Garmin Ltd. (GRMN) Fundamental Checkup
Garmin Ltd. fundamental checkup using revenue growth, EPS growth, free cash flow, margins, ROIC, debt-to-equity, and TGMCharts chart exhibits as of August 7, 2026.
By TGMCharts Research · Data as of · Updated
Garmin Ltd. presents a balanced fundamental profile where five-year compound revenue expansion of 9.56% is paired with five-year EPS growth of 10.78%, while free cash flow tracks closely at a five-year CAGR of 7.42%.
Operating efficiency is supported by a net margin of 24.47% and a return on invested capital of 16.65%. Balance-sheet flexibility remains exceptionally high with a current ratio of 3.03x and a debt-to-equity ratio of 0.02x.
- Garmin Ltd. has market cap of $60.39B and closed at $311 on August 7, 2026.
- Five-year revenue CAGR is 9.56% and five-year EPS CAGR is 10.78%.
- Five-year free-cash-flow CAGR is 7.42%.
- Net margin is 24.47% and ROIC is 16.65%.
- Current ratio is 3.03x and debt-to-equity is 0.02x.
Fundamental snapshot
The valuation, growth, profitability, and balance-sheet facts behind the checkup.
A Multi-Dimensional Assessment of Garmin's Core Fundamentals
An objective evaluation of Garmin Ltd. requires examining how its expansion rates, cash generation, capital returns, and balance-sheet structures align. As of August 7, 2026, the equity is valued at $311 with a market capitalization of $60.39B. This research note isolates the underlying business performance from market pricing to determine whether the operational data presents a unified fundamental thesis.
The core analysis relies on evaluating the relationship between a five-year revenue CAGR of 9.56% and a five-year EPS CAGR of 10.78%. We cross-reference these metrics with a five-year free cash flow CAGR of 7.42% to verify the quality of the earnings expansion. By analyzing these dimensions together, we can assess whether the company's financial foundation is strengthening or showing signs of divergence.
Current compounder snapshot · GRMN
Live supporting context; not part of the article's frozen 2026-08-07 evidence snapshot.
- Score
- 24/100
- 10Y CAGR
- 9.9%
- Median YoY
- 10.6%
- YoY volatility
- σ 10.9pp· uneven
- Quarters ≥ 20%
- 7 of 40
- Negative quarters
- 5
- Valuation vs own 10Y history
- P/S 7.8x · 10Y median 4.6x · 100th percentile · as of Aug 7, 2026
How this score is computed
- Quarters at or above 20%: 7 of 40 → 7 of 40 pts
- Steadiness (typical swing 10.9pp) → 17.2 of 25 pts
- Pace (median 10.6% YoY) → 0 of 20 pts
- Latest quarter (11.4% YoY) → 0 of 15 pts
- Score: 24 of 100
Annual revenue · last 11 fiscal years
Quarterly YoY revenue growth vs the 20% line
P/S multiple vs its 10Y median
Operational Profile and Sector Context
Operating within the Technology sector, Garmin Ltd. must be evaluated through its tangible financial metrics rather than qualitative narratives. The business model generates returns that are captured in our standardized datasets, allowing for a direct comparison of top-line expansion, bottom-line conversion, and balance-sheet risk. The systematic integration of these metrics provides a baseline before examining individual financial statements and historical trends.
Fundamental evidence table
A compact cross-check of valuation, growth, quality, and financial flexibility.
GRMN revenue
Revenue history shows whether the business has been expanding before margins and per-share metrics are considered.
Five-year revenue CAGR: 9.56%. This is endpoint-to-endpoint from the fiscal years shown — a depressed start year can inflate it, so read it against the recent bars.
Five-year revenue CAGR of 9.56% is the top-line test. A fundamental checkup becomes more durable when revenue growth is paired with earnings growth instead of depending only on margin expansion.
Evaluating Top-Line to Shareholder Profit Conversion
Top-line expansion is only valuable to shareholders if it successfully translates into net earnings. For Garmin Ltd., the five-year compound annual revenue growth rate stands at 9.56%, indicating steady demand expansion. Over the same period, diluted earnings per share grew at a compound annual rate of 10.78%, demonstrating positive operational leverage where bottom-line expansion has outpaced top-line gains.
This positive relationship between sales and earnings suggests that the business has maintained or improved its operational efficiency during this expansion phase. However, a rising EPS figure can sometimes mask underlying cash flow discrepancies or be influenced by non-operating items. Therefore, confirming this trajectory requires a detailed look at cash generation in the subsequent section.
GRMN EPS
EPS history shows how much of the business growth has reached shareholders.
Five-year EPS CAGR: 10.78%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Five-year EPS CAGR of 10.78% is the shareholder conversion check. If EPS grows faster than revenue, the note should ask whether that came from margin quality, buybacks, or a temporary base effect.
Verifying Earnings Quality Through Cash Generation
Free cash flow serves as the primary verification tool for reported accounting profits. Garmin Ltd. achieved a five-year free cash flow compound annual growth rate of 7.42%. Because cash flow expansion has been positive and closely tracks the EPS growth rate of 10.78%, the quality of the reported earnings remains high, reducing the risk of aggressive accrual accounting.
When cash generation matches or closely mirrors net income trends, it indicates that the earnings are backed by hard cash inflows rather than working capital adjustments or deferred expenses. This strong cash conversion provides the company with the necessary capital to fund internal reinvestment, distribute dividends, or maintain its liquid assets without relying on external debt markets.
GRMN free cash flow
Free cash flow checks whether earnings are converting into owner cash.
Five-year free-cash-flow CAGR: 7.42%. This is endpoint-to-endpoint from the fiscal years shown — a depressed or negative start year can inflate it, so read it against the recent bars.
Free-cash-flow CAGR of 7.42% is the counterweight to the EPS story. If cash flow lags earnings, the quality of the fundamental setup deserves a more cautious reading.
Assessing Operating Efficiency and Reinvestment Returns
The durability of a company's growth is heavily dependent on its profitability margins and capital efficiency. Garmin Ltd. reports a net margin of 24.47%, showing that a significant portion of revenue is successfully preserved as net income. Simultaneously, the return on invested capital (ROIC) stands at 16.65%, indicating that the business generates strong returns on the debt and equity capital deployed in its operations.
An ROIC of 16.65% suggests that the company's capital allocation is highly efficient. When a business can reinvest its cash at double-digit returns while maintaining a net margin of 24.47%, its growth becomes compounding in nature. This combination of high returns and solid margins supports the historical growth record and provides a buffer against potential operational headwinds.
GRMN net margin
Net margin is the operating-quality check behind the growth record.
Net margin (TTM): 24.47%. The bars below are annual fiscal years.
Net margin of 24.47% shows how much revenue becomes profit. The checkup is stronger when margin quality supports EPS growth rather than simply flattering one recent period.
GRMN ROIC Chart
ROIC tests whether the business earns enough on reinvested capital to deserve attention.
Latest ROIC: 16.65%.
ROIC of 16.65% is the reinvestment-quality check. A business with stronger returns can support a better long-term read even when the valuation is not obviously cheap.
Liquidity and Leverage as Operational Guardrails
A strong growth profile can be undermined if a company carries excessive leverage or suffers from tight liquidity. The balance sheet for Garmin Ltd. shows a current ratio of 3.03x, pointing to a substantial short-term liquidity cushion. Furthermore, the debt-to-equity ratio is exceptionally low at 0.02x, indicating that the capital structure is almost entirely funded through equity.
This minimal reliance on debt protects the business from rising interest rates and credit market disruptions. With a current ratio of 3.03x, the company possesses ample short-term assets to cover its obligations. This financial flexibility allows the business to sustain its operations and continue capital expenditures even during broader macroeconomic downturns.
GRMN debt-to-equity Chart
Debt-to-equity keeps the checkup honest about balance-sheet flexibility.
Latest debt-to-equity ratio: 0.02x.
Debt-to-equity of 0.02x and current ratio of 3.03x are the balance-sheet checks. They matter because growth and margins are less valuable if financial flexibility is narrowing.
Market Pricing and Implied Expectations
The market price reflects the expectations investors have already priced into the stock. Currently, Garmin Ltd. trades at a trailing price-to-earnings (P/E) multiple of 32.05x, which corresponds to an earnings yield of 3.12%. This multiple indicates that investors are paying a premium for the company's historical growth, quality metrics, and balance-sheet strength.
A P/E ratio of 32.05x places a high burden of proof on the business to sustain its current operational trajectory. At this valuation level, the market expects continued high-quality earnings conversion and strong capital returns. The current price is also above the analyst DCF (FMP) reference estimate, suggesting that the stock trades without a conventional margin of safety relative to conservative cash flow models.
GRMN Price Chart
Latest close: $311 as of August 7, 2026.
The close at $311 is not the conclusion, but it is the market reference point. The fundamental read has to explain whether growth, margins, and balance-sheet support justify the price investors are paying.
Weighing the Core Fundamental Opportunities and Risks
The primary fundamental argument for the company rests on its clean operational execution. The alignment of a 9.56% revenue CAGR, a 10.78% EPS CAGR, and a 7.42% free cash flow CAGR demonstrates a highly coordinated and cash-rich business model. This is reinforced by a robust ROIC of 16.65% and a virtually debt-free balance sheet with a debt-to-equity ratio of 0.02x.
Conversely, the main risk to this thesis is the high valuation multiple. With a P/E of 32.05x and a market price above the analyst DCF reference, any deceleration in top-line growth or compression in the net margin of 24.47% could lead to significant multiple contraction. If free cash flow generation begins to lag earnings growth, the current premium valuation would become difficult to defend.
Bull and bear case
Fundamental support
- Five-year revenue CAGR of 9.56% and five-year EPS CAGR of 10.78% support the business case.
- Net margin of 24.47% and ROIC of 16.65% are the quality checks behind the thesis.
Fundamental pressure
- Free-cash-flow CAGR of 7.42% can weaken the read if it falls away from EPS growth.
- Debt-to-equity of 0.02x and current ratio of 3.03x are the balance-sheet checks that can change the view.
Synthesized Fundamental Conclusion
In conclusion, Garmin Ltd. exhibits exceptional fundamental quality characterized by balanced growth, strong cash conversion, high capital returns, and a pristine balance sheet. However, these positive operational characteristics are well-recognized by the market, as reflected in the trailing P/E of 32.05x. This note provides a snapshot of historical and current data; any future deterioration in the 9.56% revenue growth rate or a rise in the 0.02x debt-to-equity ratio would require a reassessment of this fundamental view.
FAQ
What is the fundamental read on GRMN?
Garmin Ltd. is judged through revenue growth of 9.56%, EPS growth of 10.78%, free-cash-flow growth of 7.42%, net margin of 24.47%, and ROIC of 16.65%.
Which GRMN fundamental metric matters most?
No single metric carries the article. The checkup requires growth, cash conversion, profitability quality, balance-sheet flexibility, and valuation to be read together.
When should this GRMN checkup refresh?
Its figures are as of August 7, 2026, the note's dated snapshot; a note whose figures stop verifying against reported data is corrected or unpublished.
What would change our mind
- Revenue growth moving away from the current five-year CAGR of 9.56%.
- Free-cash-flow growth drifting away from five-year EPS CAGR of 10.78%.
- ROIC or balance-sheet flexibility weakening from ROIC of 16.65% and debt-to-equity of 0.02x.
The bottom line
Garmin Ltd. fundamental research note from TGMCharts Research, grounded in a dated fundamentals snapshot, chart exhibits, and linked source facts.
Read next: Is Garmin Ltd. (GRMN) Fairly Valued?Valuation on Garmin Ltd. — from the same data-checked research desk.How we checked this researchShowHide
Data snapshot · By TGMCharts Research.
Every number in this note comes from data we compute and store ourselves from the company's reported figures, plus verbatim excerpts from its SEC filings. When a value isn't available we say so — we never fill gaps with estimates.
Latest filing excerpt
10-Q · filed 2026-07-29 · period 2026-06-27 · SEC EDGAR source
- “Of the $ 129,028 of deferred revenue as of June 27, 2026, the Company expects to recognize approximately 87% ratably over a total period of three years or less.”
- “Revenue To further depict how the nature, amount, timing and uncertainty of the Company's revenue and cash flows are affected by economic factors, Garmin disaggregates revenue (or "net sales") by geographic region, major product category, and pattern of recognition.”
- “Disaggregated revenue by geographic region (Americas, EMEA, and APAC) is presented in Note 11 - Segment Information and Geographic Data.”
- “Note 11 also contains disaggregated revenue information of the five major product categories identified by the Company (fitness, outdoor, aviation, marine, and auto OEM), which also represent the Company's operating segments.”
Source pages
Exhibit sources
Research trail
Every number, checked
Every numeric or dated claim in this note was checked against our stored company data before publishing — each figure below links to the page it comes from.