies listed in the same industry.
- The average S&P500 Price/Earnings ratio is at 27.38. GRMN is around the same levels.
- Based on the Price/Forward Earnings ratio of 23.86, the valuation of GRMN can be described as rather expensive.
- GRMN's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, GRMN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.89 | ||
| Fwd PE | 23.86 |
4.2 Price Multiples
- 66.67% of the companies in the same industry are cheaper than GRMN, based on the Enterprise Value to EBITDA ratio.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of GRMN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.57 | ||
| EV/EBITDA | 19.18 |
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)2.02
PEG (5Y)2.42
EPS Next 2Y9.53%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
- GRMN has a Yearly Dividend Yield of 1.69%. 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 1.16.
- GRMN's Dividend Yield is comparable with the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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.
- GRMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.42%
EPS Next 2Y9.53%
EPS Next 3Y9.22%
211.8
-0.8 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-18 2026-02-18/amc
Inst Owners57.3%
Inst Owner Change0.36%
Ins Owners15.1%
Ins Owner Change-0.34%
Market Cap40.74B
Revenue(TTM)6.94B
Net Income(TTM)1.57B
Analysts51.43
Price Target225.86 (6.64%)
Short Float %2.09%
Short Ratio3.36
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP40.42%
Div Incr Years8
Div Non Decr Years8
Ex-Date03-13 2026-03-13 (0.9)
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%
PT rev (3m)3.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.28%
EPS NY rev (1m)0%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.89 | ||
| Fwd PE | 23.86 | ||
| P/S | 5.87 | ||
| P/FCF | 30.57 | ||
| P/OCF | 26.05 | ||
| P/B | 4.8 | ||
| P/tB | 5.42 | ||
| EV/EBITDA | 19.18 |
EPS(TTM)8.18
EY3.86%
EPS(NY)8.88
Fwd EY4.19%
FCF(TTM)6.93
FCFY3.27%
OCF(TTM)8.13
OCFY3.84%
SpS36.1
BVpS44.08
TBVpS39.07
PEG (NY)2.02
PEG (5Y)2.42
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 | 14.49 |
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 2Y9.53%
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 2Y11.08%
Revenue Next 3Y10.15%
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 of GARMIN LTD (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.
What are the PE and PB ratios of GARMIN LTD (GRMN) stock?
The Price/Earnings (PE) ratio for GARMIN LTD (GRMN) is 25.89 and the Price/Book (PB) ratio is 4.8.
What is the financial health of GARMIN LTD (GRMN) stock?
The financial health rating of GARMIN LTD (GRMN) is 9 / 10.