Brief Commentary On Garmin Ltd.’s (NASDAQ:GRMN) Fundamentals

Garmin Ltd. (NASDAQ:GRMN) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of GRMN, it is a financially-healthy , dividend-paying company with an impressive track record of performance. Below, I’ve touched on some key aspects you should know on a high level. For those interested in digging a bit deeper into my commentary, take a look at the report on Garmin here.

Flawless balance sheet with solid track record and pays a dividend

GRMN delivered a bottom-line expansion of 20% in the prior year, with its most recent earnings level surpassing its average level over the last five years. In addition to beating its historical values, GRMN also outperformed its industry, which delivered a growth of 13%. This is what investors like to see! GRMN’s ability to maintain an adequate level of cash to meet upcoming liabilities is a good sign for its financial health. This suggests prudent control over cash and cost by management, which is a crucial insight into the health of the company. Investors should not worry about GRMN’s debt levels because the company has none! This means it is running its business only on equity capital funding, which is rather impressive for a US$16b market cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

NasdaqGS:GRMN Income Statement, September 26th 2019
NasdaqGS:GRMN Income Statement, September 26th 2019

Income investors would also be happy to know that GRMN is a great dividend company, with a current yield standing at 2.7%. GRMN has also been regularly increasing its dividend payments to shareholders over the past decade.

NasdaqGS:GRMN Historical Dividend Yield, September 26th 2019
NasdaqGS:GRMN Historical Dividend Yield, September 26th 2019

Next Steps:

For Garmin, I’ve compiled three fundamental factors you should further examine:

  1. Future Outlook: What are well-informed industry analysts predicting for GRMN’s future growth? Take a look at our free research report of analyst consensus for GRMN’s outlook.
  2. Valuation: What is GRMN worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether GRMN is currently mispriced by the market.
  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of GRMN? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.