Garmin Ltd (GRMN, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its impressive financial performance. With a current share price of $161.48 and a notable daily gain of 11.77%, coupled with a three-month change of 33.6%, Garmin Ltd stands out in the market. A detailed analysis, supported by the GF Score, indicates that Garmin Ltd is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently and have been backtested from 2006 to 2021, showing a strong correlation with long-term stock performance. Stocks with higher GF Scores typically yield higher returns. For Garmin Ltd, the GF Score is an impressive 92 out of 100, indicating a high potential for outperformance.
- Financial strength rank: 8/10
- Profitability rank: 9/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 9/10
Understanding Garmin Ltd's Business
Garmin Ltd operates in a niche market, producing GPS-enabled hardware and software across five verticals: fitness, outdoors, auto, aviation, and marine. With a market cap of $31.02 billion and annual sales of $5.23 billion, Garmin boasts an operating margin of 20.89%. The company's diverse product range caters to specialized activities such as scuba diving and sailing, relying on licensing mapping data to enhance its offerings. Garmin's global presence spans 100 countries, with sales through distributors and partnerships with original equipment manufacturers.
Financial Strength Breakdown
Garmin Ltd's financial robustness is reflected in its Financial Strength rating of 8/10. The company's Altman Z-Score of 12.83 indicates a strong buffer against financial distress, underscoring its solid financial stability. Additionally, a low Debt-to-Revenue ratio of 0.02 highlights Garmin's strategic debt management, further solidifying its financial health.
Profitability and Growth Metrics
Garmin Ltd excels in profitability, as evidenced by its Profitability Rank of 9/10. The company's Piotroski F-Score and a Predictability Rank of 4.5 stars further affirm its operational efficiency and consistent performance. In terms of growth, Garmin has demonstrated a strong commitment to expansion, with a 3-Year Revenue Growth Rate of 7.7%, outperforming 63.31% of peers in the Hardware industry. This growth is complemented by a significant increase in EBITDA over recent years.
Conclusion
Considering Garmin Ltd's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score distinctly highlights the company's strong position for potential market outperformance. Investors looking for similar opportunities can explore other high-performing companies using the GF Score Screen available to GuruFocus Premium members.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
