Garmin Ltd

Industrials
Industrial Machinery/Components
www.garmin.com

Earnings Score
Moat Score

Market Cap $41.98B
PE 28
Debt $NaN
Cash $2.01B
EV $NaN
FCF $1.26B

Earnings

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Sales & Net Margins

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Earnings	$1.52B
EBIT	$1.56B
ROE	20%
ROA	17%
FCF	$1.26B
Equity	$7.51B
Growth Stability	94%
PE	27.66
PEG	2.19
PB	5.59
P/FCF	33.4
P/S	7.05
Price/Cash	0.05
Net Margins	22%
Gross Margins	58%
Op. Margins	26%
Earnings CAGR	-0%
Sales Growth YoY	24%
Sales Growth QoQ	5%
Sales CAGR	-4%
FCF CAGR	1%
Equity CAGR	7%
Earnings Stability	-0.04
Earnings Growth YoY	55%
Earnings Growth QoQ	33%

Earnings CAGR 5Y	13%
Sales CAGR 5Y	-3%
FCF CAGR 5Y	30%
Equity CAGR 5Y	7%
Earnings CAGR 3Y	-16%
Sales CAGR 3Y	-16%
FCF CAGR 3Y	54%
Equity CAGR 3Y	8%
Market Cap	$41.98B
Revenue	$5.96B
Dividend Yield	1%
Payout Ratio	37%
Assets	$9.35B
Cash	$2.01B
Shares Outstanding	192.06M
Earnings Score	6%
Moat Score	96%
Working Capital	3.63B
Current Ratio	3.3
Gross Profit	$3.48B
Shares Growth 3y	-0%
Equity Growth QoQ	7%
Equity Growth YoY	18%

Assets & ROA

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Stockholders Equity & ROE

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Garmin produces GPS-enabled hardware and software for five verticals: fitness, outdoors, auto, aviation, and marine. The company relies on licensing mapping data to enable its hardware specialized for often niche activities like scuba diving or sailing. Garmin operates in 100 countries and sells its products via distributors as well as relationships with original equipment manufacturers.

SEC Filings

Direct access to Garmin Ltd (GRMN) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 28
- 10-Q Jun 29
- 10-Q Mar 30
2023
- 10-K Dec 30
- 10-Q Sep 30
- 10-Q Jul 01
- 10-Q Apr 01
2022
- 10-K Dec 31
- 10-Q Sep 24
- 10-Q Jun 25
- 10-Q Mar 26

Sector Comparison

How does Garmin Ltd compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Garmin Ltd compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR -0%

Stability -4%

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Garmin Ltd Discounted Cash Flow

Fully customizable DCF calculator online for Garmin Ltd.

Years

Calculation mode

= $14B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.3B	$1.3B	$1.3B	$1.3B	$1.3B	$1.3B	$1.4B	$1.4B	$1.4B	$1.4B	$1.4B	$14B
DCF		$1.2B	$1.1B	$981M	$903M	$832M	$766M	$705M	$649M	$597M	$550M	$5.5B
Value	$14B

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	06/2020	12/2020	06/2021	12/2021	12/2022	06/2023	12/2023	TTM
Net Margins	13%	16%	17%	22%	21%	25%	-	24%	-	22%	20%	-	25%	22%
ROA	-	13%	14%	14%	15%	16%	-	16%	-	16%	14%	-	14%	17%
ROE	-	14%	15%	18%	17%	20%	-	18%	-	18%	16%	-	18%	20%

Good Net Margins (21.81%)

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

Safety and Stability

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	06/2020	12/2020	06/2021	12/2021	12/2022	06/2023	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Debt over Equity	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Growth Stability	-	-	-	100%	100%	100%	-	100%	-	100%	94%	-	100%	94%

Neutral Debt/FCF ratio (-)

Net Margins are at a level that is not too high nor too low. They are not a competitive advantage but they are not a competitive disadvantage either.

Neutral Debt/Equity ratio (-)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (94%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

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.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	06/2020	12/2020	06/2021	12/2021	12/2022	06/2023	12/2023	CAGR 5Y
Revenue YoY growth	-	-2%	8%	2%	7%	12%	-	-	-	-	-2%	-	-	-3%
Earnings YoY growth	-	25%	12%	36%	-0%	37%	-	-	-	-	-10%	-	-	13%
Equity YoY growth	-	-2%	2%	11%	9%	15%	-	-	-	-	1%	-	-	7%
FCF YoY growth	-	-56%	208%	-15%	47%	-24%	-	-	-	-	-23%	-	-	30%