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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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
In the past year GRMN was profitable.
In the past year GRMN had a positive cash flow from operations.
In the past 5 years GRMN has always been profitable.
GRMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
GRMN has a Return On Assets of 14.66%. This is amongst the best in the industry. GRMN outperforms 92.19% of its industry peers.
Looking at the Return On Equity, with a value of 17.98%, GRMN is in the better half of the industry, outperforming 76.56% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.34%, GRMN belongs to the best of the industry, outperforming 85.94% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for GRMN is above the industry average of 11.93%.
The last Return On Invested Capital (16.34%) for GRMN is above the 3 year average (13.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.66% | ||
| ROE | 17.98% | ||
| ROIC | 16.34% |
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 (22.41%) is better than 98.44% of its industry peers.
GRMN's Profit Margin has declined in the last couple of years.
The Operating Margin of GRMN (25.31%) is better 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.
GRMN has a better Gross Margin (58.70%) than 96.88% of its industry peers.
In the last couple of years the Gross Margin of GRMN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 25.31% | ||
| PM (TTM) | 22.41% | ||
| GM | 58.7% |
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.
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 15.76. This indicates that GRMN is financially healthy and has little risk of bankruptcy at the moment.
GRMN has a better Altman-Z score (15.76) than 100.00% 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 | 15.76 |
ROIC/WACC3.29
WACC4.97%
2.3 Liquidity
GRMN has a Current Ratio of 3.54. 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 3.54, GRMN is in the better half of the industry, outperforming 67.19% of the companies in the same industry.
A Quick Ratio of 2.56 indicates that GRMN has no problem at all paying its short term obligations.
GRMN has a better Quick ratio (2.56) than 93.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.50% over the past year.
GRMN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.71% yearly.
Looking at the last year, GRMN shows a very strong growth in Revenue. The Revenue has grown by 20.44%.
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)20.44%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.11%
3.2 Future
The Earnings Per Share is expected to grow by 9.95% on average over the next years. This is quite good.
The Revenue is expected to grow by 9.02% on average over the next years. This is quite good.
EPS Next Y8.12%
EPS Next 2Y8.15%
EPS Next 3Y8.6%
EPS Next 5Y9.95%
Revenue Next Year11.1%
Revenue Next 2Y9.24%
Revenue Next 3Y9.25%
Revenue Next 5Y9.02%
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 26.85, which means the current valuation is very expensive for GRMN.
Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than 67.19% of the companies in the same industry.
GRMN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.60, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 23.54, GRMN is valued on the expensive side.
GRMN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 73.44% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.43, GRMN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.85 | ||
| Fwd PE | 23.54 |
4.2 Price Multiples
70.31% of the companies in the same industry are cheaper than GRMN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GRMN is valued a bit more expensive than 62.50% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.68 | ||
| EV/EBITDA | 20.48 |
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)3.31
PEG (5Y)2.51
EPS Next 2Y8.15%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.49%.
Compared to an average industry Dividend Yield of 3.48, 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 | 1.49% |
5.2 History
On average, the dividend of GRMN grows each year by 6.30%, which is quite nice.
GRMN has paid a dividend for at least 10 years, which is 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 Years7
Div Non Decr Years7
5.3 Sustainability
40.55% of the earnings are spent on dividend by GRMN. This is a bit on the high side, but may be sustainable.
GRMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.55%
EPS Next 2Y8.15%
EPS Next 3Y8.6%
203.76
-1.14 (-0.56%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners56.86%
Inst Owner Change-0.94%
Ins Owners19.3%
Ins Owner Change1.93%
Market Cap39.25B
Analysts53.33
Price Target207.5 (1.84%)
Short Float %1.48%
Short Ratio2.11
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP40.55%
Div Incr Years7
Div Non Decr Years7
Ex-Date
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)26.01%
Min EPS beat(2)16.53%
Max EPS beat(2)35.48%
EPS beat(4)4
Avg EPS beat(4)24.25%
Min EPS beat(4)7.57%
Max EPS beat(4)37.4%
EPS beat(8)7
Avg EPS beat(8)14.97%
EPS beat(12)10
Avg EPS beat(12)11.62%
EPS beat(16)14
Avg EPS beat(16)13.53%
Revenue beat(2)2
Avg Revenue beat(2)6.42%
Min Revenue beat(2)5.17%
Max Revenue beat(2)7.67%
Revenue beat(4)4
Avg Revenue beat(4)6.22%
Min Revenue beat(4)3.77%
Max Revenue beat(4)8.28%
Revenue beat(8)8
Avg Revenue beat(8)4.88%
Revenue beat(12)9
Avg Revenue beat(12)1.77%
Revenue beat(16)13
Avg Revenue beat(16)3.29%
PT rev (1m)-6.01%
PT rev (3m)-0.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)8.38%
EPS NY rev (1m)-0.94%
EPS NY rev (3m)1.49%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)2.4%
Revenue NY rev (1m)0.4%
Revenue NY rev (3m)2.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 26.85 | ||
| Fwd PE | 23.54 | ||
| P/S | 6.23 | ||
| P/FCF | 31.68 | ||
| P/OCF | 27.4 | ||
| P/B | 5 | ||
| P/tB | 5.54 | ||
| EV/EBITDA | 20.48 |
EPS(TTM)7.59
EY3.72%
EPS(NY)8.66
Fwd EY4.25%
FCF(TTM)6.43
FCFY3.16%
OCF(TTM)7.44
OCFY3.65%
SpS32.69
BVpS40.74
TBVpS36.81
PEG (NY)3.31
PEG (5Y)2.51
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.66% | ||
| ROE | 17.98% | ||
| ROCE | 19.62% | ||
| ROIC | 16.34% | ||
| ROICexc | 23.6% | ||
| ROICexgc | 27.28% | ||
| OM | 25.31% | ||
| PM (TTM) | 22.41% | ||
| GM | 58.7% | ||
| FCFM | 19.67% |
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-Score8
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 107.7% | ||
| Cap/Sales | 3.07% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 80.76% | ||
| Profit Quality | 87.78% | ||
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.56 | ||
| Altman-Z | 15.76 |
F-Score8
WACC4.97%
ROIC/WACC3.29
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 Y8.12%
EPS Next 2Y8.15%
EPS Next 3Y8.6%
EPS Next 5Y9.95%
Revenue 1Y (TTM)20.44%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.11%
Revenue Next Year11.1%
Revenue Next 2Y9.24%
Revenue Next 3Y9.25%
Revenue Next 5Y9.02%
EBIT growth 1Y45.94%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year31.14%
EBIT Next 3Y15.65%
EBIT Next 5Y14.05%
FCF growth 1Y4.88%
FCF growth 3Y20.8%
FCF growth 5Y16.47%
OCF growth 1Y4.08%
OCF growth 3Y12.27%
OCF growth 5Y15.45%