Education
About Us
Working with TipRanks
Follow Us
Garmin (GRMN)
NYSE:GRMN
Top Page
Garmin
(NYSE:GRMN)
Rating:77Outperform
Price Target:―
Positive Factors
Dividend Increase
Garmin announced a proposed 20% increase in dividend for 2025.
Financial Performance
Garmin reported another strong earnings beat for 4Q24 and provided full-year guidance for 2025 that aligns more with the high end of expectations.
New Product Development
Ongoing innovation and new product development, including new halo product categories, will open new markets that will continue to drive revenue and cash flow growth and increasing shareholder value creation.
Negative Factors
AutoOEM Business Challenges
Garmin's AutoOEM business outlook has worsened due to consumers pulling back and BMW cutting production forecasts.
Macroeconomic Uncertainty
The macro environment is causing uncertainty, slowing sales, and limiting incremental buyers as the consumer cycle decelerates.
Tariff Risks
A 32% tariff on Taiwan imports poses a risk to Garmin, which imports the majority of its goods from Taiwan.
Garmin (GRMN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$39.45B
Dividend Yield1.47%
Average Volume (3M)963.06K
Price to Earnings (P/E)27.0
Beta (1Y)0.98
Revenue Growth18.08%
EPS Growth7.28%
CountryUS
Employees21,800
SectorTechnology
Sector Strength76
IndustryHardware, Equipment & Parts
Share Statistics
EPS (TTM)1.61
Shares Outstanding192,541,460
10 Day Avg. Volume741,932
30 Day Avg. Volume963,056
Financial Highlights & Ratios
PEG Ratio6.37
Price to Book (P/B)4.51
Price to Sales (P/S)0.00
P/FCF Ratio30.27
Enterprise Value/Market Cap0.88
Enterprise Value/Revenue1.43
Enterprise Value/Gross Profit9.21
Enterprise Value/Ebitda5.34
Forecast
1Y Price Target
$199.80Price Target Upside-0.47% Downside
Rating ConsensusModerate Sell
Number of Analyst Covering6
Garmin Business Overview & Revenue Model
Company DescriptionGarmin 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. 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, fish finders, 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 computing models and infotainment systems; personal navigation devices; and cameras. The company sells its products through independent retailers, online 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.
How the Company Makes MoneyGarmin generates revenue primarily through the sale of its GPS-enabled products and services across five main segments: Fitness, Outdoor, Aviation, Marine, and Auto. Each segment contributes differently to the overall revenue, with the Fitness and Outdoor segments being the most significant in recent times, driven by the growing demand for wearable technology and activity tracking devices. The company also earns from map updates, subscription services, and applications that complement its hardware. Garmin's partnerships with automotive manufacturers for integrated navigation systems and aviation companies for cockpit solutions also play a crucial role in its revenue generation. Additionally, Garmin invests in continuous research and development to innovate and maintain its competitive edge, which helps drive sales and profitability.
Garmin Key Performance Indicators (KPIs)
Any
Revenue by Segment
Analyzes revenue from different business areas such as fitness, outdoor, aviation, marine, and auto, highlighting which segments drive growth and where Garmin might face challenges.
Analyzes revenue from different business areas such as fitness, outdoor, aviation, marine, and auto, highlighting which segments drive growth and where Garmin might face challenges.
Data provided by:
Main Street Data
Main Street DataGarmin Financial Statement Overview
Summary
Garmin exhibits a strong financial profile with impressive income statement metrics, robust balance sheet, and effective cash flow management. High margins and low leverage highlight a competitive position, though slightly negative free cash flow growth is a minor concern.Income Statement
Garmin's income statement reveals impressive growth and profitability metrics. The TTM data shows a gross profit margin of 58.57%, indicating strong cost management and product pricing strategy. The net profit margin stands at 22.76%, highlighting efficient operations and a healthy bottom line. Revenue growth rate from the previous year is 2.44%, showing steady expansion. EBIT and EBITDA margins are also robust at 25.24% and 26.62% respectively, reflecting operational efficiency and strong earnings before interest and taxes.92
Very Positive
Balance Sheet
The balance sheet is notably strong, with a low debt-to-equity ratio of 0.02, indicating minimal leverage and financial risk. The return on equity (ROE) is a healthy 17.95%, showcasing effective use of shareholder funds. The equity ratio stands at 83.57%, demonstrating a solid capital structure with substantial equity backing, which suggests stability and financial health.88
Very Positive
Cash Flow
Cash flow analysis indicates solid cash generation capabilities. The free cash flow growth rate is slightly negative at -1.73%, but this is offset by a strong operating cash flow to net income ratio of 0.97, reflecting high-quality earnings. The free cash flow to net income ratio of 0.83 further supports the company's ability to generate cash relative to its earnings, indicating efficient cash management.85
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 6.45B | 6.30B | 5.23B | 4.86B | 4.98B | 4.19B | Gross Profit |
| 3.78B | 3.70B | 3.00B | 2.81B | 2.89B | 2.48B | EBIT |
| 1.63B | 1.59B | 1.09B | 1.03B | 1.22B | 1.05B | EBITDA |
| 1.76B | 1.77B | 1.27B | 1.19B | 1.37B | 1.18B | Net Income Common Stockholders |
| 1.47B | 1.41B | 1.29B | 973.59M | 1.08B | 992.32M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 2.20B | 2.50B | 1.97B | 1.45B | 1.85B | 1.85B | Total Assets |
| 8.63B | 9.63B | 8.60B | 7.73B | 7.85B | 7.03B | Total Debt |
| 105.86M | 134.89M | 113.03M | 114.54M | 70.04M | 75.96M | Net Debt |
| -1.82B | -1.94B | -1.58B | -1.16B | -1.43B | -1.38B | Total Liabilities |
| 1.39B | 1.78B | 1.59B | 1.53B | 1.74B | 1.52B | Stockholders Equity |
| 7.25B | 7.85B | 7.01B | 6.20B | 6.11B | 5.52B |
| Cash Flow | Free Cash Flow | ||||
| 1.22B | 1.24B | 1.18B | 542.07M | 702.84M | 947.80M | Operating Cash Flow |
| 1.42B | 1.43B | 1.38B | 788.26M | 1.01B | 1.14B | Investing Cash Flow |
| -489.06M | -393.33M | -332.97M | -145.12M | -475.37M | -260.52M | Financing Cash Flow |
| -675.47M | -626.86M | -636.51M | -840.62M | -486.71M | -461.76M |
Garmin Technical Analysis
Positive
200.74
Price Trends
199.44
Positive
207.54
Negative
196.61
Positive
Market Momentum
1.54
Negative
53.48
Neutral
85.34
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRMN, the sentiment is Positive. The current price of 200.74 is above the 20-day moving average (MA) of 196.56, above the 50-day MA of 199.44, and above the 200-day MA of 196.61, indicating a bullish trend. The MACD of 1.54 indicates Negative momentum. The RSI at 53.48 is Neutral, neither overbought nor oversold. The STOCH value of 85.34 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRMN.
Garmin Risk Analysis
Garmin disclosed 36 risk factors in its most recent earnings report. Garmin reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Garmin Peers Comparison
Overall Rating
UnderperformOutperform
Sector (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $28.13B | 38.12 | 14.30% | ― | -1.16% | -7.04% | |
77 Outperform | $39.45B | 26.99 | 19.04% | 1.47% | 18.08% | 7.28% | |
77 Outperform | $17.25B | 11.52 | 31.00% | ― | -6.93% | 537.94% | |
76 Outperform | $48.30B | 35.70 | 11.33% | 1.60% | 1.23% | -58.22% | |
72 Outperform | $24.68B | 31.88 | 7.70% | 0.44% | 0.85% | -10.01% | |
69 Neutral | $41.09B | 91.81 | 4.14% | 2.33% | 9.77% | -26.50% | |
60 Neutral | $11.56B | 10.24 | -7.04% | 2.94% | 7.46% | -10.54% |
* Technology Sector Average
Performance Comparison
GRMN
Garmin
200.74
41.24
25.86%
GLW
Corning
48.18
12.54
35.19%
TEL
TE Connectivity
159.51
11.08
7.46%
TRMB
Trimble
70.76
13.16
22.85%
KEYS
Keysight Technologies
162.47
14.99
10.16%
FTV
Fortive
70.10
-6.65
-8.66%
Garmin Earnings Call Summary
Earnings Call Date:Apr 30, 2025
(Q1-2025)
| % Change Since: -1.65%|
Next Earnings Date:Jul 30, 2025
Earnings Call Sentiment Neutral
Garmin reported a record first quarter with strong growth in key segments and positive foreign exchange impacts. However, challenges such as tariff-related costs and a slight reduction in demand assumptions temper the overall outlook.Q1-2025 Updates
Positive Updates
Record First Quarter Revenue
Consolidated revenue increased 11% to $1.54 billion, marking a new first quarter record for Garmin.
Strong Growth in Fitness and Outdoor Segments
Fitness segment revenue increased 12% to $385 million, and Outdoor segment revenue increased 20% to $438 million, both driven by strong product demand and new product launches.
Positive Foreign Exchange Impact
The weakened U.S. dollar relative to other currencies is benefiting Garmin's revenue and margins, with approximately 40% of revenue generated in non-U.S. dollar currencies.
Auto OEM Segment Growth
Revenue in the Auto OEM segment increased 31% to $169 million, driven by increased shipments to BMW.
Stable Earnings Guidance
Despite tariff impacts, Garmin maintains its pro forma EPS guidance at $7.80, aided by foreign exchange benefits and mitigation strategies.
Negative Updates
Tariff Impact
Garmin anticipates approximately $100 million of increased costs due to tariffs, with assumptions including a 10% baseline tariff on products manufactured outside the U.S. and a 145% tariff on Chinese imports.
Marine Segment Revenue Decline
Marine segment revenue decreased 2% to $319 million, attributed to the timing of promotions and continued market softness.
Demand Reduction Assumptions
Garmin assumes a modest reduction in demand moving forward due to the current trade environment and potential consumer impact.
Company Guidance
During Garmin Limited's first quarter 2025 earnings call, the company provided updated guidance reflecting their strong start to the year, with consolidated revenue increasing by 11% to $1.54 billion. The company reported a record first quarter operating income of $333 million, with gross and operating margins of 57.6% and 21.7%, respectively, and a pro forma EPS of $1.61. Despite the dynamic global trade environment, including a potential $100 million cost increase due to tariffs, Garmin maintained its full-year pro forma EPS guidance of $7.80, supported by favorable foreign exchange impacts and planned mitigations. Revenue forecasts for 2025 were adjusted, with Fitness expected to grow by 15%, Outdoor by 10%, Aviation by 5%, Marine expected to remain flat, and Auto OEM maintaining a 7% growth estimate. Garmin's strategic mitigations, such as sourcing changes and pricing adjustments, along with strong product lines and market share gains, are expected to help offset the tariff impacts.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.