Garmin (GRMN) AI Stock Analysis

• Market Cap: $44.84B
• Dividend Yield: 1.33%
• Average Volume (3M): 834.82K
• Price to Earnings (P/E): 28.7
• Beta (1Y): 1.07
• Revenue Growth: 19.65%
• EPS Growth: 13.58%
• Country: US
• Employees: 21,800
• Sector: Technology
• Sector Strength: 97
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 2.17
• Shares Outstanding: 192,493,940
• 10 Day Avg. Volume: 1,120,938
• 30 Day Avg. Volume: 834,822
• PEG Ratio: 3.15
• Price to Book (P/B): 5.13
• Price to Sales (P/S): 6.39
• P/FCF Ratio: 32.47
• Enterprise Value/Market Cap: 0.84
• Enterprise Value/Revenue: 5.60
• Enterprise Value/Gross Profit: 9.51
• Enterprise Value/Ebitda: 19.49
• 1Y Price Target: $206.20
• Price Target Upside: -12.84% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6

• Rating: 81 Outperform
• Price Target: $253.00 ▲(6.94% Upside)

Garmin's overall score is driven by strong financial performance and positive earnings call highlights, including record revenue and strategic acquisitions. While technical analysis and valuation present some concerns, the company's robust core operations and growth outlook support a favorable stock assessment.

Positive Factors

Earnings 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.

Financial Strategy

Strong balance sheet and cash flow enable it to drive growth through ongoing investment in new product development and strategic acquisitions and further enhance shareholder returns through dividend increases and share repurchases.

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 Segment

Garmin's AutoOEM business outlook has worsened due to consumers pulling back and BMW cutting production forecasts.

Macroeconomic Environment

Concern exists that growth will slow across segments due to the current macro environment and consumers pulling back on spending.

Tariff Risk

A 32% tariff on Taiwan imports poses a risk to Garmin, which imports the majority of its goods from Taiwan.

Garmin Business Overview & Revenue Model

Company Description

Garmin Ltd. is a multinational technology company that specializes in GPS navigation and wearable technology. Founded in 1989, Garmin operates in various sectors including automotive, aviation, marine, outdoor, and fitness. The company is known for its high-quality GPS devices, smartwatches, and fitness trackers, which are designed to enhance navigation and performance across multiple activities. Garmin's product portfolio includes handheld GPS units, vehicle navigation systems, aviation avionics, and fitness-focused devices that cater to runners, cyclists, and outdoor enthusiasts.

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: 236.58
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: 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 236.58 is above the 20-day moving average (MA) of 229.24, above the 50-day MA of 216.82, and above the 200-day MA of 208.50, indicating a bullish trend. The MACD of 4.30 indicates Positive momentum. The RSI at 63.57 is Neutral, neither overbought nor oversold. The STOCH value of 81.69 is Negative, 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	81 Outperform	$44.84B	28.74	20.73%	1.33%	19.65%	13.58%
KEYS	79 Outperform	$28.76B	39.98	14.30%	―	-1.16%	-7.04%
TEL	72 Outperform	$60.32B	42.15	11.63%	1.29%	4.86%	-56.43%
TRMB	72 Outperform	$19.90B	71.39	5.06%	―	-3.72%	-80.83%
GLW	71 Outperform	$56.32B	69.61	7.55%	1.70%	14.63%	86.61%
Sector *	68 Neutral	¥241.22B	15.24	6.62%	2.44%	9.24%	1.58%
FTV	66 Neutral	$16.12B	21.51	7.36%	0.46%	-0.12%	-11.27%

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.

The most recent analyst rating on (GRMN) stock is a Sell with a $139.00 price target. To see the full list of analyst forecasts on Garmin stock, see the GRMN Stock Forecast page.