GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - NYSE:GRMN - CH0114405324 - Common Stock
198.61 USD
-1.05 (-0.53%)
198.61 USD
0 (0%)
Taking everything into account, GRMN scores 7 out of 10 in our fundamental rating. GRMN was compared to 61 industry peers in the Household Durables industry. Both the health and profitability get an excellent rating, making GRMN a very profitable company, without any liquidiy or solvency issues. GRMN is valued quite expensive, but it does show an excellent growth. With these ratings, GRMN could be worth investigating further for growth and 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.
In the past 5 years GRMN has always been profitable.
In the past 5 years GRMN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GRMN (14.93%) is better than 98.36% of its industry peers.
GRMN has a better Return On Equity (18.53%) than 81.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.88%, GRMN belongs to the top of the industry, outperforming 95.08% of the companies in the same industry.
GRMN had an Average Return On Invested Capital over the past 3 years of 13.98%. This is above the industry average of 9.86%.
The 3 year average ROIC (13.98%) for GRMN is below the current ROIC(16.88%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.93% | ||
| ROE | 18.53% | ||
| ROIC | 16.88% |
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
The Profit Margin of GRMN (22.63%) is better than 98.36% of its industry peers.
In the last couple of years the Profit Margin of GRMN has declined.
With an excellent Operating Margin value of 25.61%, GRMN belongs to the best of the industry, outperforming 98.36% of the companies in the same industry.
GRMN's Operating Margin has been stable in the last couple of years.
GRMN's Gross Margin of 58.73% is amongst the best of the industry. GRMN outperforms 96.72% of its industry peers.
GRMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.61% | ||
| PM (TTM) | 22.63% | ||
| GM | 58.73% |
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
GRMN has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
GRMN has more shares outstanding than it did 1 year ago.
GRMN has more shares outstanding than it did 5 years ago.
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
GRMN has an Altman-Z score of 13.82. This indicates that GRMN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GRMN (13.82) is better than 98.36% 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 | 13.82 |
ROIC/WACC3.4
WACC4.96%
2.3 Liquidity
GRMN has a Current Ratio of 3.32. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
Looking at the Current ratio, with a value of 3.32, GRMN is in the better half of the industry, outperforming 62.30% of the companies in the same industry.
A Quick Ratio of 2.24 indicates that GRMN has no problem at all paying its short term obligations.
GRMN has a better Quick ratio (2.24) than 90.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
GRMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.91%, which is quite impressive.
The Earnings Per Share has been growing by 10.71% on average over the past years. This is quite good.
GRMN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.56%.
Measured over the past years, GRMN shows a quite strong growth in Revenue. The Revenue has been growing by 10.88% on average per year.
EPS 1Y (TTM)21.91%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%0%
Revenue 1Y (TTM)16.56%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.66%
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 8.78% on average per year.
GRMN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.92% yearly.
EPS Next Y12.53%
EPS Next 2Y9.59%
EPS Next 3Y9.22%
EPS Next 5Y8.78%
Revenue Next Year15.64%
Revenue Next 2Y11.12%
Revenue Next 3Y9.77%
Revenue Next 5Y8.92%
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
Based on the Price/Earnings ratio of 24.28, the valuation of GRMN can be described as rather expensive.
GRMN's Price/Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 68.85% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.34. GRMN is around the same levels.
A Price/Forward Earnings ratio of 22.35 indicates a rather expensive valuation of GRMN.
63.93% of the companies in the same industry are cheaper than GRMN, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.43, GRMN is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 22.35 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of GRMN indicates a slightly more expensive valuation: GRMN is more expensive than 72.13% of the companies listed in the same industry.
GRMN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.69 | ||
| EV/EBITDA | 18.01 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates GRMN does not grow enough to justify the current Price/Earnings ratio.
GRMN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.94
PEG (5Y)2.27
EPS Next 2Y9.59%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.76%, GRMN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.31, GRMN pays a bit more dividend than its industry peers.
Compared to the average S&P500 Dividend Yield of 2.36, GRMN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
5.2 History
On average, the dividend of GRMN grows each year by 6.30%, which is quite nice.
GRMN has been paying a dividend for at least 10 years, so it has a reliable track record.
GRMN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)6.3%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
40.42% of the earnings are spent on dividend by GRMN. This is a bit on the high side, but may be sustainable.
The dividend of GRMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.42%
EPS Next 2Y9.59%
EPS Next 3Y9.22%
198.61
-1.05 (-0.53%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.34%
Inst Owner Change0.46%
Ins Owners15.08%
Ins Owner Change-0.7%
Market Cap38.23B
Revenue(TTM)6.94B
Net Income(TTM)1.57B
Analysts53.33
Price Target224.98 (13.28%)
Short Float %1.53%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.76% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP40.42%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.86%
Min EPS beat(2)-0.56%
Max EPS beat(2)12.29%
EPS beat(4)2
Avg EPS beat(4)5.76%
Min EPS beat(4)-5.23%
Max EPS beat(4)16.53%
EPS beat(8)6
Avg EPS beat(8)15.54%
EPS beat(12)9
Avg EPS beat(12)11.72%
EPS beat(16)12
Avg EPS beat(16)9.53%
Revenue beat(2)1
Avg Revenue beat(2)1.7%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)4.59%
Revenue beat(4)3
Avg Revenue beat(4)2.15%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)5.17%
Revenue beat(8)7
Avg Revenue beat(8)3.88%
Revenue beat(12)10
Avg Revenue beat(12)3.42%
Revenue beat(16)12
Avg Revenue beat(16)1.56%
PT rev (1m)3.12%
PT rev (3m)5.85%
EPS NQ rev (1m)3.28%
EPS NQ rev (3m)1.96%
EPS NY rev (1m)0.69%
EPS NY rev (3m)3.01%
Revenue NQ rev (1m)-0.39%
Revenue NQ rev (3m)-0.73%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)3.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 24.28 | ||
| Fwd PE | 22.35 | ||
| P/S | 5.51 | ||
| P/FCF | 28.69 | ||
| P/OCF | 24.45 | ||
| P/B | 4.51 | ||
| P/tB | 5.09 | ||
| EV/EBITDA | 18.01 |
EPS(TTM)8.18
EY4.12%
EPS(NY)8.89
Fwd EY4.48%
FCF(TTM)6.92
FCFY3.49%
OCF(TTM)8.12
OCFY4.09%
SpS36.07
BVpS44.05
TBVpS39.04
PEG (NY)1.94
PEG (5Y)2.27
Graham Number90.04
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.93% | ||
| ROE | 18.53% | ||
| ROCE | 20.27% | ||
| ROIC | 16.88% | ||
| ROICexc | 23.76% | ||
| ROICexgc | 28.1% | ||
| OM | 25.61% | ||
| PM (TTM) | 22.63% | ||
| GM | 58.73% | ||
| FCFM | 19.19% |
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%
ROICexgc growth 3Y0.45%
ROICexgc 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 | 122.18% | ||
| Cap/Sales | 3.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.48% | ||
| Profit Quality | 84.82% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | 13.82 |
F-Score7
WACC4.96%
ROIC/WACC3.4
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)21.91%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%0%
EPS Next Y12.53%
EPS Next 2Y9.59%
EPS Next 3Y9.22%
EPS Next 5Y8.78%
Revenue 1Y (TTM)16.56%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.66%
Revenue Next Year15.64%
Revenue Next 2Y11.12%
Revenue Next 3Y9.77%
Revenue Next 5Y8.92%
EBIT growth 1Y25.36%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year32.12%
EBIT Next 3Y15.19%
EBIT Next 5Y13.25%
FCF growth 1Y24.18%
FCF growth 3Y20.8%
FCF growth 5Y16.47%
OCF growth 1Y22.24%
OCF growth 3Y12.27%
OCF growth 5Y15.45%
GARMIN LTD / GRMN FAQ
What is the ChartMill fundamental rating of GARMIN LTD (GRMN) stock?
ChartMill assigns a fundamental rating of 7 / 10 to GRMN.
What is the valuation status for GRMN stock?
ChartMill assigns a valuation rating of 2 / 10 to GARMIN LTD (GRMN). This can be considered as Overvalued.
Can you provide the profitability details for GARMIN LTD?
GARMIN LTD (GRMN) has a profitability rating of 8 / 10.
How financially healthy is GARMIN LTD?
The financial health rating of GARMIN LTD (GRMN) is 9 / 10.
Can you provide the dividend sustainability for GRMN stock?
The dividend rating of GARMIN LTD (GRMN) is 6 / 10 and the dividend payout ratio is 40.42%.