Garmin (GRMN)
Consumer Discretionary · $55.3B market cap · SEC CIK 0001121788
ahead of 86% of the S&P 500 · #11 of 48 in Consumer Discretionary
Next reports on Feb 16, 2027, after the close, with analysts expecting $3.20 in earnings per share.
52-week range $186.67 to $314.28. 8% below its 52-week high and 55% above its low.
The case for GRMN
- Generated $1.4B of free cash flow in FY2025, 19% of revenue.
- 26% of revenue drops through to net profit.
- Revenue growing 13.6% year over year.
- Earnings per share up 28.5%.
- Has compounded revenue at 11.6% a year over five years.
- Return on equity of 22%.
The case against
- Price/sales of 7.0× is higher than 94% of Consumer Discretionary companies.
- Weakest against its peers: P/E of 27.4× is higher than 78% of Consumer Discretionary companies.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Consumer Discretionary companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 47 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 64 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 80 |
| Momentumhow the price has behaved lately | 67 |
| Stabilityhow violently it moves, what it owes and what it pays you | 80 |
- Each factor except momentum is half fixed thresholds, half rank among the 48 Consumer Discretionary companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +13.6% |
|---|---|
| Over 5 years | +11.6% a year |
| FY2025 revenue | $7.2B (+15%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $1.4B |
|---|---|
| Of revenue | 19% |
| Of profit | 82% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 61% |
|---|---|
| Operating margin | 29% |
| Net margin, FY24 → FY25 → now | 22.4% → 23.0% → 25.6% |
Debt vs. cash
Is the balance sheet healthy? Yes, little debt
| Cash | $2.3B |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
| Years to repay | n/a |
| Debt / equity | 0.00× |
Valuation
Is the stock price reasonable? Yes, about fair
| P/E | 27.4× |
|---|---|
| Fair P/E for its growth | 30× |
| P/FCF | 40.6× |
| Forward P/E | 24.7× |
| EV / EBITDA | 21.9× |
At 27.4× earnings it trades close to the 30× that 12% a year of growth plus a 2.4% dividend would justify. At 40.6× free cash flow it trades above that same mark.
The financials, five years deep
Pulled from Garmin's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $7.2B | $6.3B | $5.2B | $4.9B | $5.0B |
| Change on the year | +15% | +20% | +8% | −2% | — |
| Free cash flow | |||||
| Free cash flow | $1.4B | $1.2B | $1.2B | $544M | $705M |
| Of revenue | 19% | 20% | 23% | 11% | 14% |
| Profit margins | |||||
| Gross margin | 58.7% | 58.7% | 57.5% | 57.7% | 58.0% |
| Operating margin | 25.9% | 25.3% | 20.9% | 21.1% | 24.5% |
| Net margin | 23.0% | 22.4% | 24.7% | 20.0% | 21.7% |
| Debt vs. cash | |||||
| Cash | $2.3B | $2.1B | $1.7B | $1.3B | $1.5B |
Filings
The text of this 10-K could not be read automatically. The original is linked below.