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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 Ltd.'s recent performance was negatively impacted by a decline in its Auto OEM segment and competition from industry giants Apple and Samsung. Despite strong Q3 2025 results, the company's free cash flow has recently declined. The Fitness segment drove growth, but the stock is considered fully priced. According to analysts, the company boasts a robust balance sheet and strong cash flow, but risks persist. Garmin's Q3 earnings beat estimates, with quarterly earnings of $1.99 per share. (Source: Garmin: Strong Q3 But The Stock Looks Fully Priced)

1.c. Company Highlights

2. Garmin's Q3 Earnings: A Strong Performance Across Segments

Garmin reported a robust third quarter with consolidated revenue increasing 12% to $1.8 billion, a new record for the company. The growth was driven by strong double-digit revenue increases in three of its business segments: Fitness (30%), Marine (20%), and Aviation (18%). Gross and operating margins stood at 59.1% and 25.8%, respectively, resulting in a record third-quarter operating income of $457 million, up 4% year-over-year. Earnings per share (EPS) came in at $1.99, in line with estimates.

Publication Date: Oct -30

📋 Highlights
  • Revenue Growth:: Consolidated revenue rose 12% to $1.8B (Q3 record), driven by 30% Fitness, 20% Marine, and 18% Aviation growth.
  • Margin Performance:: Gross margin 59.1%, operating margin 25.8%, yielding $457M operating income (up 4% YoY) and $1.99 pro forma EPS.
  • Guidance Update:: Full-year EPS raised to $8.15 (+$0.15), with Fitness segment growth revised to 29%, Aviation to 10%, and Marine to 10%.
  • Liquidity & Inventory:: Closed Q3 with $3.9B cash, $956M accounts receivable (up YoY), and $1.9B inventory (sequential increase).
  • Product Innovation:: Launched Edge 550/850 cycling computers, Venu 4 smartwatch, and Force Current trolling motors, expanding market share.

Segment Performance

The Fitness segment led the growth with a 30% increase in revenue to $601 million, driven by strong demand for advanced wearables. The launch of new products such as the Edge 550 and 850 cycling computers and the Venu 4 smartwatch contributed to this growth. The Aviation segment saw an 18% increase in revenue to $240 million, with growth in both OEM and aftermarket product categories. The Marine segment also reported a 20% increase in revenue to $267 million, driven by growth across multiple categories.

Guidance and Outlook

Garmin raised its full-year EPS guidance to $8.15 per share, reflecting an increase of $0.15 over the prior guidance. The company is on track to achieve its full-year revenue guidance of $7.1 billion. The revenue growth estimates for the various segments were also raised, with the Fitness segment expected to grow by 29% for the year, Outdoor revenue by 3%, Aviation revenue by 10%, and Marine revenue by 10%.

Valuation and Metrics

With a P/E Ratio of 26.91 and an EV/EBITDA of 19.98, Garmin's valuation suggests that the market has already priced in a significant level of growth. The company's ROE of 19.26% and ROIC of 16.8% indicate a strong ability to generate returns on equity and capital. Analysts estimate next year's revenue growth at 6.7%, which may not be sufficient to justify the current valuation multiples.

Management Insights

According to Clifton Pemble, the company's channel inventory is healthy and lean, with retailers preparing for Q4 sales. This suggests that Garmin's products remain in demand, and the company is well-positioned for the holiday season. Pemble also mentioned that the fitness business growth came from both wearables and advanced wellness products, with strong new user growth and double-digit growth in registrations year-over-year.

3. NewsRoom

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Here Are Wednesday’s Top Wall Street Analyst Upgrades and Downgrades: American Eagle Outfitters, Equinix, Garmin, Honeywell, Uber, Wendy’s and More

Dec -03

Source: 247wallst.com

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Year in review: Garmin releases 2025 Garmin Connect Data Report

Dec -03

Source: prnewswire.com

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Edgestream Partners L.P. Acquires Shares of 22,493 Garmin Ltd. $GRMN

Dec -03

Source: defenseworld.net

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Built for the backcountry: Garmin introduces inReach Mini 3 Plus satellite communicator with voice, text and photo sharing

Dec -02

Source: prnewswire.com

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Garmin G5000H selected for Brazilian Air Force UH-60 Black Hawk helicopters

Dec -02

Source: prnewswire.com

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BLI Banque de Luxembourg Investments Takes $3.08 Million Position in Garmin Ltd. $GRMN

Dec -01

Source: defenseworld.net

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Capital Fund Management S.A. Acquires 33,408 Shares of Garmin Ltd. $GRMN

Nov -28

Source: defenseworld.net

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AXQ Capital LP Acquires Shares of 1,303 Garmin Ltd. $GRMN

Nov -25

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: 5.9/10

Value: 3.2

Growth: 7.1

Quality: 6.5

Yield: 0.0

Momentum: 9.0

Volatility: 9.3

1-Year Total Return ->

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Garmin

A-Score: 5.6/10

Value: 1.3

Growth: 6.4

Quality: 8.4

Yield: 3.8

Momentum: 9.0

Volatility: 4.7

1-Year Total Return ->

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TE Connectivity

A-Score: 5.5/10

Value: 1.8

Growth: 6.6

Quality: 6.8

Yield: 2.5

Momentum: 8.5

Volatility: 7.0

1-Year Total Return ->

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Arteche Lantegi Elkartea

A-Score: 4.8/10

Value: 2.0

Growth: 8.0

Quality: 5.7

Yield: 0.6

Momentum: 10.0

Volatility: 2.3

1-Year Total Return ->

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Capgemini

A-Score: 4.6/10

Value: 4.9

Growth: 6.1

Quality: 5.5

Yield: 3.8

Momentum: 1.0

Volatility: 6.0

1-Year Total Return ->

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Stock-Card
Inficon

A-Score: 4.4/10

Value: 0.9

Growth: 6.8

Quality: 7.6

Yield: 4.4

Momentum: 2.0

Volatility: 4.7

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

202.09$

Current Price

202.09$

Potential

-0.00%

Expected Cash-Flows