Garmin may be undervalued with mixed growth prospects, but the 7 analysts following the company give it an rating of hold. Their target prices range from $220.0 to $325.0 per share, for an average of $262.43. At today's price of $292.45, Garmin is trading 11.44% away from its average target price, suggesting there is an analyst belief that shares are overpriced for the stock.
Garmin Ltd. designs, develops, manufactures, markets, and distributes a diverse range of GPS-enabled products and navigation, communications, sensor-based, and information products and services worldwide. Based in Schaffhausen, Switzerland, the Large-Cap Industrials company has 23,000 full time employees. Garmin has offered a 1.7% dividend yield over the last 12 months.
Garmin has a trailing twelve month P/E ratio of 32.7, compared to an average of 24.03 for the Industrials sector. Considering its EPS guidance of $10.32, the company has a forward P/E ratio of 28.3.
Furthermore, Garmin is overpriced compared to its book value, since its P/B ratio of 6.09 is higher than the sector average of 2.89. The company's shares are currently 209.0% below their Graham number, indicating that its shares have a margin of safety.
| 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $4,187 | $4,983 | $4,860 | $5,228 | $6,297 | $7,246 |
| Gross Margins | 59% | 58% | 58% | 57% | 59% | 59% |
| Net Margins | 24% | 22% | 20% | 25% | 22% | 23% |
| Net Income (M) | $992 | $1,082 | $974 | $1,290 | $1,411 | $1,664 |
| Net Interest Expense (M) | $37 | $29 | n/a | $77 | $114 | $129 |
| Depreciation & Amort. (M) | $78 | $103 | $119 | $132 | $140 | $153 |
| Diluted Shares (M) | 192 | 193 | 193 | 192 | 193 | 194 |
| Earnings Per Share | $5.17 | $5.61 | $5.04 | $6.71 | $7.3 | $8.59 |
| EPS Growth | n/a | 8.51% | -10.16% | 33.13% | 8.79% | 17.67% |
| Avg. Price | $89.74 | $135.64 | $108.02 | $128.54 | $206.45 | $243.11 |
| P/E Ratio | 17.29 | 24.09 | 21.35 | 19.07 | 28.09 | 28.11 |
| Free Cash Flow (M) | $950 | $705 | $544 | $1,183 | $1,239 | $1,363 |
| CAPEX (M) | $185 | $308 | $244 | $194 | $194 | $270 |
| EV / EBITDA | 16.34 | 20.92 | 17.05 | 18.7 | 21.63 | 21.93 |
| Total Debt (M) | $2,850 | $3,169 | $0 | $0 | $0 | $0 |
| Net Debt / EBITDA | 1.23 | 1.26 | -1.12 | -1.38 | -1.2 | -1.12 |
| Current Ratio | 3.15 | 2.94 | 3.26 | 3.41 | 3.54 | 3.63 |
