Garmin Ltd. [NASDAQ:GRMN]: Analyst Rating and Earnings
Expert stock traders often make certain they pay attention what leading Wall Street analysts think regarding a potential stock purchase. As it relates to Garmin Ltd. [GRMN] currently, the latest ratings from Wall St. experts that can be seen publicly is related to the fiscal quarter that’s scheduled to end in December. On average, stock market experts give GRMN an Hold rating. The average 12-month price forecast for this stock is $67.14, with the high estimate being $75.00, the low estimate being $58.00 and the median estimate amounting to $70.00. This is compared to its latest closing price of $65.68.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Garmin Ltd. [GRMN] is sitting at 3.10. This is compared to 1 month ago, when its average rating was 3.22.
For the quarter ending in Sep-18 Garmin Ltd. [GRMN] generated $0.81 billion in sales. That’s 3.51% higher than the average estimate of $0.78 billion as provided by Wall Street analysts. The three indicators above suggest that the company is performing better than market experts expected, boosting its appeal as a solid investment.
Pay attention to the next-scheduled financial results for this company to be released, which is slated for Wed 20 Feb (In 40 Days).
Fundamental Analysis of Garmin Ltd. [GRMN]
Now let’s turn to look at profitability: with a current Operating Margin for Garmin Ltd. [GRMN] sitting at +21.67 and its Gross Margin at +57.76, this company’s Net Margin is now 19.50%. These measurements indicate that Garmin Ltd. [GRMN] is generating considerably more profit, after expenses are accounted for, compared to its market peers.
This company’s Return on Total Capital is 18.53, and its Return on Invested Capital has reached 17.70%. Its Return on Equity is 19.25, and its Return on Assets is 14.58. These metrics all suggest that Garmin Ltd. is doing well at using the money it earns to generate returns.
What about valuation? This company’s Enterprise Value to EBITDA is 14.54. The Enterprise Value to Sales for this firm is now 3.32. Garmin Ltd. [GRMN] has a Price to Book Ratio of 2.95, a Price to Cash Flow Ratio of 17.01 and P/E Ratio of 19.54. These metrics all suggest that Garmin Ltd. is more likely to generate a positive ROI.
Shifting the focus to workforce efficiency, Garmin Ltd. [GRMN] earns $250,976 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.52 and its Total Asset Turnover is 0.65. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 2.17 and its Current Ratio is 2.79. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Let’s now turn our attention to trading performance: Garmin Ltd. [GRMN] has 194.35M shares outstanding, amounting to a total market cap of $12.84B. Its stock price has been found in the range of 57.01 to 70.77. At its current price, it has moved by -6.67% from its 52-week high, and it has moved 15.86% from its 52-week low.
This stock’s Beta value is currently 0.96, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 58.51. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Garmin Ltd. [GRMN] a Reliable Buy?
Shares of Garmin Ltd. [GRMN], overall, appear to be a solid investment option, with Wall Street analysts expecting its price to rise considerably in the next 12 months. This company generates high value from the labor resources and other capital it has available, and while it has heavy Long-Term Debt to Equity, the majority of the metrics point to this investment being highly attractive.