Garmin Ltd (GRMN, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its strong financial position. With its shares currently priced at $178.87, Garmin Ltd has experienced a daily gain of 0.23% and an impressive three-month increase of 10.92%. A detailed analysis, supported by the GF Score, indicates that Garmin Ltd is poised for significant growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects of valuation, which have shown a strong correlation with long-term stock performance from 2006 to 2021. Stocks with higher GF Scores typically yield higher returns. The GF Score ranges from 0 to 100, with 100 representing the highest potential for outperformance. Garmin Ltd boasts a GF Score of 92, indicating a strong potential for market outperformance.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 3/10
- Momentum rank: 6/10
Understanding Garmin Ltd's Business
Garmin Ltd, with a market cap of $34.38 billion and annual sales of $5.65 billion, specializes in GPS-enabled hardware and software across five verticals: fitness, outdoors, auto, aviation, and marine. The company, which operates in 100 countries, leverages licensing mapping data to enhance its hardware, tailored for niche activities such as scuba diving and sailing. Garmin's diverse product range is distributed through various channels, including direct sales and partnerships with original equipment manufacturers.
Financial Strength Breakdown
Garmin Ltd's financial robustness is reflected in its Financial Strength rating of 8/10. The company's Altman Z-Score of 13.33 indicates a strong buffer against financial distress, underscoring its financial stability. Additionally, its Debt-to-Revenue ratio of 0.02 demonstrates prudent debt management, further solidifying its financial health.
Profitability and Growth Metrics
Garmin Ltd's Profitability Rank stands at a perfect 10/10. The company's financial health is further supported by a strong Predictability Rank of 4.5 stars, indicating consistent operational performance. In terms of growth, Garmin has demonstrated a commitment to expansion, with a 3-Year Revenue Growth Rate of 7.7%, outperforming 62.25% of its industry peers. The company's EBITDA has also seen significant growth, with a three-year growth rate of 2.4 and a five-year rate of 6.8.
Conclusion
Considering Garmin Ltd's impressive financial strength, profitability, and growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore other companies with strong GF Scores using the GF Score Screen available to GuruFocus Premium members.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
