0.03 | 0.08%
GARMIN LTD's gross profit margin for the first quarter of its fiscal year 2013 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased. GARMIN LTD is extremely liquid. Currently, the Quick Ratio is 2.79 which clearly shows the ability to cover any 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 increased by 7.06% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
| Income Statement | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Net Sales ($mil) | 531.96 | 556.6 |
| EBITDA ($mil) | 92.55 | 104.12 |
| EBIT ($mil) | 79.93 | 90.33 |
| Net Income ($mil) | 88.67 | 86.86 |
| Balance Sheet | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Cash & Equiv. ($mil) | 1238.92 | 1375.15 |
| Total Assets ($mil) | 4570.42 | 4324.79 |
| Total Debt ($mil) | 0.0 | 0.0 |
| Equity ($mil) | 3618.33 | 3379.41 |
| Profitability | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Gross Profit Margin | 54.28 | 53.46 |
| EBITDA Margin | 17.39 | 18.7 |
| Operating Margin | 15.02 | 16.23 |
| Sales Turnover | 0.59 | 0.65 |
| Return on Assets | 11.9 | 11.84 |
| Return on Equity | 15.04 | 15.15 |
| Debt | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Current Ratio | 3.82 | 3.95 |
| Debt/Capital | 0.0 | 0.0 |
| Interest Expense | 0.0 | 0.0 |
| Interest Coverage | 0.0 | 0.0 |
| Share Data | Q1 FY13 | Q1 FY12 |
|---|---|---|
| Shares outstanding (mil) | 195.66 | 194.81 |
| Div / share | 0.45 | 0.4 |
| EPS | 0.45 | 0.44 |
| Book value / share | 18.49 | 17.35 |
| Institutional Own % | n/a | n/a |
| Avg Daily Volume | 1291509.0 | 1783782.0 |
HOLD. The current P/E ratio indicates a significant discount compared to an average of 27.99 for the Household Durables industry and a discount compared to the S&P 500 average of 19.08. To use another comparison, its price-to-book ratio of 1.97 indicates a discount versus the S&P 500 average of 2.44 and a significant discount versus the industry average of 4.57. 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.
| Price/Earnings |
|
Price/Cash Flow |
| |||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| GRMN 13.09 | Peers 27.99 | GRMN 11.45 | Peers 13.25 | |||||||||||||||||||||
|
Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations. GRMN is trading at a significant 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 discount to its peers. |
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| Price/Projected Earnings |
|
Price to Earnings/Growth |
|
|||||||||||||||||||||
| GRMN 15.23 | Peers 21.70 | GRMN NM | Peers 0.79 | |||||||||||||||||||||
|
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 significant discount to 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. |
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| Price/Book |
|
Earnings Growth |
|
|||||||||||||||||||||
| GRMN 1.97 | Peers 4.57 | GRMN 6.10 | Peers 419.16 | |||||||||||||||||||||
|
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. |
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| Price/Sales |
|
Sales Growth |
|
|||||||||||||||||||||
| GRMN 2.65 | Peers 1.35 | GRMN -4.15 | Peers 13.08 | |||||||||||||||||||||
|
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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