NasdaqGS:GRMN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

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


Market Performance


7 Day Return

4.7%

NasdaqGS:GRMN

0.7%

US Consumer Durables

0.2%

US Market


1 Year Return

23.3%

NasdaqGS:GRMN

4.8%

US Consumer Durables

-0.7%

US Market

GRMN outperformed the Consumer Durables industry which returned 4.8% over the past year.

GRMN outperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

GRMNIndustryMarket
7 Day4.7%0.7%0.2%
30 Day-0.9%1.4%-2.7%
90 Day3.6%3.7%1.6%
1 Year27.0%23.3%6.2%4.8%1.6%-0.7%
3 Year75.9%58.4%33.9%29.8%40.0%30.9%
5 Year78.7%46.8%30.4%22.0%53.8%36.8%

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 based on future cash flows and its price relative to the stock market?

0.298%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Garmin's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Garmin's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Garmin is overvalued based on earnings compared to the US Consumer Durables industry average.

Garmin is overvalued based on earnings compared to the United States of America market.


Price Based on Expected Growth

Garmin is poor value based on expected growth next year.


Price Based on Value of Assets

Garmin is overvalued based on assets compared to the US Consumer Durables industry average.


Next Steps

Future Growth

How is Garmin expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

3.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Garmin's revenue is expected to grow by 4.5% yearly, however this is not considered high growth (20% yearly).

Garmin's earnings are expected to grow by 3.6% yearly, however this is not considered high growth (20% yearly).

Garmin's revenue growth is positive but not above the United States of America market average.

Garmin's earnings growth is positive but not above the United States of America market average.

Garmin's earnings growth is expected to exceed the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Garmin is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Garmin performed over the past 5 years?

12.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Garmin's year on year earnings growth rate has been positive over the past 5 years.

Garmin's 1-year earnings growth exceeds its 5-year average (20.4% vs 12.9%)

Garmin's earnings growth has exceeded the US Consumer Durables industry average in the past year (20.4% vs 17.1%).


Return on Equity

Garmin has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Garmin used its assets more efficiently than the US Consumer Durables industry average last year based on Return on Assets.


Return on Capital Employed

Garmin has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Garmin's financial position?


Financial Position Analysis

Garmin is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Garmin's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Garmin has no debt.

Garmin has not taken on any debt in the past 5 years.

Garmin has no debt, it does not need to be covered by operating cash flow.

Garmin has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

High level of physical assets or inventory.

Garmin has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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

2.92%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase Garmin before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

Garmin's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Garmin's dividend is below the markets top 25% of dividend payers in United States of America (3.85%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.7x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be covered by earnings (1.8x coverage).


Next Steps

Management

What is the CEO of Garmin's salary, the management and board of directors tenure and is there insider trading?

12.8yrs

Average management tenure


CEO

Cliff Albert Pemble (53yo)

6.6yrs

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

Cliff's remuneration is lower than average for companies of similar size in United States of America.

Cliff's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.


Management Age and Tenure

12.8yrs

Average Tenure

59.5yo

Average Age

The average tenure for the Garmin management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

10.6yrs

Average Tenure

65yo

Average Age

The average tenure for the Garmin board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$125,26626 Feb 19
Sean Biddlecombe
EntityIndividual
Role
Senior Key Executive
Managing Director of EMEA
Shares1,500
Max PriceUS$83.51

Ownership Breakdown


Management Team

  • Min-Hwan Kao (70yo)

    Co-Founder & Executive Chairman

    • Tenure: 15.0yrs
    • Compensation: US$382.69k
  • Andrew Etkind (63yo)

    VP, General Counsel & Secretary

    • Tenure: 19.0yrs
    • Compensation: US$1.57m
  • Cliff Albert Pemble (53yo)

    President

    • Tenure: 6.6yrs
    • Compensation: US$2.93m
  • Ted Gartner

    Director of Corporate Communications

    • Tenure: 0.0yrs
  • Sean Biddlecombe

    Managing Director of EMEA

    • Tenure: 0.0yrs
  • Doug Boessen (56yo)

    CFO, Principal Accounting Officer & Treasurer

    • Tenure: 5.1yrs
    • Compensation: US$1.15m
  • Philip Straub

    Executive VP & MD of Aviation - Garmin International

    • Tenure: 0.0yrs
    • Compensation: US$1.73m
  • Patrick Desbois

    Executive Vice President of Operations - Garmin International

    • Tenure: 0.0yrs
    • Compensation: US$1.23m
  • Teri Seck

    Manager of Investor Relations

    • Tenure: 0.0yrs

Board Members

  • Min-Hwan Kao (70yo)

    Co-Founder & Executive Chairman

    • Tenure: 15.0yrs
    • Compensation: US$382.69k
  • Cliff Albert Pemble (53yo)

    President

    • Tenure: 6.6yrs
    • Compensation: US$2.93m
  • Joseph Hartnett (63yo)

    Director

    • Tenure: 6.2yrs
    • Compensation: US$239.96k
  • Charles Peffer (71yo)

    Independent Director

    • Tenure: 15.0yrs
    • Compensation: US$244.96k
  • Cathy Lewis (67yo)

    Director

    • Tenure: 0.2yrs
  • Jonathan Burrell (55yo)

    Director

    • Tenure: 1.2yrs
    • Compensation: US$201.21k

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$15.231b
  • 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, Out ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/21 23:45
End of Day Share Price2019/08/21 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.