Khi được bạn cho phép, chúng tôi sử dụng phân tích giới hạn, chú trọng quyền riêng tư để hiểu hành trình nghiên cứu nào hiệu quả. Chúng tôi không dùng trình theo dõi quảng cáo hoặc ghi lại phiên. Bạn có thể thay đổi lựa chọn này trong Tùy chọn. Đọc Chính sách quyền riêng tư.
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).
Báo cáo này chưa được dịch. Hãy làm mới sau vài phút khi hàng đợi dịch xử lý xong.
§1 Tóm tắt điều hànhEN
Câu trả lời trong 30 giâySell
Giá so với giá trị
Giá
$281.08
Giá trị hợp lý
$192.38
Giá trị tiềm năng
$218.14
Tính đến
2026-10-02
Vì sao luận điểm có thể đúng
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.
Điều gì sẽ thay đổi quan điểm của chúng tôi
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 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.
Khuyến nghị của hãng
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
Tổng quan công ty
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 Kịch bản tiêu cựcEN
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.
Các cách luận điểm này có thể đổ vỡ
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
Tín hiệu cảnh báo sớm cần theo dõi
Năm diễn biến có thể làm suy yếu luận điểm đầu tư của chúng tôi.
Signals consumer wearable replacement cycle elongation and saturation of high-end outdoor smartwatch demographics, requiring growth assumption downgrades.
Hiện tại:11.79% consolidated growth pace (FY2025 revenue $7,245.52M)
Cảnh báo nếuBelow 4.0% YoY for two consecutive quarters
02
§3 Lợi thế cạnh tranhEN
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.
Lợi nhuận kinh tế
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.
Mối đe dọa đã biết với lợi thế cạnh tranh
Mối đe dọa
Mức độ
Mốc thời gian
Giảm thiểu
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.
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.
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.
Kích hoạt: 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.
Đúng kỳ vọng
Maintain Sell; Continue trimming exposure into trading liquidity; monitor whether consumer wearable replacement cycles begin to stretch into forthcoming quarters.
Kích hoạt: 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.
Hụt
Maintain Sell; Accelerate complete exit of any remaining positions; re-examine downside risk scenarios as multiple compression toward peer medians becomes immediate.
Kích hoạt: 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 $281.08 (as of 2026-10-02) vulnerable to multiple contraction toward peer averages, capital preservation dictates maintaining the Sell rating and completing an immediate exit.
Chất lượng lợi nhuận
Garmin exhibits pristine earnings quality, characterized by outstanding cash conversion where operating cash flow closely matches net income. Receivables and inventory remain tightly managed within vertically integrated manufacturing facilities, while stock-based compensation consumes only a modest fraction of operating cash flow. Organic earnings power is backed by genuine cash receipts rather than working capital adjustments.
Hiện tạiOperating momentum remains solid following recent quarterly releases, though growth faces tougher comparisons in upcoming fiscal periods.
Vì sao quan trọng
Fitness and Outdoor represent the majority of consolidated revenue; any deceleration in these segments indicates consumer wearable upgrade fatigue, compressing top-line compounding and operating leverage.
Garmin's return on invested capital has stabilized around 18.42%, supported by steady gross margin defense and controlled asset intensity across its vertically integrated production facilities.
Garmin's ROIC of 18.42% exceeds its computed WACC of 8.99% and computed cost of equity of 9.00% by over 940 basis points, demonstrating significant and durable economic profit generation.
Phân tích báo cáo kết quả kinh doanhQuy mô kinh doanh chuyển thành lợi nhuận báo cáo như thế nào.
StockMarketAgent.AI
Doanh thu7,2 T US$Giá vốn doanh thu−3 T US$Lợi nhuận gộp4,3 T US$Chi phí hoạt động−2,4 T US$Lợi nhuận hoạt động1,9 T US$Các khoản ngoài hoạt động và thuế−212,2 Tr US$Lợi nhuận ròng1,7 T US$
Dữ liệu lịch sử tài chính
Doanh thu
7.245.519.000 US$
Giá vốn doanh thu
2.989.216.000 US$
Lợi nhuận gộp
4.256.303.000 US$
Chi phí hoạt động
2.380.227.000 US$
Lợi nhuận hoạt động
1.876.076.000 US$
Các khoản ngoài hoạt động và thuế
-212.189.000 US$
Lợi nhuận ròng
1.663.887.000 US$
Tổng quan bảng cân đối kế toánCách tài sản đã báo cáo được nắm giữ và tài trợ trong kỳ đã chọn.
StockMarketAgent.AI
Cơ cấu tài sảnNguồn tài trợ
Tổng tài sản11 T US$Tiền mặt2,3 T US$Tài sản ngắn hạn6,2 T US$Tổng nợ phải trả2 T US$Nợ ngắn hạn1,7 T US$Vốn chủ sở hữu9 T US$
Dữ liệu phân tích bảng cân đối kế toán
Tổng tài sản
10.993.669.000 US$
Tiền mặt
2.278.646.000 US$
Tài sản ngắn hạn
6.248.216.000 US$
Tổng nợ phải trả
2.021.105.000 US$
Nợ ngắn hạn
1.720.071.000 US$
Vốn chủ sở hữu
8.972.564.000 US$
Cầu nối dòng tiềnDòng tiền từ hoạt động chuyển thành dòng tiền tự do như thế nào trong FY2025.
StockMarketAgent.AI
Đối chiếu dòng tiền hoạt động
Lợi nhuận ròng1,7 T US$Khấu hao và phân bổ+188,8 Tr US$Thù lao bằng cổ phiếu+166 Tr US$Điều chỉnh hoạt động khác−385,3 Tr US$Dòng tiền hoạt động1,6 T US$
Đối chiếu tiền đầu kỳ đến cuối kỳ
Tiền đầu kỳ2,1 T US$Dòng tiền hoạt động+1,6 T US$Dòng tiền đầu tư−645,2 Tr US$Dòng tiền tài chính−844,1 Tr US$Ảnh hưởng tỷ giá+55,2 Tr US$Tiền cuối kỳ2,3 T US$
1,6 T US$ − 270,4 Tr US$Dòng tiền tự do 1,4 T US$
Dữ liệu cầu nối dòng tiền
Lợi nhuận ròng
1.663.887.000 US$
Dòng tiền vào từ hoạt động
2.018.649.000 US$
Khấu hao và phân bổ
188.759.000 US$
Thù lao bằng cổ phiếu
166.003.000 US$
Dòng tiền hoạt động
1.633.359.000 US$
Dòng tiền ra từ hoạt động
385.290.000 US$
Tiền sẵn có
3.768.676.000 US$
Tiền đầu kỳ
2.080.154.000 US$
Ảnh hưởng tỷ giá
55.163.000 US$
Dòng tiền ra từ đầu tư
645.235.000 US$
Capex
270.446.000 US$
Hoạt động đầu tư khác
374.789.000 US$
Dòng tiền ra từ tài chính
844.081.000 US$
Mua lại cổ phiếu
181.011.000 US$
Cổ tức đã trả
663.885.000 US$
Tiền cuối kỳ
2.279.360.000 US$
Dòng tiền đầu tư
-645.235.000 US$
Dòng tiền tài chính
-844.081.000 US$
Doanh thu theo phân khúc hoạt độngTỷ trọng trong tổng doanh thu của 2025-12-27.
7,2 T US$Tổng doanh thu
Doanh thu theo phân khúc hoạt độngTỷ trọng
Fitness2,4 T US$32,5%+32,8% so với cùng kỳ
Outdoor2,1 T US$28,3%+4,7% so với cùng kỳ
Marine1,2 T US$16,3%+10,2% so với cùng kỳ
Aviation987,2 Tr US$13,6%+12,6% so với cùng kỳ
Auto Oem664,7 Tr US$9,2%+8,9% so với cùng kỳ
Nguồn: SEC EDGAR · Nộp ngày 2026-02-18 · SEC EDGAR
Dữ liệu cơ cấu doanh thu: Doanh thu theo phân khúc hoạt động
Doanh thu theo phân khúc hoạt động
Doanh thu
Tỷ trọng
so với cùng kỳ
Fitness
2,4 T US$
32,5%
32,8%
Outdoor
2,1 T US$
28,3%
4,7%
Marine
1,2 T US$
16,3%
10,2%
Aviation
987,2 Tr US$
13,6%
12,6%
Auto Oem
664,7 Tr US$
9,2%
8,9%
Doanh thu và lợi nhuậnQuy mô kinh doanh chuyển thành lợi nhuận báo cáo như thế nào.
Tiền mặt và nợThanh khoản sẵn có so với tổng dư nợ.
Tạo dòng tiềnDòng tiền hoạt động so với dòng tiền tự do.
Khả năng sinh lờiDiễn biến biên gộp, biên hoạt động và biên ròng.
Dữ liệu tài chính tại thời điểm được dùng trong phân tích ngày 2026-10-02.
Dữ liệu lịch sử tài chính
Kỳ
Doanh thu
EBITDA
Lợi nhuận ròng
Dòng tiền hoạt động
Dòng tiền tự do
Capex
Khấu hao và phân bổ
Thù lao bằng cổ phiếu
Mua lại cổ phiếu
Cổ tức đã trả
Phát hành nợ ròng
Dòng tiền đầu tư
Dòng tiền tài chính
Tiền đầu kỳ
Tiền cuối kỳ
Tiền mặt và đầu tư
Tổng nợ
Biên hoạt động
ROIC
WACC
Chênh lệch ROIC−WACC
2016-12-31
3 T US$
719,2 Tr US$
517,7 Tr US$
705,7 Tr US$
614,7 Tr US$
91 Tr US$
86,3 Tr US$
41,3 Tr US$
93,2 Tr US$
481,5 Tr US$
—
-121,7 Tr US$
-561,7 Tr US$
—
847 Tr US$
1,1 T US$
—
21,0%
—
—
—
2017-12-30
3,1 T US$
769,9 Tr US$
709 Tr US$
660,8 Tr US$
521,1 Tr US$
139,7 Tr US$
86,3 Tr US$
44,7 Tr US$
74,5 Tr US$
383 Tr US$
—
-194,4 Tr US$
-448,4 Tr US$
847 Tr US$
891,8 Tr US$
1,1 T US$
—
21,9%
—
—
—
2018-12-29
3,3 T US$
874,5 Tr US$
694,1 Tr US$
919,5 Tr US$
763,8 Tr US$
155,8 Tr US$
96,2 Tr US$
56,4 Tr US$
—
296,1 Tr US$
—
-307,5 Tr US$
-286,2 Tr US$
891,8 Tr US$
1,2 T US$
1,4 T US$
—
23,3%
—
—
—
2019-12-28
3,8 T US$
1,1 T US$
952,5 Tr US$
698,5 Tr US$
580,5 Tr US$
118 Tr US$
106,2 Tr US$
63,4 Tr US$
—
417,3 Tr US$
—
-450,7 Tr US$
-416 Tr US$
1,2 T US$
1 T US$
1,4 T US$
49,2 Tr US$
25,2%
—
5,9%
—
2020-12-26
4,2 T US$
1,2 T US$
992,3 Tr US$
1,1 T US$
949,9 Tr US$
185,4 Tr US$
126,7 Tr US$
80,9 Tr US$
—
450,6 Tr US$
—
-260,5 Tr US$
-461,8 Tr US$
1 T US$
1,5 T US$
1,8 T US$
76 Tr US$
25,2%
—
5,0%
—
2021-12-25
5 T US$
1,4 T US$
1,1 T US$
1 T US$
704,8 Tr US$
307,6 Tr US$
154,8 Tr US$
92,5 Tr US$
—
491,5 Tr US$
—
-475,4 Tr US$
-486,7 Tr US$
1,5 T US$
1,5 T US$
1,8 T US$
70 Tr US$
24,5%
—
5,4%
—
2022-12-31
4,9 T US$
1,2 T US$
973,6 Tr US$
788,3 Tr US$
544 Tr US$
244,3 Tr US$
163,9 Tr US$
76,8 Tr US$
201 Tr US$
679,1 Tr US$
—
-145,1 Tr US$
-840,6 Tr US$
1,5 T US$
1,3 T US$
1,5 T US$
114,5 Tr US$
21,1%
—
7,9%
—
2023-12-30
5,2 T US$
1,3 T US$
1,3 T US$
1,4 T US$
1,2 T US$
193,5 Tr US$
177,6 Tr US$
101,4 Tr US$
99 Tr US$
558,8 Tr US$
—
-333 Tr US$
-636,5 Tr US$
1,3 T US$
1,7 T US$
2 T US$
113 Tr US$
20,9%
—
7,9%
—
2024-12-28
6,3 T US$
1,9 T US$
1,4 T US$
1,4 T US$
1,2 T US$
193,6 Tr US$
179,7 Tr US$
137,2 Tr US$
62,3 Tr US$
572,4 Tr US$
—
-393,3 Tr US$
-626,9 Tr US$
1,7 T US$
2,1 T US$
2,5 T US$
162,8 Tr US$
25,3%
—
8,5%
—
2025-12-27
7,2 T US$
2,2 T US$
1,7 T US$
1,6 T US$
1,4 T US$
270,4 Tr US$
188,8 Tr US$
166 Tr US$
181 Tr US$
663,9 Tr US$
—
-645,2 Tr US$
-844,1 Tr US$
2,1 T US$
2,3 T US$
2,7 T US$
196 Tr US$
25,9%
—
8,2%
—
§9 So sánh định giá với các doanh nghiệp cùng ngành
Giá trị hợp lýReport-date price
Garmin Ltd.GRMN
Giá / giá trị hợp lý
Giá trị hợp lý192,38 US$Report-date price281,08 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư68 / 100
Keysight Technologies Inc.KEYS
Giá / giá trị hợp lý
Giá trị hợp lý215,39 US$Report-date price386,43 US$
Ngày đánh giá
Hào kinh tếWide
Bảng điểm đầu tư68 / 100
TE Connectivity plcTEL
Giá / giá trị hợp lý
Giá trị hợp lý171,23 US$Report-date price211,08 US$
Ngày đánh giá
Hào kinh tếNarrow
Bảng điểm đầu tư66 / 100
Garmin Ltd.GRMN
Giá / giá trị hợp lý
Giá trị hợp lý192,38 US$Report-date price281,08 US$
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 Ngành và chu kỳEN
Pha chu kỳ
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
Chu kỳ tăng giá
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%.
Chu kỳ giảm giá
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%.
Xu hướng dài hạn
Xu hướng
Tác động
Ghi chú
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 Quản lý vị thếEN
Quy mô vị thế
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
Rủi ro
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 Khuyến nghị cuối cùngEN
Hành động
Bán
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.
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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 figuresCited in Quan điểm nhà đầu tư
Market and peer researchData as of 2026-10-02 · Published 2026-10-02 · Provider-adjusted · cited for 2 figuresCited in Kịch bản tiêu cực, Lịch sử tài chính
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.
Hiện tạiOperating margin reflects strong performance above historical post-pandemic troughs, but remains vulnerable to retail promotional discounting.
Vì sao quan trọng
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
Chỉ số:
Aviation OEM and Retrofit Installation Trajectory
Hiện tạiSegment revenue demonstrates steady compounding supported by commercial airframe deliveries and retrofit installations.
Vì sao quan trọng
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 ($192.38) leaves shares vulnerable to sharp multiple contraction if top-line growth decelerates.
Workday, Inc.WDAY
Giá / giá trị hợp lý
Giá trị hợp lý279,78 US$Report-date price202,96 US$
Ngày đánh giá
Hào kinh tếWide
Bảng điểm đầu tư67 / 100
Biên
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
