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GRMN

Garmin NYSE:GRMN Stock Report

Last Price

US$100.61

Market Cap

US$19.3b

7D

1.6%

1Y

-31.9%

Updated

06 Jul, 2022

Data

Company Financials +
GRMN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth2/6
Past Performance2/6
Financial Health6/6
Dividends3/6

GRMN Stock Overview

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices in the Americas, the Asia Pacific, Australian Continent, Europe, the Middle East, and Africa.

Garmin Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Garmin
Historical stock prices
Current Share PriceUS$100.61
52 Week HighUS$178.81
52 Week LowUS$92.53
Beta1.02
1 Month Change-3.82%
3 Month Change-12.78%
1 Year Change-31.94%
3 Year Change27.78%
5 Year Change100.02%
Change since IPO906.10%

Recent News & Updates

Jun 08

Garmin: Please Keep A Potential Recession In Mind

While Garmin is growing its top line, earnings per share declined and especially free cash flow was plummeting in the first quarter of fiscal 2022. Management and analysts are expecting rather high growth for the years to come, but the looming recession is posing a huge risk for Garmin. Garmin might be fairly valued if we assume a mild impact from a potential recession, but overvalued in case of a steep recession.

Jun 03
Garmin (NYSE:GRMN) Has Announced That It Will Be Increasing Its Dividend To US$0.73

Garmin (NYSE:GRMN) Has Announced That It Will Be Increasing Its Dividend To US$0.73

Garmin Ltd.'s ( NYSE:GRMN ) dividend will be increasing to US$0.73 on 30th of June. Based on the announced payment, the...

Shareholder Returns

GRMNUS Consumer DurablesUS Market
7D1.6%5.9%0.7%
1Y-31.9%-29.6%-18.4%

Return vs Industry: GRMN underperformed the US Consumer Durables industry which returned -28.3% over the past year.

Return vs Market: GRMN underperformed the US Market which returned -18.4% over the past year.

Price Volatility

Is GRMN's price volatile compared to industry and market?
GRMN volatility
GRMN Average Weekly Movement4.4%
Consumer Durables Industry Average Movement8.5%
Market Average Movement8.2%
10% most volatile stocks in US Market16.9%
10% least volatile stocks in US Market3.4%

Stable Share Price: GRMN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: GRMN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
198918,700Cliff Albert Pemblehttps://www.garmin.com

Garmin Ltd. designs, develops, manufactures, markets, and distributes a range of wireless devices in the Americas, the Asia Pacific, Australian Continent, Europe, the Middle East, and Africa. Its Fitness segment offers running and multi-sport watches; cycling products; activity tracking and smartwatch devices; and fitness and cycling accessories. This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms; and Connect IQ, an application development platform.

Garmin Fundamentals Summary

How do Garmin's earnings and revenue compare to its market cap?
GRMN fundamental statistics
Market CapUS$19.30b
Earnings (TTM)US$1.07b
Revenue (TTM)US$5.08b

18.1x

P/E Ratio

3.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GRMN income statement (TTM)
RevenueUS$5.08b
Cost of RevenueUS$2.17b
Gross ProfitUS$2.91b
Other ExpensesUS$1.84b
EarningsUS$1.07b

Last Reported Earnings

Mar 26, 2022

Next Earnings Date

n/a

Earnings per share (EPS)5.56
Gross Margin57.28%
Net Profit Margin21.12%
Debt/Equity Ratio0%

How did GRMN perform over the long term?

See historical performance and comparison

Dividends

2.9%

Current Dividend Yield

52%

Payout Ratio

Does GRMN pay a reliable dividends?

See GRMN dividend history and benchmarks
When do you need to buy GRMN by to receive an upcoming dividend?
Garmin dividend dates
Ex Dividend DateSep 14 2022
Dividend Pay DateSep 30 2022
Days until Ex dividend69 days
Days until Dividend pay date85 days

Does GRMN pay a reliable dividends?

See GRMN dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is GRMN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for GRMN?

Other financial metrics that can be useful for relative valuation.

GRMN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3.2x
Enterprise Value/EBITDA12.1x
PEG Ratio2x

Price to Earnings Ratio vs Peers

How does GRMN's PE Ratio compare to its peers?

GRMN PE Ratio vs Peers
The above table shows the PE ratio for GRMN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average7.5x
SONO Sonos
17.4x24.0%US$2.5b
GPRO GoPro
2.3x-25.7%US$872.9m
LEN Lennar
5.1x-7.5%US$22.1b
DHI D.R. Horton
5x-10.9%US$25.5b
GRMN Garmin
18.1x8.9%US$19.3b

Price-To-Earnings vs Peers: GRMN is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the peer average (7.5x).


Price to Earnings Ratio vs Industry

How does GRMN's PE Ratio compare vs other companies in the US Consumer Durables Industry?

Price-To-Earnings vs Industry: GRMN is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the US Consumer Durables industry average (7.5x)


Price to Earnings Ratio vs Fair Ratio

What is GRMN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

GRMN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio18.1x
Fair PE Ratio15.2x

Price-To-Earnings vs Fair Ratio: GRMN is expensive based on its Price-To-Earnings Ratio (18.1x) compared to the estimated Fair Price-To-Earnings Ratio (15.2x).


Share Price vs Fair Value

What is the Fair Price of GRMN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: GRMN ($100.61) is trading below our estimate of fair value ($202.63)

Significantly Below Fair Value: GRMN is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: GRMN is poor value based on its PEG Ratio (2x)


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Future Growth

How is Garmin forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


8.9%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRMN's forecast earnings growth (8.9% per year) is above the savings rate (1.9%).

Earnings vs Market: GRMN's earnings (8.9% per year) are forecast to grow slower than the US market (13% per year).

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

Revenue vs Market: GRMN's revenue (7.2% per year) is forecast to grow slower than the US market (7.9% per year).

High Growth Revenue: GRMN's revenue (7.2% 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 high in 3 years time (21.1%)


Discover growth companies

Past Performance

How has Garmin performed over the past 5 years?

Past Performance Score

2/6

Past Performance Score 2/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


13.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: GRMN has high quality earnings.

Growing Profit Margin: GRMN's current net profit margins (21.1%) are lower than last year (23.9%).


Past Earnings Growth Analysis

Earnings Trend: GRMN's earnings have grown by 13.5% per year over the past 5 years.

Accelerating Growth: GRMN's earnings growth over the past year (2.2%) is below its 5-year average (13.5% per year).

Earnings vs Industry: GRMN earnings growth over the past year (2.2%) underperformed the Consumer Durables industry 39.2%.


Return on Equity

High ROE: GRMN's Return on Equity (17.2%) is considered low.


Discover strong past performing companies

Financial Health

How is Garmin's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: GRMN's short term assets ($4.1B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: GRMN's short term assets ($4.1B) exceed its long term liabilities ($301.9M).


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


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


2.90%

Current Dividend Yield

Upcoming Dividend Payment

TodayJul 07 2022Ex Dividend DateSep 14 2022Dividend Pay DateSep 30 202216 days from Ex DividendBuy in the next 69 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: GRMN's dividend (2.9%) is higher than the bottom 25% of dividend payers in the US market (1.61%).

High Dividend: GRMN's dividend (2.9%) is low compared to the top 25% of dividend payers in the US market (4.27%).


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.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (52.3%), GRMN's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (113.4%), GRMN's dividend payments are not well covered by cash flows.


Discover strong dividend paying companies

Management

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

14.8yrs

Average management tenure


CEO

Cliff Albert Pemble (56 yo)

14.75yrs

Tenure

US$4,238,341

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Cliff's total compensation ($USD4.24M) is below average for companies of similar size in the US market ($USD13.41M).

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


Leadership Team

Experienced Management: GRMN's management team is seasoned and experienced (14.8 years average tenure).


Board Members

Experienced Board: GRMN's board of directors are seasoned and experienced ( 13.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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 employee growth, exchange listings and data sources


Key Information

  • Name: Garmin Ltd.
  • Ticker: GRMN
  • Exchange: NYSE
  • Founded: 1989
  • Industry: Consumer Electronics
  • Sector: Consumer Durables
  • Implied Market Cap: US$19.303b
  • Shares outstanding: 193.13m
  • Website: https://www.garmin.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/07/06 00:00
End of Day Share Price2022/07/06 00:00
Earnings2022/03/26
Annual Earnings2021/12/25


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.