# Garmin (GRMN.US)

Canonical: https://gigainvestors.com/s/GRMN

Analysis as of: 2026-10-16T07:33:53.201Z. Financial observations: FY1999–FY2026.

Listing currency: USD. Reporting currency: USD.

## Verdict

A wonderful business at too high a price

Quality tests for Buy: pass (profit record: pass; earnings resilience is evidence only). Published buy qualification: no.

Share price: $285.22 per share; close as of 2026-10-15.

Estimated value: low $142.50 per share, central $201.90 per share, high $235.03 per share. Buy at or below the central value $201.90 per share. Valuation as of 2026-10-16T07:33:53.201Z; scenarios are not confidence intervals.

Expected annual return: 7.9% at the stated quote. About 7.9% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; US 10-year bond 5.1% + 4 points).

## Checklist

### understandable: pass

- 1 revenue decline in the last 10 years (informational)

- Financial history: 10 years

- Years with declining revenue: 1

- Years with a net loss: 0

- Operating margin variation: 0.08×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.22×

- FY2018: 0.23×

- FY2019: 0.25×

- FY2020: 0.25×

- FY2021: 0.24×

- FY2022: 0.21×

- FY2023: 0.21×

- FY2024: 0.25×

- FY2025: 0.26×

- LTM to Jun 2026: 0.28×

### moat: pass

- ROIC, median of available years: 27.1%

- ROIC, second-lowest year: 23.9%

- Typical minus recent gross margin: -0.3 pp

- Typical gross margin (annual median): 58.4%

- Recent gross margin (lower of latest and 3-year median): 58.7%

- Years with nonpositive capital: 0

- Capital spending / revenue: 4.1%

- ROIC including acquisitions, ten-year median: 24.4%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 27.2%

- FY2018: 26.5%

- FY2019: 30.7%

- FY2020: 30.0%

- FY2021: 29.0%

- FY2022: 21.9%

- FY2023: 24.0%

- FY2024: 27.0%

- FY2025: 27.3%

- LTM to Jun 2026: 30.3%

### economics: pass

- Owner earnings / net income, 5-yr: 0.99×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: $6.3B

- Net income, five-year total: $6.4B

- Return on incremental invested capital: 46.3%

- Working capital / revenue, annual change: 1.0 pp

- Working capital / revenue, change between three-year averages: 7.0 pp

- Working capital / revenue, final three-year average: 35.6%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2021: 1.00×

- FY2022: 0.92×

- FY2023: 1.00×

- FY2024: 1.00×

- FY2025: 1.00×

### management: pass

- Historical market-dollar context (not the management verdict): 2016 to 2025 (9 years)

- potential debt-funded buybacks (informational)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 26.5% vs 27.0%

- Per-share earnings: 2.70 to 7.30 (three-year endpoint medians)

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 0.1%

- Ordinary dilution, 5-year annual growth: 0.2%

- Market cap gain: $30B

- Cumulative retained earnings: $4.9B

- Diluted shares, 10-year annual growth: 0.1%

- Diluted shares, 5-year annual growth: 0.2%

- $1 test, starting fiscal year: FY2016

- $1 test, ending fiscal year: FY2025

- Per-share value growth: 13.3%

- Per-share value change: $4.60

- Per-share value, starting three-year median: $2.70

- Per-share value, ending three-year median: $7.30

- Buybacks concentrated in cheaper years (correlation): 0.44

- Average buyback yield: 0.5%

- Buyback history: 10 years

- Debt-funded buybacks: Yes

- Acquisition spending: $832M

- Cumulative net income, 10 years: $10B

- ROIC, first three-year median: 26.5%

- ROIC, last three-year median: 27.0%

Chart: Earnings per share; fiscal year observations.

- FY2016: $2.70

- FY2017: $3.68

- FY2018: $3.66

- FY2019: $4.99

- FY2020: $5.17

- FY2021: $5.61

- FY2022: $5.04

- FY2023: $6.71

- FY2024: $7.30

- FY2025: $8.59

### accounting: pass

- Sloan accruals: 0.3%

- Receivables to sales index (DSRI): 1.11×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 10.2%

- Earnings backed by cash: Yes

- Operating cash / earnings: 0.98×

- Accounting red flags: 0

- Goodwill and intangibles / equity: 0.11×

Chart: Sloan accruals; fiscal year observations.

- FY2016: -4.3%

- FY2017: 0.7%

- FY2018: -4.2%

- FY2019: 4.1%

- FY2020: -2.0%

- FY2021: 0.9%

- FY2022: 2.4%

- FY2023: -1.0%

- FY2024: -0.2%

- FY2025: 0.3%

## Holders

## Price story

Price needs cash profits to grow 12% a year for ten years · "Garmin Up Over 21% Since Latest Earnings Beat and Raise" (finance.yahoo.com, Aug 2026) · sales +15.1%

Story as of 2026-10-16T09:59:58.101Z; price observation 2026-10-15.

Price needs cash profits to grow 12% a year for ten years

- 2025-04-30: Garmin Lifts Sales Outlook, But Tightening Margin Sends Stock Sliding ([finance.yahoo.com](https://finance.yahoo.com/news/garmin-lifts-sales-outlook-tightening-154418119.html))

- 2025-07-30: Garmin raises 2025 revenue guidance to $7.1B amid double-digit segment growth and MYLAPS acquisition ([seekingalpha.com](https://seekingalpha.com/news/4474748-garmin-raises-2025-revenue-guidance-to-7_1b-amid-double-digit-segment-growth-and-mylaps?utm_source=feed_news_all&utm_medium=referral&feed_item_type=news))

- 2025-10-29: Garmin lifts annual profit outlook; outdoor unit weakness weighs on shares ([finance.yahoo.com](https://finance.yahoo.com/news/garmin-lifts-annual-profit-outlook-132752464.html))

- 2026-02-18: Garmin forecasts upbeat annual results on strong demand for high-end wearables ([finance.yahoo.com](https://finance.yahoo.com/news/garmin-forecasts-upbeat-annual-results-132525780.html))

- 2026-04-29: Garmin posts upbeat quarterly results as demand for premium wearables holds up ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/garmin-posts-upbeat-quarterly-results-114517320.html))

- 2026-07-30: Garmin Tops Q2 Earnings Estimates on Fitness Growth, Ups FY26 Guidance ([finance.yahoo.com](https://finance.yahoo.com/markets/stocks/articles/garmin-tops-q2-earnings-estimates-160000909.html))

### Sales · FY2024–2025

sales +15.1%; source https://www.sec.gov/Archives/edgar/data/1121788/000119312526056028/grmn-20251227.htm; observed 2026-02-18.

- FY2016: $3.0B 

- FY2017: $3.1B 

- FY2018: $3.3B 

- FY2019: $3.8B 

- FY2020: $4.2B 

- FY2021: $5.0B 

- FY2022: $4.9B 

- FY2023: $5.2B 

- FY2024: $6.3B 

- FY2025: $7.2B 

### Gross margin · FY2025

gross margin 58.7%; source https://www.sec.gov/Archives/edgar/data/1121788/000119312526056028/grmn-20251227.htm; observed 2026-02-18.

- FY2016: 55.6% 

- FY2017: 57.8% 

- FY2018: 59.1% 

- FY2019: 59.5% 

- FY2020: 59.3% 

- FY2021: 58.0% 

- FY2022: 57.7% 

- FY2023: 57.5% 

- FY2024: 58.7% 

- FY2025: 58.7% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in scientific & technical instruments; annual sales are USD 7.2 billion.

- Source: https://www.sec.gov/Archives/edgar/data/1121788/000119312526056028/grmn-20251227.htm (filed 2026-02-18); FY2025: revenue 7245519000; grossProfit 4256303000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GRMN.US: Garmin Ltd. designs, develops, manufactures, markets, and distributes a diverse range of GPS-enabled products and navigation, communications, sensor-based, and information products and services worldwide. It offers running; cycling products; smartwatch devices; scales and monitors; and sports timing and performance analysis; Garmin Connect and Garmin Connect Mobile, which are web and mobile platforms where users can track and analyze their fitness, activities and workouts, and wellness data; and Connect IQ, which enables third parties to create applications that run on Garmin devices. It also provides adventure watches; outdoor handhelds and satellite communicators; golf devices; consumer automotive; dog devices; InReach and Garmin Response; and dive devices. In addition, it designs, manufactures, and markets various aircraft avionics solutions, including 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 transponders, weather information and avoidance solutions, datalink and connectivity solutions, and portable GPS navigators and wearables, as well as service products to the aviation market. Further, it offers chartplotters and multi-function displays, cartography, fishfinders, sonar, autopilot systems, radars, compliant instrument displays and sensors, VHF communication radios, handhelds and wearable devices, sailing, audio, digital switching, trolling motors, and lighting; and domain controllers and infotainment units, as well as software, map database, camera, wearable, and automotive solutions. The company sells its products through independent retailers, dealers, distributors, installation and repair shops, OEM, and online webshop. Garmin Ltd. was founded in 1989 and is based in Schaffhausen, Switzerland.

### Why customers stay

Margins ranged from 57.5% to 58.7% during 2023–25; it earns 27.1% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: grossProfit / revenue = 57.5%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: grossProfit / revenue = 58.7%.

- Source: https://www.sec.gov/Archives/edgar/data/1121788/000119312526056028/grmn-20251227.htm (filed 2026-02-18); FY2025: grossProfit / revenue = 58.7%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); 10-year return on capital observations [[2016,0.2393244986106522],[2017,0.2716393433967873],[2018,0.26490064443606126],[2019,0.3070117834688649],[2020,0.2998640634656391],[2021,0.29040088855828233],[2022,0.2186025198507873],[2023,0.24011163115462483],[2024,0.2704603679186784],[2025,0.2732630543017136]]; median 0.2710498556577329. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Can it raise prices

Kept about a 58% gross margin through 2022 cost inflation.

- Source: https://www.sec.gov/Archives/edgar/data/1121788/000119312526056028/grmn-20251227.htm (filed 2026-02-18); Gross margin observations: [[2021,0.58008788240335],[2022,0.5774917360830206],[2023,0.5747532827415358]]; range within 2 percentage points.

### Where the cash goes

Spends 4.9% of cash earnings on expansion; earns 46.3% on new investment.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2016: growth capex 10335000; upkeep 86340000; owner earnings 510814000. Growth capex / owner earnings = 0.020232413363768416.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2017: growth capex 11191577.30580467; upkeep 140736422.69419533; owner earnings 640470577.3058047. Growth capex / owner earnings = 0.01747399131570261.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2018: growth capex 44765523.773106515; upkeep 115589476.22689348; owner earnings 674684523.7731066. Growth capex / owner earnings = 0.06635030476578853.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2019: growth capex 14233000; upkeep 106175000; owner earnings 952486000. Growth capex / owner earnings = 0.014943001786902905.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2020: growth capex 60751000; upkeep 126715000; owner earnings 992324000. Growth capex / owner earnings = 0.06122093187305759.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2021: growth capex 154769000; upkeep 154818000; owner earnings 1082200000. Growth capex / owner earnings = 0.14301330622805397.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2022: growth capex 0; upkeep 246193000; owner earnings 891245000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2023: growth capex 17456000; upkeep 177572000; owner earnings 1289636000. Growth capex / owner earnings = 0.013535602293980627.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); FY2024: growth capex 13836000; upkeep 179735000; owner earnings 1411436000. Growth capex / owner earnings = 0.009802782414505511.

- Source: https://www.sec.gov/Archives/edgar/data/1121788/000119312526056028/grmn-20251227.htm (filed 2026-02-18); FY2025: growth capex 81687000; upkeep 188759000; owner earnings 1663887000. Growth capex / owner earnings = 0.04909407910513154.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Incremental return on capital 0.4633942772469659, from the economics test's unchanged annual inputs.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Dividend observations: [[2016,481452000],[2017,382976000],[2018,296148000],[2019,417264000],[2020,450631000],[2021,491457000],[2022,679096000],[2023,558769000],[2024,572355000],[2025,663885000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://www.sec.gov/Archives/edgar/data/1121788/000119312526056028/grmn-20251227.htm (filed 2026-02-18); FY2025: cash repurchases 238205000 USD.

### Are managers owners

Insiders own 14.7% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); GRMN.US SharesStats.PercentInsiders = 14.692 percentage points; cache date 2026-10-16.

### What could break it

"Changes to trade regulations" (SEC filing, Feb 2026)

- Source: https://www.sec.gov/Archives/edgar/data/1121788/000119312526056028/grmn-20251227.htm (filed 2026-02-18); Changes to trade regulations

### What the price says

The price assumes cash profits grow 12% yearly over ten years; actual growth was 13.8%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-02-18); Ten-year compound average after fade. Initial solved rate 0.21346085195308356. Price 285.22; FX 1; discount 0.1; same compounder ten-year fade to terminal 0.03. FY2015 owner earnings/share 2.3552564793544977 → FY2025 8.593747417568796. Closing-price date 2026-10-15.

## Monthly share-price history (USD per share)

- 2016-10: $48.36 per share

- 2016-11: $52.16 per share

- 2016-12: $48.49 per share

- 2017-01: $48.29 per share

- 2017-02: $51.61 per share

- 2017-03: $51.11 per share

- 2017-04: $50.84 per share

- 2017-05: $52.04 per share

- 2017-06: $51.03 per share

- 2017-07: $50.19 per share

- 2017-08: $51.50 per share

- 2017-09: $53.97 per share

- 2017-10: $56.61 per share

- 2017-11: $62.08 per share

- 2017-12: $59.57 per share

- 2018-01: $62.94 per share

- 2018-02: $59.24 per share

- 2018-03: $58.93 per share

- 2018-04: $58.67 per share

- 2018-05: $60.09 per share

- 2018-06: $61.00 per share

- 2018-07: $62.45 per share

- 2018-08: $68.14 per share

- 2018-09: $70.05 per share

- 2018-10: $66.16 per share

- 2018-11: $66.66 per share

- 2018-12: $63.32 per share

- 2019-01: $69.18 per share

- 2019-02: $83.97 per share

- 2019-03: $86.35 per share

- 2019-04: $85.74 per share

- 2019-05: $76.48 per share

- 2019-06: $79.80 per share

- 2019-07: $78.59 per share

- 2019-08: $81.57 per share

- 2019-09: $84.69 per share

- 2019-10: $93.75 per share

- 2019-11: $97.69 per share

- 2019-12: $97.56 per share

- 2020-01: $96.95 per share

- 2020-02: $88.39 per share

- 2020-03: $74.96 per share

- 2020-04: $81.16 per share

- 2020-05: $90.17 per share

- 2020-06: $97.50 per share

- 2020-07: $98.59 per share

- 2020-08: $103.61 per share

- 2020-09: $94.86 per share

- 2020-10: $104.02 per share

- 2020-11: $116.76 per share

- 2020-12: $119.66 per share

- 2021-01: $114.86 per share

- 2021-02: $124.02 per share

- 2021-03: $131.85 per share

- 2021-04: $137.24 per share

- 2021-05: $142.24 per share

- 2021-06: $144.64 per share

- 2021-07: $157.20 per share

- 2021-08: $174.43 per share

- 2021-09: $155.46 per share

- 2021-10: $143.60 per share

- 2021-11: $133.54 per share

- 2021-12: $136.17 per share

- 2022-01: $124.42 per share

- 2022-02: $110.44 per share

- 2022-03: $118.61 per share

- 2022-04: $109.74 per share

- 2022-05: $105.62 per share

- 2022-06: $98.25 per share

- 2022-07: $97.62 per share

- 2022-08: $88.49 per share

- 2022-09: $80.31 per share

- 2022-10: $88.04 per share

- 2022-11: $92.99 per share

- 2022-12: $92.29 per share

- 2023-01: $98.88 per share

- 2023-02: $98.13 per share

- 2023-03: $100.92 per share

- 2023-04: $98.17 per share

- 2023-05: $103.15 per share

- 2023-06: $104.29 per share

- 2023-07: $105.89 per share

- 2023-08: $106.02 per share

- 2023-09: $105.20 per share

- 2023-10: $102.53 per share

- 2023-11: $122.24 per share

- 2023-12: $128.54 per share

- 2024-01: $119.49 per share

- 2024-02: $137.35 per share

- 2024-03: $148.87 per share

- 2024-04: $144.47 per share

- 2024-05: $163.85 per share

- 2024-06: $162.92 per share

- 2024-07: $171.25 per share

- 2024-08: $183.29 per share

- 2024-09: $176.03 per share

- 2024-10: $198.35 per share

- 2024-11: $212.60 per share

- 2024-12: $206.26 per share

- 2025-01: $215.85 per share

- 2025-02: $228.93 per share

- 2025-03: $217.13 per share

- 2025-04: $186.87 per share

- 2025-05: $202.97 per share

- 2025-06: $208.72 per share

- 2025-07: $218.76 per share

- 2025-08: $241.82 per share

- 2025-09: $246.22 per share

- 2025-10: $213.94 per share

- 2025-11: $195.32 per share

- 2025-12: $202.85 per share

- 2026-01: $201.64 per share

- 2026-02: $252.83 per share

- 2026-03: $232.01 per share

- 2026-04: $251.14 per share

- 2026-05: $233.92 per share

- 2026-06: $237.54 per share

- 2026-07: $293.78 per share

- 2026-08: $284.11 per share

- 2026-09: $286.84 per share

- 2026-10: $276.41 per share

## Annual estimated value (USD per share)

- FY2016: low $35.43 per share, central $40.00 per share, high $45.58 per share

- FY2017: low $35.51 per share, central $39.68 per share, high $45.23 per share

- FY2018: low $39.58 per share, central $44.08 per share, high $50.07 per share

- FY2019: low $58.28 per share, central $73.59 per share, high $84.91 per share

- FY2020: low $70.27 per share, central $91.98 per share, high $106.23 per share

- FY2021: low $89.73 per share, central $125.71 per share, high $146.12 per share

- FY2022: low $78.79 per share, central $101.60 per share, high $117.75 per share

- FY2023: low $101.58 per share, central $141.13 per share, high $164.07 per share

- FY2024: low $118.32 per share, central $166.97 per share, high $194.10 per share

- FY2025: low $135.19 per share, central $191.07 per share, high $222.24 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

Prior published observations retained from 2026-10-15T06:39:39.279Z where newer inputs omit a numeric field or fiscal period.

## Sources

[Original 10-K filing](https://www.sec.gov/Archives/edgar/data/1121788/000119312526056028/grmn-20251227.htm); period 2025-12-27, filed 2026-02-18.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.