Garmin (GRMN) AI Stock Analysis

• Market Cap: $45.51B
• Dividend Yield: 1.39%
• Average Volume (3M): 836.23K
• Price to Earnings (P/E): 29.2
• Beta (1Y): 1.06
• Revenue Growth: 19.65%
• EPS Growth: 13.58%
• Country: US
• Employees: 21,800
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.17
• Shares Outstanding: 192,493,940
• 10 Day Avg. Volume: 918,620
• 30 Day Avg. Volume: 836,230
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.83
• Enterprise Value/Revenue: 5.60
• Enterprise Value/Gross Profit: 9.51
• Enterprise Value/Ebitda: 19.49
• 1Y Price Target: $198.75
• Price Target Upside: -16.03% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

• Rating: 82 Outperform
• Price Target: $270.00 ▲(14.07% Upside)

Garmin's strong financial performance and positive earnings call are the most significant factors driving the stock score. The company's robust revenue growth, profitability, and strategic acquisitions position it well for future success. Technical analysis supports a moderate bullish outlook, while valuation metrics suggest the stock may be fairly valued. Overall, Garmin's solid financial health and strategic execution contribute to a favorable stock score.

Positive Factors

Revenue Growth

Garmin's 20% revenue growth reflects strong market demand and effective product strategy, enhancing its competitive position across multiple sectors.

Segment Performance

Strong performance across all segments, particularly in fitness, indicates diversified growth and resilience against market fluctuations.

Strategic Acquisitions

The acquisition of MyLabs strengthens Garmin's product offerings and technological capabilities, supporting long-term growth and innovation.

Negative Factors

Operating Expense Increase

Rising operating expenses could pressure margins and profitability, potentially affecting Garmin's ability to sustain its current growth trajectory.

Free Cash Flow Decrease

A decrease in free cash flow due to increased inventory may limit Garmin's financial flexibility and ability to invest in future growth opportunities.

Capital Expenditures

Increased capital expenditures, while potentially beneficial long-term, could strain short-term cash flow, impacting immediate financial stability.

Garmin Business Overview & Revenue Model

Company Description

Garmin 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 Money

Garmin generates revenue through multiple streams, primarily by selling a wide range of consumer and commercial products. Its main revenue sources include the sale of GPS devices and wearables across various sectors such as automotive, aviation, marine, outdoor, and fitness. The company also earns revenue from software and services associated with these products, including mapping and navigation services. Additionally, Garmin has established partnerships with various automotive manufacturers for integrated navigation solutions, which further enhance its revenue potential. The company's focus on innovation and expanding product offerings in the growing wearables and fitness market also contributes to its earnings.

Garmin Financial Statement Overview

Summary

Garmin demonstrates strong financial health with solid revenue growth and high profitability margins. The balance sheet is robust with low debt and high equity, ensuring financial stability. However, the recent decline in free cash flow due to capital investments is a minor concern.

Income Statement

Garmin has demonstrated strong revenue growth with a TTM revenue of $6.76 billion, up from $6.30 billion annually. Gross and net profit margins are robust at 58.93% and 23.21% respectively, indicating effective cost management and profitability. The company also maintains healthy EBIT and EBITDA margins of 26.02% and 28.05%, showing solid operational efficiency and cash flow generation capability.

Balance Sheet

The balance sheet is exceptionally strong with a low debt-to-equity ratio of 0.018, reflecting minimal financial leverage. Garmin's return on equity is commendable at 19.30%, showcasing effective use of equity capital. The equity ratio stands at 78.70%, indicating a solid capital structure with high financial stability and low reliance on debt.

Cash Flow

Garmin's cash flow health is good, with a free cash flow growth rate of -9.05% TTM due to capital investments. The operating cash flow to net income ratio is 0.85, indicating healthy cash conversion from profits. The free cash flow to net income ratio is 0.72, highlighting substantial cash generation capabilities but also potential for improvement in cash retention.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	6.76B	6.30B	5.23B	4.86B	4.98B	4.19B
Gross Profit	3.98B	3.70B	3.00B	2.81B	2.89B	2.48B
EBITDA	1.94B	1.77B	1.27B	1.19B	1.37B	1.18B
Net Income	1.57B	1.41B	1.29B	973.59M	1.08B	992.32M
Balance Sheet
Total Assets	10.32B	9.63B	8.60B	7.73B	7.85B	7.03B
Cash, Cash Equivalents and Short-Term Investments	2.59B	2.50B	1.97B	1.45B	1.85B	1.85B
Total Debt	148.61M	134.89M	113.03M	114.54M	70.04M	75.96M
Total Liabilities	2.20B	1.78B	1.59B	1.53B	1.74B	1.52B
Stockholders Equity	8.13B	7.85B	7.01B	6.20B	6.11B	5.52B
Cash Flow
Free Cash Flow	1.13B	1.24B	1.18B	542.07M	702.84M	947.80M
Operating Cash Flow	1.34B	1.43B	1.38B	788.26M	1.01B	1.14B
Investing Cash Flow	-496.29M	-393.33M	-332.97M	-145.12M	-475.37M	-260.52M
Financing Cash Flow	-756.91M	-626.86M	-636.51M	-840.62M	-486.71M	-461.76M

Garmin Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 236.70
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 236.7 is below the 20-day moving average (MA) of 236.97, above the 50-day MA of 232.57, and above the 200-day MA of 212.96, indicating a neutral trend. The MACD of 1.40 indicates Positive momentum. The RSI at 53.31 is Neutral, neither overbought nor oversold. The STOCH value of 49.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRMN.

Garmin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRMN	82 Outperform	$45.51B	29.17	20.73%	1.39%	19.65%	13.58%
KEYS	74 Outperform	29.97B	54.90	9.59%	―	4.80%	-39.55%
FTV	73 Outperform	16.29B	21.74	7.41%	0.59%	-0.12%	-11.27%
TEL	72 Outperform	63.69B	44.51	11.75%	1.27%	4.86%	-56.43%
GLW	71 Outperform	68.45B	84.61	7.37%	1.41%	14.63%	86.61%
TRMB	67 Neutral	19.01B	68.29	26.18%	―	-3.72%	-80.83%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Garmin Corporate Events

Garmin Shareholders Approve Key Proposals at AGM

On June 6, 2025, Garmin held its annual general meeting where shareholders approved several proposals, including the 2024 Annual Report, appropriation of earnings, and a cash dividend of $3.60 per share to be paid in four installments. The shareholders also re-elected directors and approved the compensation for executive management and the board. The approval of these proposals reflects strong shareholder confidence in Garmin’s financial health and strategic direction, potentially enhancing its market position and stakeholder value.