GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GRMN - CH0114405324 - Common Stock
210.415 USD
+1.06 (+0.51%)
GRMN gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 60 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 valued quite expensively, but it does show have an excellent growth rating. These ratings would make GRMN suitable 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.
GRMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of GRMN (14.93%) is better than 98.33% of its industry peers.
Looking at the Return On Equity, with a value of 18.53%, GRMN belongs to the top of the industry, outperforming 81.67% of the companies in the same industry.
With an excellent Return On Invested Capital value of 16.88%, GRMN belongs to the best of the industry, outperforming 95.00% 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 9.69%.
The last Return On Invested Capital (16.88%) for GRMN is above the 3 year average (13.98%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.93% | ||
| ROE | 18.53% | ||
| ROIC | 16.88% |
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 22.63%, GRMN belongs to the top of the industry, outperforming 98.33% of the companies in the same industry.
In the last couple of years the Profit Margin of GRMN has declined.
The Operating Margin of GRMN (25.61%) is better than 98.33% of its industry peers.
GRMN's Operating Margin has been stable in the last couple of years.
GRMN has a Gross Margin of 58.73%. This is amongst the best in the industry. GRMN outperforms 96.67% 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 | 25.61% | ||
| PM (TTM) | 22.63% | ||
| GM | 58.73% |
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.
GRMN has more shares outstanding than it did 5 years ago.
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 14.35. This indicates that GRMN is financially healthy and has little risk of bankruptcy at the moment.
GRMN's Altman-Z score of 14.35 is amongst the best of the industry. GRMN outperforms 98.33% 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 | 14.35 |
ROIC/WACC3.4
WACC4.96%
2.3 Liquidity
A Current Ratio of 3.32 indicates that GRMN has no problem at all paying its short term obligations.
GRMN has a Current ratio of 3.32. This is in the better half of the industry: GRMN outperforms 61.67% of its industry peers.
A Quick Ratio of 2.24 indicates that GRMN has no problem at all paying its short term obligations.
GRMN's Quick ratio of 2.24 is amongst the best of the industry. GRMN outperforms 88.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.24 |
3. Growth
3.1 Past
GRMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.91%, 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 16.56% 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)21.91%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%0%
Revenue 1Y (TTM)16.56%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.66%
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 8.78% yearly.
The Revenue is expected to grow by 8.92% on average over the next years. This is quite good.
EPS Next Y12.79%
EPS Next 2Y9.53%
EPS Next 3Y9.22%
EPS Next 5Y8.78%
Revenue Next Year15.83%
Revenue Next 2Y11.08%
Revenue Next 3Y10.15%
Revenue Next 5Y8.92%
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.
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 25.72 indicates a quite expensive valuation of GRMN.
Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than 68.33% 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 27.17, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.70 indicates a rather expensive valuation of GRMN.
Based on the Price/Forward Earnings ratio, GRMN is valued a bit more expensive than the industry average as 61.67% of the companies are valued more cheaply.
GRMN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 23.79.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.72 | ||
| Fwd PE | 23.7 |
4.2 Price Multiples
71.67% of the companies in the same industry are cheaper than GRMN, based on the Enterprise Value to EBITDA ratio.
GRMN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.37 | ||
| EV/EBITDA | 18.94 |
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)2.01
PEG (5Y)2.4
EPS Next 2Y9.53%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 1.77%, GRMN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 1.23, GRMN pays a bit more dividend than its industry peers.
GRMN's Dividend Yield is comparable with the S&P500 average which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
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 Years8
Div Non Decr Years8
5.3 Sustainability
40.42% of the earnings are spent on dividend by GRMN. This is a bit on the high side, but may be sustainable.
The dividend of GRMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP40.42%
EPS Next 2Y9.53%
EPS Next 3Y9.22%
NYSE:GRMN (1/7/2026, 3:42:04 PM)
210.415
+1.06 (+0.51%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.3%
Inst Owner Change0%
Ins Owners15.1%
Ins Owner Change-0.22%
Market Cap40.47B
Revenue(TTM)6.94B
Net Income(TTM)1.57B
Analysts50
Price Target225.86 (7.34%)
Short Float %1.8%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.77% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP40.42%
Div Incr Years8
Div Non Decr Years8
Ex-Date
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.86%
Min EPS beat(2)-0.56%
Max EPS beat(2)12.29%
EPS beat(4)2
Avg EPS beat(4)5.76%
Min EPS beat(4)-5.23%
Max EPS beat(4)16.53%
EPS beat(8)6
Avg EPS beat(8)15.54%
EPS beat(12)9
Avg EPS beat(12)11.72%
EPS beat(16)12
Avg EPS beat(16)9.53%
Revenue beat(2)1
Avg Revenue beat(2)1.7%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)4.59%
Revenue beat(4)3
Avg Revenue beat(4)2.15%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)5.17%
Revenue beat(8)7
Avg Revenue beat(8)3.88%
Revenue beat(12)10
Avg Revenue beat(12)3.42%
Revenue beat(16)12
Avg Revenue beat(16)1.56%
PT rev (1m)0%
PT rev (3m)3.52%
EPS NQ rev (1m)0%
EPS NQ rev (3m)3.28%
EPS NY rev (1m)0%
EPS NY rev (3m)0.92%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.59%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.72 | ||
| Fwd PE | 23.7 | ||
| P/S | 5.83 | ||
| P/FCF | 30.37 | ||
| P/OCF | 25.88 | ||
| P/B | 4.77 | ||
| P/tB | 5.39 | ||
| EV/EBITDA | 18.94 |
EPS(TTM)8.18
EY3.89%
EPS(NY)8.88
Fwd EY4.22%
FCF(TTM)6.93
FCFY3.29%
OCF(TTM)8.13
OCFY3.86%
SpS36.1
BVpS44.08
TBVpS39.07
PEG (NY)2.01
PEG (5Y)2.4
Graham Number90.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.93% | ||
| ROE | 18.53% | ||
| ROCE | 20.27% | ||
| ROIC | 16.88% | ||
| ROICexc | 23.76% | ||
| ROICexgc | 28.1% | ||
| OM | 25.61% | ||
| PM (TTM) | 22.63% | ||
| GM | 58.73% | ||
| FCFM | 19.19% |
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 Turnover0.66
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 122.18% | ||
| Cap/Sales | 3.33% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 79.48% | ||
| Profit Quality | 84.82% | ||
| Current Ratio | 3.32 | ||
| Quick Ratio | 2.24 | ||
| Altman-Z | 14.35 |
F-Score7
WACC4.96%
ROIC/WACC3.4
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)21.91%
EPS 3Y8.34%
EPS 5Y10.71%
EPS Q2Q%0%
EPS Next Y12.79%
EPS Next 2Y9.53%
EPS Next 3Y9.22%
EPS Next 5Y8.78%
Revenue 1Y (TTM)16.56%
Revenue growth 3Y8.11%
Revenue growth 5Y10.88%
Sales Q2Q%11.66%
Revenue Next Year15.83%
Revenue Next 2Y11.08%
Revenue Next 3Y10.15%
Revenue Next 5Y8.92%
EBIT growth 1Y25.36%
EBIT growth 3Y9.36%
EBIT growth 5Y11.01%
EBIT Next Year32.9%
EBIT Next 3Y15.94%
EBIT Next 5Y13.25%
FCF growth 1Y24.18%
FCF growth 3Y20.8%
FCF growth 5Y16.47%
OCF growth 1Y22.24%
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 of GARMIN LTD (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.
What are the PE and PB ratios of GARMIN LTD (GRMN) stock?
The Price/Earnings (PE) ratio for GARMIN LTD (GRMN) is 25.72 and the Price/Book (PB) ratio is 4.77.
What is the financial health of GARMIN LTD (GRMN) stock?
The financial health rating of GARMIN LTD (GRMN) is 9 / 10.