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

2.9%

GRMN

0.5%

US Consumer Durables

1.0%

US Market


1 Year Return

40.0%

GRMN

34.0%

US Consumer Durables

6.7%

US Market

Return vs Industry: GRMN exceeded the US Consumer Durables industry which returned 34% over the past year.

Return vs Market: GRMN exceeded the US Market which returned 6.7% over the past year.


Share holder returns

GRMNIndustryMarket
7 Day2.9%0.5%1.0%
30 Day2.0%0.2%-1.8%
90 Day7.4%4.5%-1.8%
1 Year44.0%40.0%35.8%34.0%9.1%6.7%
3 Year101.2%81.9%49.7%45.1%46.1%36.6%
5 Year100.3%64.9%39.4%30.7%66.9%48.6%

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?

22.33x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Undervalued: GRMN ($87.08) is trading above our estimate of fair value ($76.53)

Significantly Undervalued: GRMN is trading above our estimate of fair value.


Price Based on Earnings

PE vs Industry: GRMN is poor value based on its PE Ratio (22.3x) compared to the Consumer Durables industry average (13x).

PE vs Market: GRMN is poor value based on its PE Ratio (22.3x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: GRMN is poor value based on its PEG Ratio (5.6x)


Price Based on Value of Assets

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 expected 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 Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: GRMN's forecast earnings growth (4% per year) is above the savings rate (2.7%).

Earnings vs Market: GRMN's earnings (4% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: GRMN's revenue (4.5% per year) is forecast to grow slower than the US market (7.3% per year).

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


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: GRMN'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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: GRMN earnings growth over the past year (20.4%) exceeded the Consumer Durables industry 13.5%.


Return on Equity

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


Return on Assets

ROA vs Industry: GRMN has a higher Return on Assets than the Consumer Durables industry average last year.


Return on Capital Employed

ROCE Improving: GRMN has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Garmin's financial position?


Financial Position Analysis

Short Term Liabilities: GRMN's short term assets ($2.5B) exceeds its short term liabilities ($1.0B)

Long Term Liabilities: GRMN's short term assets (2.5B) exceeds its long term liabilities (346.1M)


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

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

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


Next Steps

Dividend

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

2.69%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield vs Market

company2.6%marketbottom25%1.5%markettop25%3.8%industryaverage2.8%forecastin3Years2.7%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: GRMN's dividend (2.62%) is higher than the bottom 25% of dividend payers in the US market (1.46%).

High Dividend: GRMN's dividend (2.62%) is low compared to the top 25% of dividend payers in the US market (3.77%).

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 reasonable payout ratio (58.5%), GRMN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GRMN's dividends in 3 years are forecast to be covered by earnings (55.2% payout ratio).


Next Steps

Management

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

13.0yrs

Average management tenure


CEO

Cliff Albert Pemble (53yo)

6.8yrs

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 ($USD2.93M) is about average for companies of similar size in the US market ($USD11.20M).

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


Management Age and Tenure

13.0yrs

Average Tenure

59.5yo

Average Age

Experienced Management: GRMN's management team is seasoned and experienced (13 years average tenure).


Board Age and Tenure

10.8yrs

Average Tenure

65yo

Average Age

Experienced Board: GRMN's board of directors are seasoned and experienced ( 10.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$25,40326 Aug 19
Sean Biddlecombe
EntityIndividual
Role
Senior Key Executive
Managing Director of EMEA
Shares316
Max PriceUS$80.39
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: 15.2yrs
    • Compensation: US$382.69k
  • Andrew Etkind (63yo)

    VP, General Counsel & Secretary

    • Tenure: 19.2yrs
    • Compensation: US$1.57m
  • Cliff Albert Pemble (53yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$2.93m
  • Ted Gartner

    Director of Corporate Communications

    • Tenure: 0yrs
  • Sean Biddlecombe

    Managing Director of EMEA

    • Tenure: 0yrs
  • Doug Boessen (56yo)

    CFO, Principal Accounting Officer & Treasurer

    • Tenure: 5.3yrs
    • Compensation: US$1.15m
  • Philip Straub

    Executive VP & MD of Aviation - Garmin International

    • Tenure: 0yrs
    • Compensation: US$1.73m
  • Patrick Desbois

    Executive Vice President of Operations - Garmin International

    • Tenure: 0yrs
    • Compensation: US$1.23m
  • Teri Seck

    Manager of Investor Relations

    • Tenure: 0yrs

Board Members

  • Min-Hwan Kao (70yo)

    Co-Founder & Executive Chairman

    • Tenure: 15.2yrs
    • Compensation: US$382.69k
  • Cliff Albert Pemble (53yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$2.93m
  • Joseph Hartnett (63yo)

    Independent Director

    • Tenure: 6.3yrs
    • Compensation: US$239.96k
  • Charles Peffer (71yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: US$244.96k
  • Cathy Lewis (67yo)

    Director

    • Tenure: 0.3yrs
  • Jonathan Burrell (55yo)

    Director

    • Tenure: 1.3yrs
    • 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$16.554b
  • 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 Analysis2019/10/14 01:28
End of Day Share Price2019/10/11 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.

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