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, known for its peripherals and digital lifestyle products, meets key criteria from Peter Lynch’s investment strategy, balancing solid growth with sound financial health and an attractive valuation.

Why LOGI Fits the GARP Approach

• Sustainable Growth: LOGITECH has delivered a 5-year EPS growth rate of 17.67%, aligning with Lynch’s preference for companies growing steadily but not excessively.
• Reasonable Valuation: With a PEG ratio of 0.99 (below 1), the stock is priced fairly relative to its growth, a hallmark of Lynch’s strategy.
• Strong Profitability: The company boasts a return on equity (ROE) of 29.69%, well above the 15% threshold Lynch favored, indicating efficient use of shareholder capital.
• Healthy Balance Sheet: LOGITECH has no debt (Debt/Equity of 0) and a current ratio of 2.35, reflecting financial stability and liquidity.

Fundamental Strengths

LOGITECH’s fundamentals are robust, earning a rating of 7 out of 10 in our analysis. Key highlights include:

• High Profitability: Leading industry peers in ROE, ROIC, and profit margins.
• Financial Health: No debt, strong cash flow, and consistent share buybacks.
• Dividend Track Record: A growing dividend history, though recent cuts warrant attention.

For a deeper dive, review the full fundamental report here.

Our Peter Lynch Strategy screener lists more stocks that fit this approach and is updated daily.

Disclaimer

This is not investing advice. The observations here are based on current data, but investors should conduct their own research before making decisions.