LOGITECH INTERNATIONAL-REG (NASDAQ:LOGI) - A Strong Candidate for GARP Investors

LOGITECH INTERNATIONAL-REG (NASDAQ:LOGI) stands out as a compelling pick for investors seeking growth at a reasonable price (GARP). The company meets key criteria from Peter Lynch’s investment strategy, balancing solid growth, strong profitability, and a sensible valuation. Below, we examine why LOGI fits this approach.

Why LOGI Fits the GARP Profile

• Sustainable Growth: LOGI’s earnings per share (EPS) have grown at an average annual rate of 17.67% over the past five years, aligning with Lynch’s preference for steady but not excessive growth.
• Attractive Valuation: With a PEG ratio of 0.998, the stock is priced reasonably relative to its growth, a hallmark of Lynch’s strategy.
• Strong Profitability: The company boasts a return on equity (ROE) of 31.15%, well above the 15% threshold Lynch favored.
• Financial Health: LOGI has no debt (Debt/Equity of 0) and a current ratio of 2.14, indicating ample liquidity to meet short-term obligations.

Fundamental Highlights

LOGITECH’s financial strength is evident in its high profitability and stability. The company ranks among the top in its industry for return on assets (17.56%) and operating margin (15.03%). While its forward P/E of 18.78 suggests a slightly premium valuation, this is offset by its strong cash flow and dividend growth track record.

For a deeper dive, review the full fundamental analysis of LOGI.

Our Peter Lynch Strategy screener lists more stocks that fit this strategy and is updated regularly.

Disclaimer

This is not investing advice. The observations here are based on data available at the time of writing. Always conduct your own research before making investment decisions.