Now trading at a price of $98.79, Garmin has moved -1.1% so far today on a volume of 180,757, compared to its average of 939,804. In contrast, the S&P 500 index moved 0.2%.
Garmin shares moved -24.4% over the last 52 weeks, with a high of $133.79 and a low of $76.37. During this time, the stock lagged the S&P 500 index by -9.6%. As of January 2022, the company's 50-day average price is $92.053. 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. The large-cap Technology company has 18,700 full time employees and is based in Schaffhausen, Switzerland. Garmin has returned a 2.9% dividend yield over the last 12 months.
Sustained EPS Growth with Low Leverage Levels:
| 2019-12-31 | 2020-12-31 | 2021-12-31 | |
|---|---|---|---|
| Revenue (MM) | $3,758 | $4,187 | $4,983 |
| Revenue Growth | n/a | 11.42% | 19.02% |
| Gross Margins | 59.4% | 59.3% | 58.0% |
| Gross Margins Growth | n/a | -0.17% | -2.19% |
| Operating Margins | 25.2% | 25.2% | 24.5% |
| Operating Margins Growth | n/a | 0.0% | -2.78% |
| Earnings Per Share | $4.99 | $5.17 | $5.61 |
| EPS Growth | n/a | 3.61% | 8.51% |
| Free Cash Flow (MM) | $578 | $948 | $703 |
| FCF Growth | n/a | 63.94% | -25.85% |
| Capital Expenditures (MM) | -$120 | -$187 | -$310 |
| Net Debt / EBITDA | -0.92 | -1.17 | -1.01 |
Garmin Is Currently Fairly Valued:
Compared to the Technology sector's average of 26.5, Garmin has a trailing twelve month P/E ratio of 19.8 and, according to its EPS guidance of 5.49, an expected P/E ratio of 18.0. Garmin's PEG ratio is 5.38 based on its 3.67% average growth rate of historical and projected earnings per share. This suggests that the company's shares are overvalued.
Garmin is undervalued in terms of its assets because its P/B ratio is 3.2 compared to its sector average of 5.57. The company's shares are currently trading 64.2% above their fair value as expressed by Benjamin Graham's formula:
√(22.5 * 3-year average EPS * book value per share) = √(22.5 * 5.26 * 30.587) = $60.17
Garmin Is the Subject of Mixed Market Indicators:
The company has a very low short interest since 1.4% of the company's shares are tied to short positions. Institutions own 55.5% of Garmin's shares, while the insider ownership rate stands at 19.91%. The biggest shareholder is the Vanguard Group, Inc. with a 9% stake in the company worth approximately $1,757,652,333.
