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Garmin

Nasdaq:GRMN
Snowflake Description

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

The Snowflake is generated from 30 checks in 5 different areas, read more below.
GRMN
Nasdaq
$15B
Market Cap
  1. Home
  2. US
  3. Consumer Durables
Company description

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of navigation, communication, and information devices worldwide. The last earnings update was 45 days ago. More info.


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GRMN Share Price and Events
7 Day Returns
1.1%
NasdaqGS:GRMN
0.6%
US Consumer Durables
0.5%
US Market
1 Year Returns
30.3%
NasdaqGS:GRMN
1.2%
US Consumer Durables
0.8%
US Market
GRMN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Garmin (GRMN) 1.1% 0.5% -4.2% 30.3% 89.6% 32.9%
US Consumer Durables 0.6% 1.6% 6% 1.2% 38.4% 29.4%
US Market 0.5% 0.2% 1.1% 0.8% 37.4% 37.5%
1 Year Return vs Industry and Market
  • GRMN outperformed the Consumer Durables industry which returned 1.2% over the past year.
  • GRMN outperformed the Market in United States of America which returned 0.8% over the past year.
Price Volatility
GRMN
Industry
5yr Volatility vs Market
Related Companies

GRMN Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Garmin to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Garmin.

NasdaqGS:GRMN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.2%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:GRMN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Consumer Durables Unlevered Beta Simply Wall St/ S&P Global 0.87
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.875 (1 + (1- 18%) (0.29%))
0.918
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.92
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.918 * 5.96%)
8.2%

Discounted Cash Flow Calculation for NasdaqGS:GRMN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Garmin is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:GRMN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.2%)
2019 670.57 Analyst x4 619.76
2020 695.47 Analyst x4 594.07
2021 738.50 Analyst x2 583.02
2022 751.88 Est @ 1.81% 548.61
2023 767.58 Est @ 2.09% 517.62
2024 785.08 Est @ 2.28% 489.31
2025 804.04 Est @ 2.42% 463.15
2026 824.22 Est @ 2.51% 438.80
2027 845.45 Est @ 2.58% 416.00
2028 867.62 Est @ 2.62% 394.55
Present value of next 10 years cash flows $5,064.89
NasdaqGS:GRMN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $867.62 × (1 + 2.73%) ÷ (8.2% – 2.73%)
$16,298.21
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $16,298.21 ÷ (1 + 8.2%)10
$7,411.71
NasdaqGS:GRMN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,064.89 + $7,411.71
$12,476.60
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $12,476.60 / 189.85
$65.72
NasdaqGS:GRMN Discount to Share Price
Calculation Result
Value per share (USD) From above. $65.72
Current discount Discount to share price of $79.79
= -1 x ($79.79 - $65.72) / $65.72
-21.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Garmin is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Garmin's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Garmin's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:GRMN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $3.73
NasdaqGS:GRMN Share Price ** NasdaqGS (2019-06-14) in USD $79.79
United States of America Consumer Durables Industry PE Ratio Median Figure of 50 Publicly-Listed Consumer Durables Companies 13.83x
United States of America Market PE Ratio Median Figure of 3,091 Publicly-Listed Companies 17.68x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Garmin.

NasdaqGS:GRMN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:GRMN Share Price ÷ EPS (both in USD)

= 79.79 ÷ 3.73

21.39x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Garmin's expected growth come at a high price?
Raw Data
NasdaqGS:GRMN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 21.39x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
4.4%per year
United States of America Consumer Durables Industry PEG Ratio Median Figure of 37 Publicly-Listed Consumer Durables Companies 1.17x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

NasdaqGS:GRMN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 21.39x ÷ 4.4%

4.81x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Garmin is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Garmin's assets?
Raw Data
NasdaqGS:GRMN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $22.73
NasdaqGS:GRMN Share Price * NasdaqGS (2019-06-14) in USD $79.79
United States of America Consumer Durables Industry PB Ratio Median Figure of 70 Publicly-Listed Consumer Durables Companies 1.38x
United States of America Market PB Ratio Median Figure of 5,244 Publicly-Listed Companies 1.79x
NasdaqGS:GRMN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:GRMN Share Price ÷ Book Value per Share (both in USD)

= 79.79 ÷ 22.73

3.51x

* Primary Listing of Garmin.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Garmin is overvalued based on assets compared to the US Consumer Durables industry average.
X
Value checks
We assess Garmin's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Consumer Durables industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Consumer Durables industry average (and greater than 0)? (1 check)
  5. Garmin has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

GRMN Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
4.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Garmin expected to grow at an attractive rate?
  • Garmin's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Garmin's earnings growth is positive but not above the United States of America market average.
  • Garmin's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:GRMN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:GRMN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 4.4%
NasdaqGS:GRMN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 4.3%
United States of America Consumer Durables Industry Earnings Growth Rate Market Cap Weighted Average 17.7%
United States of America Consumer Durables Industry Revenue Growth Rate Market Cap Weighted Average 6%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:GRMN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:GRMN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 3,849 938 790 3
2020-12-31 3,690 870 735 9
2019-12-31 3,542 809 707 9
NasdaqGS:GRMN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 3,403 870 705
2018-12-29 3,347 920 694
2018-09-29 3,278 900 632
2018-06-30 3,219 835 599
2018-03-31 3,191 755 600
2017-12-30 3,122 661 709
2017-09-30 3,085 676 703
2017-07-01 3,056 690 677
2017-04-01 3,036 697 661
2016-12-31 3,046 706 518
2016-09-24 2,939 651 507
2016-06-25 2,897 576 501

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Garmin's earnings are expected to grow by 4.4% yearly, however this is not considered high growth (20% yearly).
  • Garmin's revenue is expected to grow by 4.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:GRMN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from Garmin Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GRMN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 4.15 4.18 4.11 2.00
2020-12-31 3.84 3.99 3.67 8.00
2019-12-31 3.71 3.78 3.58 8.00
NasdaqGS:GRMN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 3.73
2018-12-29 3.68
2018-09-29 3.36
2018-06-30 3.19
2018-03-31 3.19
2017-12-30 3.77
2017-09-30 3.74
2017-07-01 3.60
2017-04-01 3.51
2016-12-31 2.74
2016-09-24 2.68
2016-06-25 2.64

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Garmin is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Garmin's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Garmin has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

GRMN Past Performance

  How has Garmin performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Garmin's growth in the last year to its industry (Consumer Durables).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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 (17.3% vs 10.2%)
  • Garmin's earnings growth has not exceeded the US Consumer Durables industry average in the past year (17.3% vs 24.1%).
Earnings and Revenue History
Garmin's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Garmin Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:GRMN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 3,402.62 704.88 645.59 571.77
2018-12-29 3,347.44 694.08 633.57 567.81
2018-09-29 3,278.10 632.43 639.83 555.20
2018-06-30 3,219.33 599.29 628.26 545.85
2018-03-31 3,190.92 599.98 611.47 531.39
2017-12-30 3,121.56 709.01 602.67 511.63
2017-09-30 3,085.01 703.06 597.09 508.04
2017-07-01 3,056.01 677.04 592.77 494.85
2017-04-01 3,036.14 661.13 593.43 481.96
2016-12-31 3,045.80 517.72 587.70 467.96
2016-09-24 2,939.26 506.59 567.06 445.02
2016-06-25 2,896.69 500.84 568.08 434.36
2016-03-26 2,858.92 477.53 563.50 429.25
2015-12-26 2,820.27 456.23 562.08 427.04
2015-09-26 2,842.22 534.09 554.01 422.59
2015-06-27 2,868.81 267.96 546.81 415.80
2015-03-28 2,872.83 312.19 530.79 404.96
2014-12-27 2,870.66 364.21 518.67 395.12
2014-09-27 2,827.05 317.55 494.96 386.14
2014-06-28 2,764.40 652.06 483.93 375.57
2014-03-29 2,683.12 642.56 474.13 373.40
2013-12-28 2,631.85 612.41 468.35 364.92
2013-09-28 2,640.70 578.12 479.58 355.61
2013-06-29 2,669.44 530.80 483.38 349.67
2013-03-30 2,691.04 544.21 503.36 333.74
2012-12-29 2,715.68 542.40 508.55 325.77
2012-09-29 2,856.77 578.67 516.76 327.16
2012-06-30 2,851.39 588.70 524.32 317.61

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Garmin has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Garmin used its assets more efficiently than the US Consumer Durables industry average last year based on Return on Assets.
  • Garmin has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Garmin's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Consumer Durables industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Garmin has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

GRMN Health

 How is Garmin's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Garmin's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Garmin's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Garmin has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Garmin Company Filings, last reported 2 months ago.

NasdaqGS:GRMN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 4,315.29 43.28 1,313.34
2018-12-29 4,162.97 0.00 1,384.72
2018-09-29 3,952.71 0.00 1,230.09
2018-06-30 3,758.88 0.00 1,119.97
2018-03-31 3,997.19 0.00 1,066.73
2017-12-30 3,852.42 0.00 1,053.18
2017-09-30 3,639.69 0.00 1,144.98
2017-07-01 3,484.45 0.00 1,108.46
2017-04-01 3,702.06 0.00 1,091.98
2016-12-31 3,418.00 0.00 1,113.84
2016-09-24 3,362.23 0.00 1,114.12
2016-06-25 3,218.84 0.00 1,053.72
2016-03-26 3,437.25 0.00 1,055.83
2015-12-26 3,345.13 0.00 1,048.23
2015-09-26 3,234.69 0.00 1,126.74
2015-06-27 3,208.51 0.00 1,137.19
2015-03-28 3,477.63 0.00 1,441.60
2014-12-27 3,403.37 0.00 1,364.26
2014-09-27 3,236.41 0.00 1,305.92
2014-06-28 3,480.62 0.00 1,395.79
2014-03-29 3,752.37 0.00 1,300.35
2013-12-28 3,659.71 0.00 1,329.01
2013-09-28 3,557.50 0.00 1,202.95
2013-06-29 3,366.36 0.00 1,226.07
2013-03-30 3,618.33 0.00 1,238.92
2012-12-29 3,531.80 0.00 1,384.26
2012-09-29 3,387.75 0.00 1,369.52
2012-06-30 3,210.69 0.00 1,364.90
  • 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.
X
Financial health checks
We assess Garmin's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Garmin has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

GRMN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
2.86%
Current annual income from Garmin dividends. Estimated to be 2.93% next year.
If you bought $2,000 of Garmin shares you are expected to receive $57 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Garmin's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.47%).
  • Garmin's dividend is below the markets top 25% of dividend payers in United States of America (3.71%).
Upcoming dividend payment

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

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:GRMN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
United States of America Consumer Durables Industry Average Dividend Yield Market Cap Weighted Average of 20 Stocks 2.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:GRMN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31 2.38 3.00
2020-12-31 2.34 6.00
2019-12-31 2.32 6.00
NasdaqGS:GRMN Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-07 2.280 2.848
2019-02-20 2.280 2.757
2018-10-31 2.120 3.198
2018-08-01 2.120 3.214
2018-06-12 2.120 3.411
2018-02-21 2.040 3.413
2017-11-01 2.040 3.326
2017-08-02 2.040 3.832
2016-12-01 2.040 4.021
2016-10-26 2.040 4.056
2016-07-27 2.040 4.060
2015-12-02 2.040 5.188
2015-10-28 2.040 5.541
2015-07-29 2.040 5.483
2015-04-20 2.040 4.511
2015-02-18 1.920 3.967
2014-10-29 1.920 3.544
2014-07-30 1.920 3.590
2014-02-19 1.920 3.398
2013-10-30 1.800 3.864
2013-08-07 1.800 4.131
2013-07-31 1.800 4.544
2013-06-07 1.800 5.029
2013-02-27 1.800 5.205
2013-02-20 1.800 5.175
2012-11-07 1.800 4.585
2012-10-31 1.800 4.775
2012-08-08 1.800 4.408
2012-08-01 1.800 4.468
2012-02-22 1.800 4.219
2011-11-02 2.000 5.114
2011-08-03 2.000 6.114
2011-02-23 2.000 5.954
2010-11-03 1.500 4.862
2010-08-04 1.500 5.066
2010-03-17 1.500 4.488
2010-02-24 0.750 2.185
2009-11-04 0.750 2.363
2009-08-05 0.750 2.203

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Garmin's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.7x coverage).
X
Income/ dividend checks
We assess Garmin's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Garmin afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Garmin has a total score of 4/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

GRMN Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Cliff Pemble
COMPENSATION $2,932,920
AGE 52
TENURE AS CEO 6.4 years
CEO Bio

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 NAVIGON AG. He serves as Managing Director of Garmin Würzburg GmbH. He has been the President of Garmin International Inc. and Garmin USA Inc. since October 2007. He has been the Chief Operating Officer and President of Garmin AT Inc., of Garmin Ltd. since October 2007. Mr. Pemble served as the Chief Operating Officer of Garmin Ltd. from October 2007 to December 2012 and Garmin USA Inc. since October 2007. He served as Vice President of Engineering of Garmin International Inc., from 2005 to October 2007 and served as its Director of Engineering from 2003 to 2005. Mr. Pemble served as Software Engineering Manager of Garmin International Inc., from 1995 to 2002 and its Software Engineer from 1989 to 1995. He served as Software Engineer at Allied Signal (now Honeywell International Inc.), participating in the development of earth-based and satellite-based navigation systems for general aviation. He has been a Director of Garmin Ltd., and Garmin International Inc., since August 2004 and Dynastream Innovations, Inc. since December 2006. Mr. Pemble serves as a Director of Garmin Australasia Pty Ltd. He has been a Director of Digital Cyclone, Inc., since January 2007 and Garmin AT Inc., since August 2003. He has been a Director of each of Garmin Spain S.L.U., Garmin Iberia S.A. and Garmin Italia S.p.A since November 2007 and of Garmin USA, Inc. since July 2004. He has been Director of Garmin Corporation and Garmin (Europe) Ltd since July 2004. Mr. Pemble holds BA degrees in Mathematics and Computer Science from MidAmerica Nazarene University.

CEO Compensation
  • Cliff's compensation has increased by more than 20% in the past year whilst earnings grew less than 20%.
  • Cliff's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Garmin management team in years:

12.6
Average Tenure
58.5
Average Age
  • The average tenure for the Garmin management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Min-Hwan Kao

TITLE
Co-Founder & Executive Chairman
COMPENSATION
$383K
AGE
69
TENURE
29.7 yrs

Cliff Pemble

TITLE
President
COMPENSATION
$3M
AGE
52
TENURE
6.4 yrs

Doug Boessen

TITLE
CFO, Principal Accounting Officer & Treasurer
COMPENSATION
$1M
AGE
55
TENURE
4.9 yrs

Andrew Etkind

TITLE
VP, General Counsel & Secretary
COMPENSATION
$2M
AGE
62
TENURE
18.8 yrs

Philip Straub

TITLE
Executive VP & MD of Aviation - Garmin International
COMPENSATION
$2M

Patrick Desbois

TITLE
Executive Vice President of Operations - Garmin International
COMPENSATION
$1M

Teri Seck

TITLE
Manager of Investor Relations

Ted Gartner

TITLE
Director of Corporate Communications

Sean Biddlecombe

TITLE
Managing Director of EMEA
Board of Directors Tenure

Average tenure and age of the Garmin board of directors in years:

14.8
Average Tenure
64
Average Age
  • The average tenure for the Garmin board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Min-Hwan Kao

TITLE
Co-Founder & Executive Chairman
COMPENSATION
$383K
AGE
69
TENURE
14.8 yrs

Cliff Pemble

TITLE
President
COMPENSATION
$3M
AGE
52
TENURE
14.8 yrs

Charles Peffer

TITLE
Independent Director
COMPENSATION
$245K
AGE
70
TENURE
14.8 yrs

Joseph Hartnett

TITLE
Director
COMPENSATION
$240K
AGE
62
TENURE
6 yrs

Jonathan Burrell

TITLE
Director
COMPENSATION
$201K
AGE
54
TENURE
1 yrs

Cathy Lewis

TITLE
Director
AGE
66
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
26. Feb 19 Sell Sean Biddlecombe Individual 22. Feb 19 22. Feb 19 -1,500 $83.51 $-125,266
08. Aug 18 Sell Philip Straub Individual 06. Aug 18 06. Aug 18 -5,846 $65.09 $-380,520
06. Aug 18 Sell Sean Biddlecombe Individual 03. Aug 18 03. Aug 18 -1,308 $64.89 $-84,871
X
Management checks
We assess Garmin's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Garmin has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

GRMN News

Simply Wall St News

Estimating The Intrinsic Value Of Garmin Ltd. (NASDAQ:GRMN)

A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $670.57 $695.47 $738.50 $751.88 $767.58 $785.08 $804.04 $824.22 $845.45 $867.62 Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x2 Est @ 1.81% Est @ 2.09% Est @ 2.28% Est @ 2.42% Est @ 2.51% Est @ 2.58% Est @ 2.62% Present Value ($, Millions) Discounted @ 8.19% $619.83 $594.20 $583.22 $548.85 $517.91 $489.64 $463.51 $439.19 $416.41 $395.00 Present Value of 10-year Cash Flow (PVCF)= $5.07b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.2%. … NasdaqGS:GRMN Intrinsic value, June 10th 2019 The assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Should You Be Adding Garmin (NASDAQ:GRMN) To Your Watchlist Today?

So if you're like me, you might be more interested in profitable, growing companies, like Garmin (NASDAQ:GRMN). … See our latest analysis for Garmin Garmin's Earnings Per Share Are Growing. … If a company can keep growing earnings per share (EPS) long enough, its share price will eventually follow.

Simply Wall St -

Should You Think About Buying Garmin Ltd. (NASDAQ:GRMN) Now?

It’s trading around 17.41% above my intrinsic value, which means if you buy Garmin today, you’d be paying a relatively fair price for it. … It seems like the market has already priced in GRMN’s future outlook, with shares trading around its fair value. … Will you have enough confidence to invest in the company should the price drop below its fair value?

Simply Wall St -

Here's How We Evaluate Garmin Ltd.'s (NASDAQ:GRMN) Dividend

Dividend Growth Potential With a relatively unstable dividend, it's even more important to evaluate if earnings per share (EPS) are growing - it's not worth taking the risk on a dividend getting cut, unless you might be rewarded with larger dividends in future. … Conclusion To summarise, shareholders should always check that Garmin's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Second, earnings growth has been ordinary, and its history of dividend payments is chequered - having cut its dividend at least once in the past.

Simply Wall St -

Should You Worry About Garmin Ltd.'s (NASDAQ:GRMN) CEO Salary Level?

Cliff Pemble has been the CEO of Garmin Ltd. … First, this article will compare CEO compensation with compensation at other large companies. … How Does Cliff Pemble's Compensation Compare With Similar Sized Companies?

Simply Wall St -

Do Insiders Own Lots Of Shares In Garmin Ltd. (NASDAQ:GRMN)?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … So it's nice to see some insider ownership, because it may suggest that management is owner-oriented. … Taking a look at our data on the ownership groups (below), it's seems that.

Simply Wall St -

Garmin Ltd. (NASDAQ:GRMN) Insiders Have Been Selling

So shareholders might well want to know whether insiders have been buying or selling shares in Garmin Ltd. … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.'. … Insiders in Garmin didn't buy any shares in the last year

Simply Wall St -

If You Had Bought Garmin (NASDAQ:GRMN) Shares Three Years Ago You'd Have Made 111%

(NASDAQ:GRMN) share price has flown 111% in the last three years. … During three years of share price growth, Garmin achieved compound earnings per share growth of 15% per year. … This EPS growth is lower than the 28% average annual increase in the share price.

Simply Wall St -

Garmin Ltd. (NASDAQ:GRMN): Financial Strength Analysis

Common characteristics for these big stocks are their strong balance sheet and high market liquidity, which means there's plenty of stocks available to the public for trading. … These firms won’t be left high and dry if liquidity dries up, and they will be relatively unaffected by rises in interest rates. … Assessing the most recent data for GRMN, I will take you through the key ratios to measure financial health, in particular, its solvency and liquidity.

Simply Wall St -

Does Garmin Ltd.'s (NASDAQ:GRMN) Past Performance Indicate A Weaker Future?

Below, I will assess GRMN's latest performance announced on 29 December 2018 and weigh these figures against its longer term trend and industry movements. … GRMN's trailing twelve-month earnings (from 29 December 2018) of US$694m has. … Furthermore, this one-year growth rate has been lower than its average earnings growth rate over the past 5 years of 8.0%, indicating the rate at which GRMN is growing has slowed down

Simply Wall St -

GRMN Company Info

Description

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.

Details
Name: Garmin Ltd.
GRMN
Exchange: NasdaqGS
Founded: 1990
$15,147,902,422
189,847,129
Website: http://www.garmin.com
Address: Garmin Ltd.
Mühlentalstrasse 2,
Schaffhausen,
Schaffhausen, 8200,
Switzerland
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS GRMN Common Stock Nasdaq Global Select US USD 08. Dec 2000
DB GEY Common Stock Deutsche Boerse AG DE EUR 08. Dec 2000
LSE 0VQS Common Stock London Stock Exchange GB USD 08. Dec 2000
BASE GRMN CEDEAR EACH 3 REP 1 COM CHF10.00 Buenos Aires Stock Exchange AR ARS 12. Apr 2019
Number of employees
Current staff
Staff numbers
13,000
Garmin employees.
Industry
Consumer Electronics
Consumer Durables
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/15 23:47
End of day share price update: 2019/06/14 00:00
Last estimates confirmation: 2019/06/07
Last earnings filing: 2019/05/01
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.