GARMIN LTD (GRMN) Fundamental Analysis & Valuation

NYSE:GRMN • CH0114405324

Current stock price

242.42 USD
-8.72 (-3.47%)
At close:
242.42 USD
0 (0%)
After Hours:

This GRMN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. GRMN Profitability Analysis

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.
  • GRMN had a positive operating cash flow in each of the past 5 years.
GRMN Yearly Net Income VS EBIT VS OCF VS FCFGRMN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B

1.2 Ratios

  • With an excellent Return On Assets value of 15.13%, GRMN belongs to the best of the industry, outperforming 98.33% of the companies in the same industry.
  • The Return On Equity of GRMN (18.54%) is better than 88.33% of its industry peers.
  • With an excellent Return On Invested Capital value of 16.78%, GRMN belongs to the best of the industry, outperforming 95.00% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for GRMN is significantly above the industry average of 8.88%.
  • The 3 year average ROIC (15.16%) for GRMN is below the current ROIC(16.78%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 15.13%
ROE 18.54%
ROIC 16.78%
ROA(3y)14.93%
ROA(5y)14.23%
ROE(3y)18.31%
ROE(5y)17.66%
ROIC(3y)15.16%
ROIC(5y)14.86%
GRMN Yearly ROA, ROE, ROICGRMN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5 10 15

1.3 Margins

  • Looking at the Profit Margin, with a value of 22.96%, 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 remained more or less at the same level.
  • With an excellent Operating Margin value of 25.89%, GRMN belongs to the best of the industry, outperforming 98.33% of the companies in the same industry.
  • GRMN's Operating Margin has been stable in the last couple of years.
  • GRMN has a better Gross Margin (58.74%) than 98.33% 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 RankSector Rank
OM 25.89%
PM (TTM) 22.96%
GM 58.74%
OM growth 3Y6.98%
OM growth 5Y0.56%
PM growth 3Y4.66%
PM growth 5Y-0.63%
GM growth 3Y0.57%
GM growth 5Y-0.18%
GRMN Yearly Profit, Operating, Gross MarginsGRMN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 10 20 30 40 50

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9

2. GRMN Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), GRMN is creating value.
  • The number of shares outstanding for GRMN remains at a similar level compared to 1 year ago.
  • GRMN has more shares outstanding than it did 5 years ago.
  • GRMN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
GRMN Yearly Shares OutstandingGRMN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
GRMN Yearly Total Debt VS Total AssetsGRMN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 16.95 indicates that GRMN is not in any danger for bankruptcy at the moment.
  • With an excellent Altman-Z score value of 16.95, GRMN belongs to the best of the industry, outperforming 98.33% of the companies in the same industry.
  • GRMN has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 16.95
ROIC/WACC3.38
WACC4.96%
GRMN Yearly LT Debt VS Equity VS FCFGRMN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

2.3 Liquidity

  • A Current Ratio of 3.63 indicates that GRMN has no problem at all paying its short term obligations.
  • With a decent Current ratio value of 3.63, GRMN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
  • GRMN has a Quick Ratio of 2.60. This indicates that GRMN is financially healthy and has no problem in meeting its short term obligations.
  • GRMN's Quick ratio of 2.60 is amongst the best of the industry. GRMN outperforms 90.00% of its industry peers.
Industry RankSector Rank
Current Ratio 3.63
Quick Ratio 2.6
GRMN Yearly Current Assets VS Current LiabilitesGRMN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

5

3. GRMN Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 18.97% over the past year.
  • GRMN shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 10.78% yearly.
  • The Revenue has grown by 15.06% in the past year. This is quite good.
  • The Revenue has been growing by 11.59% on average over the past years. This is quite good.
EPS 1Y (TTM)18.97%
EPS 3Y18.53%
EPS 5Y10.78%
EPS Q2Q%29.19%
Revenue 1Y (TTM)15.06%
Revenue growth 3Y14.24%
Revenue growth 5Y11.59%
Sales Q2Q%14.23%

3.2 Future

  • The Earnings Per Share is expected to grow by 8.62% on average over the next years. This is quite good.
  • The Revenue is expected to grow by 7.80% on average over the next years.
EPS Next Y11.83%
EPS Next 2Y10.09%
EPS Next 3Y9.07%
EPS Next 5Y8.62%
Revenue Next Year11.47%
Revenue Next 2Y10.07%
Revenue Next 3Y9.4%
Revenue Next 5Y7.8%

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 decreasing.
GRMN Yearly Revenue VS EstimatesGRMN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2B 4B 6B 8B 10B
GRMN Yearly EPS VS EstimatesGRMN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5 10 15

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1

4. GRMN Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 26.85 indicates a quite expensive valuation of GRMN.
  • 68.33% 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 26.64, which is the current average of the S&P500 Index.
  • GRMN is valuated rather expensively with a Price/Forward Earnings ratio of 23.37.
  • 65.00% of the companies in the same industry are cheaper than GRMN, based on the Price/Forward Earnings ratio.
  • The average S&P500 Price/Forward Earnings ratio is at 21.36. GRMN is around the same levels.
Industry RankSector Rank
PE 26.85
Fwd PE 23.37
GRMN Price Earnings VS Forward Price EarningsGRMN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 5 10 15 20 25

4.2 Price Multiples

  • 73.33% 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 60.00% of the companies in the same industry.
Industry RankSector Rank
P/FCF 34.24
EV/EBITDA 21.86
GRMN Per share dataGRMN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • GRMN has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.27
PEG (5Y)2.49
EPS Next 2Y10.09%
EPS Next 3Y9.07%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

6

5. GRMN Dividend Analysis

5.1 Amount

  • With a Yearly Dividend Yield of 1.66%, GRMN has a reasonable but not impressive dividend return.
  • GRMN's Dividend Yield is a higher than the industry average which is at 1.30.
  • GRMN's Dividend Yield is comparable with the S&P500 average which is at 1.82.
Industry RankSector Rank
Dividend Yield 1.66%

5.2 History

  • The dividend of GRMN is nicely growing with an annual growth rate of 7.90%!
  • GRMN has paid a dividend for at least 10 years, which is a reliable track record.
  • GRMN has not decreased its dividend in the past 5 years, so it has a somewhat stable track record.
Dividend Growth(5Y)7.9%
Div Incr Years8
Div Non Decr Years8
GRMN Yearly Dividends per shareGRMN Yearly Dividends per shareYearly Dividends per share 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 1 2 3

5.3 Sustainability

  • GRMN pays out 39.90% of its income as dividend. This is a sustainable payout ratio.
  • The dividend of GRMN is growing around the same rate as the earnings are growing. If this keeps up the dividend growth is sustainable.
DP39.9%
EPS Next 2Y10.09%
EPS Next 3Y9.07%
GRMN Yearly Income VS Free CF VS DividendGRMN Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B
GRMN Dividend Payout.GRMN Dividend Payout, showing the Payout Ratio.GRMN Dividend Payout.PayoutRetained Earnings

More info and screens

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GRMN Fundamentals: All Metrics, Ratios and Statistics

GARMIN LTD

NYSE:GRMN (5/1/2026, 7:30:20 PM)

After market: 242.42 0 (0%)

242.42

-8.72 (-3.47%)

Chartmill FA Rating
GICS IndustryGroupConsumer Durables & Apparel
GICS IndustryHousehold Durables
Industry StrengthN/A
Industry GrowthN/A
Earnings (Last)04-29
Earnings (Next)07-28
Inst Owners58.05%
Inst Owner Change0.02%
Ins Owners14.98%
Ins Owner Change-0.3%
Market Cap46.66B
Revenue(TTM)7.25B
Net Income(TTM)1.66B
Analysts54.67
Price Target253.15 (4.43%)
Short Float %1.9%
Short Ratio3.37
Dividend
Industry RankSector Rank
Dividend Yield 1.66%
Yearly Dividend3.45
Dividend Growth(5Y)7.9%
DP39.9%
Div Incr Years8
Div Non Decr Years8
Ex-Date06-15
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)6.8%
Min EPS beat(2)-0.56%
Max EPS beat(2)14.17%
EPS beat(4)2
Avg EPS beat(4)5.17%
Min EPS beat(4)-5.23%
Max EPS beat(4)14.17%
EPS beat(8)6
Avg EPS beat(8)14.71%
EPS beat(12)9
Avg EPS beat(12)11.71%
EPS beat(16)12
Avg EPS beat(16)10%
Revenue beat(2)1
Avg Revenue beat(2)1.01%
Min Revenue beat(2)-1.18%
Max Revenue beat(2)3.2%
Revenue beat(4)3
Avg Revenue beat(4)1.65%
Min Revenue beat(4)-1.18%
Max Revenue beat(4)4.59%
Revenue beat(8)7
Avg Revenue beat(8)3.94%
Revenue beat(12)11
Avg Revenue beat(12)3.8%
Revenue beat(16)12
Avg Revenue beat(16)1.74%
PT rev (1m)2.55%
PT rev (3m)12.09%
EPS NQ rev (1m)0%
EPS NQ rev (3m)5.89%
EPS NY rev (1m)0%
EPS NY rev (3m)7.83%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)4.39%
Valuation
Industry RankSector Rank
PE 26.85
Fwd PE 23.37
P/S 6.44
P/FCF 34.24
P/OCF 28.57
P/B 5.2
P/tB 5.82
EV/EBITDA 21.86
EPS(TTM)9.03
EY3.72%
EPS(NY)10.37
Fwd EY4.28%
FCF(TTM)7.08
FCFY2.92%
OCF(TTM)8.49
OCFY3.5%
SpS37.64
BVpS46.62
TBVpS41.64
PEG (NY)2.27
PEG (5Y)2.49
Graham Number97.3197 (-59.85%)
Profitability
Industry RankSector Rank
ROA 15.13%
ROE 18.54%
ROCE 20.23%
ROIC 16.78%
ROICexc 23.8%
ROICexgc 27.89%
OM 25.89%
PM (TTM) 22.96%
GM 58.74%
FCFM 18.81%
ROA(3y)14.93%
ROA(5y)14.23%
ROE(3y)18.31%
ROE(5y)17.66%
ROIC(3y)15.16%
ROIC(5y)14.86%
ROICexc(3y)21.44%
ROICexc(5y)20.66%
ROICexgc(3y)25.02%
ROICexgc(5y)24.32%
ROCE(3y)18.28%
ROCE(5y)17.92%
ROICexgc growth 3Y12.24%
ROICexgc growth 5Y0.37%
ROICexc growth 3Y12.27%
ROICexc growth 5Y1.83%
OM growth 3Y6.98%
OM growth 5Y0.56%
PM growth 3Y4.66%
PM growth 5Y-0.63%
GM growth 3Y0.57%
GM growth 5Y-0.18%
F-Score8
Asset Turnover0.66
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 143.28%
Cap/Sales 3.73%
Interest Coverage 250
Cash Conversion 79.1%
Profit Quality 81.91%
Current Ratio 3.63
Quick Ratio 2.6
Altman-Z 16.95
F-Score8
WACC4.96%
ROIC/WACC3.38
Cap/Depr(3y)120.27%
Cap/Depr(5y)142.22%
Cap/Sales(3y)3.51%
Cap/Sales(5y)4.36%
Profit Quality(3y)87.09%
Profit Quality(5y)76.38%
High Growth Momentum
Growth
EPS 1Y (TTM)18.97%
EPS 3Y18.53%
EPS 5Y10.78%
EPS Q2Q%29.19%
EPS Next Y11.83%
EPS Next 2Y10.09%
EPS Next 3Y9.07%
EPS Next 5Y8.62%
Revenue 1Y (TTM)15.06%
Revenue growth 3Y14.24%
Revenue growth 5Y11.59%
Sales Q2Q%14.23%
Revenue Next Year11.47%
Revenue Next 2Y10.07%
Revenue Next 3Y9.4%
Revenue Next 5Y7.8%
EBIT growth 1Y17.7%
EBIT growth 3Y22.21%
EBIT growth 5Y12.22%
EBIT Next Year25.31%
EBIT Next 3Y14.45%
EBIT Next 5Y12.48%
FCF growth 1Y10.01%
FCF growth 3Y35.98%
FCF growth 5Y7.54%
OCF growth 1Y14.02%
OCF growth 3Y27.49%
OCF growth 5Y7.55%

GARMIN LTD / GRMN Fundamental Analysis 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 1 / 10 to GARMIN LTD (GRMN). This can be considered as Overvalued.


What is the profitability of GRMN stock?

GARMIN LTD (GRMN) has a profitability rating of 9 / 10.


Can you provide the expected EPS growth for GRMN stock?

The Earnings per Share (EPS) of GARMIN LTD (GRMN) is expected to grow by 11.83% in the next year.


How sustainable is the dividend of GARMIN LTD (GRMN) stock?

The dividend rating of GARMIN LTD (GRMN) is 6 / 10 and the dividend payout ratio is 39.9%.