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Garmin (GRMN)
NYSE:GRMN
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Garmin (GRMN) AI Stock Analysis

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GRMN

Garmin

(NYSE:GRMN)

Rating:82Outperform
Price Target:
$270.00
▲(15.24% 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
Acquisition Benefits
The acquisition of MyLaps could benefit Garmin by locking users into its ecosystem from training to race day.
Demand Resiliency
Demand in Garmin’s core businesses (Outdoor and Fitness) has demonstrated resiliency despite a turbulent macro environment.
Product Innovation
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
Demand Concerns
There is concern that the momentum in demand won’t continue in the second half of the year.
Tariff Risks
A 32% tariff on Taiwan imports poses a risk to Garmin, which imports the majority of its goods from Taiwan.
Valuation Risks
There is limited discovery value in Garmin’s current valuation given the downside risks.

Garmin (GRMN) vs. SPDR S&P 500 ETF (SPY)

Garmin Business Overview & Revenue Model

Company DescriptionGarmin 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 MoneyGarmin 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 Key Performance Indicators (KPIs)

Any
Any
Revenue by Segment
Revenue by Segment
Analyzes revenue from different business segments, highlighting which areas drive growth and profitability, and where strategic focus may be needed.
Chart InsightsGarmin's fitness segment is experiencing robust growth, with a 41% revenue increase, driven by advanced wearables. The outdoor and aviation segments also show strong upward trends, reflecting strategic focus and innovation. Despite an operating loss in the auto OEM segment, revenue rose by 16%, indicating potential for recovery. The recent acquisition of MyLabs is expected to enhance Garmin's offerings and expand market reach. Overall, Garmin's raised full-year guidance and record-breaking revenue underscore confidence in sustained demand and strategic execution across all segments.
Data provided by:Main Street Data

Garmin Earnings Call Summary

Earnings Call Date:Jul 30, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 29, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong quarter for Garmin Ltd., with record-breaking revenue and growth across all segments. There is significant positive momentum with the update to the full-year guidance and strategic acquisitions. However, increased operating expenses and decreased free cash flow present areas for improvement. Overall, the positive highlights significantly outweigh the lowlights, indicating a robust performance.
Q2-2025 Updates
Positive Updates
Record-Breaking Revenue and Growth
Garmin Ltd. delivered another quarter of outstanding financial results with consolidated revenue increasing 20% to exceed $1.8 billion, setting a new second-quarter record. Operating income also reached a record $472 million, up 38% year over year.
Strong Performance Across Segments
Double-digit sales growth was experienced in every business segment, with fitness leading at 41% growth, outdoor at 11%, aviation at 14%, marine at 10%, and auto OEM at 16%.
Notable Acquisitions and Product Innovations
Garmin Ltd. announced the acquisition of MyLabs, enhancing their market in timing and performance analysis. New products like the Forerunner 570, Forerunner 970, Venu X1, and others were launched, contributing to strong financial performance.
Updated Full-Year Guidance
Garmin Ltd. updated its full-year revenue guidance to approximately $7.1 billion and pro forma EPS of $8 per share, reflecting confidence in continued strong performance.
Negative Updates
Operating Expense Increase
Operating expenses increased by $74 million or 14%, driven by rises in research and development and SG&A primarily due to personnel-related expenses.
Free Cash Flow Decrease
Free cash flow for the second quarter was $127 million, a $91 million decrease from the prior year quarter, primarily due to an increase in inventory.
Company Guidance
During the Garmin Ltd. Second Quarter 2025 Earnings Call, the company announced an impressive 20% increase in consolidated revenue, reaching over $1.8 billion, a new second-quarter record. Key financial metrics highlighted include a significant expansion in gross and operating margins to 58% and 26%, respectively, resulting in record operating income of $472 million, a 38% year-over-year increase. Pro forma EPS rose 37% to $2.17. The company updated its full-year guidance, projecting revenue of approximately $7.1 billion and pro forma EPS of $8 per share. Each business segment reported double-digit sales growth, with the fitness segment experiencing a remarkable 41% increase in revenue. The outdoor segment saw an 11% rise, while aviation and marine segments reported 14% and 10% growth, respectively. The auto OEM segment posted a 16% revenue increase. Garmin Ltd. also announced the acquisition of MyLabs, aiming to integrate its timing and race management technology with Garmin devices, enhancing the comprehensive experience for its customers.

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
85
Very Positive
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
90
Very Positive
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
80
Positive
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue6.76B6.30B5.23B4.86B4.98B4.19B
Gross Profit3.98B3.70B3.00B2.81B2.89B2.48B
EBITDA1.94B1.77B1.27B1.19B1.37B1.18B
Net Income1.57B1.41B1.29B973.59M1.08B992.32M
Balance Sheet
Total Assets10.32B9.63B8.60B7.73B7.85B7.03B
Cash, Cash Equivalents and Short-Term Investments2.59B2.50B1.97B1.45B1.85B1.85B
Total Debt148.61M134.89M113.03M114.54M70.04M75.96M
Total Liabilities2.20B1.78B1.59B1.53B1.74B1.52B
Stockholders Equity8.13B7.85B7.01B6.20B6.11B5.52B
Cash Flow
Free Cash Flow1.13B1.24B1.18B542.07M702.84M947.80M
Operating Cash Flow1.34B1.43B1.38B788.26M1.01B1.14B
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 Price234.29
Price Trends
50DMA
224.74
Positive
100DMA
211.11
Positive
200DMA
211.34
Positive
Market Momentum
MACD
3.46
Positive
RSI
53.76
Neutral
STOCH
77.80
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 234.29 is above the 20-day moving average (MA) of 233.27, above the 50-day MA of 224.74, and above the 200-day MA of 211.34, indicating a bullish trend. The MACD of 3.46 indicates Positive momentum. The RSI at 53.76 is Neutral, neither overbought nor oversold. The STOCH value of 77.80 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GRMN.

Garmin Risk Analysis

Garmin disclosed 36 risk factors in its most recent earnings report. Garmin reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Garmin Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
82
Outperform
$46.55B29.8420.73%1.34%19.65%13.58%
77
Outperform
$7.38B61.508.10%0.72%10.14%57.53%
72
Outperform
$61.02B42.6411.63%1.33%4.86%-56.43%
72
Outperform
$19.23B69.015.06%-3.72%-80.83%
71
Outperform
$57.42B70.977.55%1.64%14.63%86.61%
61
Neutral
$35.45B8.20-10.60%1.91%8.56%-9.51%
59
Neutral
$14.10B0.63%23.42%71.17%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GRMN
Garmin
234.29
56.17
31.53%
CGNX
Cognex
44.27
5.95
15.53%
GLW
Corning
68.47
28.10
69.61%
COHR
Coherent Corp
87.80
13.90
18.81%
TEL
TE Connectivity
204.56
59.29
40.81%
TRMB
Trimble
78.57
23.08
41.59%

Garmin Corporate Events

Executive/Board ChangesShareholder MeetingsDividends
Garmin Shareholders Approve Key Proposals at AGM
Positive
Jun 12, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Aug 19, 2025