Garmin Ltd

GRMN

Search, Detection, Navigation, Guidance, Aeronautical Sys

Mkt Cap

$31.12B

PE

22.83

Debt

Cash

$1.922B

EV

FCF

$1.352B

Market Cap

$31.12B

P/E Ratio

22.83

Debt

Cash

$1.922B

EV

FCF

$1.352B

Charts data: {"Earnings":[{"time":"2014-12-26","value":364211000},{"time":"2015-12-25","value":456227000},{"time":"2016-12-30","value":510814000},{"time":"2017-12-29","value":694955000},{"time":"2018-12-28","value":694080000},{"time":"2019-12-27","value":952486000},{"time":"2020-12-25","value":992324000},{"time":"2021-12-24","value":1082200000},{"time":"2022-12-30","value":973585000},{"time":"2023-12-29","value":1289636000}],"Sales":[{"time":"2014-12-26","value":2870658000},{"time":"2015-12-25","value":2820270000},{"time":"2016-12-30","value":3045797000},{"time":"2017-12-29","value":3121560000},{"time":"2018-12-28","value":3347444000},{"time":"2019-12-27","value":3757505000},{"time":"2020-12-25","value":4186573000},{"time":"2021-12-24","value":4982795000},{"time":"2022-12-30","value":4860286000},{"time":"2023-12-29","value":5228252000}],"Net Margins":[{"time":"2014-12-26","value":0.12687369934001194},{"time":"2015-12-25","value":0.16176713577068863},{"time":"2016-12-30","value":0.16771111141024828},{"time":"2017-12-29","value":0.2226306718435654},{"time":"2018-12-28","value":0.20734626180452906},{"time":"2019-12-27","value":0.2534889507798393},{"time":"2020-12-25","value":0.23702536657070114},{"time":"2021-12-24","value":0.21718734164259215},{"time":"2022-12-30","value":0.20031434364150588},{"time":"2023-12-29","value":0.24666676357604797}],"Assets":[{"time":"2014-12-26","value":4693303000},{"time":"2015-12-25","value":4499391000},{"time":"2016-12-30","value":4525133000},{"time":"2017-12-29","value":5010260000},{"time":"2018-12-28","value":5382858000},{"time":"2019-12-27","value":6166799000},{"time":"2020-12-25","value":7031373000},{"time":"2021-12-24","value":7854427000},{"time":"2022-12-30","value":7731170000},{"time":"2023-12-29","value":8603569000}],"Stockholders Equity":[{"time":"2014-12-26","value":3403367000},{"time":"2015-12-25","value":3345126000},{"time":"2016-12-30","value":3418003000},{"time":"2017-12-29","value":3802466000},{"time":"2018-12-28","value":4162974000},{"time":"2019-12-27","value":4793496000},{"time":"2020-12-25","value":5516116000},{"time":"2021-12-24","value":6114159000},{"time":"2022-12-30","value":6204340000},{"time":"2023-12-29","value":7012060000}],"ROE":[{"time":"2014-12-26","value":0.10701490612090908},{"time":"2015-12-25","value":0.1363855950418609},{"time":"2016-12-30","value":0.14944808415908353},{"time":"2017-12-29","value":0.18276429033159008},{"time":"2018-12-28","value":0.16672696010112},{"time":"2019-12-27","value":0.198703827018944},{"time":"2020-12-25","value":0.17989541916812482},{"time":"2021-12-24","value":0.17699899528291627},{"time":"2022-12-30","value":0.15691999471337806},{"time":"2023-12-29","value":0.18391685182385775}],"ROA":[{"time":"2014-12-26","value":0.15420802790699856},{"time":"2015-12-25","value":0.12605861548818495},{"time":"2016-12-30","value":0.139149501241179},{"time":"2017-12-29","value":0.13617935995337568},{"time":"2018-12-28","value":0.15293864337495064},{"time":"2019-12-27","value":0.16008661868175045},{"time":"2020-12-25","value":0.15692667705155167},{"time":"2021-12-24","value":0.15515071946050296},{"time":"2022-12-30","value":0.13775068974036273},{"time":"2023-12-29","value":0.1395183789425063}]}

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; 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. The company's Outdoor segment offers adventure watches, outdoor handhelds, golf devices and mobile apps, and dog tracking and training devices. Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions comprising integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponder solutions, weather information and avoidance solutions, datalink and connectivity solutions, portable GPS navigators and wearables, and various services products. The company's Marine segment provides chartplotters and multi-function displays, cartography products, fishfinders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, entertainment, digital switching products, and trolling motors. Its Auto segment offers embedded domain controllers and infotainment systems; personal navigation devices; and cameras. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as an online webshop, garmin.com. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.

Sector

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3/31/18
10-K
12/30/17

DCF

Discounted Cash Flow Valuation of Garmin Ltd

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$1.352B	$1.515B	$1.686B	$1.862B	$2.043B	$2.224B	$2.405B	$2.582B	$2.751B	$2.91B	$3.056B	$30.56B
DCF		$1.318B	$1.275B	$1.224B	$1.168B	$1.106B	$1.04B	$970.6M	$899.4M	$827.3M	$755.3M	$7.553B
Value	$18.14B

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth 13%

Earnings Stability 83%

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Over time the ROA has been decreasing indicating a lower marginal ROA with respect to the calculated one, this could impede growth.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	16%	17%	22%	21%	25%	24%	22%	20%	25%	25%
ROA	13%	14%	14%	15%	16%	16%	16%	14%	14%	15%
ROE	14%	15%	18%	17%	20%	18%	18%	16%	18%	19%

What is the average Net Margin?

The average Net Margin over the past 5 years is +22.7%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.05%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +15.04%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is -0.39%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is +17.72%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -0.12%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Data are missing

The Graham’s stability indicate reliability of earnings, and consideration about the future are more dependable.

Years	12-2015	12-2016	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	-	-	-	-	-	-	-	-
Debt Equity	-	-	-	-	-	-	-	-	-	-
MIN
Graham Stability	-	-	100%	100%	100%	100%	100%	96%	100%	96%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is -.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -.

What is the Graham’s Stability?

Graham’s Stability measure stands at 0.96.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Earnings growth has not been increasing in the past years.

Years	12-2016	12-2018	12-2020	12-2022	Trend
Revenue	8%	9.3%	7.7%	7.6%	0.72%
Net Income	14%	13%	9.1%	32%	-1.4%
Stockholders Equity	11%	11%	8.3%	13%	1%
FCF	9.8%	9.1%	7.6%	120%	-0.057%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +9.33%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is +0.72%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +13.19%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -1.45%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +10.99%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +1.03%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +9.14%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -0.06%.