GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - NYSE:GRMN - CH0114405324 - Common Stock
251.42 USD
+0.97 (+0.39%)
251.42 USD
0 (0%)
Overall GRMN gets a fundamental rating of 7 out of 10. We evaluated GRMN against 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 quite expensive at the moment. It does show a decent growth rate. These ratings would make GRMN suitable 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.
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
The Return On Assets of GRMN (15.19%) is better than 98.36% of its industry peers.
GRMN's Return On Equity of 19.30% is amongst the best of the industry. GRMN outperforms 81.97% of its industry peers.
Looking at the Return On Invested Capital, with a value of 17.45%, GRMN belongs to the top of the industry, outperforming 95.08% 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 10.34%.
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
GRMN has a better Profit Margin (23.21%) than 98.36% of its industry peers.
In the last couple of years the Profit Margin of GRMN has declined.
GRMN has a Operating Margin of 26.02%. This is amongst the best in the industry. GRMN outperforms 98.36% of its industry peers.
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 96.72% 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.
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
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
GRMN has an Altman-Z score of 15.69. This indicates that GRMN is financially healthy and has little risk of bankruptcy at the moment.
GRMN's Altman-Z score of 15.69 is amongst the best of the industry. GRMN outperforms 98.36% 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 | 15.69 |
ROIC/WACC3.52
WACC4.96%
2.3 Liquidity
A Current Ratio of 3.01 indicates that GRMN has no problem at all paying its short term obligations.
With a decent Current ratio value of 3.01, GRMN is doing good in the industry, outperforming 62.30% of the companies in the same industry.
GRMN has a Quick Ratio of 2.09. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
GRMN has a better Quick ratio (2.09) than 88.52% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.01 | ||
| Quick Ratio | 2.09 |
3. Growth
3.1 Past
GRMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 33.44%, which is quite impressive.
The Earnings Per Share has been growing by 10.71% on average over the past years. This is quite good.
Looking at the last year, GRMN shows a quite strong growth in Revenue. The Revenue has grown by 19.65% in the last year.
The Revenue has been growing by 10.88% on average over the past years. This is quite good.
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
Based on estimates for the next years, GRMN will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.56% on average per year.
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 Y11.76%
EPS Next 2Y9.26%
EPS Next 3Y8.91%
EPS Next 5Y8.56%
Revenue Next Year15.73%
Revenue Next 2Y11.1%
Revenue Next 3Y9.77%
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
GRMN is valuated quite expensively with a Price/Earnings ratio of 30.74.
70.49% of the companies in the same industry are cheaper than GRMN, based on the Price/Earnings ratio.
GRMN is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.08, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 28.46, GRMN can be considered very expensive at the moment.
GRMN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 67.21% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 23.09. GRMN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.74 | ||
| Fwd PE | 28.46 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, GRMN is valued a bit more expensive than 73.77% of the companies in the same industry.
GRMN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.95 | ||
| EV/EBITDA | 23.31 |
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)2.61
PEG (5Y)2.87
EPS Next 2Y9.26%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.44%. Purely for dividend investing, there may be better candidates out there.
GRMN's Dividend Yield is a higher than the industry average which is at 3.04.
GRMN's Dividend Yield is slightly below the S&P500 average, which is at 2.30.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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 2Y9.26%
EPS Next 3Y8.91%
251.42
+0.97 (+0.39%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.34%
Inst Owner Change0%
Ins Owners15.08%
Ins Owner Change-0.7%
Market Cap48.40B
Revenue(TTM)6.76B
Net Income(TTM)1.57B
Analysts52
Price Target218.18 (-13.22%)
Short Float %1.53%
Short Ratio3.24
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.44% |
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)0.55%
PT rev (3m)5.08%
EPS NQ rev (1m)-0.2%
EPS NQ rev (3m)0.5%
EPS NY rev (1m)0%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)-1.65%
Revenue NQ rev (3m)3.82%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)3.97%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.74 | ||
| Fwd PE | 28.46 | ||
| P/S | 7.16 | ||
| P/FCF | 42.95 | ||
| P/OCF | 36.23 | ||
| P/B | 5.96 | ||
| P/tB | 6.6 | ||
| EV/EBITDA | 23.31 |
EPS(TTM)8.18
EY3.25%
EPS(NY)8.83
Fwd EY3.51%
FCF(TTM)5.85
FCFY2.33%
OCF(TTM)6.94
OCFY2.76%
SpS35.11
BVpS42.21
TBVpS38.12
PEG (NY)2.61
PEG (5Y)2.87
Graham Number88.14
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%
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 Turnover0.65
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 | 15.69 |
F-Score7
WACC4.96%
ROIC/WACC3.52
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 Y11.76%
EPS Next 2Y9.26%
EPS Next 3Y8.91%
EPS Next 5Y8.56%
Revenue 1Y (TTM)19.65%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%20.44%
Revenue Next Year15.73%
Revenue Next 2Y11.1%
Revenue Next 3Y9.77%
Revenue Next 5Y9.05%
EBIT growth 1Y40.55%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year32.12%
EBIT Next 3Y15.19%
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%
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 38.63%.