GARMIN LTD (1GRMN.MI) Stock Fundamental Analysis
BIT:1GRMN - Euronext Milan - CH0114405324 - Common Stock - Currency: EUR
1GRMN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 35 industry peers in the Household Durables industry. 1GRMN gets an excellent profitability rating and is at the same time showing great financial health properties. 1GRMN is valued quite expensively, but it does show have an excellent growth rating. These ratings could make 1GRMN a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year 1GRMN was profitable.
1GRMN had a positive operating cash flow in the past year.
Each year in the past 5 years 1GRMN has been profitable.
In the past 5 years 1GRMN always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 15.00%, 1GRMN belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
With an excellent Return On Equity value of 17.95%, 1GRMN belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
The Return On Invested Capital of 1GRMN (16.03%) is better than 82.86% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1GRMN is in line with the industry average of 15.60%.
The last Return On Invested Capital (16.03%) for 1GRMN is above the 3 year average (13.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15% | ||
| ROE | 17.95% | ||
| ROIC | 16.03% |
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
Looking at the Profit Margin, with a value of 22.76%, 1GRMN belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
1GRMN's Profit Margin has declined in the last couple of years.
1GRMN's Operating Margin of 25.25% is amongst the best of the industry. 1GRMN outperforms 97.14% of its industry peers.
1GRMN's Operating Margin has been stable in the last couple of years.
Looking at the Gross Margin, with a value of 58.59%, 1GRMN is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
1GRMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.25% | ||
| PM (TTM) | 22.76% | ||
| GM | 58.59% |
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
1GRMN 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 1GRMN has been increased compared to 1 year ago.
The number of shares outstanding for 1GRMN has been increased compared to 5 years ago.
There is no outstanding debt for 1GRMN. 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 17.84 indicates that 1GRMN is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 17.84, 1GRMN belongs to the best of the industry, outperforming 97.14% of the companies in the same industry.
1GRMN 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 | 17.84 |
ROIC/WACC3.27
WACC4.9%
2.3 Liquidity
1GRMN has a Current Ratio of 4.10. This indicates that 1GRMN is financially healthy and has no problem in meeting its short term obligations.
1GRMN's Current ratio of 4.10 is amongst the best of the industry. 1GRMN outperforms 85.71% of its industry peers.
1GRMN has a Quick Ratio of 2.91. This indicates that 1GRMN is financially healthy and has no problem in meeting its short term obligations.
1GRMN has a better Quick ratio (2.91) than 97.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.50% over the past year.
The Earnings Per Share has been growing by 10.71% on average over the past years. This is quite good.
Looking at the last year, 1GRMN shows a quite strong growth in Revenue. The Revenue has grown by 18.09% in the last year.
Measured over the past years, 1GRMN shows a quite strong growth in Revenue. The Revenue has been growing by 10.88% on average per year.
EPS 1Y (TTM)26.5%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%13.38%
Revenue 1Y (TTM)18.09%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.11%
3.2 Future
1GRMN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.75% yearly.
Based on estimates for the next years, 1GRMN will show a quite strong growth in Revenue. The Revenue will grow by 9.10% on average per year.
EPS Next Y9.25%
EPS Next 2Y8.88%
EPS Next 3Y8.6%
EPS Next 5Y9.75%
Revenue Next Year11.31%
Revenue Next 2Y9.37%
Revenue Next 3Y9.25%
Revenue Next 5Y9.1%
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.
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
The Price/Earnings ratio is 27.94, which means the current valuation is very expensive for 1GRMN.
1GRMN's Price/Earnings ratio is a bit more expensive when compared to the industry. 1GRMN is more expensive than 65.71% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.50. 1GRMN is around the same levels.
1GRMN is valuated rather expensively with a Price/Forward Earnings ratio of 24.16.
Based on the Price/Forward Earnings ratio, 1GRMN is valued a bit more expensive than the industry average as 71.43% of the companies are valued more cheaply.
1GRMN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.44, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.94 | ||
| Fwd PE | 24.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1GRMN indicates a slightly more expensive valuation: 1GRMN is more expensive than 74.29% of the companies listed in the same industry.
1GRMN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.51 | ||
| EV/EBITDA | 20.79 |
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 1GRMN may justify a higher PE ratio.
PEG (NY)3.02
PEG (5Y)2.61
EPS Next 2Y8.88%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.65%, 1GRMN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 4.39, 1GRMN has a dividend in line with its industry peers.
Compared to the average S&P500 Dividend Yield of 2.35, 1GRMN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
5.2 History
The dividend of 1GRMN is nicely growing with an annual growth rate of 6.30%!
Dividend Growth(5Y)6.3%
Div Incr YearsN/A
Div Non Decr YearsN/A
5.3 Sustainability
39.28% of the earnings are spent on dividend by 1GRMN. This is a low number and sustainable payout ratio.
1GRMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP39.28%
EPS Next 2Y8.88%
EPS Next 3Y8.6%
BIT:1GRMN (7/8/2025, 7:00:00 PM)
183
-1 (-0.54%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.26%
Inst Owner ChangeN/A
Ins Owners15.56%
Ins Owner ChangeN/A
Market Cap35.23B
Analysts52
Price TargetN/A
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.65% |
Yearly Dividend2.55
Dividend Growth(5Y)6.3%
DP39.28%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.65%
Min EPS beat(2)-5.23%
Max EPS beat(2)16.53%
EPS beat(4)3
Avg EPS beat(4)13.59%
Min EPS beat(4)-5.23%
Max EPS beat(4)35.48%
EPS beat(8)7
Avg EPS beat(8)15.05%
EPS beat(12)10
Avg EPS beat(12)11.46%
EPS beat(16)13
Avg EPS beat(16)11.36%
Revenue beat(2)2
Avg Revenue beat(2)2.59%
Min Revenue beat(2)0.01%
Max Revenue beat(2)5.17%
Revenue beat(4)4
Avg Revenue beat(4)4.15%
Min Revenue beat(4)0.01%
Max Revenue beat(4)7.67%
Revenue beat(8)8
Avg Revenue beat(8)4.33%
Revenue beat(12)9
Avg Revenue beat(12)1.72%
Revenue beat(16)13
Avg Revenue beat(16)2.53%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.94 | ||
| Fwd PE | 24.16 | ||
| P/S | 6.32 | ||
| P/FCF | 33.51 | ||
| P/OCF | 28.77 | ||
| P/B | 4.99 | ||
| P/tB | 5.5 | ||
| EV/EBITDA | 20.79 |
EPS(TTM)6.55
EY3.58%
EPS(NY)7.58
Fwd EY4.14%
FCF(TTM)5.46
FCFY2.98%
OCF(TTM)6.36
OCFY3.48%
SpS28.93
BVpS36.69
TBVpS33.25
PEG (NY)3.02
PEG (5Y)2.61
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15% | ||
| ROE | 17.95% | ||
| ROCE | 19.25% | ||
| ROIC | 16.03% | ||
| ROICexc | 23.44% | ||
| ROICexgc | 27.02% | ||
| OM | 25.25% | ||
| PM (TTM) | 22.76% | ||
| GM | 58.59% | ||
| FCFM | 18.87% |
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%
ROICexcg growth 3Y0.45%
ROICexcg 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 | 110.63% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 78.36% | ||
| Profit Quality | 82.92% | ||
| Current Ratio | 4.1 | ||
| Quick Ratio | 2.91 | ||
| Altman-Z | 17.84 |
F-Score7
WACC4.9%
ROIC/WACC3.27
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)26.5%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%13.38%
EPS Next Y9.25%
EPS Next 2Y8.88%
EPS Next 3Y8.6%
EPS Next 5Y9.75%
Revenue 1Y (TTM)18.09%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.11%
Revenue Next Year11.31%
Revenue Next 2Y9.37%
Revenue Next 3Y9.25%
Revenue Next 5Y9.1%
EBIT growth 1Y36.42%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year27.83%
EBIT Next 3Y14.74%
EBIT Next 5Y13.85%
FCF growth 1Y87.62%
FCF growth 3Y20.8%
FCF growth 5Y16.47%
OCF growth 1Y60.78%
OCF growth 3Y12.27%
OCF growth 5Y15.45%