Garmin Ltd. (GRMN) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Arlo Technologies, Inc.

Calix, Inc.

Ciena Corp.

Ubiquiti, Inc.

ViaSat, Inc.

Apple, Inc.

Digi International, Inc.

Garmin Ltd.

InterDigital, Inc.

Harmonic, Inc.

Motorola Solutions, Inc.

Why is Garmin Ltd. ?

High Management Efficiency with a high ROE of 17.48%

Company has a low Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 6 consecutive quarters

RAW MATERIAL COST(Y) Fallen by -2.72% (YoY)
CASH AND EQV(HY) Highest at USD 5,261.76 MM
DIVIDEND PER SHARE(HY) Highest at USD 7.36

With ROE of 17.95%, it has a fair valuation with a 5.03 Price to Book Value

The stock is trading at a fair value compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -4.52%, its profits have risen by 7.7% ; the PEG ratio of the company is 3.8

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.11% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -4.52% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Garmin Ltd. should be less than 10%
Overall Portfolio exposure to Telecom - Equipment & Accessories should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Garmin Ltd. for you?

Medium Risk, High Return

Absolute

Risk Adjusted

Volatility

Garmin Ltd.

-100.0%

0.83

35.72%

S&P 500

20.34%

0.70

20.15%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.59%

EBIT Growth (5y)

12.22%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-0.33

Sales to Capital Employed (avg)

0.79

Tax Ratio

16.46%

Dividend Payout Ratio

40.15%

Pledged Shares

Institutional Holding

58.98%

ROCE (avg)

26.09%

ROE (avg)

17.48%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

5.09

EV to EBIT

22.88

EV to EBITDA

20.79

EV to Capital Employed

6.85

EV to Sales

5.92

PEG Ratio

1.55

Dividend Yield

1.52%

ROCE (Latest)

29.94%

ROE (Latest)

18.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

Bearish

No Signal

Bollinger Bands

Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Bullish

OBV

No Trend

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,748.56 MM

RAW MATERIAL COST(Y)

Fallen by -3.21% (YoY

CASH AND EQV(HY)

Highest at USD 5,438.8 MM

DIVIDEND PER SHARE(HY)

Highest at USD 8.56

-1What is not working for the Company

DEBT-EQUITY RATIO (HY)

Highest at -27.33 %

Here's what is working for Garmin Ltd.

Operating Cash Flow

Highest at USD 1,748.56 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 5,438.8 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Dividend per share

Highest at USD 8.56

in the last five years

MOJO Watch

Company is distributing higher dividend from profits generated

DPS (USD)

Raw Material Cost

Fallen by -3.21% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 49.12 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Garmin Ltd.

Debt-Equity Ratio

Highest at -27.33 %

in the last five Semi-Annual periods

MOJO Watch

The company is borrowing more to fund its operations; it's liquidity situation may be stressed

Debt-Equity Ratio