GARMIN LTD (GRMN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:GRMN - CH0114405324 - Common Stock
211.8 USD
-0.8 (-0.38%)
211.8 USD
0 (0%)
We assign a fundamental rating of 7 out of 10 to GRMN. GRMN was compared to 60 industry peers in the Household Durables industry. GRMN gets an excellent profitability rating and is at the same time showing great financial health properties. GRMN shows excellent growth, but is valued quite expensive already. 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.
- In the past year GRMN had a positive cash flow from operations.
- GRMN had positive earnings in each of the past 5 years.
- GRMN had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- GRMN has a Return On Assets of 14.93%. This is amongst the best in the industry. GRMN outperforms 98.33% of its industry peers.
- Looking at the Return On Equity, with a value of 18.53%, GRMN is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
- The Return On Invested Capital of GRMN (16.88%) is better than 95.00% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for GRMN is above the industry average of 9.71%.
- 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.
- GRMN's Profit Margin has declined in the last couple of years.
- GRMN's Operating Margin of 25.61% is amongst the best of the industry. GRMN outperforms 98.33% of its industry peers.
- In the last couple of years the Operating Margin of GRMN has remained more or less at the same level.
- GRMN has a better Gross Margin (58.73%) than 96.67% of its industry peers.
- GRMN's Gross Margin has been stable in the last couple of years.
| 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.
- GRMN has more shares outstanding than it did 1 year ago.
- 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
- An Altman-Z score of 14.49 indicates that GRMN is not in any danger for bankruptcy at the moment.
- The Altman-Z score of GRMN (14.49) is better than 98.33% 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 | 14.49 |
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.
- The Current ratio of GRMN (3.32) is better than 61.67% of its industry peers.
- GRMN has a Quick Ratio of 2.24. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 2.24, GRMN belongs to the top of the industry, outperforming 88.33% of the companies in the same industry.
| 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.
- 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.
- GRMN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.56%.
- GRMN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 10.88% yearly.
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.
- GRMN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.92% yearly.
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.
- 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 25.89.
- Based on the Price/Earnings ratio, GRMN is valued a bit more expensive than 63.33% 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 27.38, which is the current average of the S&P500 Index.
- GRMN is valuated rather expensively with a Price/Forward Earnings ratio of 23.86.
- GRMN's Price/Forward Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.29, GRMN is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 25.89 | ||
| Fwd PE | 23.86 |
4.2 Price Multiples
- GRMN's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. GRMN is more expensive than 66.67% of the companies in the same industry.
- The rest of the industry has a similar Price/Free Cash Flow ratio as GRMN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.57 | ||
| EV/EBITDA | 19.18 |
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.
- The excellent profitability rating of GRMN may justify a higher PE ratio.
PEG (NY)2.02
PEG (5Y)2.42
EPS Next 2Y9.53%
EPS Next 3Y9.22%
5. Dividend
5.1 Amount
- With a Yearly Dividend Yield of 1.69%, GRMN has a reasonable but not impressive dividend return.
- GRMN's Dividend Yield is a higher than the industry average which is at 1.16.
- GRMN's Dividend Yield is comparable with the S&P500 average which is at 1.84.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
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.
- GRMN's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP40.42%
EPS Next 2Y9.53%
EPS Next 3Y9.22%
211.8
-0.8 (-0.38%)
Chartmill FA Rating
GICS SectorConsumer Discretionary
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Earnings (Last)10-29 2025-10-29/bmo
Earnings (Next)02-18 2026-02-18/amc
Inst Owners57.3%
Inst Owner Change0.36%
Ins Owners15.1%
Ins Owner Change-0.34%
Market Cap40.74B
Revenue(TTM)6.94B
Net Income(TTM)1.57B
Analysts51.43
Price Target225.86 (6.64%)
Short Float %1.8%
Short Ratio2.74
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 1.69% |
Yearly Dividend2.98
Dividend Growth(5Y)6.3%
DP40.42%
Div Incr Years8
Div Non Decr Years8
Ex-Date03-13 2026-03-13 (0.9)
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 | 25.89 | ||
| Fwd PE | 23.86 | ||
| P/S | 5.87 | ||
| P/FCF | 30.57 | ||
| P/OCF | 26.05 | ||
| P/B | 4.8 | ||
| P/tB | 5.42 | ||
| EV/EBITDA | 19.18 |
EPS(TTM)8.18
EY3.86%
EPS(NY)8.88
Fwd EY4.19%
FCF(TTM)6.93
FCFY3.27%
OCF(TTM)8.13
OCFY3.84%
SpS36.1
BVpS44.08
TBVpS39.07
PEG (NY)2.02
PEG (5Y)2.42
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 | 14.49 |
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 25.89 and the Price/Book (PB) ratio is 4.8.
What is the financial health of GARMIN LTD (GRMN) stock?
The financial health rating of GARMIN LTD (GRMN) is 9 / 10.