NYSE
GRMN
Last Price
US $237.54
KEY FIGURES
MKT CAP
$44.8B
EPS
TTM
$9.01
PEG
TTM
1.44x
P/E
TTM
25.78x
P/S
TTM
6.19x
YIELD
1.61%
GROWTH
Revenue Y/Y
Profit margin
Current Ratio
Capital Returns
19.93%
Return on equity
ROIC: 17.07%
Valuation History
25.8X
Price to Earnings
EV/EBITDA: 18.7X
Cash flow
Profit margin
11.59%
(FY vs FY)
EBITDA Y/Y
13.28%
(FY vs FY)
Cash flow Y/Y
7.54%
(FY vs FY)
Cash Flow (DCF)
Fair Value
Market $237.54
-47.51%
Default assumptions
EBITDA Multiple
Fair Value
Market $237.54
-63.76%
Default assumptions
Base valuations use default assumptions. Customize in the Valuator.
Valuation
Financial
Performance
Financial stability - Cash flow debt coverage.
Garmin Ltd. cash flow to debt ratio of 990.91% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.
Financial stability - Healthy cash flow growth.
Garmin Ltd.'s free cash flow has increased 10.01% from $1.24G last year to $1.36G, signaling increasing performance
Financial stability - Healthy debt to equity ratio.
Garmin Ltd.'s debt to equity ratio is 0.02, which means that the company's assets are healthy financed, signaling financial stability. READ MORE: A ratio under 0.60 means the company finances its assets with own equity, signaling financial stability and good management.
Financial stability - Healthy debt to equity ratio development.
Garmin Ltd.'s debt has decreased relative to shareholder equity from 0.02 last year to 0.02 today, signaling strengthened financials
Financial stability - Net debt/EBITDA.
Garmin Ltd. has a net debt to EBITDA ratio of 0.00x, which is below the 3.00x threshold, indicating healthy leverage and financial stability
Financial stability - ICR.
Garmin Ltd. earns at least as much interest as it pays. Interest obligations are fully covered.
Financial stability - Profit margin growth.
Garmin Ltd.'s profit margin has increased (3.78%) in the last year from 22.41% to 23.26%, signaling increasing performance
Financial stability - Short term assets vs short term liabilities.
Garmin Ltd.'s short-term assets of $6.25G exceed its short-term liabilities of $1.72G
Increasing performance - ROA.
Garmin Ltd.'s return on assets of 15.85% is higher than the 5.00% threshold, indicating efficient asset utilization
Increasing performance - Absolute return on equity.
Garmin Ltd.'s return on equity of 19.93%, is higher than 15.00%, indicating good performance
Decreasing performance - Earnings quality.
Garmin Ltd.'s operating cash flow is lower than its net income, indicating that earnings may not be fully backed by cash generation
Increasing performance - Earnings stability.
Garmin Ltd. had positive net income in 5.00 out of 5 years, indicating stable and consistent earnings
Increasing performance - Free cash flow.
Garmin Ltd. has positive free cash flow, indicating the company generates cash after capital expenditures
Increasing performance - FCF yield.
Garmin Ltd. has a free cash flow yield of 3.04%, which is above the 2.00% threshold, indicating strong cash generation relative to market value
Increasing performance - Healthy earnings growth.
Garmin Ltd.'s yearly earnings has increased 17.89% since last year from $1.41G to $1.66G, signaling increasing performance
Increasing performance - Healthy revenue growth.
Garmin Ltd.'s yearly revenue has increased 15.06% since last year from $6.30G to $7.25G, signaling increasing performance
Increasing performance - ROIC.
ROIC 17.07% (Source: FMP key-metrics). At or above the 10% threshold. Score: 2 of 2. The company is generating returns above the upper end of the typical US weighted-average cost of capital range under this definition of invested capital.
Increasing performance - 3-year revenue CAGR.
Garmin Ltd.'s 3-year revenue CAGR of 14.24% is positive, indicating growing revenue over the past 3 years
Increasing performance - Revenue consistency.
Garmin Ltd. had revenue growth in 4.00 out of 5 years, indicating consistent revenue performance
Increasing performance - ROE consistency.
Garmin Ltd. had positive ROE in 5.00 out of 5 years, indicating consistent and reliable returns on equity
Overvalued - DCF valuation.
Garmin Ltd. is overvalued relative to its fair value price of 124.69 based on Discounted Cash Flow model
Overvalued - Earnings yield.
Garmin Ltd. has an earnings yield of 3.88%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings
Overvalued - EBITDA valuation.
Garmin Ltd. is overvalued relative to its fair value price of 86.08 based on EBITDA multiple model
Undervalued - EV/EBITDA.
Garmin Ltd. has an EV/EBITDA ratio of 18.66x, which is below the 20.00x threshold, indicating reasonable valuation relative to its operating earnings
Overvalued - PEG ratio value.
Garmin Ltd. has a PEG-ratio over 1 which is considered overvalued
Undervalued - P/B ratio.
Garmin Ltd. has a price-to-book ratio of 4.83x, which is below the 5.00x threshold, indicating reasonable valuation relative to its book value
Undervalued - P/S ratio.
Garmin Ltd. has a price-to-sales ratio of 6.01x, which is below the 8.00x threshold, indicating reasonable valuation relative to its revenue