GARMIN LTD's gross profit margin for the second quarter of its fiscal year 2014 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. GARMIN LTD has strong liquidity. Currently, the Quick Ratio is 1.95 which shows the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.
At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.39% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY14||Q2 FY13|
|Net Sales ($mil)||777.85||696.56|
|Net Income ($mil)||181.98||172.49|
|Balance Sheet||Q2 FY14||Q2 FY13|
|Cash & Equiv. ($mil)||1395.79||1226.07|
|Total Assets ($mil)||4741.8||4599.18|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q2 FY14||Q2 FY13|
|Gross Profit Margin||58.69||56.9|
|Return on Assets||13.75||11.54|
|Return on Equity||18.73||15.76|
|Debt||Q2 FY14||Q2 FY13|
|Share Data||Q2 FY14||Q2 FY13|
|Shares outstanding (mil)||192.62||195.32|
|Div / share||0.48||0.45|
|Book value / share||18.07||17.24|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1680501.0||1357223.0|
BUY. This stock's P/E ratio indicates a discount compared to an average of 19.55 for the Household Durables industry and a discount compared to the S&P 500 average of 18.06. To use another comparison, its price-to-book ratio of 2.91 indicates a premium versus the S&P 500 average of 2.49 and a discount versus the industry average of 3.42. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. Upon assessment of these and other key valuation criteria, GARMIN LTD proves to trade at a discount to investment alternatives within the industry.
|GRMN 15.80||Peers 19.55||GRMN 16.97||Peers 31.67|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.
GRMN is trading at a discount to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
GRMN is trading at a significant discount to its peers.
|GRMN 16.70||Peers 16.78||GRMN NM||Peers 0.80|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
GRMN is trading at a valuation on par with its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
GRMN's negative PEG ratio makes this valuation measure meaningless.
|GRMN 2.91||Peers 3.42||GRMN 22.87||Peers 51.78|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
GRMN is trading at a discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, GRMN is expected to significantly trail its peers on the basis of its earnings growth rate.
|GRMN 3.67||Peers 1.14||GRMN 3.55||Peers 21.36|
Premium. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
GRMN is trading at a significant premium to its industry.
Lower. A sales growth rate that trails the industry implies that a company is losing market share.
GRMN significantly trails its peers on the basis of sales growth
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