One-glance verdict
Within fair range
$274.11 our estimate vs market $292.92
Wall Street consensus: $306.71 (11.9% higher than our fair-value estimate)
7% above our estimate
Fundamentals snapshot
Garmin Ltd.
GRMN · NYQ · Technology · Scientific & Technical Instruments
Current price
$292.92
52-week range
$186.67 - $314.28
Market cap
$56.49B
Balance sheet
Healthy
14.56x Strong cushion
Net cash $2.44B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
1 Risk
3 rewards · 1 risks
- Reward Revenue grew 3.0% last year.
- Reward Returns 21.9% on equity, ahead of 66% of its peers.
- Reward Free cash flow was positive in 10/10 years.
- Risk Stock trades 35.3% above its 5-year average P/E.
What this company does
Garmin Ltd.
Garmin makes all sorts of gadgets that use GPS, from smartwatches and fitness trackers to advanced equipment for pilots and boaters. Most of their money comes from selling these physical products, but they also have growing software services that help users track their activities. This mix of products and services is important because it means they have different ways of earning money, and their profit margins (the percentage of each sales dollar left after paying for the costs to make and sell the product) have been strong lately.
How the company got here
Garmin was founded in 1989 by Gary Burrell and Min H. Kao, with the goal of creating GPS technology for aviation. Their early success came from providing GPS devices to the U.S. military. This initial focus on precision navigation laid the groundwork for their expansion into other markets. A key turning point was recognizing the potential of GPS technology beyond aviation, leading to diversification into consumer electronics and specialized sports equipment.
What it actually does
Garmin makes a wide variety of electronic devices that use Global Positioning System (GPS) technology. Think of the devices that tell you where you are and where you're going, but for everything from cars and planes to your wrist and your dog's collar. They also create software platforms that help users track and analyze the data collected by these devices, like fitness progress or flight paths.
Aviation
This is where Garmin started, and it remains a significant part of their business. They create sophisticated avionics systems for aircraft, which include navigation, communication, and flight display technologies. These products help pilots fly more safely and efficiently by providing critical information about the aircraft's position, surroundings, and performance. This segment serves professional pilots and aircraft manufacturers.
Outdoor
Garmin's outdoor segment offers rugged GPS devices designed for activities like hiking, hunting, and exploring. This includes adventure watches, handheld GPS units, and satellite communicators that allow users to stay connected and safe in remote areas. They also make specialized devices for golfers, such as rangefinders and GPS watches that provide course information. This business line caters to adventurers, athletes, and outdoor enthusiasts.
Fitness
This is perhaps Garmin's most visible segment to everyday consumers, featuring a range of smartwatches and devices for tracking athletic performance. Products include running watches, cycling computers, and devices that monitor heart rate, sleep, and other health metrics. The accompanying Garmin Connect platform allows users to analyze their workout data and track progress over time. This segment targets athletes of all levels, from casual runners to professional cyclists.
Marine
Garmin provides a suite of navigation and fishfinding equipment for boats and watercraft. This includes chartplotters, sonar systems, autopilot, and radar, all designed to enhance safety and performance on the water. These products are used by recreational boaters, fishermen, and commercial marine operators. They help users navigate waterways, locate fish, and avoid hazards.
Automotive
While less prominent than their other segments, Garmin also offers GPS navigation devices and dashcams for cars. These products provide real-time traffic information, route guidance, and video recording capabilities for drivers. This segment aims to improve the driving experience by offering reliable navigation and safety features for everyday commuters and travelers.
What management is betting on now
Garmin is focusing on expanding its high-margin wearable technology, particularly in the fitness and outdoor segments, by integrating more advanced health monitoring features. They are also investing in their software platforms, like Garmin Connect, to create a more connected ecosystem for their users and gather valuable data. Continued innovation in their core GPS technology across all segments, especially in aviation and marine where precision is paramount, is also a key strategy. Management aims to leverage their strong brand reputation for reliability and performance to capture growth in these specialized markets.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q2
$218.16M
FY2024 Q3
$219.41M
FY2024 Q4
$399.19M
FY2025 Q1
$380.73M
FY2025 Q2
$127.50M
FY2025 Q3
$425.08M
FY2025 Q4
$429.61M
FY2026 Q1
$469.37M
Revenue
$1.75B
Net income
$405.08M
Diluted EPS
2.09
Operating cash flow
$535.99M
Free cash flow
$469.37M
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Sources
Revenue
$2.12B
Net income
$528.68M
Diluted EPS
2.72
Operating cash flow
$553.78M
Free cash flow
$429.61M
Fetching…
Sources
Revenue
$1.77B
Net income
$401.62M
Diluted EPS
2.08
Operating cash flow
$485.62M
Free cash flow
$425.08M
Fetching…
Sources
Revenue
$1.81B
Net income
$400.82M
Diluted EPS
2.07
Operating cash flow
$173.17M
Free cash flow
$127.50M
Fetching…
Sources
Revenue
$1.54B
Net income
$332.77M
Diluted EPS
1.72
Operating cash flow
$420.79M
Free cash flow
$380.73M
Fetching…
Sources
Revenue
$1.82B
Net income
$435.73M
Diluted EPS
2.24
Operating cash flow
$483.89M
Free cash flow
$399.19M
Fetching…
Sources
Revenue
$1.59B
Net income
$399.11M
Diluted EPS
2.07
Operating cash flow
$257.95M
Free cash flow
$219.41M
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Sources
Revenue
$1.51B
Net income
$300.63M
Diluted EPS
1.56
Operating cash flow
$255.32M
Free cash flow
$218.16M
Fetching…
Sources
Is it cheap or expensive?
Fair value $274.11 vs current price $292.92
Wall Street consensus is the average analyst price target: $306.71 (11.9% higher than our fair-value estimate).
Our most-likely fair value is $274.11 a share — about 6.4% away from today's price of $292.92, so the stock currently looks fairly priced.
Is it drowning in debt?
Healthy
Net cash $2.4B - more cash than debt. Interest coverage 14.6x.
Net debt
$-2.44B
Interest coverage
14.56x
Garmin Ltd.'s profit covers its interest bill about 14.6 times over. which is stronger than most peers shown here.
Healthy
Worse cushion
Baseline
Better cushion
GRMN
BASELINE
Garmin Ltd.
Total debt $226.86M Interest coverage 14.56x This is the baseline the peer rows are being compared against.
Total debt $84.34B Interest coverage 33.83x +132% vs GRMN Carries about 2.3x more debt cushion than GRMN.
Total debt $1.46B Interest coverage 8.22x -44% vs GRMN Carries about 1.8x less debt cushion than GRMN.
Total debt $2.03B Interest coverage 19.29x +33% vs GRMN Carries about 1.3x more debt cushion than GRMN.
Total debt $2.96B Interest coverage 7.41x -49% vs GRMN Carries about 2.0x less debt cushion than GRMN.
Total debt $2.29B Interest coverage 2.80x -81% vs GRMN Carries about 5.2x less debt cushion than GRMN.
What you should know
The case for and against GRMN
3 Rewards
1 Risk
Rewards
-
Revenue grew 3.0% last year.
-
Returns 21.9% on equity, ahead of 66% of its peers.
-
Free cash flow was positive in 10/10 years.
Risks
-
Stock trades 35.3% above its 5-year average P/E.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
30.23x
Forward P/E
26.31x
P/B
6.26x
P/S
7.36x
EV/EBITDA
23.45x
PEG ratio
3.12x
Profitability
How much profit each dollar creates
Gross margin
60.1%
Operating margin
30.4%
Net margin
24.5%
ROE
21.9%
ROA
12.2%
Health
Liquidity and balance-sheet strength
Debt / equity
0.03x
Current ratio
3.03x
Quick ratio
1.84x
Total debt
$226.86M
Total cash
$2.67B
Growth
How the business has been compounding
Revenue TTM
$7.46B
Revenue 5Y CAGR
9.8%
EPS TTM
9.69
EPS 5Y CAGR
19.5%
Cash flow
How much cash the business throws off
Operating CF TTM
$1.75B
Free CF TTM
$1.36B
FCF margin
18.3%
Dividend
Shareholder payout
Yield
1.4%
Payout ratio
38.7%
Last ex-div date
2026-12-11