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Relative valuation derived from Technology sector median benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Multiples adjusted for extreme outliers and non-recurring volatility.
Auditing capital efficiency...
Quality Profile Audit
Score: 50GRADE C+
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation.
Return on Equity
Profit generated per dollar of shareholder equity
17.1%
Sector: -1.4%
Dividend Analysis audit
GROWTH
1.37%
Trailing Yield
$1.37
Per $100 Invested
Modest dividend — capital prioritized for reinvestment.
Est. Payout Ratio
41%SAFE
Analyst Projections
Analyst Consensus
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Based on our 6-factor quantitative model, GARMIN LTD (GRMN) receives a "Hold" rating with a composite score of 46.9/100, ranked #1103 out of 4446 stocks. Key factor scores: Quality 50/100, Value 57/100, Momentum 50/100. This is quantitative analysis only — not investment advice.
GARMIN LTD (GRMN) Stock Analysis — April 2026 Rating, Price, and Forecast
Company Overview — What Does GARMIN LTD Do?
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. GARMIN LTD (GRMN) is classified as a large-cap stock in the Technology sector, specifically within the Electronic Equipment industry. The company is led by CEO Clifton A. Pemble and employs approximately 19,700 people. With a market capitalization of $45.7B, GRMN is one of the prominent companies in the Technology sector.
GARMIN LTD (GRMN) Stock Rating — Hold (April 2026)
As of April 2026, GARMIN LTD receives a Hold rating with a composite score of 46.9/100 and 3 out of 5 stars from the Blank Capital Research quantitative model.GRMN ranks #1,103 out of 4,446 stocks in our coverage universe. Within the Technology sector, GARMIN LTD ranks #109 of 584 stocks, placing it in the top quartile of its Technology peers. The rating is generated by a multi-factor model that weighs quality (30%), momentum (25%), value (15%), investment (10%), stability (10%), and short interest (10%).
GRMN Stock Price and 52-Week Range
GARMIN LTD (GRMN) currently trades at $256.89. The stock gained $0.36 (0.1%) in the most recent trading session. The 52-week high for GRMN is $261.69, which means the stock is currently trading -1.8% from its annual peak. The 52-week low is $169.26, putting the stock 51.8% above its annual trough. Recent trading volume was 711K shares, suggesting relatively thin trading activity.
Is GRMN Overvalued or Undervalued? — Valuation Analysis
GARMIN LTD (GRMN) carries a value factor score of 57/100 in the Blank Capital model, indicating fair valuation relative to historical norms. The trailing price-to-earnings ratio is 30.27x, compared to the Technology sector average of 45.27x — a discount of 33%. The price-to-book ratio stands at 5.18x, versus the sector average of 3.16x. The price-to-sales ratio is 6.92x, compared to 1.06x for the average Technology stock. On an enterprise value basis, GRMN trades at 26.25x EV/EBITDA, versus 12.79x for the sector.
Overall, GRMN's valuation appears roughly in line with sector benchmarks, suggesting the market is pricing the stock fairly given its current fundamentals and growth trajectory. Neither deep value nor significantly overpriced, the stock occupies a middle ground on valuation.
GARMIN LTD Profitability — ROE, Margins, and Quality Score
GARMIN LTD (GRMN) earns a quality factor score of 50/100, indicating solid business quality with consistent operational execution. The return on equity (ROE) is 17.1%, compared to the Technology sector average of -1.4%, which is within a healthy range. Return on assets (ROA) comes in at 14.0% versus the sector average of -1.0%.
On a margin basis, GARMIN LTD reports gross margins of 58.9%, compared to 50.9% for the sector. The operating margin is 25.3% (sector: -0.5%). Net profit margin stands at 22.9%, versus -1.5% for the average Technology stock. Revenue growth is running at 17.5% on a trailing basis, compared to 14.2% for the sector. The overall profitability profile is adequate, though there may be room for margin expansion.
GRMN Debt, Balance Sheet, and Financial Health
GARMIN LTD has a debt-to-equity ratio of 23.0%, compared to the Technology sector average of 43.0%. The low leverage indicates a conservative balance sheet with significant financial flexibility. The current ratio is 3.63x, indicating strong short-term liquidity. Total debt on the balance sheet is $0. Cash and equivalents stand at $2.07B.
GRMN has a beta of 1.21, meaning it is more volatile than the broader market — a $10,000 investment in GRMN would be expected to move 20.8% more than the S&P 500 on any given day. The stability factor score for GARMIN LTD is 64/100, reflecting average volatility within the normal range for its sector.
GARMIN LTD Revenue and Earnings History — Quarterly Trend
In TTM 2026, GARMIN LTD reported revenue of $6.71B and earnings per share (EPS) of $8.65. Net income for the quarter was $1.53B. Gross margin was 58.9%. Operating income came in at $1.70B.
In FY 2025, GARMIN LTD reported revenue of $7.25B and earnings per share (EPS) of $8.65. Net income for the quarter was $1.66B. Gross margin was 58.7%. Revenue grew 15.1% year-over-year compared to FY 2024. Operating income came in at $1.88B.
In Q3 2025, GARMIN LTD reported revenue of $1.77B and earnings per share (EPS) of $2.09. Net income for the quarter was $402M. Gross margin was 59.1%. Revenue grew 11.7% year-over-year compared to Q3 2024. Operating income came in at $457M.
In Q2 2025, GARMIN LTD reported revenue of $1.81B and earnings per share (EPS) of $2.08. Net income for the quarter was $401M. Gross margin was 58.8%. Revenue grew 20.4% year-over-year compared to Q2 2024. Operating income came in at $472M.
Over the past 8 quarters, GARMIN LTD has demonstrated a growth trajectory, with revenue expanding from $1.51B to $6.71B. Investors analyzing GRMN stock should weigh these quarterly trends alongside the valuation and quality metrics discussed above.
GRMN Dividend Yield and Income Analysis
GARMIN LTD (GRMN) currently pays a dividend yield of 1.4%. At this yield, a $10,000 investment in GRMN stock would generate approximately $$137.00 in annual dividend income. With a net margin of 22.9%, the dividend appears well-covered by earnings, suggesting sustainable payouts going forward.
GRMN Momentum and Technical Analysis Profile
GARMIN LTD (GRMN) has a momentum factor score of 50/100, reflecting neutral trend characteristics. The stock is neither significantly outperforming nor underperforming the broader market on a momentum basis. The investment factor score is 27/100, which measures capital allocation efficiency and asset growth patterns. The short interest score of 19/100 signals elevated short interest, which can indicate bearish sentiment among institutional investors.
GRMN vs Competitors — Technology Sector Ranking and Peer Comparison
Comparing GRMN against the S&P 500 benchmark is also instructive for understanding relative performance. Investors can view the full GRMN vs S&P 500 (SPY) comparison to assess how GARMIN LTD stacks up against the broader market across all factor dimensions.
GRMN Next Earnings Date
No upcoming earnings date has been announced for GARMIN LTD (GRMN) at this time. Check the earnings calendar for the latest scheduling updates across all stocks in our coverage universe.
Should You Buy GRMN? — Investment Thesis Summary
GARMIN LTD presents a balanced picture with arguments on both sides. Low volatility (stability score 64/100) reduces downside risk.
In summary, GARMIN LTD (GRMN) earns a Hold rating with a composite score of 46.9/100 as of April 2026. The rating is derived from the Blank Capital Research methodology, which combines six factor dimensions into a single quantitative ranking. Investors should consider these quantitative signals alongside their own fundamental research, risk tolerance, and investment time horizon before making buy or sell decisions on GRMN stock.
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Institutional Research Dossier
GARMIN LTD (GRMN) Deep Dive Analysis
Published on March 24, 2026
Action RatingHold
Sections
Executive Summary
We maintain a Hold rating on Garmin Ltd. (GRMN). While the company exhibits strong profitability and a healthy balance sheet, its relatively weak investment profile, as indicated by our quantamental scoring, coupled with a recent negative free cash flow, raises concerns about future growth prospects and capital allocation efficiency. The current valuation appears fair, but not compelling enough to warrant an upgrade given the mixed signals from our analysis.
Garmin's diversified product portfolio across multiple segments provides a degree of resilience, but the company's ability to sustain its historical growth rates in the face of increasing competition and evolving consumer preferences is questionable. The negative free cash flow in the latest quarter warrants close monitoring, as it could indicate challenges in managing working capital or increased investment needs that are not yet translating into revenue growth. While Garmin's strong brand and established market position offer some downside protection, we believe a Hold rating is appropriate until we see more concrete evidence of improved investment efficiency and a return to positive free cash flow generation.
Business Strategy & Overview
Garmin operates across five key segments: Fitness, Outdoor, Aviation, Marine, and Auto. This diversification is a core element of its strategy, allowing it to mitigate risk and capitalize on growth opportunities in different markets. The company's strategy revolves around designing, manufacturing, and distributing a wide range of wireless devices, leveraging its expertise in GPS technology and user interface design. Garmin differentiates itself through product innovation, focusing on features and functionality that cater to specific user needs within each segment.
The Fitness segment, offering running watches, cycling products, and activity trackers, targets health-conscious consumers. The Outdoor segment focuses on adventure watches, handheld devices, and golf products, catering to outdoor enthusiasts. The Aviation segment provides integrated flight decks and avionics solutions for aircraft, serving the general aviation market. The Marine segment offers chartplotters, fish finders, and autopilot systems for recreational and commercial boating. The Auto segment provides embedded computing models, infotainment systems, and personal navigation devices, targeting the automotive industry.
Garmin's distribution strategy involves a mix of direct and indirect channels, including independent retailers, online retailers, dealers, distributors, installation and repair shops, and original equipment manufacturers. The company also operates its own online webshop, garmin.com, which allows it to reach consumers directly and control the brand experience. A key aspect of Garmin's strategy is its focus on building a strong brand reputation for quality, reliability, and innovation. This brand equity allows it to command premium pricing and maintain customer loyalty.
Looking ahead, Garmin's strategy will likely involve continued investment in research and development to maintain its technological edge, expansion into new markets and product categories, and a focus on building its ecosystem of connected devices and services. The company's ability to execute on this strategy will be critical to its long-term success in a competitive and rapidly evolving market. The recent revenue growth of 17.5% indicates a successful execution of this strategy, but the negative free cash flow needs to be addressed.
Execution Benchmarks audit
Revenue Growth
YOY expansion rate
17.5%
Sector: 14.2%
+23% VS SCTR
Economic Moat Analysis
Garmin possesses a narrow economic moat, primarily derived from brand intangible assets and, to a lesser extent, switching costs. The Garmin brand is well-recognized and respected in several niche markets, including aviation, marine, and outdoor recreation. This brand reputation allows Garmin to command premium pricing and maintain customer loyalty, providing a degree of pricing power. In the aviation and marine segments, in particular, Garmin's products are often considered essential equipment, and customers are willing to pay a premium for reliability and performance.
Switching costs also contribute to Garmin's moat, although to a lesser extent. In the aviation and marine segments, customers often invest significant time and resources in learning how to use Garmin's products, and they may be reluctant to switch to a competitor's products due to the learning curve and the potential for compatibility issues. Furthermore, Garmin's ecosystem of connected devices and services creates a degree of lock-in, as customers who have invested in multiple Garmin products may be less likely to switch to a competitor's ecosystem.
However, Garmin's moat is not particularly wide or deep. In the fitness and auto segments, the company faces intense competition from larger and more well-funded competitors, such as Apple, Samsung, and Google. These competitors have significant brand recognition and marketing resources, and they are able to offer a wide range of products and services at competitive prices. Furthermore, the barriers to entry in these segments are relatively low, and new competitors are constantly emerging.
The increasing commoditization of GPS technology and the rise of open-source mapping platforms also pose a threat to Garmin's moat. As GPS technology becomes more readily available and affordable, it becomes more difficult for Garmin to differentiate its products based on GPS functionality alone. The company must continue to innovate and develop new features and services to maintain its competitive edge. The negative free cash flow in the latest quarter could hinder the company's ability to invest in innovation and maintain its moat.
Financial Health & Profitability
Garmin's financial health is generally strong, characterized by solid profitability, a healthy balance sheet, and consistent revenue growth. The company has consistently generated high gross margins, operating margins, and net margins, indicating efficient operations and strong pricing power. The TTM gross margin of 58.9% and operating margin of 25.3% are significantly higher than the sector averages of 51.2% and -0.5%, respectively. The net margin of 22.9% also significantly outperforms the sector average of -1.5%.
Garmin's balance sheet is also in excellent shape, with no debt and a substantial cash balance of $2.07 billion. The current ratio of 3.63 indicates strong liquidity and the ability to meet short-term obligations. The company's ROE of 17.1% is also impressive, indicating efficient use of equity to generate profits. This is significantly higher than the sector average of -1.5%.
However, the recent negative free cash flow of -$284.27 million in Q3 FY2025 is a cause for concern. While the company has historically generated positive free cash flow, this recent decline suggests potential challenges in managing working capital or increased investment needs. It is important to monitor this trend closely to determine whether it is a temporary blip or a more persistent issue.
Looking at the quarterly financial history, Garmin has demonstrated consistent revenue growth over the past few years. Revenue increased from $5.23 billion in FY2023 to $6.30 billion in FY2024 and $7.25 billion in FY2025. Net income has also increased steadily, from $1.29 billion in FY2023 to $1.66 billion in FY2025. The operating margin has also improved over time, from 20.9% in FY2023 to 25.9% in FY2025. Overall, Garmin's financial health is strong, but the recent negative free cash flow warrants close monitoring.
Valuation Assessment
Garmin's valuation appears fair relative to its peers and historical performance, but not significantly undervalued. The company's P/E ratio of 26.9x is lower than the sector average of 45.3x, suggesting that the stock is relatively cheaper than its peers. However, it's important to consider that the sector average may be skewed by unprofitable companies, and Garmin's superior profitability justifies a higher multiple.
The EV/EBITDA ratio of 6.0x is also significantly lower than the sector average of 13.0x, further indicating that the stock is relatively undervalued. However, this metric may not fully capture the value of Garmin's brand intangible assets and its potential for future growth. The negative free cash flow makes a FCF yield calculation less meaningful at this time.
Considering Garmin's strong profitability, healthy balance sheet, and consistent revenue growth, a premium valuation is warranted. However, the recent negative free cash flow and the company's relatively weak investment profile, as indicated by our quantamental scoring, suggest that the current valuation is fair, but not compelling enough to warrant an upgrade.
A discounted cash flow (DCF) analysis would be necessary to determine a more precise fair value for the stock. However, given the uncertainty surrounding future growth rates and free cash flow generation, a DCF analysis would be highly sensitive to the assumptions used. Based on the available information, we believe that the current market price reflects a fair valuation of Garmin's intrinsic value.
Risk & Uncertainty
Garmin faces several risks and uncertainties that could impact its future performance. One of the most significant risks is increasing competition from larger and more well-funded competitors, particularly in the fitness and auto segments. Companies like Apple, Samsung, and Google have significant brand recognition and marketing resources, and they are able to offer a wide range of products and services at competitive prices. This increased competition could put pressure on Garmin's pricing and margins.
Another risk is the potential for technological disruption. The rapid pace of technological change in the electronics industry could render Garmin's products obsolete or less competitive. The company must continue to invest in research and development to maintain its technological edge and develop new products and services that meet the evolving needs of its customers. Failure to do so could result in a loss of market share and a decline in profitability.
The aviation and marine segments are subject to regulatory risks. Changes in aviation regulations or marine safety standards could require Garmin to make costly modifications to its products or even discontinue certain products altogether. Furthermore, economic downturns could negatively impact demand for Garmin's products in these segments, as consumers and businesses may be less willing to spend on discretionary items.
Supply chain disruptions also pose a risk to Garmin's business. The company relies on a global network of suppliers to manufacture its products, and disruptions to this supply chain could result in delays in production and increased costs. Geopolitical risks, such as trade wars or political instability, could also disrupt Garmin's supply chain and impact its profitability.
Bulls Say / Bears Say
The Bull Case
BULL VIEWGarmin's diversified product portfolio across multiple segments provides resilience against economic downturns and changing consumer preferences, ensuring stable revenue streams.
BULL VIEWThe company's strong brand reputation and focus on niche markets, such as aviation and marine, allow it to command premium pricing and maintain customer loyalty, leading to higher margins.
BULL VIEWGarmin's debt-free balance sheet and substantial cash reserves provide financial flexibility to invest in research and development, acquisitions, and share repurchases, driving future growth.
The Bear Case
BEAR VIEWThe recent negative free cash flow indicates potential challenges in managing working capital or increased investment needs that are not yet translating into revenue growth, raising concerns about future profitability.
BEAR VIEWIncreasing competition from larger and more well-funded competitors, such as Apple and Samsung, could put pressure on Garmin's pricing and margins, eroding its competitive advantage.
BEAR VIEWThe company's relatively weak investment profile, as indicated by our quantamental scoring, suggests that it may be struggling to allocate capital efficiently and generate attractive returns on investment.
About the Author
Marques Blank
Founder & Chief Investment Officer, Blank Capital
Marques brings 15 years of institutional finance and investing experience, having overseen financial planning for a $1.6B defense business unit. He developed the proprietary 6-factor quantitative model used to score GRMN and 4,400+ other equities.
GARMIN LTD exhibits a 172% valuation premium relative to institutional benchmarks. This represents a potential valuation overextension based on current multiples.
Return on Assets
Efficiency of asset utilization
14.0%
Sector: -1.0%
Gross Margin
Pricing power and cost efficiency
58.9%
Sector: 50.9%
Operating Margin
Core business profitability
25.3%
Sector: -0.5%
Net Margin
Bottom-line profitability
22.9%
Sector: -1.5%
Factor Methodology
The Quality factor evaluates the persistence and magnitude of cash flows. Companies with scores >70 exhibit superior competitive moats and financial resilience through economic cycles.
Sector Avg Yield0.00%
Yield Delta—
Income Projection audit
A $10,000 investment would generate approximately $137 annually in dividends at the current trailing rate.
