GRMN : NASDAQ : Technology
$45.92 | %
Today's Range: 0.00 - 0.00
Avg. Daily Volume: 835,100
07/25/16 - 4:00 PM ET

Financial Analysis


GARMIN LTD's gross profit margin for the first quarter of its fiscal year 2016 has decreased 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 is extremely liquid. Currently, the Quick Ratio is 2.15 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 1.16% 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.

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Income Statement Q1 FY16 Q1 FY15
Net Sales ($mil)624.04585.39
EBITDA ($mil)116.88123.98
EBIT ($mil)103.8111.7
Net Income ($mil)88.0966.79


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)1055.831441.6
Total Assets ($mil)4410.324543.28
Total Debt ($mil)0.00.0
Equity ($mil)3437.253477.63


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin56.5660.88
EBITDA Margin18.7221.17
Operating Margin16.6319.08
Sales Turnover0.650.63
Return on Assets10.826.87
Return on Equity13.898.97
Debt Q1 FY16 Q1 FY15
Current Ratio3.133.03
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)189.19191.52
Div / share0.510.48
EPS0.460.35
Book value / share18.1718.16
Institutional Own % n/a n/a
Avg Daily Volume845394.01408821.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 24.18 for the Household Durables industry and a discount compared to the S&P 500 average of 25.05. To use another comparison, its price-to-book ratio of 2.52 indicates valuation on par with the S&P 500 average of 2.81 and a discount versus the industry average of 3.36. 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
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
GRMN 18.21 Peers 24.18   GRMN 26.33 Peers 17.68

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.

 

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 significant 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 19.53 Peers 20.60   GRMN NM Peers 0.71

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
GRMN 2.52 Peers 3.36   GRMN 55.90 Peers 76.23

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
GRMN 3.02 Peers 1.24   GRMN -0.49 Peers 13.09

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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