GRMN : NASDAQ : Technology
$51.56 -0.1 | -0.19%
Today's Range: 51.5 - 52.24
Avg. Daily Volume: 1177100.0
12/08/16 - 4:00 PM ET

Financial Analysis


GARMIN LTD's gross profit margin for the third quarter of its fiscal year 2016 has increased when compared to the same period a year ago. The company has grown its sales and net income during the past quarter when compared with the same quarter a year ago, and although its growth in net income has outpaced the industry average, its revenue growth has not. GARMIN LTD has strong liquidity. Currently, the Quick Ratio is 1.71 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 3.94% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)722.25679.69
EBITDA ($mil)173.29138.48
EBIT ($mil)159.62125.46
Net Income ($mil)125.05119.3


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1114.121126.74
Total Assets ($mil)4591.914388.47
Total Debt ($mil)0.00.0
Equity ($mil)3362.233234.69


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin58.155.2
EBITDA Margin23.9920.37
Operating Margin22.118.46
Sales Turnover0.640.65
Return on Assets11.0312.17
Return on Equity15.0616.51
Debt Q3 FY16 Q3 FY15
Current Ratio2.442.49
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)188.45190.34
Div / share0.510.51
EPS0.660.63
Book value / share17.8416.99
Institutional Own % n/a n/a
Avg Daily Volume1224150.01178372.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 33.29 for the Household Durables industry and a discount compared to the S&P 500 average of 25.22. For additional comparison, its price-to-book ratio of 2.89 indicates valuation on par with the S&P 500 average of 2.79 and a premium versus the industry average of 2.76. The price-to-sales ratio is well above both the S&P 500 average and the industry average, indicating a premium.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GRMN 19.29 Peers 33.29   GRMN 14.93 Peers 12.60

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.

 

Premium. 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 premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
GRMN 19.08 Peers 20.88   GRMN 1.77 Peers 0.83

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.

 

Premium. 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 significant premium to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GRMN 2.89 Peers 2.76   GRMN -4.31 Peers 0.02

Average. 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 valuation on par with 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GRMN 3.30 Peers 1.21   GRMN 3.41 Peers 21.10

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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