Garmin Ltd. revolutionizes how we navigate our world, from tracking our fitness goals to enhancing aviation safety. As a prominent player in the hardware and equipment sector, Garmin’s innovative products—spanning outdoor adventure watches to sophisticated aviation avionics—demonstrate its unwavering commitment to quality and technological advancement. With a strong market presence and a reputation for excellence, I invite you to consider whether Garmin’s current valuation and growth prospects align with its robust fundamentals.
Table of contents
Company Description
Garmin Ltd. is a leading technology company founded in 1989 and headquartered in Schaffhausen, Switzerland. It specializes in designing, developing, manufacturing, and distributing a diverse range of wireless devices across multiple segments, including Fitness, Outdoor, Aviation, Marine, and Auto. With a market capitalization of approximately $39.2B, Garmin offers products such as smartwatches, aircraft avionics, and automotive infotainment systems. Its geographic footprint spans the Americas, Asia Pacific, Europe, the Middle East, and Africa. Garmin’s commitment to innovation and ecosystem strength positions it as a pivotal player in the tech industry, continuously enhancing user experiences through advanced technology and connectivity solutions.
Fundamental Analysis
In this section, I will analyze Garmin Ltd.’s income statement, financial ratios, and dividend payout policy to evaluate its financial health and investment potential.
Income Statement
The following table outlines Garmin Ltd.’s income statement for the past five fiscal years, detailing key financial metrics to assess the company’s performance.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 4.19B | 4.98B | 4.86B | 5.23B | 6.30B |
| Cost of Revenue | 1.71B | 2.09B | 2.05B | 2.22B | 2.60B |
| Operating Expenses | 1.43B | 1.67B | 1.78B | 1.91B | 2.10B |
| Gross Profit | 2.48B | 2.89B | 2.81B | 3.00B | 3.70B |
| EBITDA | 1.18B | 1.37B | 1.19B | 1.27B | 1.77B |
| EBIT | 1.05B | 1.22B | 1.03B | 1.09B | 1.59B |
| Interest Expense | 0 | 0 | 0 | 0 | 0 |
| Net Income | 992M | 1.08B | 974M | 1.29B | 1.41B |
| EPS | 5.19 | 5.63 | 5.06 | 6.74 | 7.35 |
| Filing Date | 2021-02-17 | 2022-02-16 | 2023-02-22 | 2024-11-29 | 2025-02-19 |
Interpretation of Income Statement
Over the past five years, Garmin has shown strong revenue growth, increasing from 4.19B in 2020 to 6.30B in 2024. Net income has followed suit, rising from 992M to 1.41B, reflecting overall operational efficiency. The gross profit margin has remained stable, indicating effective cost management despite rising expenses. In 2024, Garmin’s performance strengthened, with robust EBITDA growth, suggesting improved profitability. However, investors should remain cautious, as the pace of growth may slow, necessitating ongoing scrutiny of margins and expenses to maintain financial health.
Financial Ratios
The table below summarizes the financial ratios for Garmin Ltd. (ticker: GRMN) over the last few fiscal years.
| Ratios | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | 23.70% | 21.72% | 20.03% | 24.67% | 22.41% |
| ROE | 17.99% | 17.70% | 15.69% | 18.39% | 17.98% |
| ROIC | 16.16% | 17.06% | 14.41% | 16.09% | 16.28% |
| P/E | 23.04 | 24.18 | 18.25 | 19.08 | 28.50 |
| P/B | 4.15 | 4.28 | 2.86 | 3.51 | 5.13 |
| Current Ratio | 3.15 | 2.94 | 3.26 | 3.41 | 3.54 |
| Quick Ratio | 2.50 | 2.10 | 2.01 | 2.38 | 2.56 |
| D/E | 0.01 | 0.01 | 0.02 | 0.02 | 0.02 |
| Debt-to-Assets | 1.08% | 1.18% | 1.48% | 1.31% | 1.69% |
| Interest Coverage | – | – | – | – | – |
| Asset Turnover | 0.60 | 0.63 | 0.63 | 0.61 | – |
| Fixed Asset Turnover | 4.41 | 4.31 | 3.78 | 3.82 | – |
| Dividend Yield | 1.97% | 1.88% | 3.82% | 2.27% | 1.42% |
Interpretation of Financial Ratios
Analyzing Garmin Ltd.’s financial ratios from FY 2024, the liquidity ratios indicate a strong position, with a current ratio of 3.54 and a quick ratio of 2.56, suggesting excellent short-term financial health. The solvency ratio stands at 0.89, reflecting a robust balance sheet with minimal debt (debt-to-assets ratio of 0.02). Profitability ratios are also solid, with a net profit margin of 22.41% and an operating margin of 25.31%, indicating effective cost management. However, the price-to-earnings ratio of 28.50 suggests that the stock may be overvalued relative to earnings, which could be a concern for investors. In summary, Garmin shows strong financial health, balanced by caution regarding its valuation.
Evolution of Financial Ratios
Over the past five years, Garmin’s financial ratios exhibit a positive trend, particularly in liquidity and profitability metrics. The current ratio has improved from 2.94 in 2021 to 3.54 in 2024, while the net profit margin has increased from 21.72% in 2021 to 22.41% in 2024, reflecting consistent financial growth and operational efficiency.
Distribution Policy
Garmin Ltd. (GRMN) maintains a balanced distribution policy by paying dividends while also engaging in share buybacks. The dividend payout ratio stands at approximately 40.6%, with a consistent annual dividend yield of around 1.4%. The firm has demonstrated a stable increase in dividends per share, supported by healthy free cash flow. However, excessive repurchases pose a potential risk, necessitating careful monitoring to ensure sustainable long-term value creation for shareholders.
Sector Analysis
Garmin Ltd. operates within the Hardware, Equipment & Parts industry, excelling in various segments such as fitness, outdoor, aviation, marine, and automotive products, while facing competition from firms like TomTom and Fitbit.
Strategic Positioning
Garmin Ltd. (Ticker: GRMN) holds a competitive position in the hardware and technology sector with a market cap of approximately 39.17B. The company has established a significant market share in the fitness and outdoor segments, particularly with its innovative GPS and wearable devices. However, it faces competitive pressure from emerging technologies and competitors that are rapidly advancing in product features and pricing strategies. The ongoing technological disruption in connected devices necessitates constant innovation, and Garmin must remain agile to sustain its market leadership.
Revenue by Segment
The pie chart below illustrates Garmin Ltd.’s revenue distribution by segment for the fiscal year 2024, highlighting key areas driving the company’s performance.
In FY 2024, Garmin experienced notable growth across several segments. The Fitness segment led revenue generation at 1.77B, followed closely by Outdoor at 1.96B. The Aviation segment contributed 876M, while Marine generated 1.07B, and Automotive Mobile accounted for 610M. Compared to FY 2023, the Outdoor and Fitness segments saw an acceleration in growth, indicating a strengthened consumer demand. However, the Automotive Mobile segment remains a concern, showing relatively slower growth, which could signal potential margin risks if not addressed effectively.
Key Products
Garmin Ltd. offers a diverse range of products across various segments, catering to both consumer and professional markets. Below is a summary of some of its key products:
| Product | Description |
|---|---|
| Forerunner Series | GPS running watches designed for athletes, featuring advanced metrics for training and performance analysis. |
| Edge Cycling Computers | High-performance cycling devices that offer GPS tracking, route navigation, and performance monitoring for cyclists. |
| Instinct Outdoor Watch | Rugged GPS smartwatch built for outdoor activities, equipped with navigation features and robust durability. |
| D2 Air Aviation Watch | Premium aviation smartwatch that provides flight planning, navigation, and connectivity features for pilots. |
| Garmin Fishfinder | Advanced sonar technology to help anglers locate fish, providing real-time data and mapping capabilities. |
| DriveSmart Series | Integrated GPS navigation systems for vehicles, featuring voice-activated directions, traffic updates, and smart notifications. |
| Fenix Series | Multi-sport GPS watches that combine fitness tracking with smart capabilities, ideal for outdoor enthusiasts. |
| ECHOMAP UHD | Combines chartplotting with sonar for boaters, providing detailed mapping and fish-finding capabilities. |
These offerings reflect Garmin’s commitment to innovation in technology and its ability to meet the needs of various customer segments. As an investor, understanding these products can help gauge the company’s market position and growth potential.
Main Competitors
The competitive landscape for Garmin Ltd. includes key players in the hardware and technology sector, particularly focusing on wireless devices and related technologies.
| Company | Market Cap |
|---|---|
| Monolithic Power Systems, Inc. | 46.15B |
| Fair Isaac Corporation | 43.59B |
| Cognizant Technology Solutions Corporation | 39.67B |
| Garmin Ltd. | 39.17B |
| Celestica Inc. | 37.40B |
| Keysight Technologies, Inc. | 36.17B |
| Sandisk Corporation | 33.19B |
| Nokia Oyj | 32.78B |
| Telefonaktiebolaget LM Ericsson (publ) | 31.66B |
| Teledyne Technologies Incorporated | 24.52B |
| Flex Ltd. | 23.08B |
Garmin Ltd. faces significant competition within the global market, particularly from companies like Monolithic Power Systems and Fair Isaac Corporation, which also focus on advanced technologies and solutions. Investors should keep these competitors in mind, as their performance can influence Garmin’s market standing and growth potential.
Competitive Advantages
Garmin Ltd. (GRMN) leverages its strong brand reputation and diverse product portfolio to maintain a competitive edge in the hardware and technology sector. With a market cap of 39.2B, the company is well-positioned for growth, particularly through its innovative fitness and outdoor segments, which continue to attract health-conscious consumers. Future opportunities lie in expanding market reach in emerging economies and enhancing connectivity through new technology integrations. Additionally, Garmin’s commitment to quality and customer service solidifies its standing in an increasingly competitive landscape.
SWOT Analysis
This analysis aims to provide a strategic overview of Garmin Ltd. (ticker: GRMN) through its strengths, weaknesses, opportunities, and threats.
Strengths
- Strong brand recognition
- Diverse product range
- Solid financial performance
Weaknesses
- Dependence on consumer electronics
- Limited market share in certain regions
- Vulnerability to supply chain disruptions
Opportunities
- Growth in wearables market
- Expansion into emerging markets
- Increasing demand for navigation solutions
Threats
- Intense competition
- Rapid technological advancements
- Economic downturns affecting consumer spending
Overall, Garmin Ltd. demonstrates robust strengths and significant opportunities that can drive growth. However, the company must address its weaknesses and be vigilant against external threats to maintain its competitive edge and ensure sustainable strategy execution.
Stock Analysis
Over the past year, Garmin Ltd. (GRMN) has experienced significant price movements, culminating in a robust bullish trend, albeit with recent signs of deceleration. The stock has demonstrated notable volatility, reflecting dynamic trading conditions.
Trend Analysis
Analyzing the overall trend over the past year, Garmin’s stock has seen a remarkable price increase of 64.38%. This solid performance clearly indicates a bullish trend. However, in the recent period from September 21, 2025, to December 7, 2025, the stock faced a decline of 13.41%, suggesting a bearish phase within the broader bullish context. The highest price recorded during this time was 257.06, while the lowest was 120.41. The trend is currently in a state of deceleration, with a standard deviation of 33.92 reflecting substantial volatility.
Volume Analysis
In the last three months, Garmin has recorded a total trading volume of approximately 501M shares, with buyer volume at 287M shares, indicating a buyer-driven market sentiment, as buyers accounted for 57.24% of the total volume. The overall volume trend is increasing, signaling heightened market participation. However, during the recent period from September 21, 2025, to December 7, 2025, buyer activity has shifted slightly to a seller-dominant stance, with buyers representing only 40.35% of the volume. This shift could suggest caution among investors as they navigate the current price fluctuations.
Analyst Opinions
Recent analyst recommendations for Garmin Ltd. (GRMN) show a consensus to “buy.” Analysts have highlighted the company’s strong return on equity and solid debt-to-equity ratio, with an overall score of 4 out of 5. Notably, analysts have praised its discounted cash flow potential, indicating robust future growth. While the price-to-earnings and price-to-book ratios are less favorable, the positive outlook remains strong. Analysts like those from reputable firms have voiced confidence in the stock’s performance for 2025, reinforcing the buy sentiment.
Stock Grades
Garmin Ltd. (Ticker: GRMN) has recently seen a mix of stock ratings from recognized grading companies, indicating varied investor sentiment.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Longbow Research | Upgrade | Buy | 2025-12-03 |
| Morgan Stanley | Maintain | Underweight | 2025-10-30 |
| Barclays | Maintain | Underweight | 2025-10-30 |
| Tigress Financial | Maintain | Strong Buy | 2025-09-30 |
| Morgan Stanley | Maintain | Underweight | 2025-09-19 |
| Morgan Stanley | Maintain | Underweight | 2025-07-31 |
| Barclays | Maintain | Underweight | 2025-07-31 |
| JP Morgan | Maintain | Neutral | 2025-07-17 |
| Morgan Stanley | Maintain | Underweight | 2025-05-01 |
| JP Morgan | Maintain | Neutral | 2025-05-01 |
Overall, there’s a notable trend of cautious optimism with an upgrade to “Buy” from Longbow Research, contrasting with several “Underweight” ratings from Morgan Stanley and Barclays. The divergence in ratings suggests that while some analysts are optimistic about Garmin’s potential, others remain cautious about its market position.
Target Prices
The consensus target prices for Garmin Ltd. (GRMN) indicate a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 305 | 193 | 235.33 |
Overall, analysts expect Garmin’s stock to trade around the consensus target of 235.33, reflecting a balanced view between potential highs and lows.
Consumer Opinions
Consumer sentiment about Garmin Ltd. (GRMN) reveals a mix of enthusiasm and criticism, reflecting the diverse experiences of customers with their products.
| Positive Reviews | Negative Reviews |
|---|---|
| “Exceptional GPS accuracy and reliability.” | “Customer service response times are slow.” |
| “Innovative technology that enhances outdoor activities.” | “High price point compared to competitors.” |
| “User-friendly interface and great battery life.” | “Some features are complicated to use.” |
Overall, consumer feedback highlights Garmin’s exceptional product quality and innovation, but concerns about customer service and pricing persist as notable weaknesses.
Risk Analysis
In evaluating Garmin Ltd. (GRMN), it’s essential to consider the various risks that could impact its performance. Below is a summary of key risks associated with the company.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in consumer demand and market trends affecting sales. | High | High |
| Supply Chain Issues | Disruptions in the supply chain impacting product availability. | Medium | High |
| Regulatory Changes | New regulations affecting product development and sales. | Medium | Medium |
| Technological Advancements | Rapid tech changes leading to potential obsolescence of products. | High | Medium |
| Competition | Increased competition from emerging tech companies. | High | High |
Garmin faces significant risks from market volatility and competition, which could profoundly affect its revenue streams. Recent trends indicate a shift in consumer preferences towards newer technologies, which heightens the urgency for Garmin to innovate.
Should You Buy Garmin Ltd.?
Garmin Ltd. (GRMN) demonstrates strong profitability with a net profit margin of 22.41% for FY 2024 and an impressive return on invested capital (ROIC) of 16.28%, surpassing the weighted average cost of capital (WACC) of 8.48%, indicating value creation. The company has maintained a low debt level, with a debt to equity ratio of 0.0207, showcasing solid fundamentals and stability. With a current rating of “A” and an overall score of 4, Garmin could be seen as a resilient player in its market.
Favorable signals
Garmin Ltd. demonstrates several favorable signals in its financial evaluation. The company has an impressive revenue growth of 20.44% and a strong gross margin of 58.7%. Additionally, the gross profit growth stands at 23.02%, indicating effective cost management. The EBIT margin is also favorable at 25.31%, with a significant EBIT growth of 45.95%. Furthermore, the company incurs no interest expense, contributing to a positive net margin of 22.41%. The return on equity (ROE) is commendable at 17.98%, and the return on invested capital (ROIC) is 16.28%, which is favorable compared to the weighted average cost of capital (WACC) of 8.48%.
Unfavorable signals
Despite several favorable signals, there are also unfavorable elements to consider. The net margin growth has decreased by 9.13%, indicating a negative trend in profitability. Additionally, the price-to-earnings (P/E) ratio is high at 28.5, which might suggest overvaluation. The price-to-book (P/B) ratio stands at 5.13, also reflecting unfavorable valuation metrics. The current ratio is 3.54, which may indicate potential liquidity concerns.
Conclusion
Overall, Garmin Ltd. presents a favorable outlook for long-term investors, driven by strong income statement metrics and financial ratios. However, the recent trend shows a decline in buyer volume compared to seller volume, suggesting it might be prudent to wait for buyers to return before making any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Garmin Ltd. $GRMN Stock Position Lessened by Hsbc Holdings PLC – MarketBeat (Dec 03, 2025)
- Garmin (GRMN) Upgraded to Buy by Longbow Research | GRMN Stock N – GuruFocus (Dec 03, 2025)
- Year in review: Garmin releases 2025 Garmin Connect Data Report – Sahm (Dec 03, 2025)
- Garmin: Despite Solid Q3 Results, Still Too Pricey (NYSE:GRMN) – Seeking Alpha (Dec 02, 2025)
- Garmin Ltd (NYSE:GRMN) S&P 500 ETF Mirrors Multi-Category Tech Trends – Kalkine Media (Dec 02, 2025)
For more information about Garmin Ltd., please visit the official website: garmin.com
