MMarketMath

GRMN

StalwartQuality: High (85/100)

Garmin · Consumer Discretionary · Consumer Electronics

$291.25

52w 186.67 – 314.28

20y monthly, adjusted

Mkt cap

$56.2B

P/E

34.5

P/FCF

42.1

FCF yield

2.4%

ROE

18.5%

Shldr yield

1.2%

div 1.2% + bb 0.0%

What today's price assumes

At $56.2B, the market is pricing in 17.8% annual free-cash-flow growth for the next decade (10% discount rate, 2.5% terminal growth). Over the last ten years, FCF actually grew 21.2% per year — expectations are roughly in line with history.

Simple DCF per-share range: $108 · $242 · $348 (4% / base / optimistic growth). An estimate, not a target.

Adjust the assumptions yourself →

Historical multiple lens

At its own median P/OCF of 14.8× across 17 years, GRMN would trade near $125/share (25th–75th percentile: $82–$182); it trades at 34.4× today.

Assumes the historical multiple regime persists — re-ratings can be permanent.

Growth record

Compound annual growth rates from as-filed 10-K data, split-adjusted

Rev 3y

+14.2%

Rev 5y

+11.6%

Rev 10y

+9.9%

EPS 5y

+340.7%

EPS 10y

+126.8%

FCF 5y

+7.5%

FCF 10y

+21.2%

Fundamentals

Fiscal 2007–2025, from SEC filings

Revenue

2007: $3.2B
2008: $3.5B
2009: $2.9B
2010: $2.7B
2011: $2.8B
2012: $2.7B
2013: $2.6B
2014: $2.9B
2015: $2.8B
2016: $3.0B
2017: $3.1B
2018: $3.3B
2019: $3.8B
2020: $4.2B
2021: $5.0B
2022: $4.9B
2023: $5.2B
2024: $6.3B
2025: $7.2B
$0$2.0B$4.0B$6.0B
07
11
15
19
23

Net income

2007: $855.0M
2008: $732.8M
2009: $704.0M
2010: $584.6M
2011: $520.9M
2012: $542.4M
2013: $612.4M
2014: $364.2M
2015: $456.2M
2016: $517.7M
2017: $709.0M
2018: $694.1M
2019: $952.5M
2020: $992.3M
2021: $1.1B
2022: $973.6M
2023: $1.3B
2024: $1.4B
2025: $1.7B
$0$500.0M$1.0B$1.5B
07
11
15
19
23

Free cash flow

2007: $682.1M
2008: $862.2M
2009: $1.0B
2010: $738.4M
2011: $784.0M
2012: $646.3M
2013: $574.0M
2014: $449.4M
2015: $199.9M
2016: $614.7M
2017: $521.1M
2018: $763.8M
2019: $580.5M
2020: $949.9M
2021: $704.8M
2022: $544.0M
2023: $1.2B
2024: $1.2B
2025: $1.4B
$0$500.0M$1.0B
07
11
15
19
23

Diluted shares (lower is better)

2009: 198.4M
2010: 195.3M
2011: 195.3M
2012: 196.6M
2013: 196.7M
2014: 194.5M
2015: 191.5M
2016: 189.7M
2017: 189.7M
2018: 190.7M
2019: 191.9M
2020: 191.9M
2021: 193.0M
2022: 193.0M
2023: 192.1M
2024: 193.3M
2025: 193.6M
050.0M100.0M150.0M
07
11
15
19
23

Margins

20%40%60%07101316192225
Net marginFCF marginGross margin

Capital returned (dividends + buybacks)

2007: $170.3M
2008: $822.1M
2009: $170.1M
2010: $524.8M
2011: $333.1M
2012: $272.1M
2013: $410.1M
2014: $601.7M
2015: $509.5M
2016: $574.7M
2017: $457.5M
2018: $296.1M
2019: $417.3M
2020: $450.6M
2021: $491.5M
2022: $679.1M
2023: $558.8M
2024: $572.4M
2025: $663.9M
$0$250.0M$500.0M$750.0M
07
11
15
19
23

Cash vs long-term debt

$1.0B$1.5B$2.0B07101316192225
CashLT debt

Quarterly

Discrete quarters from 10-Q filings; Q4 derived as fiscal year minus Q1–Q3. OCF is unwound from the year-to-date figures 10-Qs report. Compare to the same quarter a year ago — most businesses are seasonal.

Revenue by quarter

Q1'23: $1.1B
Q2'23: $1.3B
Q3'23: $1.3B
Q4'23: $1.5B
Q1'24: $1.4B
Q2'24: $1.5B
Q3'24: $1.6B
Q4'24: $1.8B
Q1'25: $1.5B
Q2'25: $1.8B
Q3'25: $1.8B
Q4'25: $2.1B
Q1'26: $1.8B
$0$1.0B$2.0B
23
23
24
25
26

Net income by quarter

Q1'23: $202.3M
Q2'23: $287.9M
Q3'23: $257.2M
Q4'23: $542.1M
Q1'24: $276.0M
Q2'24: $300.6M
Q3'24: $399.1M
Q4'24: $435.7M
Q1'25: $332.8M
Q2'25: $400.8M
Q3'25: $401.6M
Q4'25: $528.7M
Q1'26: $405.1M
$0$200.0M$400.0M
23
23
24
25
26
QuarterRevenueYoYNet incomeYoYEPSOCF
Q1'26$1.8B+14.2%$405.1M+21.7%2.09$536.0M
Q4'25 *$2.1B+16.6%$528.7M+21.3%2.72$553.8M
Q3'25$1.8B+11.7%$401.6M+0.6%2.08$485.6M
Q2'25$1.8B+20.4%$400.8M+33.3%2.07$173.2M
Q1'25$1.5B+11.1%$332.8M+20.6%1.72$420.8M
Q4'24 *$1.8B+22.9%$435.7M−19.6%2.24$483.9M
Q3'24$1.6B+24.1%$399.1M+55.1%2.07$258.0M
Q2'24$1.5B+14.1%$300.6M+4.4%1.56$255.3M
Q1'24$1.4B+20.4%$276.0M+36.4%1.43$435.3M
Q4'23 *$1.5B+13.5%$542.1M+84.9%2.82$465.9M
Q3'23$1.3B+12.0%$257.2M+22.0%1.34$357.4M
Q2'23$1.3B+6.4%$287.9M+11.7%1.50$273.7M
Q1'23$1.1B−2.2%$202.3M−4.4%1.05$279.2M

Track record

Compound annual growth by period. For debt and share count, negative is the good direction.

Series3y5y10y15y
Revenue+14.2%+11.6%+9.9%+6.8%
Operating cash flow+27.5%+7.5%+19.3%+5.1%
Free cash flow+35.8%+7.5%+21.2%+4.2%
EPS (diluted)+19.5%+340.7%+126.8%+7.3%
Equity+13.1%+10.2%+10.3%+7.5%
LT debt
Diluted shares+0.1%+0.2%+0.1%−0.1%
Stock price+42.6%+13.2%+22.6%+19.2%

$100, 3 years ago

$290vs $176 in SPY

42.6% vs 20.7%/yr

$100, 5 years ago

$186vs $181 in SPY

13.2% vs 12.6%/yr

$100, 10 years ago

$770vs $412 in SPY

22.6% vs 15.2%/yr

$100, 15 years ago

$1,401vs $813 in SPY

19.2% vs 15.0%/yr

The $1 test — market value created per $1 of earnings retained (Buffett's hurdle: at least $1)

Last 5 years

$5.53

$19.1B created / $3.5B retained

Last 10 years

$6.36

$33.7B created / $5.3B retained

Quality & capital discipline

Cash-based returns and how management deploys capital

Cash ROIC

18.2%

OCF ÷ (equity + debt)

OCF / EV yield

3.0%

MC vs 10× OCF

3.51

≤1 = priced under 10× OCF

Debt / FCF

SBC / FCF

12.2%

Owner earnings

$1.2B

OCF − capex − SBC

OE yield

2.1%

Share count 5y

−0.2%

per year; negative = buybacks

Capital intensity

19.0%

net PP&E ÷ revenue

Sales efficiency

$0.17

new PP&E per $1 new revenue, 5y

Growth engine (5y): reinvested 42.2% of operating cash flow at an incremental return of 18.9% — an organically fundable growth rate of about 8.0% per year (growth ≈ reinvestment rate × incremental ROIC).

Checklist

20 of 26 checks pass · 77%. Checks with structurally missing inputs are excluded.

Growth & Consistency

6/7

  • Revenue growth

    11.6% · 5y CAGR ≥ 5%

    pass
  • EPS growth

    340.7% · 5y CAGR ≥ 5%

    pass
  • FCF growth

    7.5% · 5y CAGR ≥ 5%

    pass
  • Revenue rises consistently

    8 of 9 · up in ≥ 7 of last 10 years

    pass
  • FCF consistently positive

    10 of 10 · positive in ≥ 8 of last 10 years

    pass
  • Profitable every year

    10 of 10 · net income > 0 in ≥ 8 of last 10

    pass
  • Cash flow keeps up with sales

    7.5% vs 11.6% · OCF CAGR ≥ 0.9× revenue CAGR

    fail

Profitability

6/7

  • Net margin

    23.0% · ≥ 8%

    pass
  • Operating margin

    25.9% · ≥ 10%

    pass
  • Gross margin stable or rising

    58.7% vs 57.7% · no drop > 2 pts over 3y

    pass
  • Return on equity

    18.5% · ≥ 12%

    pass
  • Cash ROIC

    18.2% · ≥ 12%

    pass
  • FCF margin

    18.8% · ≥ 5%

    pass
  • Earnings back their cash

    OCF $1.6B vs NI $1.7B · OCF ≥ net income (latest FY)

    fail

Balance Sheet

4/4

  • Debt payable from cash flow

    no debt · LT debt ≤ 3× FCF

    pass
  • Cash cushion

    · cash ≥ 50% of LT debt

    pass
  • Leverage

    · LT debt ≤ 1.5× equity

    pass
  • Equity positive and compounding

    $9.0B · equity > 0 and grew over ~5y

    pass
  • Interest burden

    · interest ≤ 15% of operating income

    na

Capital Allocation

3/4

  • Share count flat or shrinking

    -0.2% · ≤ +0.5%/yr over ~5y

    pass
  • Stock comp restrained

    12% · SBC ≤ 15% of FCF

    pass
  • Distributions funded by FCF

    49% · dividends + buybacks ≤ 100% of FCF

    pass
  • Repurchases are a habit

    2 of 10 · buybacks in ≥ 5 of last 10 years

    fail

Valuation Discipline

1/4

  • FCF yield

    2.4% · ≥ 3%

    fail
  • Earnings multiple

    34.5 · P/E ≤ 25

    fail
  • Price asks less than history delivered

    17.8% vs 21.2% · implied FCF growth ≤ historical FCF CAGR

    pass
  • Shareholder yield

    1.2% · dividends + buybacks ≥ 2% of market cap

    fail

Financial data

As filed in 10-Ks; per-share figures split-adjusted. $ in millions.

FYRevenueGross profitOp incomeNet incomeEPSOCFCapExFCFDividendsBuybacksSBCCashLT debtEquityShares
20257,2464,2561,8761,6648.591,6332701,3636641662,2798,973194
20246,2973,6971,5941,4117.301,4321941,2395721372,0797,848193
20235,2283,0051,0921,2906.711,3761941,1835591011,6937,012192
20224,8602,8071,0289745.04788244544679771,2796,204193
20214,9832,8901,2191,0820.011,012308705491931,4986,114193
20204,1872,4811,0549920.011,135185950451811,4585,516192
20193,7582,2349469524.96699118581417631,0284,793192
20183,3471,9807786943.64920156764296561,2024,163191
20173,1221,7986847093.7466114052138375458913,852190
20163,0191,6896335180.007069161548193418473,453190
20152,8201,5395504560.0028081200378131268333,374191
20142,8711,6046913640.0052373449360242241,1963,403195
20132,6321,4075746120.006305657435258231,1793,660197
20122,7161,4386045420.006853864625319291,2313,532197
20112,7591,3395545210.008223878431122401,2873,257195
20102,6901,3466375852.9977132738299226401,2613,050195
20092,9461,4447867043.551,094491,04515020441,0922,836198
20083,4941,5548627333.538628621506726962,226
20073,1801,4639078553.9468268216387082,351

Some concepts are structurally absent for certain industries (banks report no gross profit or capex). Missing ≠ zero.