GARMIN LTD (GRMN)
CH0114405324 - Common Stock
Taking everything into account, GRMN scores 7 out of 10 in our fundamental rating. GRMN was compared to 64 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 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.
In the past year GRMN had a positive cash flow from operations.
In the past 5 years GRMN has always been profitable.
GRMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 16.24%, GRMN belongs to the top of the industry, outperforming 95.16% of the companies in the same industry.
GRMN has a Return On Equity of 20.22%. This is amongst the best in the industry. GRMN outperforms 80.65% of its industry peers.
The Return On Invested Capital of GRMN (16.69%) is better than 88.71% of its industry peers.
GRMN had an Average Return On Invested Capital over the past 3 years of 15.16%. This is above the industry average of 10.82%.
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
With an excellent Profit Margin value of 25.48%, GRMN belongs to the best of the industry, outperforming 96.77% of the companies in the same industry.
GRMN's Profit Margin has improved in the last couple of years.
GRMN's Operating Margin of 23.81% is amongst the best of the industry. GRMN outperforms 98.39% of its industry peers.
GRMN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 58.43%, GRMN belongs to the top of the industry, outperforming 98.39% 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 | 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.
The number of shares outstanding for GRMN remains at a similar level 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
An Altman-Z score of 15.52 indicates that GRMN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 15.52, 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 | 15.52 |
ROIC/WACC3.28
WACC5.09%
2.3 Liquidity
A Current Ratio of 3.30 indicates that GRMN has no problem at all paying its short term obligations.
GRMN has a Current ratio (3.30) which is in line with its industry peers.
A Quick Ratio of 2.35 indicates that GRMN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.35, GRMN belongs to the top of the industry, outperforming 90.32% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.35 |
3. Growth
3.1 Past
GRMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.30%, which is quite impressive.
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 8.27% yearly.
The Revenue is expected to grow by 10.50% on average over the next years. This is quite good.
EPS Next Y26.12%
EPS Next 2Y16.53%
EPS Next 3Y14.64%
EPS Next 5Y8.27%
Revenue Next Year18.76%
Revenue Next 2Y13.48%
Revenue Next 3Y11.96%
Revenue Next 5Y10.5%
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.
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
With a Price/Earnings ratio of 31.35, GRMN can be considered very expensive at the moment.
GRMN's Price/Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 69.35% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 29.20. GRMN is around the same levels.
With a Price/Forward Earnings ratio of 27.66, GRMN can be considered very expensive at the moment.
Based on the Price/Forward Earnings ratio, GRMN is valued a bit more expensive than 72.58% of the companies in the same industry.
GRMN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.00, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.35 | ||
| Fwd PE | 27.66 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRMN is valued a bit more expensive than 70.97% of the companies 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 | 32.14 | ||
| EV/EBITDA | 23.37 |
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.
GRMN's earnings are expected to grow with 14.64% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.2
PEG (5Y)3.6
EPS Next 2Y16.53%
EPS Next 3Y14.64%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.42%.
GRMN's Dividend Yield is a higher than the industry average which is at 2.47.
GRMN's Dividend Yield is slightly below the S&P500 average, which is at 2.23.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
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
GRMN pays out 37.42% of its income as dividend. This is a sustainable payout ratio.
GRMN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP37.42%
EPS Next 2Y16.53%
EPS Next 3Y14.64%
GARMIN LTD
NYSE:GRMN (11/22/2024, 5:31:10 PM)
After market: 210.33 0 (0%)210.33
+1.22 (+0.58%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap40.39B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.42% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.35 | ||
| Fwd PE | 27.66 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.2
PEG (5Y)3.6
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 16.24% | ||
| ROE | 20.22% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.81% | ||
| PM (TTM) | 25.48% | ||
| GM | 58.43% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.64
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.3 | ||
| Quick Ratio | 2.35 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)28.3%
EPS 3Y2.97%
EPS 5Y
EPS Q2Q%
EPS Next Y26.12%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.91%
Revenue growth 3Y7.69%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
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