📊 GRMN Key Takeaways
Is Garmin Ltd. (GRMN) a Good Investment?
Garmin demonstrates exceptional fundamental strength with 15.1% revenue growth, 17.9% earnings growth, and outstanding profitability margins (59.4% gross, 23.1% net). The company maintains a fortress balance sheet with zero debt, $469.4M free cash flow, and exceptional liquidity, providing significant financial flexibility and downside protection.
Garmin delivers double-digit revenue growth with elite profitability and returns, converting earnings to cash (18.8% FCF margin) while maintaining a debt-free, cash-rich balance sheet. These fundamentals support durable reinvestment and resilience across aviation, marine, and outdoor end markets despite consumer cycle exposure. Monitoring margin sustainability and segment mix remains key amid competitive pressure.
Why Buy Garmin Ltd. Stock? GRMN Key Strengths
- Revenue growth of 15.1% YoY with earnings growth of 17.9% YoY indicates strong operating leverage and pricing power
- Exceptional profitability margins: 59.4% gross margin, 24.6% operating margin, and 23.1% net margin demonstrate efficient cost control
- Fortress balance sheet with zero debt, $2.3B cash, 4.36x current ratio, and 346.4x interest coverage provide financial resilience
- Outstanding free cash flow generation of $469.4M with 26.8% FCF margin shows high-quality earnings
- Debt-free balance sheet with strong liquidity and $2.28B cash
- High profitability (58.7% gross, 25.9% operating, 23.0% net) and solid ROE/ROA
- Robust free cash flow generation (18.8% FCF margin) supporting reinvestment
GRMN Stock Risks: Garmin Ltd. Investment Risks
- Low ROE of 4.4% and ROA of 3.7% suggest inefficient asset utilization despite strong profit margins
- Earnings growth outpacing revenue growth (17.9% vs 15.1%) may not be sustainable if driven by temporary factors
- Significant excess capital on balance sheet with minimal debt raises questions about optimal capital allocation strategy
- Intense competition and product cycle risk in wearables/consumer electronics could pressure pricing and growth
- Aviation/marine exposure to certification timelines and macro capex cycles
- Margin sensitivity to component costs, FX, and mix; net income stability suggests below-the-line volatility
Key Metrics to Watch
- Return on Equity and Return on Assets trends - addressing capital efficiency is critical
- Operating margin sustainability amid competitive pressures
- Free cash flow conversion rate and management's capital allocation decisions
- Revenue growth acceleration or deceleration across business segments
- Gross margin trend
- Free cash flow margin
Garmin Ltd. (GRMN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 26.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments. Strong liquidity with a 4.36x current ratio provides a solid financial cushion.
GRMN Profit Margin, ROE & Profitability Analysis
GRMN vs Market Sector: How Garmin Ltd. Compares
How Garmin Ltd. compares to Market sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Garmin Ltd. Stock Overvalued? GRMN Valuation Analysis 2026
Based on fundamental analysis, Garmin Ltd. has mixed fundamental signals relative to the Market sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Garmin Ltd. Balance Sheet: GRMN Debt, Cash & Liquidity
GRMN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Garmin Ltd.'s revenue has grown significantly by 45% over the 5-year period, indicating strong business expansion. The most recent EPS of $6.71 reflects profitable operations.
GRMN Revenue Growth, EPS Growth & YoY Performance
GRMN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $1.5B | $332.8M | $1.72 |
| Q3 2025 | $1.6B | $399.1M | $2.07 |
| Q2 2025 | $1.5B | $300.6M | $1.56 |
| Q1 2025 | $1.4B | $276.0M | $1.43 |
| Q3 2024 | $1.3B | $257.2M | $1.34 |
| Q2 2024 | $1.3B | $287.9M | $1.50 |
| Q1 2024 | $1.1B | $202.3M | $1.05 |
| Q3 2023 | $1.1B | $210.8M | $1.09 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Garmin Ltd. Dividends, Buybacks & Capital Allocation
GRMN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Garmin Ltd. (CIK: 0001121788)
📋 Recent SEC Filings
❓ Frequently Asked Questions about GRMN
What is the AI rating for GRMN?
Garmin Ltd. (GRMN) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 80% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are GRMN's key strengths?
Claude: Revenue growth of 15.1% YoY with earnings growth of 17.9% YoY indicates strong operating leverage and pricing power. Exceptional profitability margins: 59.4% gross margin, 24.6% operating margin, and 23.1% net margin demonstrate efficient cost control. ChatGPT: Debt-free balance sheet with strong liquidity and $2.28B cash. High profitability (58.7% gross, 25.9% operating, 23.0% net) and solid ROE/ROA.
What are the risks of investing in GRMN?
Claude: Low ROE of 4.4% and ROA of 3.7% suggest inefficient asset utilization despite strong profit margins. Earnings growth outpacing revenue growth (17.9% vs 15.1%) may not be sustainable if driven by temporary factors. ChatGPT: Intense competition and product cycle risk in wearables/consumer electronics could pressure pricing and growth. Aviation/marine exposure to certification timelines and macro capex cycles.
What is GRMN's revenue and growth?
Garmin Ltd. reported revenue of $1.8B.
Does GRMN pay dividends?
Garmin Ltd. pays dividends, with $173.6M distributed to shareholders in the trailing twelve months.
Where can I find GRMN SEC filings?
Official SEC filings for Garmin Ltd. (CIK: 0001121788) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is GRMN's EPS?
Garmin Ltd. has a diluted EPS of $2.09.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is GRMN a good stock to buy right now?
Based on our AI fundamental analysis in May 2026, Garmin Ltd. has a BUY rating with 80% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is GRMN stock overvalued or undervalued?
Valuation metrics for GRMN: ROE of 4.4% (sector avg: 15%), net margin of 23.1% (sector avg: 12%). Compare these metrics with sector averages to assess valuation.
Should I buy GRMN stock in 2026?
Our dual AI analysis gives Garmin Ltd. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is GRMN's free cash flow?
Garmin Ltd.'s operating cash flow is $536.0M, with capital expenditures of $66.6M. FCF margin is 26.8%.
How does GRMN compare to other Market stocks?
Vs Default sector averages: Net margin 23.1% (avg: 12%), ROE 4.4% (avg: 15%), current ratio 4.36 (avg: 1.8).