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

Ubiquiti, Inc.

Calix, Inc.

Arlo Technologies, Inc.

Ciena Corp.

ViaSat, Inc.

Apple, Inc.

Garmin Ltd.

Motorola Solutions, Inc.

Digi International, Inc.

InterDigital, Inc.

Harmonic, 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.

12.45%

0.83

35.72%

S&P 500

14.9%

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

59.06%

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

5.19

EV to EBIT

23.37

EV to EBITDA

21.23

EV to Capital Employed

7.00

EV to Sales

6.05

PEG Ratio

1.58

Dividend Yield

1.49%

ROCE (Latest)

29.94%

ROE (Latest)

18.54%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Mildly Bearish

RSI

No Signal

Bollinger Bands

Mildly Bullish

Moving Averages

Bullish (Daily)

KST

Bullish

Mildly Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

No Trend

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

11What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 1,633.36 MM

RAW MATERIAL COST(Y)

Fallen by 0.07% (YoY

CASH AND EQV(HY)

Highest at USD 5,277.48 MM

NET SALES(Q)

Highest at USD 2,124.95 MM

OPERATING PROFIT(Q)

Highest at USD 660.41 MM

OPERATING PROFIT MARGIN(Q)

Highest at 31.08 %

PRE-TAX PROFIT(Q)

Highest at USD 635.39 MM

NET PROFIT(Q)

Highest at USD 528.68 MM

EPS(Q)

Highest at USD 2.73

-3What is not working for the Company

DIVIDEND PAYOUT RATIO(Y)

Lowest at 0%

DEBTORS TURNOVER RATIO(HY)

Lowest at 6.38 times

DIVIDEND PER SHARE(HY)

Lowest at USD 6.38

Here's what is working for Garmin Ltd.

Operating Cash Flow

Highest at USD 1,633.36 MM and Grown

In each year in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Net Sales

Highest at USD 2,124.95 MM

in the last five periods

MOJO Watch

Near term sales trend is positive

Net Sales (USD MM)

Operating Profit

Highest at USD 660.41 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is positive

Operating Profit (USD MM)

Operating Profit Margin

Highest at 31.08 %

in the last five periods

MOJO Watch

Company's profit margin has improved

Operating Profit to Sales

Pre-Tax Profit

Highest at USD 635.39 MM

in the last five periods

MOJO Watch

Near term Pre-Tax Profit trend is positive

Pre-Tax Profit (USD MM)

Net Profit

Highest at USD 528.68 MM

in the last five periods

MOJO Watch

Near term Net Profit trend is positive

Net Profit (USD MM)

EPS

Highest at USD 2.73

in the last five periods

MOJO Watch

Increasing profitability; company has created higher earnings for shareholders

EPS (USD)

Cash and Eqv

Highest at USD 5,277.48 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Raw Material Cost

Fallen by 0.07% (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

Here's what is not working for Garmin Ltd.

Debtors Turnover Ratio

Lowest at 6.38 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

Dividend per share

Lowest at USD 6.38

in the last five years

MOJO Watch

Company is distributing lower dividend than previous years

DPS (USD)

Dividend Payout Ratio

Lowest at 0%

in the last five years

MOJO Watch

Company is distributing lower proportion of profits generated as dividend

DPR (%)