Garmin
Garmin (GRMN)
Recommendation: Buy Industry: Communication Equipment Recent Price $59.37 Analyst: Jennifer Traynor Target Price $60.76 Report Date: 5/2/2007
Highlights • Large-cap growth stock with a market cap of $11.68 billion. • Garmin has the number one GPS market share of 50% in the U.S. and the number two GPS market share in Europe of 16.7% • Consumer demand for GPS products will continue to increase as technology improves and produces new and innovative products. • High historical ROIC, ranging from 39.4% to 47%, which is significantly higher than its 11% WACC. • Garmin’s revenue is likely to grow 35% per year for the next five years. • Target price of $60.76, is based on a P/E multiple valuation using a P/E of 19.6. • The major risks that could cause Garmin not continue on it positive trajectory are: decreasing profit margin, sustainable revenue growth and increasing competition. Key Statistics and Ratios Garmin has been consistently outperforming the communication equipment industry and the S&P 500 in ROA, ROE, sales growth, gross margin, and net profit margin in the past five years.
Ratios ROE - 5Yr. Avg. ROA - 5Yr. Avg. Sales - 5Yr. Growth Rate Gross Margin - 5Yr. Avg. Net Profit Margin - 5Yr. Avg. P/E Ratio EPS - 5Yr. Growth Rate Dividend Yield - 5Yr. Avg. Garmin 30.38% 25.71% 35.04% 52.46% 29.39 23.06 35.04% 0.01% Industry 6.00% 2.99% 19.82% 45.71% 4.59 25.25 37.33% 0.41% S&P 500 18.21% 6.84% 13.29% 44.32% 12.31 20.65 22.21% 1.85%
Company Overview Garmin Ltd. designs, manufactures and markets portable, fix-mount and hand held Global Positioning Systems (GPS) devices. The company’s stock is currently trading on the NASDAQ. It operates in four segments: mobile/automotive, marine, aviation, and
recreational. Products include automotive navigation systems with map information, GPS enabled sonar depth finders for recreational boating and fishing, aviation systems, and GPS enabled cellular phone software. Garmin has the number one GPS market share
Recommendation: Buy Industry: Communication Equipment Recent Price $59.37 Analyst: Jennifer Traynor Target Price $60.76 Report Date: 5/2/2007
Highlights • Large-cap growth stock with a market cap of $11.68 billion. • Garmin has the number one GPS market share of 50% in the U.S. and the number two GPS market share in Europe of 16.7% • Consumer demand for GPS products will continue to increase as technology improves and produces new and innovative products. • High historical ROIC, ranging from 39.4% to 47%, which is significantly higher than its 11% WACC. • Garmin’s revenue is likely to grow 35% per year for the next five years. • Target price of $60.76, is based on a P/E multiple valuation using a P/E of 19.6. • The major risks that could cause Garmin not continue on it positive trajectory are: decreasing profit margin, sustainable revenue growth and increasing competition. Key Statistics and Ratios Garmin has been consistently outperforming the communication equipment industry and the S&P 500 in ROA, ROE, sales growth, gross margin, and net profit margin in the past five years.
Ratios ROE - 5Yr. Avg. ROA - 5Yr. Avg. Sales - 5Yr. Growth Rate Gross Margin - 5Yr. Avg. Net Profit Margin - 5Yr. Avg. P/E Ratio EPS - 5Yr. Growth Rate Dividend Yield - 5Yr. Avg. Garmin 30.38% 25.71% 35.04% 52.46% 29.39 23.06 35.04% 0.01% Industry 6.00% 2.99% 19.82% 45.71% 4.59 25.25 37.33% 0.41% S&P 500 18.21% 6.84% 13.29% 44.32% 12.31 20.65 22.21% 1.85%
Company Overview Garmin Ltd. designs, manufactures and markets portable, fix-mount and hand held Global Positioning Systems (GPS) devices. The company’s stock is currently trading on the NASDAQ. It operates in four segments: mobile/automotive, marine, aviation, and
recreational. Products include automotive navigation systems with map information, GPS enabled sonar depth finders for recreational boating and fishing, aviation systems, and GPS enabled cellular phone software. Garmin has the number one GPS market share