بإذنك، نستخدم تحليلات محدودة تراعي الخصوصية لفهم مسارات البحث الفعالة. لا نستخدم أدوات تتبع إعلانية أو تسجيل الجلسات. يمكنك تغيير هذا الخيار في التفضيلات. اقرأ سياسة الخصوصية.
Quote this valuation with its source: Fair value, Potential value and the price at analysis.
FAQ
GRMN — frequently asked questions
Is Garmin Ltd. overvalued?
In our latest published analysis dated 2026-10-02, GRMN looks meaningfully overvalued. The price recorded at analysis is 281 USD versus our fair value of 192 USD; the high endpoint is presented separately as potential value of 218 USD. That implies roughly 31.6% downside to fair value at that date.
Our latest published report, analyzed 2026-10-02, gives GRMN a fair value of 192 USD and a potential value of 218 USD. The conclusion is triangulated across multiple valuation models and weighted by reliability for Garmin Ltd.'s archetype; it is a dated research output, not a live price.
Should I buy GRMN now?
Our latest published rating for GRMN, analyzed 2026-10-02, is Sell. Garmin Ltd. looks meaningfully overvalued at the analysis-date price of 281 USD versus fair value of 192 USD; potential value is 218 USD. This is research for educational purposes, not personalized investment advice.
What are the biggest risks for GRMN?
The dedicated bear-case section in our report analyzed 2026-10-02 documents Garmin Ltd.'s material risks, evidence, thresholds, and thesis-invalidation conditions. Scenario-specific explanations remain in that section so the report does not repeat or decontextualize them elsewhere.
What is GRMN's rating?
Our latest published rating for GRMN, analyzed 2026-10-02, is Sell, with a published moat assessment of 7.5/10 (Narrow). It reflects our fair value of 192 USD, the potential value of 218 USD, and the price recorded at analysis (281 USD).
لم تتم ترجمة هذا التقرير بعد. قم بالتحديث خلال بضع دقائق بمجرد أن تلحق قائمة انتظار الترجمة بالركب.
§1 الملخص التنفيذيEN
الإجابة في 30 ثانيةSell
السعر مقابل القيمة
Price
$281.08
Fair value
$192.38
Potential value
$218.14
As of
2026-10-02
لماذا قد تنجح الفرضية
Accelerated adoption of advanced health, fitness, and adventure wearables, coupled with new OEM flight deck and retrofit certifications in Aviation ($987.16M in FY25), could drive consolidated revenue growth above 12% and expand operating margins toward 27%, lifting free cash flow above $1.7B and supporting valuation toward the Potential value of $218.14.
ما الذي سيغيّر تقييمنا
Deceleration of organic revenue growth below 1.5% YoY over the next 12 months, driven by consumer wearable demand fatigue in Fitness and Outdoor combined with marine boatbuilder inventory destocking.
Garmin Ltd. is rated Sell. While the company is a high-quality business with strong operating margins and zero net debt, the report-date share price of $281.08 sits significantly above the house Fair value of $192.38, creating excessive valuation risk for investors.4
We assign a Sell rating to Garmin Ltd.. For an ordinary investor, this rating means holding or buying the shares at prevailing trading levels exposes capital to unacceptable valuation downside, and investors should look to trim or exit positions.
The report was prepared when the shares were priced at $281.08 on October 2, 2026. Our valuation establishes a Fair value of $192.38 and a of $218.14. The report-date price trades at a 46.11% premium to the house Fair value (representing an implied return of -31.56%) and trades at a 28.85% premium even to the Potential value, indicating that the market has fully priced in multi-year perfection.
The primary risk to the company's operating performance is a contraction in consumer discretionary spending combined with channel inventory liquidation. Because the Fitness and Outdoor segments account for 60.88% of consolidated revenue ($4,411.06M of $7,245.52M in FY25),,, any lengthening of consumer smartwatch replacement cycles or marine boatbuilder order cancellations would decelerate organic top-line growth and compress operating margins from 25.89% toward 20%,. A reader would see this through organic growth falling below 4.0% for two consecutive quarters or operating margin dropping below 22%.6,7
The strongest reason the business can continue to create value is its vertically integrated manufacturing and proprietary sensor software ecosystem. High customer retention in Garmin Connect and FAA-certified avionics flight decks in Aviation ($987.16M in FY25) preserve gross margins at 58.74% and allow free cash flow to compound at $1,362.91M annually. If double-digit expansion persists and operating margins reach 27%, value per share could approach the Potential value of $218.14, though this optimistic path remains well below the report-date share price.5,6,7
Switching Costs and Software Integration
In Aviation ($987.16M revenue in FY2025), OEM flight deck integrations and regulatory FAA certifications create prohibitively high replacement hurdles. Additionally, the Garmin Connect ecosystem retains active users across Fitness ($2,357.00M) and Outdoor ($2,054.06M) through multi-year longitudinal biometric and performance history.7
Intangible Assets (Regulatory Certifications and Specialized Brand Equity)
Garmin holds specialized aviation safety approvals and deep brand equity among serious runners, triathletes, mariners, and aviators, enabling premium pricing that generated $4,256.30M in gross profit (58.74% margin) and $1,876.08M in operating income (25.89% margin) in FY2025.6
Platform Breadth and Vertical Manufacturing Scale
Garmin operates five distinct business segments supported by in-house design and manufacturing facilities in Taiwan, allowing cross-segment R&D leverage ($1,126M reinvested in FY2025) and resilient supply chain management relative to pure contract-manufactured peers.
توصية الدار
Garmin Ltd. is rated Sell because the report-date share price of $281.08 trades at a 46.11% premium to its house Fair value of $192.38 (-31.56% implied return), leaving investors exposed to substantial valuation contraction despite strong business fundamentals,,.4
نظرة عامة على الشركة
Garmin serves five primary markets: fitness, outdoor, aviation, marine, and auto OEM. Garmin offers a broad range of products and services designed for use in marine recreation applications. Garmin currently offers the following product categories and related services within the Marine segment to the global marine market: The Company offers certain tangible products with ongoing services promised over a period of time. When such services have been identified as both capable of being distinct and separately identifiable from the related tangible product, the associated revenue allocated to such services is recognized over time.
These ongoing services primarily consist of the Company’s contractual promises to provide map update services to customers that use its navigation products.
§2 السيناريو الهبوطيEN
Under a synchronized stress scenario combining consumer wearable fatigue and marine destocking, consolidated top-line growth slows to 1.5% YoY while operating margin contracts by 600 basis points to approximately 19.9% as fixed R&D and manufacturing overhead deleverage. In this downside pathway, annual operating income falls from $1,876.08M toward ~$1.45B, and free cash flow contracts toward $1.0B. Applying a peer-normalized multiple of 16.0x compresses valuation toward the low end of the valuation synthesis at $161.00, highlighting that prevailing trading levels ($281.08) price in sustained peak performance without margin for operational stumble.
In the downside scenario, consumer discretionary spending contraction delays smartwatch replacement cycles across Fitness and Outdoor, while marine boatbuilders liquidate channel inventories. Rising electronic component costs and promotional price competition compress gross and operating margins toward historical cyclical lows. Slower operating earnings growth prompts a valuation multiple de-rating toward industrial and hardware peer medians. The reader would identify this scenario through two consecutive quarters of low-single digit organic revenue growth or operating margin falling below threshold levels.
كيف يمكن أن تفشل هذه الأطروحة
Severe wearable demand contraction and marine destocking shock
Fitness ($2,357.00M) and Outdoor ($2,054.06M) account for 60.88% of FY2025 revenue ($7,245.52M). A sharp contraction in consumer discretionary spending combined with boatbuilder inventory liquidation in Marine ($1,182.62M) triggers organic revenue growth decelerating below 1.5% YoY over the next 12 months, reducing 5-year consolidated revenue and EPS growth by approximately 10 percentage points relative to double-digit consensus forecasts.6,7
FV impact
إشارات الإنذار المبكر للمراقبة
التطورات الخمسة التي قد تضعف أطروحتنا الاستثمارية.
Signals consumer wearable replacement cycle elongation and saturation of high-end outdoor smartwatch demographics, requiring growth assumption downgrades.
الحالي:11.79% consolidated growth pace (FY2025 revenue $7,245.52M)
تنبيه إذاBelow 4.0% YoY for two consecutive quarters
02
§3 الميزة التنافسيةEN
Narrow
Garmin Ltd. possesses a narrow economic moat underpinned by intangible assets—specifically brand equity and specialized aviation certifications—and customer switching costs embedded in its proprietary Garmin Connect ecosystem. In Aviation ($987.16M FY2025 revenue), Garmin's integrated flight decks and retrofit avionics require stringent, multi-year FAA and international safety certifications that impose formidable regulatory barriers to entry. Aircraft OEMs and pilots face steep retraining and re-certification hurdles, creating entrenched long-term relationships and durable pricing power.
In the consumer-facing Fitness ($2,357.00M) and Outdoor ($2,054.06M) segments, Garmin has established high switching costs via historical biometric and activity tracking within Garmin Connect. Athletes and outdoor enthusiasts accumulate years of longitudinal training and physiological data, discouraging transitions to competing smartwatches. Combined with vertical manufacturing integration that preserves gross margins at 58.74%,, these structural features sustain excess returns, although consumer hardware cycle exposure bounds the moat duration to a narrow classification.
الربح الاقتصادي
Garmin delivers returns on invested capital of approximately 18.42%, comfortably exceeding its computed WACC of 8.99% and computed moderate cost of equity of 9.00%. This positive economic profit spread reflects high operating efficiency and capital discipline, with capital expenditures of $270.45M representing only 3.73% of FY2025 revenue ($7,245.52M),.2,6
7.5/ 10
Narrow
Sources of advantage
01Switching Costs and Software Integration — In Aviation ($987.16M revenue in FY2025), OEM flight deck integrations and regulatory FAA certifications create prohibitively high replacement hurdles. Additionally, the Garmin Connect ecosystem retains active users across Fitness ($2,357.00M) and Outdoor ($2,054.06M) through multi-year longitudinal biometric and performance history.Wide
02Intangible Assets (Regulatory Certifications and Specialized Brand Equity) — Garmin holds specialized aviation safety approvals and deep brand equity among serious runners, triathletes, mariners, and aviators, enabling premium pricing that generated $4,256.30M in gross profit (58.74% margin) and $1,876.08M in (25.89% margin) in FY2025.
التهديدات المعروفة للميزة التنافسية
التهديد
الخطورة
الجدول الزمني
التخفيف
Consumer discretionary spending fatigue and promotional competition in smartwatches from large tech ecosystems.
medium
12-18 months
Garmin focuses on specialized, mission-critical niches (running, diving, aviation, marine navigation) rather than general-purpose smartwatches, maintaining superior battery life and dedicated physical sensor ecosystems.
الصفوف: معدل الخصم (Ke للأرباح؛ WACC للتدفقات النقدية). الأعمدة: النمو النهائي.
القيمة العادلة
تغير المدة (سنوات)
-5
-2
0
+2
+5
القيمة العادلة
190.22 US$
191.32 US$
192.38 US$
193.40 US$
194.85 US$
مدة الميزة التنافسية: 5 سنوات في الحالة الأساسية المميزة. تبقى الافتراضات الأخرى ثابتة.
مرجع الحساسية
The highlighted cell is Fair value when every assumption sits at its base level ($192.38). Each row and column shows what Fair value becomes when one assumption moves.
منحدر التدفق النقدي الحر
Free cash flow to the firm stays positive in the first projected year at $1.5B after modeled reinvestment of $209.5M, with terminal value at 76.9% of enterprise value. A sudden drop in free cash flow is not projected unless capital spending relative to revenue, reinvestment, or gross margin resets materially.
The base case represents the modal expected trajectory, carrying a 60.0% probability and projecting a target price of $192.38, implying a return of -31.6% against $281.08 (as of 2026-10-02). In this scenario, multi-segment diversification delivers steady revenue expansion supported by health smartwatch demand, aviation flight deck retrofits, and disciplined cost control that sustains high operating margins. Free cash flow conversion remains robust, supporting modest share repurchases and regular dividends. The thesis would be challenged if wearable revenue growth decelerates significantly or operating margins fall below target ranges over a full fiscal year.
Upgrade the rating; Maintain position discipline; use any post-earnings share price strength to execute planned exits or trim remaining exposures, as the market price continues to trade well above Fair value $192.38.
المُحفِّز: Quarterly revenue and diluted earnings exceeding consensus expectations across Fitness and Outdoor segments with gross margin expanding above historical averages.
Even an earnings beat driven by strong consumer wearable demand does not resolve the substantial valuation premium reflected in $281.08 (as of 2026-10-02). While operational outperformance warrants an upgrade from Sell to Reduce, shares trading far above Fair value $192.38 keep the risk-reward profile unfavorable.
متوافق
Maintain Sell; Continue trimming exposure into trading liquidity; monitor whether consumer wearable replacement cycles begin to stretch into forthcoming quarters.
المُحفِّز: Quarterly revenue and operating margins meeting consensus projections, with steady wearable upgrade cadences offsetting boatbuilder marine destocking.
In-line results confirm that Garmin is operating efficiently, but confirm that growth is tracking the modal path already incorporated into our valuation models. Given the implied negative return -31.6%, the shares offer no margin of safety at $281.08.
دون التوقعات
Maintain Sell; Accelerate complete exit of any remaining positions; re-examine downside risk scenarios as multiple compression toward peer medians becomes immediate.
المُحفِّز: Consolidated revenue falling short of expectations due to wearable demand contraction, or operating margin compressing toward prior cyclical troughs.
An earnings miss confirms the bear case thesis of consumer wearable fatigue and channel inventory destocking. With the market price at $281.08 (as of 2026-10-02) vulnerable to multiple contraction toward peer averages, capital preservation dictates maintaining the Sell rating and completing an immediate exit.
جودة الأرباح
Garmin exhibits pristine earnings quality, characterized by outstanding cash conversion where operating cash flow closely matches net income. Receivables and inventory remain tightly managed within vertically integrated manufacturing facilities, while stock-based compensation consumes only a modest fraction of operating cash flow. Organic earnings power is backed by genuine cash receipts rather than working capital adjustments.
الحاليOperating momentum remains solid following recent quarterly releases, though growth faces tougher comparisons in upcoming fiscal periods.
لماذا يهم
Fitness and Outdoor represent the majority of consolidated revenue; any deceleration in these segments indicates consumer wearable upgrade fatigue, compressing top-line compounding and operating leverage.
Garmin's return on invested capital has stabilized around 18.42%, supported by steady gross margin defense and controlled asset intensity across its vertically integrated production facilities.
Garmin's ROIC of 18.42% exceeds its computed WACC of 8.99% and computed cost of equity of 9.00% by over 940 basis points, demonstrating significant and durable economic profit generation.
أحدث إيرادات7.2 مليار US$معدل النمو السنوي المركب للإيرادات +10.2%
هامش التشغيل25.9%10 فترات مالية
أحدث تدفق نقدي حر1.4 مليار US$FY2025
صافي النقد2.5 مليار US$FY2025
تفصيل قائمة الدخلكيف يتحول حجم الأعمال إلى أرباح مُعلنة.
StockMarketAgent.AI
الإيرادات7.2 مليار US$تكلفة الإيرادات−3 مليار US$إجمالي الربح4.3 مليار US$المصروفات التشغيلية−2.4 مليار US$الدخل التشغيلي1.9 مليار US$البنود غير التشغيلية والضرائب−212.2 مليون US$صافي الدخل1.7 مليار US$
بيانات التاريخ المالي
الإيرادات
7,245,519,000 US$
تكلفة الإيرادات
2,989,216,000 US$
إجمالي الربح
4,256,303,000 US$
المصروفات التشغيلية
2,380,227,000 US$
الدخل التشغيلي
1,876,076,000 US$
البنود غير التشغيلية والضرائب
-212,189,000 US$
صافي الدخل
1,663,887,000 US$
لمحة عن الميزانية العموميةكيفية الاحتفاظ بالأصول المُبلغ عنها وتمويلها في الفترة المحددة.
StockMarketAgent.AI
تكوين الأصولمصادر التمويل
إجمالي الأصول11 مليار US$النقد2.3 مليار US$الأصول المتداولة6.2 مليار US$إجمالي الالتزامات2 مليار US$الالتزامات المتداولة1.7 مليار US$حقوق المساهمين9 مليار US$
بيانات تفصيل الميزانية العمومية
إجمالي الأصول
10,993,669,000 US$
النقد
2,278,646,000 US$
الأصول المتداولة
6,248,216,000 US$
إجمالي الالتزامات
2,021,105,000 US$
الالتزامات المتداولة
1,720,071,000 US$
حقوق المساهمين
8,972,564,000 US$
جسر التدفق النقديكيف تحول التدفق النقدي التشغيلي إلى تدفق نقدي حر في FY2025.
StockMarketAgent.AI
تسوية التدفق النقدي التشغيلي
صافي الدخل1.7 مليار US$الإهلاك والإطفاء+188.8 مليون US$التعويض القائم على الأسهم+166 مليون US$تعديلات تشغيلية أخرى−385.3 مليون US$التدفق النقدي التشغيلي1.6 مليار US$
تسوية النقد من بداية الفترة إلى نهايتها
النقد في بداية الفترة2.1 مليار US$التدفق النقدي التشغيلي+1.6 مليار US$التدفق النقدي الاستثماري−645.2 مليون US$التدفق النقدي التمويلي−844.1 مليون US$تأثير سعر الصرف+55.2 مليون US$النقد في نهاية الفترة2.3 مليار US$
1.6 مليار US$ − 270.4 مليون US$التدفق النقدي الحر 1.4 مليار US$
بيانات جسر التدفق النقدي
صافي الدخل
1,663,887,000 US$
التدفق النقدي التشغيلي الداخل
2,018,649,000 US$
الإهلاك والإطفاء
188,759,000 US$
التعويض القائم على الأسهم
166,003,000 US$
التدفق النقدي التشغيلي
1,633,359,000 US$
التدفق النقدي التشغيلي الخارج
385,290,000 US$
النقد المتاح
3,768,676,000 US$
النقد في بداية الفترة
2,080,154,000 US$
تأثير سعر الصرف
55,163,000 US$
التدفق الاستثماري الخارج
645,235,000 US$
النفقات الرأسمالية
270,446,000 US$
أنشطة استثمارية أخرى
374,789,000 US$
التدفق التمويلي الخارج
844,081,000 US$
إعادة شراء الأسهم
181,011,000 US$
أرباح الأسهم المدفوعة
663,885,000 US$
النقد في نهاية الفترة
2,279,360,000 US$
التدفق النقدي الاستثماري
-645,235,000 US$
التدفق النقدي التمويلي
-844,081,000 US$
الإيرادات حسب القطاع التشغيليالحصة من إجمالي إيرادات 2025-12-27.
7.2 مليار US$إجمالي الإيرادات
الإيرادات حسب القطاع التشغيليالحصة
Fitness2.4 مليار US$32.5%+32.8% على أساس سنوي
Outdoor2.1 مليار US$28.3%+4.7% على أساس سنوي
Marine1.2 مليار US$16.3%+10.2% على أساس سنوي
Aviation987.2 مليون US$13.6%+12.6% على أساس سنوي
Auto Oem664.7 مليون US$9.2%+8.9% على أساس سنوي
المصدر: SEC EDGAR · تاريخ الإيداع 2026-02-18 · SEC EDGAR
بيانات توزيع الإيرادات: الإيرادات حسب القطاع التشغيلي
الإيرادات حسب القطاع التشغيلي
الإيرادات
الحصة
على أساس سنوي
Fitness
2.4 مليار US$
32.5%
32.8%
Outdoor
2.1 مليار US$
28.3%
4.7%
Marine
1.2 مليار US$
16.3%
10.2%
Aviation
987.2 مليون US$
13.6%
12.6%
Auto Oem
664.7 مليون US$
9.2%
8.9%
الإيرادات والأرباحكيف يتحول حجم الأعمال إلى أرباح مُعلنة.
النقد والدينالسيولة المتاحة مقارنة بإجمالي الاقتراض.
توليد النقدالتدفق النقدي التشغيلي مقارنة بالتدفق النقدي الحر.
Garmin Ltd. (GRMN) trades at 24.8x forward earnings against a peer median of 16.0x. Its EV/EBITDA of 22.5x compares with a peer median of 23.9x. The comparison uses 4 peers: Keysight Technologies Inc., TE Connectivity Ltd., Workday Inc. and Autodesk Inc., as of 2026-10-02.
§10 الصناعة والدورةEN
مرحلة الدورة
Expansion
Industry benchmarks indicate an expansionary capital cycle with industry capex-to-revenue at 5.7% and capex-to-depreciation at 1.41. Garmin operates with lower capex intensity of 3.73% of revenue ($270.45M capex on $7,245.52M revenue,) and industry gross margin sits at 26.8% versus Garmin's 58.74%,. Capacity, supply lead times, and customer concentration data are unavailable from standard reporting, so this cycle assessment is demand-led and evidence-limited.6
دورة صعودية
In an expansionary cycle, robust consumer discretionary spending and active lifestyle trends fuel premium wearable upgrades, while OEM aircraft deliveries and marine recreational boat sales accelerate installations of high-margin electronic suites, driving revenue expansion above 11.5% and operating margins beyond 26.0%.
دورة هبوطية
During cyclical downturns or tightening macroeconomic conditions, discretionary wearable replacement cycles stretch from 2-3 years to 4-5 years, recreational boatbuilders curtail production lines causing severe destocking in marine chartplotters and radars, and commercial aviation retrofit programs face deferrals, compressing industry margins toward the broader benchmark average of 10.5%.
الاتجاهات طويلة الأمد
الاتجاه
التأثير
ملاحظة
Health, Wellness, and Athletic Biometric Tracking
positive
Long-term consumer adoption of advanced health metrics (sleep tracking, HRV, training readiness) drives structural demand for Garmin's specialized Fitness ($2,357.00M) and Outdoor ($2,054.06M) smartwatches.
Aviation Digital Cockpit Modernization and Safety Mandates
Garmin is exceptionally well-positioned at the high end of its specialized verticals, generating a 25.89% operating margin that far surpasses the industry operating margin benchmark of 10.5%. However, with 60.88% of FY2025 revenue tied to consumer fitness and outdoor markets ($4,411.06M,), Garmin cannot fully disconnect from broader consumer discretionary spending cycles.6,7
§11 إدارة المراكزEN
حجم المركز
0%
Under the committee Sell rating, no capital allocation is warranted. Garmin trades at $281.08 as of October 2, 2026, representing a 46.11% premium over Fair value ($192.38) and an implied return of -31.56%. Existing investors should look to eliminate exposure entirely, reallocating capital to assets offering an adequate margin of safety.4
المخاطر
Risk management under a Sell rating centers on disciplined capital preservation and the complete elimination of equity downside risk. Garmin's operational quality is not in dispute—the company holds $2,278.65M in cash against only $195.99M in debt, and converts 98.17% of net income into operating cash flow,. However, valuation risk is acute: trading at $281.08 (24.81x forward P/E), the shares incorporate peak margin expectations and leave zero cushion for consumer discretionary deceleration. Investors should execute disciplined liquidations using trailing stops and avoid buying dips until market price realigns with Fair value ($192.38).
Garmin trades at a 24.81x forward P/E and a 46.11% premium to its house Fair value of $192.38, offering negative implied return (-31.56%) and no margin of safety.4
Growth Investors
Avoid
While consensus forecasts ~11.6% near-term revenue growth, current valuation already prices in mid-teens compounding, leaving growth investors vulnerable to sharp multiple contraction if replacement cycles slow.1
Income and Compounder Investors
Avoid
Although Garmin's balance sheet is fortress-like with over $2.5B in net cash and safe dividends, the capital risk from buying at $281.08 vastly exceeds the modest cash yield, making capital preservation the overriding priority.4,6
§14 التوصية النهائيةEN
إجراء
بيع
We recommend investors Sell Garmin Ltd. shares. At the report-date price of $281.08, the market has bid shares to a 46.11% premium over our house Fair value of $192.38, implying a -31.56% return. Despite pristine operational execution and zero net debt, Garmin's valuation reflects unsustainable multiples that leave zero margin of safety.4
While Garmin compounds operating profit ($1,876.08M in FY25) and generates excellent free cash flow ($1,362.91M), over 60.88% of revenue depends on consumer wearables,. Even in an optimistic scenario reaching our Potential value of $218.14, shares trade at a 28.85% premium to Potential value relative to the report-date price of $281.08, warranting position exit or reduction.
§15ملاحظاتك
دوّن أطروحتك الاستثمارية وحجم مركزك وأسئلة المتابعة. تبقى على هذا الجهاز، ولا يراها أحد سواك.
ملاحظات خاصة
مرئية لك وحدك. محفوظة على هذا الجهاز.
لا أحرف
Sources
The records this analysis drew on, as they stood when it was run.
Analyst consensusData as of 2027-12-31 · Published 2026-07-30 · cited for 1 figureCited in وجهات نظر المستثمرين
Macro and cost of capitalData as of 2026-10-02 · Published 2026-10-02 · cited for 2 figuresCited in الميزة التنافسية, التاريخ المالي
Market and peer researchData as of 2026-10-02 · Published 2026-10-02 · Provider-adjusted · cited for 2 figuresCited in السيناريو الهبوطي, التاريخ المالي
Not every cited input appears here: internal calculations and intermediate model outputs have no external record, and some citations could not be matched to one.
Revenue and EPS growth 10 points lower for five years
Trigger
Within 12 months
Gross margin compression from bill-of-materials inflation and promotional pricing
Garmin's operating margin reached 25.89% in FY2025 ($1,876.08M operating income), but historically compressed to 21.15% in FY2022 and 20.89% in FY2023 during channel inventory digestion. If specialized hardware component inflation, elevated labor costs, and retail promotional discounting compress operating margin below 20.0% over an 18-month horizon, NOPAT would drop substantially.6
FV impact
-4.8%
Operating margin 6 points lower throughout
Trigger
Within 18 months
Multiple re-rating toward hardware peer median upon growth deceleration
Garmin trades at a forward P/E of 24.81x, a steep premium over hardware peers such as TE Connectivity at 17.11x and Autodesk at 14.92x. If consolidated top-line growth decelerates toward mid-single digits over the next 24 months, valuation multiples could contract toward a 16.0x forward multiple, driving significant share price de-rating.3,4
03Platform Breadth and Vertical Manufacturing Scale — Garmin operates five distinct business segments supported by in-house design and manufacturing facilities in Taiwan, allowing cross-segment R&D leverage ($1,126M reinvested in FY2025) and resilient supply chain management relative to pure contract-manufactured peers.Moderate
medium
6-12 months
Expanding aftermarket marine electronics, commercial fishing navigation, and international sales offset North American boatbuilder production declines.7
Component cost inflation and Auto OEM contract margin dilution.
low
18-24 months
Auto OEM represents only 9.17% of FY2025 sales ($664.68M), limiting enterprise-wide margin risk, while strong liquidity buffers manufacturing input costs.6,7
Discounted forecast-period cash flows (37.64 US$) plus discounted terminal value (125 US$) minus signed per current share (-13.18 US$) equals the 176 US$ lens value shown above. Negative net debt is , so subtracting it raises value.
In the bull scenario, with an assigned probability of 20.0% and a target price of $218.14 yielding an implied return of -22.4%, accelerated consumer adoption of premium fitness and outdoor wearables combines with robust avionics OEM production. Operating margins expand toward Potential value $218.14 expectations as manufacturing scale generates operating leverage. Cash flow conversion accelerates, driving enhanced share buybacks. Disconfirmation would occur if avionics delivery cadences stall or premium wearable gross margins fail to expand.
الحاليOperating margin reflects strong performance above historical post-pandemic troughs, but remains vulnerable to retail promotional discounting.
لماذا يهم
Maintaining high gross and operating margins proves consumer willingness to pay premium pricing for proprietary hardware and software, defending net earnings power against component inflation.
03
المقياس:
Aviation OEM and Retrofit Installation Trajectory
الحاليSegment revenue demonstrates steady compounding supported by commercial airframe deliveries and retrofit installations.
لماذا يهم
Aviation provides the highest regulatory barriers and switching costs in the portfolio; sustained expansion validates the structural moat and diversifies earnings away from retail cycles.
Robust conversion of net income into free cash flow sustains dividend payouts and opportunistic share buybacks without requiring balance sheet leverage.
Garmin maintains an exceptionally disciplined capital allocation framework characterized by zero net debt and strong liquidity. At FY2025 year-end, the company held $2,278.65M in cash and marketable securities against just $195.99M in total debt, resulting in a net cash position of over $2.08B (or -$2,541.86M net debt including short-term equivalents). Annual capital expenditures of $270.45M (3.73% of revenue) reflect a capital-light operating structure where ~80% ($216.36M) covers maintenance requirements. Free cash flow of $1,362.91M self-funds organic R&D ($1,126M), ongoing dividend distributions, and opportunistic share repurchases that limit diluted share count expansion to 0.2%-0.3% annually (193.62M shares).
High gross margins provide substantial insulation against hardware component inflation, allowing Garmin to reinvest aggressively in R&D while preserving net profit margins near 23.0%.
Shares trade at a forward P/E of 24.81x and a market price of $281.08, compared to peer forward P/E medians of 16.02x (e.g., TE Connectivity at 17.11x).
Despite superior operational execution, the 46.11% price premium over Fair value ($192.38) leaves shares vulnerable to sharp multiple contraction if top-line growth decelerates.
Workday, Inc.WDAY
السعر / القيمة العادلة
القيمة العادلة279.78 US$Report-date price202.96 US$
تاريخ التقييم
الميزة التنافسيةWide
بطاقة تقييم الاستثمار67 / 100
الهامش
GRMN
Garmin Ltd.
$54.2B
24.8x
7.1x
22.5x
21.9%
—
KEYS
Keysight Technologies Inc.
$65.5B
27.7x
9.9x
37.6x
20.9%
25.7%
TEL
TE Connectivity Ltd.
$64.1B
17.1x
3.3x
13.7x
23.3%
20.8%
WDAY
Workday Inc.
$45.0B
14.1x
4.4x
28.6x
16.0%
11.8%
ADSK
Autodesk Inc.
$44.3B
14.9x
5.7x
19.1x
53.9%
29.2%
Convergence of General Smartwatches and Specialized Sports Devices
neutral
Proliferation of mass-market smartwatches by tech giants exerts competitive pressure on entry-level fitness wearables, pushing Garmin to concentrate on premium, battery-efficient enthusiast devices.
Re-assess fundamentals and watch for stabilization
Represents house intrinsic fair value. Any consideration of re-entry would require re-evaluating end-market growth durability and competitive moat stability at that time.
Potential disciplined re-entry evaluation
Corresponds to the stressed valuation boundary incorporating peer-normalized multiples and conservative margin assumptions, offering an initial margin of safety.
Compression below 22.0% on a full fiscal year basis
