Search, Detection, Navigation, Guidance, Aeronautical Sys · SIC 3812

GARMIN LTD

GRMN

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Latest revenue

$1.75B

as of 2026-03-28

Latest net income

$405.1M

as of 2026-03-28

Net margin

23.1%

as of 2026-03-28

Community sentiment

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GRMN vs S&P 500 · rebased to 100

+26.4% / yr 6.7 pts / yr vs S&P 500(S&P 500 +19.7% / yr) 153.1% total
Compare:

Live market

delayed ≤15 min
$237.91
1.14%
Market cap
$45.88B
Enterprise value
$43.59B
P/E (trailing)
27.6×
Forward P/E
P/B
4.95×
Dividend yield
3.3%
52-wk high
$273.24
52-wk low
$186.68
Beta
Shares out
192.9M

What this company does

AI

Garmin designs and sells GPS-enabled devices including smartwatches, fitness trackers, marine electronics, aviation avionics, and outdoor and automotive navigation products. The company generates revenue primarily from hardware sales across these five segments, with consumer wearables (fitness and outdoor watches) driving most of its growth. Q1 2026 sales rose 14% year-over-year to $1.75 billion with operating income up 30%, reflecting strong demand and expanding margins on a debt-free balance sheet holding over $4.3 billion in cash and securities.

Generated from GRMN's filing dated 2026-02-18

Key risks

AI
  • FX exposure material: Q1 swung to $50.1M translation loss versus $8.7M gain prior year; foreign currency gains collapsed to $3.1M from $24.8M.
  • Inventory build outpacing sales: inventories rose to $1.85B (+4.4% QoQ) while AR dropped $312M, suggesting potential channel destocking or demand softening ahead.
  • Swiss-domiciled tax structure risk: effective tax rate just 14.3%; any OECD Pillar Two or Swiss tax reform could materially compress $405M quarterly net income.

Generated from GRMN's filing dated 2026-02-18

8.0
of 10

ActaClear Score

Strong
#1 of 11 in Search, Detection, Navigation, Guidance, Aeronautical Sys
+0.8 · 5d
Profitability·25%
9.3
Growth·15%
6.0
Value·20%
7.7
Quality·20%
Momentum·20%
8.0

Computed from 5 years of SEC fundamentals + latest market data, ranked within Search, Detection, Navigation, Guidance, Aeronautical Sys (11 peers). 10 = best in industry, 5 = median, 0 = worst. Refreshed Jun 10, 2026.

0.95
Price / FV

Fair value · DCF

Fair value
~5% upside at this growth
11.6% / yr
-5%30%
Terminal growthWACC 9.8% · 10y forecast
Market-implied growth at today's price: 10.9% / yrfor 10 years, holding WACC 9.8% and terminal 2.5%.
Current price
$237
DCF fair value
$249
FCF base (last FY)
$1.66B
Net debt
$-2.28B
Methodology + caveats (click to expand)

Method. 10-year forecast of free cash flow, discounted at the company's WACC, with a Gordon-growth terminal at year 10. FCF is proxied by last fiscal-year net income (proper FCF needs CFO − CapEx by year, which we don't store yet). Beta defaults to 1.0 when not reported.

Why DCF is fragile. Treat the output as a thinking aid, not a verdict. Honest weaknesses of any DCF:

  • Growth is the dominant assumption. No one can foresee 10 years of growth — small changes in the slider can double or halve fair value. The reverse-DCF readout above tells you what the market is implicitly assuming; ask yourself whether that's realistic before trusting either number.
  • Terminal value dominates. In most DCFs, 60-80% of the answer comes from the terminal-value calculation — i.e., everything AFTER year 10. A 0.5pp change in terminal growth, or in WACC, can swing fair value by 20-30%.
  • WACC is itself a guess. We use a textbook CAPM cost of equity (Rf 4.3%, MRP 5.5%, β from the quote) plus a 6% pretax cost of debt — none of these are the company's actual marginal financing cost.
  • No moat / disruption modelling. The model assumes the company keeps earning whatever it earns today, compounding cleanly. Competitive shifts, regulatory action, and technology disruption can invalidate the forecast overnight.
  • Net income ≠ free cash flow. For capex-heavy names (semis, telcos) net income overstates distributable cash. For low-capex names (software) it understates. Both reduce the precision of the FV figure.
  • Reflexivity. A high stock price often becomes a self-fulfilling prophecy via better hiring, financing, and customer trust. DCF can't see this.

Take the DCF, the reverse-DCF implied growth, the historical multiples, and the community sentiment together. When they agree, conviction. When they disagree, the disagreement is the most informative thing on the page.

Historical multiples

How does GRMN's current valuation compare to its own past?

Current P/E
27.6×
Own 5y average
22.5×
Own 5y median
21.5×
vs. own average
+23%
Industry 5y avg P/E
25.1×
Median P/E across the top 11 peers in Search, Detection, Navigation, Guidance, Aeronautical Sys by market cap, then averaged across 6 years.
vs. industry
+10%
PEG (this co.)
2.38
5y revenue CAGR
11.6%
Industry PEG
1.64
Industry 5y avg growth
15.3%
Solid: this company. Dotted: industry median.
Dashed flat: own 5y avg.
Coloured dot at right: current P/E.

P/E uses year-end weekly close ÷ (net income ÷ shares outstanding today). Held shares constant at today's count, which understates the per-share earnings improvement from buybacks over the period. PEG uses 5y revenue CAGR as a proxy for EPS growth — close, but not identical (margin expansion or dilution can drive a wedge). Best read as a comparator across companies and industries, not as a precise replica of historical multiples.