GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - NYSE:GRMN - CH0114405324 - Common Stock
257.06 USD
-0.68 (-0.26%)
257.06 USD
0 (0%)
Overall GRMN gets a fundamental rating of 7 out of 10. We evaluated GRMN against 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 quite expensive at the moment. It does show a decent growth rate. This makes GRMN very considerable for 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.
GRMN had positive earnings in each of the past 5 years.
Each year in the past 5 years GRMN had a positive operating cash flow.
1.2 Ratios
GRMN's Return On Assets of 15.19% is amongst the best of the industry. GRMN outperforms 96.83% of its industry peers.
The Return On Equity of GRMN (19.30%) is better than 82.54% of its industry peers.
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.
Measured over the past 3 years, the Average Return On Invested Capital for GRMN is above the industry average of 10.52%.
The 3 year average ROIC (13.98%) for GRMN is below the current ROIC(17.45%), indicating increased profibility in the last year.
| 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.
GRMN's Profit Margin has declined in the last couple of years.
The Operating Margin of GRMN (26.02%) is better than 98.41% of its industry peers.
GRMN's Operating Margin has been stable in the last couple of years.
GRMN has a better Gross Margin (58.94%) than 96.83% of its industry peers.
GRMN's Gross Margin has been stable in the last couple of years.
| 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
The number of shares outstanding for GRMN has been increased compared to 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 16.02. This indicates that GRMN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of GRMN (16.02) is better 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 | 16.02 |
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 66.67% 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 88.89% of the companies in the same industry.
| 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.
GRMN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.71% yearly.
The Revenue has grown by 19.65% in the past year. This is quite good.
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.
The Revenue is expected to grow by 9.05% on average over the next years. This is quite good.
EPS Next Y11.76%
EPS Next 2Y9.26%
EPS Next 3Y8.91%
EPS Next 5Y8.56%
Revenue Next Year15.57%
Revenue Next 2Y10.96%
Revenue Next 3Y9.45%
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
A Price/Earnings ratio of 31.43 indicates a quite expensive valuation of GRMN.
Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than the industry average as 65.08% of the companies are valued more cheaply.
Compared to an average S&P500 Price/Earnings ratio of 27.86, GRMN is valued at the same level.
The Price/Forward Earnings ratio is 29.10, which means the current valuation is very expensive for GRMN.
GRMN's Price/Forward Earnings ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 69.84% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.32, GRMN is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.43 | ||
| Fwd PE | 29.1 |
4.2 Price Multiples
69.84% of the companies in the same industry are cheaper than GRMN, based on the Enterprise Value to EBITDA ratio.
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 | 43.91 | ||
| EV/EBITDA | 23.94 |
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)2.67
PEG (5Y)2.94
EPS Next 2Y9.26%
EPS Next 3Y8.91%
5. Dividend
5.1 Amount
GRMN has a Yearly Dividend Yield of 1.52%. Purely for dividend investing, there may be better candidates out there.
Compared to an average industry Dividend Yield of 2.76, GRMN pays a bit more dividend than its industry peers.
GRMN's Dividend Yield is slightly below the S&P500 average, which is at 2.41.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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
38.63% of the earnings are spent on dividend by GRMN. This is a low number and sustainable payout ratio.
The dividend of GRMN is growing, but earnings are growing more, so the dividend growth is sustainable.
DP38.63%
EPS Next 2Y9.26%
EPS Next 3Y8.91%
257.06
-0.68 (-0.26%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners57.34%
Inst Owner Change-0.84%
Ins Owners15.08%
Ins Owner Change-0.7%
Market Cap49.48B
Analysts50
Price Target216.99 (-15.59%)
Short Float %1.7%
Short Ratio3.22
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.52% |
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)1.28%
PT rev (3m)4.51%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.71%
EPS NY rev (1m)1.22%
EPS NY rev (3m)2.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.56%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)3.83%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.43 | ||
| Fwd PE | 29.1 | ||
| P/S | 7.32 | ||
| P/FCF | 43.91 | ||
| P/OCF | 37.04 | ||
| P/B | 6.09 | ||
| P/tB | 6.74 | ||
| EV/EBITDA | 23.94 |
EPS(TTM)8.18
EY3.18%
EPS(NY)8.83
Fwd EY3.44%
FCF(TTM)5.85
FCFY2.28%
OCF(TTM)6.94
OCFY2.7%
SpS35.11
BVpS42.21
TBVpS38.12
PEG (NY)2.67
PEG (5Y)2.94
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 | 16.02 |
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 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 Year15.57%
Revenue Next 2Y10.96%
Revenue Next 3Y9.45%
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%