Garmin (GRMN) AI Stock Analysis

• Market Cap: $37.46B
• Dividend Yield: 1.69%
• Average Volume (3M): 1.07M
• Price to Earnings (P/E): 24.0
• Beta (1Y): 0.94
• 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: 1,276,087
• 30 Day Avg. Volume: 1,073,093
• 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: 1.18
• Enterprise Value/Revenue: 6.36
• Enterprise Value/Gross Profit: 10.83
• Enterprise Value/Ebitda: 21.86
• 1Y Price Target: $228.60
• Price Target Upside: 17.36% Upside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 6
• EPS Forecast (FY): 8.22
• Revenue Forecast (FY): $7.16B

• Rating: 74 Outperform
• Price Target: $246.00 ▲(26.29% Upside)

Garmin's overall stock score reflects strong financial performance and a positive earnings call, which are the most significant factors. However, technical analysis indicates bearish momentum, which tempers the overall score. Valuation is reasonable but not compelling enough to offset the technical weakness. The company's strategic focus on growth segments and new product introductions supports a positive outlook, but market sentiment remains cautious.

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. is a global leader in GPS technology and wearable electronics, recognized for its innovative products in various sectors including automotive, aviation, marine, fitness, and outdoor recreation. Founded in 1989, the company designs and manufactures a wide range of products such as handheld GPS devices, smartwatches, fitness trackers, and navigation systems. Garmin's commitment to quality and technological advancement has solidified its reputation as a trusted brand among consumers and professionals alike.

How the Company Makes Money

Garmin generates revenue through multiple streams, primarily by selling hardware products in its key segments: automotive, aviation, marine, fitness, and outdoor. The automotive segment includes navigation devices and infotainment systems, while the aviation sector focuses on avionics and flight navigation solutions. The marine division offers chartplotters and fishfinders, and the fitness segment encompasses smartwatches and fitness trackers. Additionally, Garmin earns revenue from software and services, including mapping and fitness-related subscriptions. Key partnerships with automotive manufacturers and fitness companies enhance its market reach and sales potential. The company's diverse product portfolio and focus on innovation contribute significantly 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 2021	Dec 2020
Income Statement
Total Revenue	6.94B	6.30B	5.23B	4.86B	4.98B	4.19B
Gross Profit	4.08B	3.70B	3.00B	2.81B	2.89B	2.48B
EBITDA	2.02B	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	10.52B	9.63B	8.60B	7.73B	7.85B	7.03B
Cash, Cash Equivalents and Short-Term Investments	2.54B	2.50B	1.97B	1.45B	1.85B	1.85B
Total Debt	155.77M	162.79M	113.03M	114.54M	70.04M	75.96M
Total Liabilities	2.04B	1.78B	1.59B	1.53B	1.74B	1.52B
Stockholders Equity	8.48B	7.85B	7.01B	6.20B	6.11B	5.52B
Cash Flow
Free Cash Flow	1.33B	1.24B	1.18B	542.07M	702.84M	947.80M
Operating Cash Flow	1.56B	1.43B	1.38B	788.26M	1.01B	1.14B
Investing Cash Flow	-716.40M	-393.33M	-332.97M	-145.12M	-475.37M	-260.52M
Financing Cash Flow	-802.90M	-626.86M	-636.51M	-840.62M	-486.71M	-461.76M

Garmin Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 194.79
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 194.79 is below the 20-day moving average (MA) of 198.72, below the 50-day MA of 227.76, and below the 200-day MA of 216.45, indicating a bearish trend. The MACD of -10.95 indicates Negative momentum. The RSI at 30.86 is Neutral, neither overbought nor oversold. The STOCH value of 56.93 is Neutral, 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
GRMN	74 Outperform	$37.46B	24.01	19.66%	1.69%	16.56%	3.19%
TEL	73 Outperform	$66.11B	36.48	14.78%	1.24%	8.94%	-39.90%
TRMB	73 Outperform	$19.34B	55.27	6.13%	―	-0.86%	-75.37%
CGNX	66 Neutral	$6.40B	59.01	7.21%	0.85%	10.23%	25.53%
GLW	64 Neutral	$71.68B	53.02	12.07%	1.34%	18.27%	771.78%
COHR	64 Neutral	$24.20B	221.93	3.08%	―	20.80%	―
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.