DB:GEY

Stock Analysis Report

Executive Summary

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of navigation, communication, and information devices worldwide.


Snowflake Analysis

Flawless balance sheet with solid track record and pays a dividend.


Similar Companies

Share Price & News

How has Garmin's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GEY has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

GEY

0.02%

DE Consumer Durables

-0.9%

DE Market


1 Year Return

18.6%

GEY

3.1%

DE Consumer Durables

12.8%

DE Market

Return vs Industry: GEY exceeded the German Consumer Durables industry which returned -0% over the past year.

Return vs Market: GEY exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

GEYIndustryMarket
7 Day0%0.02%-0.9%
30 Day0%0.9%0.6%
90 Day-0.7%3.7%2.9%
1 Year22.1%18.6%5.6%3.1%16.3%12.8%
3 Year77.9%60.7%2.8%-5.8%15.8%5.7%
5 Year103.4%67.5%25.2%8.1%19.7%3.3%

Price Volatility Vs. Market

How volatile is Garmin's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Garmin undervalued compared to its fair value and its price relative to the market?

3.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GEY (€70) is trading below our estimate of fair value (€72.67)

Significantly Below Fair Value: GEY is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GEY is poor value based on its PE Ratio (21.5x) compared to the Consumer Durables industry average (17.2x).

PE vs Market: GEY is poor value based on its PE Ratio (21.5x) compared to the German market (20.6x).


Price to Earnings Growth Ratio

PEG Ratio: GEY is poor value based on its PEG Ratio (5.4x)


Price to Book Ratio

PB vs Industry: GEY is overvalued based on its PB Ratio (3.8x) compared to the DE Consumer Durables industry average (1.7x).


Next Steps

Future Growth

How is Garmin forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

4.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GEY's forecast earnings growth (4% per year) is above the savings rate (0.2%).

Earnings vs Market: GEY's earnings (4% per year) are forecast to grow slower than the German market (13.2% per year).

High Growth Earnings: GEY's earnings are forecast to grow, but not significantly.

Revenue vs Market: GEY's revenue (4.5% per year) is forecast to grow slower than the German market (4.8% per year).

High Growth Revenue: GEY's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GEY's Return on Equity is forecast to be low in 3 years time (17.4%).


Next Steps

Past Performance

How has Garmin performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GEY has high quality earnings.

Growing Profit Margin: GEY's current net profit margins (21.3%) are higher than last year (18.8%).


Past Earnings Growth Analysis

Earnings Trend: GEY's earnings have grown by 12.9% per year over the past 5 years.

Accelerating Growth: GEY's earnings growth over the past year (20.4%) exceeds its 5-year average (12.9% per year).

Earnings vs Industry: GEY earnings growth over the past year (20.4%) exceeded the Consumer Durables industry -15.9%.


Return on Equity

High ROE: GEY's Return on Equity (17.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Garmin's financial position?


Financial Position Analysis

Short Term Liabilities: GEY's short term assets ($2.5B) exceed its short term liabilities ($1.0B).

Long Term Liabilities: GEY's short term assets ($2.5B) exceed its long term liabilities ($346.1M).


Debt to Equity History and Analysis

Debt Level: GEY is debt free.

Reducing Debt: GEY has not had any debt for past 5 years.

Debt Coverage: GEY has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: GEY has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: GEY has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if GEY's debt is covered by short term assets.


Next Steps

Dividend

What is Garmin's current dividend yield, its reliability and sustainability?

2.72%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GEY's dividend (2.72%) is higher than the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: GEY's dividend (2.72%) is low compared to the top 25% of dividend payers in the German market (3.53%).


Stability and Growth of Payments

Stable Dividend: GEY's dividend payments have been volatile in the past 10 years.

Growing Dividend: GEY's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (58.5%), GEY's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GEY's dividends in 3 years are forecast to be covered by earnings (55.3% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

12.9yrs

Average management tenure


CEO

Cliff Albert Pemble (53yo)

6.7yrs

Tenure

US$2,932,920

Compensation

Mr. Clifton Albert Pemble, also known as Cliff, has been the Chief Executive Officer of Garmin Ltd., since January 1, 2013 and President since October 2007. Mr. Pemble serves as the Managing Director of NA ...


CEO Compensation Analysis

Compensation vs Market: Cliff's total compensation ($USD2.93M) is below average for companies of similar size in the German market ($USD4.52M).

Compensation vs Earnings: Cliff's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Min-Hwan Kao
Co-Founder & Executive Chairman15.1yrsUS$382.69k15.71% $2.3b
Clifton Albert Pemble
President6.7yrsUS$2.93m0.050% $7.2m
Douglas Boessen
CFO, Principal Accounting Officer & Treasurer5.2yrsUS$1.15m0.0095% $1.4m
Andrew Etkind
VP, General Counsel & Secretary19.1yrsUS$1.57m0.022% $3.1m
Philip Straub
Executive VP & MD of Aviation - Garmin International0yrsUS$1.73m0.021% $3.0m
Patrick Desbois
Executive Vice President of Operations - Garmin International0yrsUS$1.23m0.0099% $1.4m
Teri Seck
Manager of Investor Relations0yrsno datano data
Ted Gartner
Director of Corporate Communications0yrsno datano data
Sean Biddlecombe
Managing Director of EMEA0yrsno data0.0027% $386.6k

12.9yrs

Average Tenure

59.5yo

Average Age

Experienced Management: GEY's management team is seasoned and experienced (12.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Min-Hwan Kao
Co-Founder & Executive Chairman15.1yrsUS$382.69k15.71% $2.3b
Clifton Albert Pemble
President6.7yrsUS$2.93m0.050% $7.2m
Joseph Hartnett
Director6.3yrsUS$239.96k0.0060% $867.3k
Charles Peffer
Independent Director15.1yrsUS$244.96k0.011% $1.6m
Catherine Lewis
Director0.3yrsno datano data
Jonathan Burrell
Director1.3yrsUS$201.21k11.94% $1.7b

10.7yrs

Average Tenure

65yo

Average Age

Experienced Board: GEY's board of directors are seasoned and experienced ( 10.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GEY insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Garmin Ltd.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Garmin Ltd.
  • Ticker: GEY
  • Exchange: DB
  • Founded: 1990
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: US$15.931b
  • Listing Market Cap: US$14.479b
  • Shares outstanding: 190.10m
  • Website: https://www.garmin.com

Number of Employees


Location

  • Garmin Ltd.
  • Mühlentalstrasse 2
  • Schaffhausen
  • Schaffhausen
  • 8200
  • Switzerland

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRMNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 2000
GEYDB (Deutsche Boerse AG)YesCommon StockDEEURDec 2000
0VQSLSE (London Stock Exchange)YesCommon StockGBUSDDec 2000
GRMNBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1 COM CHF10.00ARARSApr 2019

Biography

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of navigation, communication, and information devices worldwide. It operates through five segments: Auto, Aviation, Marine, Outdoor, and Fitness. The Auto segment offers personal navigation devices; infotainment systems; and action cameras, as well as mobile applications under the Garmin Drive and VIRB names. The Aviation segment provides flight display, navigation, communication, flight control, hazard avoidance, weather radar, radar altimeter, and in-cockpit and cloud connectivity products; datalink weather receivers and services; engine information, traffic collision avoidance, and terrain awareness and warning systems; wearables, portables, and apps; and training, simulation, flight planning/filing, premium trip, and aviation data services. This segment also offers controller-pilot data link, a suite of automatic dependent surveillance broadcast solutions. The Marine segment provides chartplotters and multi-function displays, cartography products, fish finders, sounders, autopilot systems, radars, compliant instrument displays, VHF communication radios, handhelds and wearable devices, sailing products, entertainment, and digital switching equipment. The Outdoor segment offers outdoor handhelds, smartwatches, golf devices, and dog tracking and training/pet obedience devices; Garmin Connect and Garmin Connect Mobile, which are Web and mobile platforms; and Connect IQ application development platform. The Fitness segment provides running/multi-sport watches, cycling computers, cycling power meters, cycling safety and awareness products, and activity tracking devices. The company sells its global positioning system receivers and accessories to retail outlets; and aviation products to aviation dealers and aircraft manufacturers through a network of independent dealers and distributors. Garmin Ltd. was founded in 1990 and is based in Schaffhausen, Switzerland. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/25 20:42
End of Day Share Price2019/06/28 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.