GARMIN LTD (GRMN)
CH0114405324 - Common Stock
Taking everything into account, GRMN scores 7 out of 10 in our fundamental rating. GRMN was compared to 67 industry peers in the Household Durables industry. GRMN gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, GRMN is valued expensive at the moment. This makes GRMN very considerable 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.
GRMN had positive earnings in each of the past 5 years.
Each year in the past 5 years GRMN had a positive operating cash flow.
1.2 Ratios
GRMN has a Return On Assets of 15.79%. This is amongst the best in the industry. GRMN outperforms 93.94% of its industry peers.
GRMN has a Return On Equity of 18.81%. This is in the better half of the industry: GRMN outperforms 78.79% of its industry peers.
GRMN has a Return On Invested Capital of 14.52%. This is amongst the best in the industry. GRMN outperforms 87.88% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GRMN is significantly above the industry average of 10.10%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.79% | ||
| ROE | 18.81% | ||
| ROIC | 14.52% |
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
The Profit Margin of GRMN (24.96%) is better than 96.97% of its industry peers.
GRMN's Profit Margin has improved in the last couple of years.
GRMN has a better Operating Margin (21.85%) than 98.48% of its industry peers.
In the last couple of years the Operating Margin of GRMN has declined.
GRMN has a Gross Margin of 57.74%. This is amongst the best in the industry. GRMN outperforms 95.45% 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 | 21.85% | ||
| PM (TTM) | 24.96% | ||
| GM | 57.74% |
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.
Compared to 5 years ago, GRMN has more shares outstanding
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 15.69 indicates that GRMN is not in any danger for bankruptcy at the moment.
GRMN's Altman-Z score of 15.69 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 | 15.69 |
ROIC/WACC2.72
WACC5.33%
2.3 Liquidity
A Current Ratio of 4.04 indicates that GRMN has no problem at all paying its short term obligations.
GRMN has a better Current ratio (4.04) than 72.73% of its industry peers.
A Quick Ratio of 2.88 indicates that GRMN has no problem at all paying its short term obligations.
GRMN has a Quick ratio of 2.88. This is amongst the best in the industry. GRMN outperforms 92.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.04 | ||
| Quick Ratio | 2.88 |
3. Growth
3.1 Past
GRMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.81%, which is quite good.
The Earnings Per Share has been growing by 8.70% 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 12.98% in the last year.
The Revenue has been growing by 9.33% on average over the past years. This is quite good.
EPS 1Y (TTM)18.81%
EPS 3Y2.97%
EPS 5Y8.7%
EPS Q2Q%39.22%
Revenue 1Y (TTM)12.98%
Revenue growth 3Y7.69%
Revenue growth 5Y9.33%
Sales Q2Q%20.41%
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 8.27% on average per year.
GRMN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.50% yearly.
EPS Next Y3.48%
EPS Next 2Y6.1%
EPS Next 3Y6.17%
EPS Next 5Y8.27%
Revenue Next Year13.36%
Revenue Next 2Y11.03%
Revenue Next 3Y11.62%
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.
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 26.72 indicates a quite expensive valuation of GRMN.
GRMN's Price/Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 65.15% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.66, GRMN is valued at the same level.
With a Price/Forward Earnings ratio of 25.43, GRMN can be considered very expensive at the moment.
GRMN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 68.18% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 20.15. GRMN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.72 | ||
| Fwd PE | 25.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRMN is valued a bit more expensive than the industry average as 68.18% of the companies are valued more cheaply.
60.61% of the companies in the same industry are cheaper than GRMN, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 22.79 | ||
| EV/EBITDA | 20.52 |
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)7.67
PEG (5Y)3.07
EPS Next 2Y6.1%
EPS Next 3Y6.17%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.85%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.55, GRMN pays a better dividend. On top of this GRMN pays more dividend than 86.36% of the companies listed in the same industry.
GRMN's Dividend Yield is slightly below the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
5.2 History
On average, the dividend of GRMN grows each year by 13.20%, which is quite nice.
GRMN has paid a dividend for at least 10 years, which is 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 41.02% of its income as dividend. This is a bit on the high side, but may be sustainable.
GRMN's earnings are growing slower than its dividend. This means the dividend growth is not sustainable.
DP41.02%
EPS Next 2Y6.1%
EPS Next 3Y6.17%
GARMIN LTD
NYSE:GRMN (6/17/2024, 7:04:01 PM)
After market: 160.3 0 (0%)160.3
+0.77 (+0.48%)
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 Cap30.79B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.85% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.72 | ||
| Fwd PE | 25.43 | ||
| 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)7.67
PEG (5Y)3.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.79% | ||
| ROE | 18.81% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.85% | ||
| PM (TTM) | 24.96% | ||
| GM | 57.74% | ||
| 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 Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.04 | ||
| Quick Ratio | 2.88 | ||
| 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)18.81%
EPS 3Y2.97%
EPS 5Y
EPS Q2Q%
EPS Next Y3.48%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)12.98%
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
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y