GARMIN LTD (GRMN) Stock Fundamental Analysis
NYSE:GRMN - New York Stock Exchange, Inc. - CH0114405324 - Common Stock - Currency: USD
Overall GRMN gets a fundamental rating of 7 out of 10. We evaluated GRMN against 64 industry peers in the Household Durables industry. GRMN has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. GRMN shows excellent growth, but is valued quite expensive already. These ratings could make GRMN a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
GRMN had positive earnings in the past year.
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
GRMN has a Return On Assets of 15.00%. This is amongst the best in the industry. GRMN outperforms 93.75% of its industry peers.
The Return On Equity of GRMN (17.95%) is better than 81.25% of its industry peers.
Looking at the Return On Invested Capital, with a value of 16.03%, GRMN belongs to the top of the industry, outperforming 89.06% 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 10.34%.
The 3 year average ROIC (13.98%) for GRMN is below the current ROIC(16.03%), indicating increased profibility in the last year.
| 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
With an excellent Profit Margin value of 22.76%, GRMN belongs to the best of the industry, outperforming 98.44% of the companies in the same industry.
In the last couple of years the Profit Margin of GRMN has declined.
GRMN has a better Operating Margin (25.25%) than 98.44% of its industry peers.
In the last couple of years the Operating Margin of GRMN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 58.59%, GRMN belongs to the top of the industry, outperforming 96.88% of the companies in the same industry.
GRMN'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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so GRMN is creating value.
The number of shares outstanding for GRMN has been increased compared to 1 year ago.
The number of shares outstanding for GRMN has been increased compared to 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
An Altman-Z score of 18.05 indicates that GRMN is not in any danger for bankruptcy at the moment.
GRMN has a Altman-Z score of 18.05. This is amongst the best in the industry. GRMN outperforms 100.00% of its industry peers.
GRMN 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 | 18.05 |
ROIC/WACC3.27
WACC4.9%
2.3 Liquidity
GRMN has a Current Ratio of 4.10. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
GRMN's Current ratio of 4.10 is fine compared to the rest of the industry. GRMN outperforms 70.31% of its industry peers.
A Quick Ratio of 2.91 indicates that GRMN has no problem at all paying its short term obligations.
The Quick ratio of GRMN (2.91) is better than 96.88% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.1 | ||
| Quick Ratio | 2.91 |
3. Growth
3.1 Past
GRMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.50%, which is quite impressive.
Measured over the past years, GRMN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 10.71% on average per year.
Looking at the last year, GRMN shows a quite strong growth in Revenue. The Revenue has grown by 18.09% in the last year.
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)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
GRMN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.75% yearly.
The Revenue is expected to grow by 9.10% on average over the next years. This is quite good.
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
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.
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
GRMN is valuated quite expensively with a Price/Earnings ratio of 28.30.
GRMN's Price/Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 67.19% of the companies in the same industry.
When comparing the Price/Earnings ratio of GRMN to the average of the S&P500 Index (27.45), we can say GRMN is valued inline with the index average.
With a Price/Forward Earnings ratio of 24.48, GRMN is valued on the expensive side.
Compared to the rest of the industry, the Price/Forward Earnings ratio of GRMN indicates a slightly more expensive valuation: GRMN is more expensive than 67.19% of the companies listed in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.90. GRMN is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.3 | ||
| Fwd PE | 24.48 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRMN is valued a bit more expensive than 68.75% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as GRMN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.96 | ||
| EV/EBITDA | 21.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
GRMN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.06
PEG (5Y)2.64
EPS Next 2Y8.88%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.75%, GRMN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.49, GRMN pays a bit more dividend than its industry peers.
GRMN's Dividend Yield is slightly below the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
5.2 History
The dividend of GRMN is nicely growing with an annual growth rate of 6.30%!
GRMN has been paying a dividend for at least 10 years, so it has 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)6.3%
Div Incr Years8
Div Non Decr Years8
5.3 Sustainability
GRMN pays out 39.28% of its income as dividend. This is a sustainable payout ratio.
The dividend of GRMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP39.28%
EPS Next 2Y8.88%
EPS Next 3Y8.6%
214.77
+1.38 (+0.65%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.26%
Inst Owner Change-0.76%
Ins Owners15.56%
Ins Owner Change1.64%
Market Cap41.35B
Analysts52
Price Target207.63 (-3.32%)
Short Float %1.33%
Short Ratio2.43
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.75% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP39.28%
Div Incr Years8
Div Non Decr Years8
Ex-Date
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)0.06%
PT rev (3m)-4.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.63%
EPS NY rev (1m)1.05%
EPS NY rev (3m)2.38%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.29%
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)0.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.3 | ||
| Fwd PE | 24.48 | ||
| P/S | 6.41 | ||
| P/FCF | 33.96 | ||
| P/OCF | 29.16 | ||
| P/B | 5.06 | ||
| P/tB | 5.58 | ||
| EV/EBITDA | 21.1 |
EPS(TTM)7.59
EY3.53%
EPS(NY)8.77
Fwd EY4.08%
FCF(TTM)6.32
FCFY2.94%
OCF(TTM)7.36
OCFY3.43%
SpS33.5
BVpS42.48
TBVpS38.5
PEG (NY)3.06
PEG (5Y)2.64
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 | 18.05 |
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%