GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - NYSE:GRMN - CH0114405324 - Common Stock
238.08 USD
-3.1 (-1.29%)
238.08 USD
0 (0%)
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 scores excellent points on both the profitability and health parts. This is a solid base for a good stock. GRMN is valied quite expensively at the moment, while it does show a decent growth rate. These ratings could make GRMN a good candidate for 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.
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
With an excellent Return On Assets value of 15.19%, GRMN belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
GRMN has a better Return On Equity (19.30%) than 82.54% of its industry peers.
GRMN's Return On Invested Capital of 17.45% is amongst the best of the industry. GRMN outperforms 93.65% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GRMN is above the industry average of 10.51%.
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
With an excellent Profit Margin value of 23.21%, GRMN belongs to the best 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.
With an excellent Operating Margin value of 26.02%, GRMN belongs to the best of the industry, outperforming 98.41% of the companies in the same industry.
GRMN's Operating Margin has been stable in the last couple of years.
With an excellent Gross Margin value of 58.94%, GRMN belongs to the best of the industry, outperforming 96.83% of the companies in the same industry.
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.
Compared to 1 year ago, GRMN has more shares outstanding
Compared to 5 years ago, GRMN has more shares outstanding
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.
2.2 Solvency
An Altman-Z score of 15.15 indicates that GRMN is not in any danger for bankruptcy at the moment.
GRMN has a better Altman-Z score (15.15) 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 | 15.15 |
ROIC/WACC3.48
WACC5.02%
2.3 Liquidity
GRMN has a Current Ratio of 3.01. This indicates that GRMN is financially healthy and has no problem in meeting 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.
The Quick ratio of GRMN (2.09) is better than 88.89% of its industry peers.
| 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.
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 19.65% 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)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
GRMN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.56% yearly.
Based on estimates for the next years, GRMN will show a quite strong growth in Revenue. The Revenue will grow by 9.05% on average per year.
EPS Next Y10.41%
EPS Next 2Y8.85%
EPS Next 3Y8.51%
EPS Next 5Y8.56%
Revenue Next Year15.59%
Revenue Next 2Y11.07%
Revenue Next 3Y9.56%
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.
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
A Price/Earnings ratio of 29.11 indicates a quite expensive valuation of GRMN.
Compared to the rest of the industry, the Price/Earnings ratio of GRMN indicates a slightly more expensive valuation: GRMN is more expensive than 68.25% of the companies listed in the same industry.
GRMN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.30, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 27.15, the valuation of GRMN can be described as expensive.
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 69.84% of the companies listed in the same industry.
GRMN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 22.73.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.11 | ||
| Fwd PE | 27.15 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of GRMN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.67 | ||
| EV/EBITDA | 22.3 |
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)2.79
PEG (5Y)2.72
EPS Next 2Y8.85%
EPS Next 3Y8.51%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.49%.
GRMN's Dividend Yield is a higher than the industry average which is at 2.72.
Compared to the average S&P500 Dividend Yield of 2.41, GRMN is paying slightly less dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
5.2 History
The dividend of GRMN is nicely growing with an annual growth rate of 6.30%!
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 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 2Y8.85%
EPS Next 3Y8.51%
238.08
-3.1 (-1.29%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.66%
Inst Owner Change-0.84%
Ins Owners15.09%
Ins Owner Change-0.8%
Market Cap45.83B
Analysts50
Price Target216.99 (-8.86%)
Short Float %1.47%
Short Ratio2.75
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.49% |
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)0.8%
PT rev (3m)3.19%
EPS NQ rev (1m)-0.51%
EPS NQ rev (3m)-1.38%
EPS NY rev (1m)1.07%
EPS NY rev (3m)2.12%
Revenue NQ rev (1m)1.67%
Revenue NQ rev (3m)5.93%
Revenue NY rev (1m)3.64%
Revenue NY rev (3m)3.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.11 | ||
| Fwd PE | 27.15 | ||
| P/S | 6.78 | ||
| P/FCF | 40.67 | ||
| P/OCF | 34.31 | ||
| P/B | 5.64 | ||
| P/tB | 6.25 | ||
| EV/EBITDA | 22.3 |
EPS(TTM)8.18
EY3.44%
EPS(NY)8.77
Fwd EY3.68%
FCF(TTM)5.85
FCFY2.46%
OCF(TTM)6.94
OCFY2.91%
SpS35.11
BVpS42.21
TBVpS38.12
PEG (NY)2.79
PEG (5Y)2.72
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 | 15.15 |
F-Score7
WACC5.02%
ROIC/WACC3.48
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 Y10.41%
EPS Next 2Y8.85%
EPS Next 3Y8.51%
EPS Next 5Y8.56%
Revenue 1Y (TTM)19.65%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%20.44%
Revenue Next Year15.59%
Revenue Next 2Y11.07%
Revenue Next 3Y9.56%
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%