GARMIN LTD (GRMN)
CH0114405324 - Common Stock
Overall GRMN gets a fundamental rating of 7 out of 10. We evaluated GRMN against 68 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. These ratings could make GRMN a good candidate for quality investing.
1. Profitability
1.1 Basic Checks
In the past year GRMN was profitable.
In the past year GRMN had a positive cash flow from operations.
Each year in the past 5 years GRMN has been profitable.
GRMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 14.99%, GRMN belongs to the top of the industry, outperforming 94.03% of the companies in the same industry.
GRMN has a Return On Equity of 18.39%. This is in the better half of the industry: GRMN outperforms 79.10% of its industry peers.
GRMN's Return On Invested Capital of 13.69% is amongst the best of the industry. GRMN outperforms 86.57% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for GRMN is significantly above the industry average of 10.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.99% | ||
| ROE | 18.39% | ||
| ROIC | 13.69% |
ROA(3y)13.79%
ROA(5y)14.18%
ROE(3y)17.26%
ROE(5y)17.93%
ROIC(3y)15.16%
ROIC(5y)15.75%
1.3 Margins
The Profit Margin of GRMN (24.66%) is better than 97.01% of its industry peers.
In the last couple of years the Profit Margin of GRMN has grown nicely.
With an excellent Operating Margin value of 20.89%, GRMN belongs to the best of the industry, outperforming 97.01% of the companies in the same industry.
GRMN's Operating Margin has declined in the last couple of years.
GRMN's Gross Margin of 57.48% is amongst the best of the industry. GRMN outperforms 95.52% of its industry peers.
GRMN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 20.89% | ||
| PM (TTM) | 24.66% | ||
| GM | 57.48% |
OM growth 3Y-6.04%
OM growth 5Y-2.12%
PM growth 3Y1.34%
PM growth 5Y3.53%
GM growth 3Y-1.02%
GM growth 5Y-0.57%
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 remains at a similar level 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 12.63 indicates that GRMN is not in any danger for bankruptcy at the moment.
GRMN's Altman-Z score of 12.63 is amongst the best of the industry. GRMN outperforms 98.51% 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 | 12.63 |
ROIC/WACC2.59
WACC5.28%
2.3 Liquidity
GRMN has a Current Ratio of 3.41. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of GRMN (3.41) is better than 61.19% of its industry peers.
A Quick Ratio of 2.38 indicates that GRMN has no problem at all paying its short term obligations.
The Quick ratio of GRMN (2.38) is better than 85.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.38 |
3. Growth
3.1 Past
GRMN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 8.95%, which is quite good.
Measured over the past years, GRMN shows a quite strong growth in Earnings Per Share. The EPS has been growing by 8.70% on average per year.
GRMN shows a small growth in Revenue. In the last year, the Revenue has grown by 7.57%.
GRMN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 9.33% yearly.
EPS 1Y (TTM)8.95%
EPS 3Y2.97%
EPS 5Y8.7%
EPS growth Q2Q27.41%
Revenue 1Y (TTM)7.57%
Revenue growth 3Y7.69%
Revenue growth 5Y9.33%
Revenue growth Q2Q13.48%
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 11.18% 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 8.42% on average per year.
EPS Next Y-1.94%
EPS Next 2Y4.75%
EPS Next 3Y5.54%
EPS Next 5Y11.18%
Revenue Next Year10.91%
Revenue Next 2Y9.84%
Revenue Next 3Y10.04%
Revenue Next 5Y8.42%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better 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
Based on the Price/Earnings ratio of 25.45, the valuation of GRMN can be described as expensive.
Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than 67.16% of the companies in the same industry.
When comparing the Price/Earnings ratio of GRMN to the average of the S&P500 Index (25.20), we can say GRMN is valued inline with the index average.
The Price/Forward Earnings ratio is 25.95, which means the current valuation is very expensive for GRMN.
Based on the Price/Forward Earnings ratio, GRMN is valued a bit more expensive than 67.16% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 21.60. GRMN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 25.95 |
4.2 Price Multiples
71.64% of the companies in the same industry are cheaper than GRMN, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, GRMN is valued a bit more expensive than the industry average as 70.15% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 23.14 | ||
| EV/EBITDA | 19.76 |
4.3 Compensation for Growth
The excellent profitability rating of GRMN may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)2.92
EPS Next 2Y4.75%
EPS Next 3Y5.54%
5. Dividend
5.1 Amount
With a Yearly Dividend Yield of 2.13%, GRMN has a reasonable but not impressive dividend return.
GRMN's Dividend Yield is rather good when compared to the industry average which is at 3.34. GRMN pays more dividend than 85.07% of the companies in the same industry.
GRMN's Dividend Yield is comparable with the S&P500 average which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
5.2 History
The dividend of GRMN is nicely growing with an annual growth rate of 13.20%!
GRMN has been paying a dividend for at least 10 years, so it has a reliable track record.
GRMN has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
Dividend Growth(5Y)13.2%
Div Incr Years7
Div Non Decr Years20
5.3 Sustainability
GRMN pays out 43.33% of its income as dividend. This is a bit on the high side, but may be sustainable.
The dividend of GRMN is growing, but the earnings are growing slower. This means the dividend growth is not sustainable.
DP43.33%
EPS Next 2Y4.75%
EPS Next 3Y5.54%
GARMIN LTD
NYSE:GRMN (4/23/2024, 7:04:01 PM)
After market: 142.51 0 (0%)142.51
+1.49 (+1.06%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap27.33B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 2.13% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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Min EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.45 | ||
| Fwd PE | 25.95 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)2.92
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 14.99% | ||
| ROE | 18.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 20.89% | ||
| PM (TTM) | 24.66% | ||
| GM | 57.48% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.41 | ||
| Quick Ratio | 2.38 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)8.95%
EPS 3Y2.97%
EPS 5Y
EPS growth Q2Q
EPS Next Y-1.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)7.57%
Revenue growth 3Y7.69%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y