Garmin (GRMN) AI Stock Analysis

• Market Cap: $39.52B
• Dividend Yield: 1.64%
• Average Volume (3M): 849.93K
• Price to Earnings (P/E): 25.3
• Beta (1Y): 0.92
• Revenue Growth: 16.56%
• EPS Growth: 3.19%
• Country: US
• Employees: 21,800
• Sector: Technology
• Sector Strength: 88
• Industry: Hardware, Equipment & Parts
• EPS (TTM): 1.99
• Shares Outstanding: 192,334,810
• 10 Day Avg. Volume: 1,237,071
• 30 Day Avg. Volume: 849,926
• 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: 1.12
• Enterprise Value/Revenue: 8.62
• Enterprise Value/Gross Profit: 14.73
• Enterprise Value/Ebitda: 30.30
• 1Y Price Target: $228.60
• Price Target Upside: 13.64% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): 8.2
• Revenue Forecast (FY): $7.16B

• Rating: 74 Outperform
• Price Target: $246.00 ▲(22.29% Upside)

Garmin's strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. The company's robust revenue growth and profitability, coupled with raised guidance, reflect a solid outlook. However, technical indicators suggest current market weakness, and the high P/E ratio indicates potential overvaluation, tempering the overall score.

Positive Factors

Revenue Growth

Garmin's strong revenue growth across multiple segments indicates robust market demand and effective product strategy, supporting long-term business expansion.

Segment Performance

The rapid growth in the Fitness segment highlights Garmin's competitive edge in wearables, positioning it well in a growing market and driving future revenue.

Balance Sheet Health

Garmin's low debt levels and high equity provide financial stability and flexibility, enabling strategic investments and resilience against economic fluctuations.

Negative Factors

Outdoor Segment Decline

The decline in the Outdoor segment suggests challenges in product lifecycle management, potentially impacting overall growth if not addressed.

Gross Margin Pressure

Pressure on gross margins from rising costs and tariffs could affect profitability, necessitating cost management strategies to maintain margins.

Auto OEM Segment Challenges

Challenges in the Auto OEM segment, including operating losses, highlight potential risks in this area, requiring strategic adjustments to improve performance.

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 exhibits a strong financial position with consistent revenue growth and high profitability margins. Its balance sheet reflects high equity and low debt, underpinning financial stability. While cash flow generation is strong, the recent decline in free cash flow suggests increased capital expenditures, which could limit short-term cash reserves. Overall, Garmin is well-positioned in its industry with robust financial health.

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 2019	Dec 2018
Income Statement
Total Revenue	5.12B	6.30B	5.23B	4.86B	3.76B	3.35B
Gross Profit	3.00B	3.70B	3.00B	2.81B	2.23B	1.98B
EBITDA	1.46B	1.77B	1.27B	1.19B	1.05B	874.54M
Net Income	1.14B	1.41B	1.29B	973.59M	952.49M	694.08M
Balance Sheet
Total Assets	10.52B	9.63B	8.60B	7.73B	6.17B	5.38B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.50B	1.97B	1.45B	1.40B	1.38B
Total Debt	155.77M	162.79M	113.03M	114.54M	49.24M	0.00
Total Liabilities	2.04B	1.78B	1.59B	1.53B	1.37B	1.22B
Stockholders Equity	8.48B	7.85B	7.01B	6.20B	4.79B	4.16B
Cash Flow
Free Cash Flow	933.30M	1.24B	1.18B	542.07M	578.14M	759.16M
Operating Cash Flow	1.08B	1.43B	1.38B	788.26M	698.55M	919.52M
Investing Cash Flow	-513.83M	-393.33M	-332.97M	-145.12M	-450.75M	-307.50M
Financing Cash Flow	-625.48M	-626.86M	-636.51M	-840.62M	-416.03M	-286.16M

Garmin Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 201.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GRMN, the sentiment is Negative. The current price of 201.16 is below the 20-day moving average (MA) of 233.46, below the 50-day MA of 238.98, and below the 200-day MA of 217.75, indicating a bearish trend. The MACD of -11.33 indicates Positive momentum. The RSI at 18.67 is Positive, neither overbought nor oversold. The STOCH value of 7.00 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GRMN.

Garmin Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TEL	79 Outperform	$73.57B	40.42	14.78%	1.12%	8.94%	-39.90%
GLW	77 Outperform	$74.68B	55.24	12.07%	1.27%	18.27%	771.78%
GRMN	74 Outperform	$39.52B	25.32	19.66%	1.64%	16.56%	3.19%
COHR	67 Neutral	$20.98B	229.57	3.08%	―	20.80%	―
CGNX	66 Neutral	$6.79B	62.55	7.21%	0.77%	10.23%	25.53%
TRMB	66 Neutral	$18.70B	68.80	6.13%	―	-0.86%	-75.37%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Garmin Corporate Events

Garmin Reports Record Revenue and Raises EPS Guidance

Garmin Ltd., a leading provider of GPS technology and wearable devices, operates in the fitness, outdoor, aviation, marine, and automotive sectors, known for its innovation and diverse product offerings. In its third quarter of 2025, Garmin reported a record revenue of $1.8 billion, marking a 12% increase from the previous year, alongside a record operating income of $457 million. The company also raised its full-year EPS guidance, reflecting strong financial performance and strategic growth initiatives. Key highlights include a 30% revenue increase in the fitness segment, driven by demand for advanced wearables, and significant growth in the aviation and marine segments. Notably, Garmin launched the fēnix 8 Pro series, its first smartwatch with satellite and cellular connectivity, and expanded its product offerings in the marine and aviation sectors. Looking ahead, Garmin’s management expresses confidence in its product lineup for the holiday season, supported by a robust financial position and ongoing innovation.

Garmin Reports Record Revenue and Raises EPS Guidance

Garmin’s recent earnings call painted a picture of robust growth and strategic challenges. The company celebrated record third-quarter revenue and raised its annual EPS guidance, driven by strong performances in the Fitness, Marine, and Aviation segments. However, concerns were noted in the Outdoor and Auto OEM segments, alongside a decline in gross margin.

Garmin Reports Record Q2 2025 Results, Raises Guidance

Garmin Ltd., a leading provider of GPS technology and wearable devices, operates in sectors such as fitness, outdoor, aviation, marine, and automotive. The company is renowned for its innovative products and solutions that cater to a diverse range of industries.

Garmin’s Earnings Call Highlights Record Growth and Optimism

Garmin Ltd. has showcased a robust financial performance in its latest earnings call, setting a positive tone with record revenue and growth across all segments. The strategic acquisition of MyLabs is expected to bolster its offerings, despite challenges in operating expenses and free cash flow. The company remains optimistic, raising its full-year guidance.