GARMIN LTD (GRMN) Stock Fundamental Analysis
NYSE:GRMN - New York Stock Exchange, Inc. - CH0114405324 - Common Stock - Currency: USD
Taking everything into account, GRMN scores 7 out of 10 in our fundamental rating. GRMN was compared to 63 industry peers in the Household Durables industry. GRMN gets an excellent profitability rating and is at the same time showing great financial health properties. While showing a medium growth rate, GRMN is valued expensive at the moment. These ratings would make GRMN suitable for quality investing!
1. Profitability
1.1 Basic Checks
GRMN had positive earnings in the past year.
In the past year GRMN had a positive cash flow from operations.
GRMN had positive earnings in each of the past 5 years.
In the past 5 years GRMN always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of GRMN (15.19%) is better than 96.83% of its industry peers.
Looking at the Return On Equity, with a value of 19.30%, GRMN belongs to the top of the industry, outperforming 80.95% of the companies in the same industry.
With an excellent Return On Invested Capital value of 17.45%, GRMN belongs to the best of the industry, outperforming 93.65% 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 10.42%.
The last Return On Invested Capital (17.45%) for GRMN is above the 3 year average (13.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 19.3% | ||
| ROIC | 17.45% |
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 23.21%, GRMN belongs to the top of the industry, outperforming 98.41% 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 (26.02%) than 98.41% of its industry peers.
GRMN's Operating Margin has been stable in the last couple of years.
GRMN has a Gross Margin of 58.94%. This is amongst the best in the industry. GRMN outperforms 96.83% 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 | 26.02% | ||
| PM (TTM) | 23.21% | ||
| GM | 58.94% |
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.
Compared to 5 years ago, GRMN has more shares outstanding
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 14.69 indicates that GRMN is not in any danger for bankruptcy at the moment.
GRMN has a better Altman-Z score (14.69) than 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 | 14.69 |
ROIC/WACC3.45
WACC5.05%
2.3 Liquidity
A Current Ratio of 3.01 indicates that GRMN has no problem at all paying its short term obligations.
GRMN's Current ratio of 3.01 is fine compared to the rest of the industry. GRMN outperforms 65.08% of its industry peers.
A Quick Ratio of 2.09 indicates that GRMN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.09, GRMN belongs to the top of the industry, outperforming 87.30% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.01 | ||
| Quick Ratio | 2.09 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 33.44% 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.
GRMN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 19.65%.
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)33.44%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%37.34%
Revenue 1Y (TTM)19.65%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%20.44%
3.2 Future
The Earnings Per Share is expected to grow by 8.56% on average over the next years. This is quite good.
GRMN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.05% yearly.
EPS Next Y9.25%
EPS Next 2Y8.88%
EPS Next 3Y8.6%
EPS Next 5Y8.56%
Revenue Next Year11.53%
Revenue Next 2Y9.49%
Revenue Next 3Y9.25%
Revenue Next 5Y9.05%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less 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 28.40, which means the current valuation is very expensive for GRMN.
GRMN's Price/Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 63.49% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.87. GRMN is around the same levels.
Based on the Price/Forward Earnings ratio of 26.49, the valuation of GRMN can be described as expensive.
69.84% of the companies in the same industry are cheaper than GRMN, based on the Price/Forward Earnings ratio.
GRMN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.4 | ||
| Fwd PE | 26.49 |
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 69.84% of the companies listed in the same industry.
GRMN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.7 | ||
| EV/EBITDA | 21.43 |
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 GRMN may justify a higher PE ratio.
PEG (NY)3.07
PEG (5Y)2.65
EPS Next 2Y8.88%
EPS Next 3Y8.6%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.53%, GRMN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 3.24, GRMN pays a bit more dividend than its industry peers.
GRMN's Dividend Yield is slightly below the S&P500 average, which is at 2.36.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
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.
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 38.63% of its income as dividend. This is a sustainable payout ratio.
GRMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP38.63%
EPS Next 2Y8.88%
EPS Next 3Y8.6%
232.34
-2.72 (-1.16%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.66%
Inst Owner Change-0.85%
Ins Owners15.09%
Ins Owner Change1.47%
Market Cap44.73B
Analysts50
Price Target212.56 (-8.51%)
Short Float %1.68%
Short Ratio3.35
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.53% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP38.63%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.53%
Min EPS beat(2)-5.23%
Max EPS beat(2)12.29%
EPS beat(4)3
Avg EPS beat(4)14.77%
Min EPS beat(4)-5.23%
Max EPS beat(4)35.48%
EPS beat(8)7
Avg EPS beat(8)16.52%
EPS beat(12)10
Avg EPS beat(12)12.42%
EPS beat(16)13
Avg EPS beat(16)10.18%
Revenue beat(2)2
Avg Revenue beat(2)2.3%
Min Revenue beat(2)0.01%
Max Revenue beat(2)4.59%
Revenue beat(4)4
Avg Revenue beat(4)4.36%
Min Revenue beat(4)0.01%
Max Revenue beat(4)7.67%
Revenue beat(8)8
Avg Revenue beat(8)4.52%
Revenue beat(12)10
Avg Revenue beat(12)2.87%
Revenue beat(16)13
Avg Revenue beat(16)1.75%
PT rev (1m)2.37%
PT rev (3m)2.44%
EPS NQ rev (1m)0.71%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)0%
EPS NY rev (3m)0.09%
Revenue NQ rev (1m)5.56%
Revenue NQ rev (3m)5.93%
Revenue NY rev (1m)0.2%
Revenue NY rev (3m)0.4%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.4 | ||
| Fwd PE | 26.49 | ||
| P/S | 6.62 | ||
| P/FCF | 39.7 | ||
| P/OCF | 33.49 | ||
| P/B | 5.51 | ||
| P/tB | 6.1 | ||
| EV/EBITDA | 21.43 |
EPS(TTM)8.18
EY3.52%
EPS(NY)8.77
Fwd EY3.78%
FCF(TTM)5.85
FCFY2.52%
OCF(TTM)6.94
OCFY2.99%
SpS35.1
BVpS42.2
TBVpS38.11
PEG (NY)3.07
PEG (5Y)2.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 15.19% | ||
| ROE | 19.3% | ||
| ROCE | 20.96% | ||
| ROIC | 17.45% | ||
| ROICexc | 25.22% | ||
| ROICexgc | 29.18% | ||
| OM | 26.02% | ||
| PM (TTM) | 23.21% | ||
| GM | 58.94% | ||
| FCFM | 16.67% |
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-Score7
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 113.45% | ||
| Cap/Sales | 3.09% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 68.75% | ||
| Profit Quality | 71.84% | ||
| Current Ratio | 3.01 | ||
| Quick Ratio | 2.09 | ||
| Altman-Z | 14.69 |
F-Score7
WACC5.05%
ROIC/WACC3.45
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)33.44%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%37.34%
EPS Next Y9.25%
EPS Next 2Y8.88%
EPS Next 3Y8.6%
EPS Next 5Y8.56%
Revenue 1Y (TTM)19.65%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%20.44%
Revenue Next Year11.53%
Revenue Next 2Y9.49%
Revenue Next 3Y9.25%
Revenue Next 5Y9.05%
EBIT growth 1Y40.55%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year30.82%
EBIT Next 3Y14.9%
EBIT Next 5Y13.07%
FCF growth 1Y30.27%
FCF growth 3Y20.8%
FCF growth 5Y16.47%
OCF growth 1Y24.18%
OCF growth 3Y12.27%
OCF growth 5Y15.45%