GARMIN LTD's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, underperforming the average competitor within its industry. GARMIN LTD has strong liquidity. Currently, the Quick Ratio is 1.70 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 7.81% 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 FY15||Q2 FY14|
|Net Sales ($mil)||773.83||777.85|
|Net Income ($mil)||137.75||181.98|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||1137.19||1395.79|
|Total Assets ($mil)||4423.41||4741.8|
|Total Debt ($mil)||0.0||0.0|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||55.81||58.69|
|Return on Assets||6.05||13.75|
|Return on Equity||8.35||18.73|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||190.94||192.62|
|Div / share||0.51||0.48|
|Book value / share||16.8||18.07|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1493870.0||1245049.0|
HOLD. GARMIN LTD's P/E ratio indicates a premium compared to an average of 26.12 for the Household Durables industry and a premium compared to the S&P 500 average of 21.21. For additional comparison, its price-to-book ratio of 2.20 indicates a discount versus the S&P 500 average of 2.68 and a discount versus the industry average of 3.23. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium. The valuation analysis reveals that, GARMIN LTD seems to be trading at a premium to investment alternatives within the industry.
|GRMN 26.41||Peers 26.12||GRMN 26.02||Peers 31.87|
Average. An average P/E ratio can signify an industry neutral price for a stock and an average growth expectation.
GRMN is trading at a valuation on par with 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 discount to its peers.
|GRMN 13.70||Peers 17.05||GRMN 0.65||Peers 0.81|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
GRMN is trading at a discount to its peers.
Discount. 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 trades at a discount to its peers.
|GRMN 2.20||Peers 3.23||GRMN -57.96||Peers 35.66|
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 significant 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 2.46||Peers 1.18||GRMN 3.77||Peers 17.40|
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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