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1. Company Snapshot

1.a. Company Description

Garmin Ltd.designs, develops, manufactures, markets, and distributes a range of wireless devices in the Americas, the Asia Pacific, Australian Continent, Europe, the Middle East, and Africa.Its Fitness segment offers running and multi-sport watches; cycling products; activity tracking and smartwatch devices; and fitness and cycling accessories.


This segment also provides Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms; and Connect IQ, an application development platform.The company's Outdoor segment offers adventure watches, outdoor handhelds, golf devices and mobile apps, and dog tracking and training devices.Its Aviation segment designs, manufactures, and markets various aircraft avionics solutions comprising integrated flight decks, electronic flight displays and instrumentation, navigation and communication products, automatic flight control systems and safety-enhancing technologies, audio control systems, engine indication systems, traffic awareness and avoidance solutions, ADS-B and transponder solutions, weather information and avoidance solutions, datalink and connectivity solutions, portable GPS navigators and wearables, and various services products.


The company's Marine segment provides chartplotters and multi-function displays, cartography products, fish finders, sonar products, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing products, entertainment, digital switching products, and trolling motors.Its Auto segment offers embedded computing models and infotainment systems; personal navigation devices; and cameras.The company sells its products through independent retailers, online retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers, as well as an online webshop, garmin.com.


Garmin Ltd.was founded in 1989 and is based in Schaffhausen, Switzerland.

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1.b. Last Insights on GRMN

Garmin's recent performance was driven by its Q4 2025 earnings beat, with a 17% increase in consolidated revenue to over $2.1 billion and a gross margin of 59.2%. The company's fitness wearables, marine products, and aviation systems segments showed strength. Additionally, Garmin's strategic growth initiatives and better-than-expected EPS of $2.79, which surged past the consensus estimate by 16%, contributed to its positive performance. The company's full-year revenue increased 15% to $7.25 billion. (Source: Garmin Ltd (GRMN) Q4 2025 Earnings Call Highlights)

1.c. Company Highlights

2. Garmin's Stellar Earnings: A Strong Start to 2026

Garmin Ltd.'s fourth quarter and full year 2025 earnings report exceeded expectations, driven by robust demand across its product portfolio. Consolidated revenue surged 17% to $2.1 billion, while gross margin stood at 59.2%, and operating margin expanded 60 basis points to 28.9%, resulting in a record fourth quarter operating income of $614 million. For the full year, consolidated revenue increased 15% to $7.25 billion, with gross margin of 58.7% and operating margin of 25.9%, yielding a record full year operating income of nearly $1.9 billion. Actual EPS came out at $2.79, beating estimates of $2.4.

Publication Date: Feb -19

📋 Highlights
  • Record Financial Performance:: Q4 operating income reached $614M (28.9% margin), while full-year operating income hit $1.9B (25.9% margin) on $7.25B revenue (15% growth).
  • Segment Growth Leaders:: Fitness segment surged 33% to $2.36B (wearables & market share gains), followed by Marine (+10% to $1.18B) and Aviation (+13% to $987M).
  • 2026 Outlook:: Revenue projected at $7.9B (+9%), operating income to exceed $2B for first time, and EPS expected at $9.35 (+9%) with 16% tax rate.
  • Dividend & Share Repurchase:: Proposed $4.20/share dividend (17% increase) and $500M buyback program, supported by $1.4B free cash flow (2026 guidance).

Segment-wise Performance

The fitness segment was the key growth driver, with revenue increasing 33% to $2.36 billion, driven by wearables and market share gains. The Outdoor segment revenue increased 5% to $2.05 billion, primarily driven by adventure watches. Aviation revenue grew 13% to $987 million, with contributions from both OEM and aftermarket product categories. Marine segment revenue increased 10% to $1.18 billion, driven by growth across multiple categories led by chartplotters. Auto OEM segment revenue rose 9% to $665 million, primarily driven by growth in domain controllers.

Outlook and Guidance

Garmin expects 2026 to be another year of strong top and bottom-line growth, with revenue increasing approximately 9% to $7.9 billion and operating income exceeding $2 billion for the first time. The company anticipates the fitness segment to be the strongest contributor to 2026 consolidated growth. Garmin expects free cash flow to be approximately $1.4 billion in 2026, with capital expenditures of approximately $400 million.

Valuation and Metrics

With a P/E Ratio of 27.45 and an EV/EBITDA of 21.03, Garmin's valuation suggests that the market has already priced in significant growth expectations. The company's ROE stands at 19.72%, and ROIC at 16.71%, indicating strong profitability. The Dividend Yield is 1.45%, and Free Cash Flow Yield is 2.04%, providing a relatively attractive return for investors. Analysts estimate next year's revenue growth at 9.2%, which is in line with Garmin's guidance.

Strategic Initiatives

Garmin is shifting R&D resources to develop new business and concepts, and expects significant volumes from the Mercedes program in early 2027. The company is also investing in its Connect+ service, which has seen accelerated free trials and high conversion rates. Garmin's acquisition of a new facility in Meta will enable it to certify products on larger aircraft and potentially offer products on larger airplanes.

3. NewsRoom

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Here's Why Garmin Stock Soared in February

Mar -07

Source: fool.com

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Best Health & Fitness Stocks to Buy Now for Strong Growth

Mar -06

Source: zacks.com

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Here's Why Garmin (GRMN) Fell More Than Broader Market

Mar -06

Source: zacks.com

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Garmin launches Community Champions program to recognize local changemakers at Garmin Marathon Series

Mar -03

Source: prnewswire.com

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Garmin (NYSE:GRMN) versus MKDWELL Tech (NASDAQ:MKDW) Head to Head Contrast

Mar -03

Source: defenseworld.net

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Garmin (NYSE:GRMN) COO Sells $1,684,545.10 in Stock

Mar -02

Source: defenseworld.net

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Insider Selling: Garmin (NYSE:GRMN) CFO Sells $877,538.42 in Stock

Mar -02

Source: defenseworld.net

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Insider Selling: Garmin (NYSE:GRMN) EVP Sells $1,323,866.75 in Stock

Mar -02

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (9.30%)

6. Segments

Outdoor

Expected Growth: 9.5%

Outdoor enthusiasts increasingly seek advanced GPS navigation and tracking features, propelling Garmin's Outdoor segment growth, driven by rising participation in recreational activities, such as hiking and cycling.

Fitness

Expected Growth: 10.5%

Garmin’s fitness segment growth is driven by increasing adoption of wearable devices, growing health and wellness awareness, and rising demand for GPS tracking devices in various fitness activities such as running, cycling, and swimming.

Marine

Expected Growth: 7.2%

Garmin Ltd's Marine segment growth is driven by increasing demand for advanced navigation systems, rising adoption of IoT-enabled devices, and growing participation in water sports and recreation activities.

Aviation

Expected Growth: 10.5%

Garmin's Aviation segment growth is attributed to increasing adoption of GPS technology, rising demand for navigation and communication systems in general aviation, and growing need for advanced safety features in aircraft.

Auto OEM

Expected Growth: 7.1%

Garmin's Auto OEM segment growth driven by increasing demand for in-vehicle navigation and telematics solutions, as well as rising adoption of connected and autonomous vehicles, is expected to remain steady.

7. Detailed Products

GPS Navigation Systems

Garmin's GPS navigation systems provide turn-by-turn directions and real-time traffic updates for drivers, motorcyclists, and truckers.

Wearable Devices

Garmin's wearable devices, such as smartwatches and fitness trackers, track fitness and health metrics, including heart rate, steps taken, and sleep quality.

Aviation Systems

Garmin's aviation systems provide navigation, communication, and surveillance solutions for general aviation, commercial, and military aircraft.

Marine Electronics

Garmin's marine electronics, including fish finders and chart plotters, provide navigation, sonar, and radar capabilities for boaters and fishermen.

Outdoor Recreation Devices

Garmin's outdoor recreation devices, including handheld GPS devices and action cameras, provide navigation, tracking, and video capture capabilities for outdoor enthusiasts.

Fleet Management Solutions

Garmin's fleet management solutions provide GPS tracking, vehicle monitoring, and driver behavior analysis for fleet operators.

8. Garmin Ltd.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Garmin's products are highly specialized and customized, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While customers have some bargaining power due to the availability of alternative products, Garmin's strong brand reputation and customer loyalty mitigate this force.

Bargaining Power Of Suppliers

Garmin has a diversified supplier base, reducing its dependence on any single supplier and limiting the bargaining power of suppliers.

Threat Of New Entrants

While new entrants may be attracted to the growing market for wearable devices and GPS technology, Garmin's established brand and significant R&D investments create barriers to entry.

Intensity Of Rivalry

The market for wearable devices and GPS technology is highly competitive, with several established players competing for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 4.61%
Debt Cost 3.95%
Equity Weight 95.39%
Equity Cost 8.92%
WACC 8.69%
Leverage 4.83%

11. Quality Control: Garmin Ltd. passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Flex

A-Score: 5.5/10

Value: 2.2

Growth: 7.1

Quality: 5.5

Yield: 0.0

Momentum: 9.0

Volatility: 9.0

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TE Connectivity

A-Score: 5.3/10

Value: 1.7

Growth: 6.6

Quality: 6.8

Yield: 2.5

Momentum: 8.5

Volatility: 6.0

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Arteche Lantegi Elkartea

A-Score: 4.7/10

Value: 1.3

Growth: 8.0

Quality: 5.9

Yield: 0.6

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

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Garmin

A-Score: 4.7/10

Value: 1.8

Growth: 6.4

Quality: 8.4

Yield: 3.8

Momentum: 3.0

Volatility: 4.7

1-Year Total Return ->

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Stock-Card
Inficon

A-Score: 4.6/10

Value: 0.9

Growth: 6.8

Quality: 7.7

Yield: 4.4

Momentum: 4.0

Volatility: 4.0

1-Year Total Return ->

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Capgemini

A-Score: 4.5/10

Value: 4.3

Growth: 6.0

Quality: 5.8

Yield: 3.1

Momentum: 2.0

Volatility: 5.7

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

242.63$

Current Price

242.63$

Potential

-0.00%

Expected Cash-Flows