Garmin Ltd. (GRMN) Stock

Garmin Ltd. trades at a P/E ratio of 29.85, which is above the market average of approximately 20. This premium valuation suggests investors expect above-average growth or the company has competitive advantages justifying the higher multiple. Looking ahead, the forward P/E of 30.21 is higher than the current P/E, indicating analysts expect earnings to decline over the next year. The PEG ratio of 3.64 indicates a premium valuation even accounting for growth.

With a beta of 1.00, Garmin Ltd. is less volatile than the overall market. This means when the market moves up or down by 10%, this stock typically moves less than 10% in the same direction. Lower beta stocks are often preferred by conservative investors seeking stability. The price-to-book ratio of 5.73 shows investors value the company above its book value, which often reflects intangible assets or growth prospects.

Garmin Ltd. achieves a profit margin of 23.20%, meaning it retains $23.20 from every $100 in revenue after all expenses. This is an impressive margin, indicating strong pricing power and efficient cost management that allows the company to generate substantial profits. The operating margin of 26.00% reveals how efficiently the company runs its core business operations before interest and taxes. With ROE at 20.70% and ROA at 11.50%, the company generates strong returns on invested capital.

Garmin Ltd.'s revenue grew by 20.40% year-over-year, representing robust expansion that significantly outpaces typical market growth rates. This strong top-line performance suggests the company is successfully capturing market share or benefiting from favorable industry trends. Earnings increased by 32.70% year-over-year, outpacing revenue growth through improved margins. These growth metrics should be evaluated against SEARCH, DETECTION, NAVAGATION, GUIDANCE, AERONAUTICAL SYS industry averages for proper context.

Garmin Ltd. offers a dividend yield of 1.49%, paying $3.60 per share annually. This modest yield below 2% suggests the company prioritizes growth investments over current income. While the dividend provides some return, investors are likely attracted more by capital appreciation potential than income generation. To receive the next dividend, shares must be purchased before the ex-dividend date of 9/12/2025.

The dividend sustainability can be assessed through the payout ratio - Garmin Ltd. pays $3.60 per share in dividends against earnings of $8.10 per share, resulting in a payout ratio of 44.44%. This balanced payout between 30-60% suggests a sustainable dividend policy that allows both shareholder returns and business reinvestment. The dividend appears well-covered by earnings. The next dividend payment is scheduled for 3/27/2026.

Garmin Ltd. has a market capitalization of $46.55B, classifying it as a large-cap stock ($10B-$200B). Large-caps are typically industry leaders with established business models, offering a balance of stability and growth potential. They often provide dividend income and are core holdings in institutional portfolios. With 192.49M shares outstanding, the company's ownership is relatively concentrated. As a participant in the SEARCH, DETECTION, NAVAGATION, GUIDANCE, AERONAUTICAL SYS industry, it competes with other firms in this sector.

Garmin Ltd.'s book value per share is $42.20, while the current stock price is $238.14, resulting in a price-to-book (P/B) ratio of 5.64. This high P/B ratio indicates significant intangible assets, strong brand value, or high growth expectations. Technology and consumer brand companies often trade at elevated P/B ratios due to intellectual property and competitive advantages not reflected on the balance sheet. As a common stock, this represents equity ownership with voting rights.

9 analysts cover GRMN with 22% recommending buy/strong buy ratings. Analyst predictions have mixed reliability - studies show consensus rarely beats market returns consistently. The bearish sentiment could create opportunity if analysts are wrong. The consensus target of $213.83 implies -10.2% downside, but targets are often adjusted to follow price moves rather than predict them.

Current analyst recommendations:02 Buy, 3 Hold, 1 Sell, 3 Strong Sell. The bearish sentiment indicates concerns, but contrarian investors sometimes find opportunities when Wall Street is negative.Remember that analyst opinions often lag price movements and can be influenced by investment banking relationships.

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MACD and moving average data are not available for this stock.