NasdaqGS:GRMN

Stock Analysis Report

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Executive Summary

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


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: GRMN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.7%

GRMN

-7.1%

US Consumer Durables

-0.8%

US Market


1 Year Return

15.6%

GRMN

14.3%

US Consumer Durables

18.0%

US Market

Return vs Industry: GRMN underperformed the US Consumer Durables industry which returned 16.9% over the past year.

Return vs Market: GRMN underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

GRMNIndustryMarket
7 Day1.7%-7.1%-0.8%
30 Day8.8%2.3%6.8%
90 Day4.2%12.3%8.9%
1 Year18.7%15.6%15.7%14.3%20.7%18.0%
3 Year95.6%79.1%15.2%10.5%41.5%32.1%
5 Year239.4%184.3%46.7%37.4%84.6%63.8%

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

Valuation

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

20.57x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GRMN ($99.04) is trading above our estimate of fair value ($80.65)

Significantly Below Fair Value: GRMN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GRMN is poor value based on its PE Ratio (20.2x) compared to the US Consumer Durables industry average (14x).

PE vs Market: GRMN is poor value based on its PE Ratio (20.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: GRMN is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: GRMN is overvalued based on its PB Ratio (4x) compared to the US Consumer Durables industry average (1.6x).


Next Steps

Future Growth

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

8.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRMN's forecast earnings growth (8.2% per year) is above the savings rate (2.2%).

Earnings vs Market: GRMN's earnings (8.2% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: GRMN's revenue (7.3% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: GRMN's revenue (7.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GRMN's Return on Equity is forecast to be low in 3 years time (17.2%).


Next Steps

Past Performance

How has Garmin performed over the past 5 years?

15.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRMN has high quality earnings.

Growing Profit Margin: GRMN's current net profit margins (24.8%) are higher than last year (21.3%).


Past Earnings Growth Analysis

Earnings Trend: GRMN's earnings have grown by 15.6% per year over the past 5 years.

Accelerating Growth: GRMN's earnings growth over the past year (26.6%) exceeds its 5-year average (15.6% per year).

Earnings vs Industry: GRMN earnings growth over the past year (26.6%) exceeded the Consumer Durables industry 20.9%.


Return on Equity

High ROE: GRMN's Return on Equity (19.7%) is considered low.


Next Steps

Financial Health

How is Garmin's financial position?


Financial Position Analysis

Short Term Liabilities: GRMN's short term assets ($3.3B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: GRMN's short term assets ($3.3B) exceed its long term liabilities ($315.3M).


Debt to Equity History and Analysis

Debt Level: GRMN is debt free.

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

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

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


Balance Sheet


Next Steps

Dividend

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

2.42%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: GRMN's dividend (2.46%) is higher than the bottom 25% of dividend payers in the US market (1.65%).

High Dividend: GRMN's dividend (2.46%) is low compared to the top 25% of dividend payers in the US market (4.67%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (49.8%), GRMN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GRMN's dividends in 3 years are forecast to be covered by earnings (53.6% payout ratio).


Next Steps

Management

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

14.0yrs

Average management tenure


CEO

Cliff Albert Pemble (54 yo)

7.75yrs

Tenure

US$3,233,412

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 ($USD3.23M) is below average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Cliff's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Min-Hwan Kao
Co-Founder & Executive Chairman16.17yrsUS$383.31k9.79%
$ 1.9b
Clifton Albert Pemble
President7.75yrsUS$3.23m0.056%
$ 10.8m
Douglas Boessen
CFO, Principal Accounting Officer & Treasurer6.25yrsUS$1.25m0.012%
$ 2.4m
Andrew Etkind
VP, General Counsel & Secretary20.17yrsUS$1.62m0.025%
$ 4.7m
Philip Straub
Executive VP & MD of Aviation - Garmin Internationalno dataUS$1.80m0.025%
$ 4.9m
Patrick Desbois
Executive Vice President of Operations - Garmin Internationalno dataUS$1.36m0.011%
$ 2.2m
Teri Seck
Manager of Investor Relationsno datano datano data
Ted Gartner
Director of Corporate Communicationsno datano datano data
Sean Biddlecombe
Managing Director of EMEAno datano data0.0023%
$ 437.8k

14.0yrs

Average Tenure

60.5yo

Average Age

Experienced Management: GRMN's management team is seasoned and experienced (14 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Min-Hwan Kao
Co-Founder & Executive Chairman16.17yrsUS$383.31k9.79%
$ 1.9b
Clifton Albert Pemble
President7.75yrsUS$3.23m0.056%
$ 10.8m
Joseph Hartnett
Independent Director7.33yrsUS$240.02k0.0077%
$ 1.5m
Charles Peffer
Independent Director16.17yrsUS$245.02k0.012%
$ 2.4m
Catherine Lewis
Director1.33yrsUS$199.60k0.00079%
$ 152.3k
Jonathan Burrell
Director2.33yrsUS$201.21k11.88%
$ 2.3b

11.8yrs

Average Tenure

66yo

Average Age

Experienced Board: GRMN's board of directors are seasoned and experienced ( 11.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GRMN 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: GRMN
  • Exchange: NasdaqGS
  • Founded: 1990
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Market Cap: US$19.284b
  • Shares outstanding: 191.24m
  • Website: https://www.garmin.com

Number of Employees


Location

  • Garmin Ltd.
  • Muhlentalstrasse 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
GRMN NBMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 2000
GRMNBASE (Buenos Aires Stock Exchange)CEDEAR EACH 3 REP 1 COM CHF10.00ARARSApr 2019
G1RM34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLJan 2020

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, Out ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 00:31
End of Day Share Price2020/10/23 00:00
Earnings2020/06/27
Annual Earnings2019/12/28


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.