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Garmin Ltd

Garmin produces GPS-enabled hardware and software for five sectors: fitness, outdoors, automotive, aviation, and marine. Garmin has built a strong reputation fo...

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Garmin Ltd
GRMN SEARCH, DETECTION, NAVIGATION, GUIDANCE, AERONAUTICAL SYS · Market Cap: $47B
$236.65 ▼ -2.20%
$5.32 today · as of 06 Jun 2026
71 S.I.F.T
S.I.F.T.™ Analysis
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Strong investment quality – all pillars healthy.
Last updated: 06 Jun 2026 · Confidence: 70%
Pillar Breakdown
🛡 Safety 65
Strong balance sheet and competitive moat provide good downside protection.
💰 Income 80
High cyclicality and lack of recurring revenue are limiting stability.
📊 Fundamentals 65
Strong growth but valuation is elevated.
⏱ Time 75
Shorter track record or weaker tailwinds.
🧠 Munger Reality Filter BUY

Moderate moat from vertical integration, durable brand reputation in specialized aviation/marine niches, and diversified GPS hardware/software portfolio across five sectors.

Strengths: High income stability pillar score of 80 with reliable 1.77% dividend yield, Vertically integrated design and manufacturing supporting precision and quality, Global presence with strong North America/Europe focus and 15.85% ROE
Risks: Intense competition in fitness and automotive segments from larger tech players, Exposure to cyclical demand in aviation and marine markets, Low warchest percentage limits acquisition or buffer flexibility
📈 Price History

Business Overview

Garmin produces GPS-enabled hardware and software for five sectors: fitness, outdoors, automotive, aviation, and marine. Garmin has built a strong reputation for durable, high-precision devices through a vertically integrated design and manufacturing approach. The company's product lines include smartwatches, fitness trackers, communication equipment, and a comprehensive suite of systems for marine and aviation navigation. Garmin operates globally, with its business focused primarily on North America and Europe.
Key Metrics
ROE (10yr)
15.9%
Debt / CFO
N/A
Div. Yield
0.00%
FCF Growth
0.0%

FAQ

Financial Details

Recent Quarters
Quarter Revenue Gross Profit EPS
No quarterly data available.
Segment Breakdown
Data Center 56%
Client 28%
Gaming 9%
Embedded 7%

Management

Leadership Summary
  • Experienced leadership team with deep domain expertise in GPS and consumer electronics.
  • Strong focus on innovation and diversification into fitness, marine, and aviation markets.
  • Proven ability to maintain high margins and consistent dividend growth.
  • Emphasis on long-term R&D investment over short-term gains.
Track Record

Under current leadership, Garmin has delivered steady revenue growth averaging 8-10% annually, successfully transitioned from standalone GPS devices to integrated wearables ecosystem, and maintained industry-leading operating margins above 20%.

Recent Commentary

“In Q2 2024 earnings, management highlighted robust demand for smartwatches and aviation products while noting supply chain stabilization and continued share gains in the fitness segment.”

Analyst Reviews & Risks

Wall Street Consensus
4.6
out of 5 (Strong Buy)
Average Target: $485.00
Key Investment Risks
  • Intense competition in fitness and automotive segments from larger tech players
  • Exposure to cyclical demand in aviation and marine markets
  • Low warchest percentage limits acquisition or buffer flexibility
Ownership & Sentiment

Institutional Ownership: N/A%

Short Interest: N/A%

AI Investment Thesis
  • Dominant position in premium fitness/outdoor wearables with strong brand loyalty and recurring upgrades
  • Diversified revenue streams across consumer, aviation, marine, and automotive segments reduce cyclical risk
  • High gross margins (~55%) and robust balance sheet with net cash position support shareholder returns
  • Innovation pipeline in health monitoring, GPS accuracy, and software/services offers differentiation vs. competitors
  • Secular tailwinds from health/wellness trends and outdoor recreation growth drive long-term TAM expansion
Key Catalysts & Risks
Catalysts
  • Next-gen smartwatch launches with advanced health/sleep features driving upgrade cycle
  • Aviation/marine recovery and new OEM partnerships boosting high-margin segments
  • Expansion of paid subscription services (e.g., training plans, data insights) lifting recurring revenue
Risks
  • Intense competition from Apple Watch and Google Wear OS eroding market share
  • Consumer discretionary spending slowdown in a prolonged macro downturn
  • Supply chain/geopolitical exposure from Taiwan manufacturing and global component sourcing
Peer Comparison
Company P/E Rev Growth Gross Margin ROE Debt/Equity
NVDA N/A N/A% N/A% 61.51% 0.51
INTC N/A N/A% N/A% -1.64% 8.05
AVGO N/A N/A% N/A% 14.7% 3.03
AMD N/A N/A% N/A% 8.08% 999
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    Investors

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  • Ticker

     GRMN
  • ...

    Sector

     SEARCH, DETECTION, NAVIGATION, GUIDANCE, AERONAUTICAL SYS

  • Current Price

     $236.65

  • S.I.F.T. Score

     71
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