NASDAQ:GRMN
$31.95
(2/9 11:59AM)
+0.2%
| Open | $32.45 |
Mkt Cap | $6.4 Billion |
| High | $32.45 |
52Wk High | $39.65 |
| Low | $31.4 |
52Wk Low | $16.10 |
| Volume | 467,089 |
Avg Vol 10D | 1.4 Million |
Ockham's Rating/Recommendation Summary
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GRMN Revenue
Cash earnings is the most important factor in our analysis, but it goes without saying that if a company cannot produce sales then there is no ability to generate cash flow. By that logic we look very closely at revenue numbers as our second most important factor in valuing a company's stock. We have established reasonable Price to Sales per share ranges based on historical data of the last 10 years. For, GRMN the high and low end of the Price to Sales per share ratios are 6.89x and 2.90x respectively.
Notice that GRMN's current Price to Sales per share ratio is 2.21x, which is quite a bit below what we consider a normal Price to Sales ratio for this stock. Given normal conditions and a price of $32.39, GRMN is 55% below where we would expect to see it. This will beneficially factor into our final analysis of GRMN as it is not often that this stock sinks to these levels.
GRMN Cash Earnings
As a value investment framework, Ockham Research is similar to a private equity firm in terms of our valuation methods. We are always on the lookout for value in the form of sales and cash numbers. In the case of GRMN, Ockham views their current Cash Earnings as significantly below its historical average multiple of Cash Earnings. Looking at the last 10 years we can get a good understanding of what investors have grown to expect from GRMN. For example, GRMN's Cash Earnings ratio per share has fluctuated between 9.75 and 24.27 over this historical timeframe. This range is based upon a proprietary weighted methodology at Ockham, but can clearly show an investor where GRMN is with respect to prior business periods.
So with GRMN's current price (latest close of $32.39) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, GRMN is 44% below its average level of Price to Cash Earnings on a historical basis. This means that investors were willing to pay for a much higher stock price than currently for the same level of Cash in the past, on a relative basis. There are a couple of important things to remember, however. First, value doesn't exist in a vacuum. So if the market doesn't recognize this value, even a great disparity in Price to Cash Earnings cannot force an immediate stock price reaction. Second, patience is key when looking at securities that have reached these levels of Price to Cash Earnings versus their historical norms. So be patient with GRMN.
GRMN Dividends
A strong dividend payment history is looked upon as a favorable characteristic on a company’s future and potentially can receive a positive Ockham rating. That being said, we don't require dividend payments for company's whose management has elected to forgo them entirely.
When reviewing dividend yields for GRMN, we compare the historic high and low levels over the past, which is similar to our evaluation of Sales and Cash Earnings per share. Paying a dividend is not necessary for any company, but changes in dividend often can lend clues as to the health of the business. A rising dividend is a strong sign for an established company, as it reflects management's confidence in the company. GRMN’s estimated annual dividend is $0.75 resulting in a current dividend yield of 2.32%. The highest dividend yield from GRMN over recent history was 5.26% while the lowest dividend yield was 0.00%. The current dividend yield is below the historical median, which is slightly off-putting. We are a bit adverse to GRMN from this valuation metric.
Fox Business Has the Latest News on GRMN
Garmin Limited is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Fox Business.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Garmin Limited will perform just about the same as the index. We consider GRMN as Undervalued at the current price of $32.57. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GRMN has been less covered in the news compared to the rest of our universe of stocks.
“… David: you say GARMIN and wal-mart but also las vegas sans corporation in light of the president's latest comments why do you think it is a buy? > > I have that as a short. …”
Check Out Fast Money and News on GRMN
The latest news on Fast Money in regards to GRMN came through on RazorWire recently.
Based on our methodology, Garmin Limited should hold some appeal to value investors as we view it as Undervalued. We noticed recently that in comparison to all other stocks we analyze in the news; GRMN has received less coverage from the financial media in business television and blogs. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral.
“… I'll tease dennis GARMIN, I know he's coming on. When the stock is broken technically and the fundamental story is altered, you have to wonder. > > …”
See Why Garmin Limited News Was Discussed on Fast Money
As always, the latest news on GRMN is available to Ockham clients through RazorWire, and it was mentioned recently on Fast Money.
Based on our methodology, Garmin Limited should hold some appeal to value investors as we view it as Undervalued. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. We noticed recently that in comparison to all other stocks we analyze in the news; GRMN has received less coverage from the financial media in business television and blogs.
“… Editor of the GARMAN letter joins us. Dennis, you call this a watershed moment in the dollar. Yesterday, we saw a death star cross moment in the dollar with the 50 day moving ... …”
Power Lunch Discussed the Latest Development of Garmin Limited
As always, the latest news on GRMN is available to Ockham clients through RazorWire, and it was mentioned recently on Power Lunch.
Based on our methodology, Garmin Limited should hold some appeal to value investors as we view it as Undervalued. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. The latest news on GRMN has created quite a stir as the stock is trading $1.84 higher in today's session. We noticed recently that in comparison to all other stocks we analyze in the news; GRMN has received less coverage from the financial media in business television and blogs.
“… Most of them on the upside including panasonic, GARMAN, dolby. Easton kodak down slightly. And it's all right here. . …”
Garmin Limited News Appeared on Squawk On The Street
Garmin Limited is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Squawk On The Street.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Garmin Limited will perform just about the same as the index. We consider GRMN as Undervalued at the current price of $33.05. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GRMN has been less covered in the news compared to the rest of our universe of stocks.
“… GARMIN was mentioned positively. Today over at oppenheimer it thinks that it's likely to top their estimates, upgraded at. …”
What are the Experts Saying? Analysts and GRMN on Power Lunch
Wall Street analysts can have a huge affect on stocks, and today Power Lunch talked about an analysts' opinion in relation to GRMN.
Based on our methodology, Garmin Limited should hold some appeal to value investors as we view it as Undervalued. The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. Ranking all stocks in terms of news coverage offers some interesting data. In the case of GRMN, it is getting significantly more attention in recent news coverage than we are used to seeing.
“… Among the other six you mentioned, rcn, GARMIN, and tutor perini, is it safe to ashlgs summe you are holding on to any of them? > > …”
See Who is Talking About News from GRMN on Fox Business
Garmin Limited is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on Fox Business.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GRMN has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Garmin Limited will perform just about the same as the index. We consider GRMN as Undervalued at the current price of $30.80. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… GARMIN devices. Shoot and share, very popular. And blu-ray players. Now most households have their nice flat screen tv, now you want to get the full experience and get a ... …”
GRMN News Mentioned on The Call Recently
The latest news on The Call in regards to GRMN came through on RazorWire recently.
As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GRMN has been less covered in the news compared to the rest of our universe of stocks. Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Garmin Limited will perform just about the same as the index. We consider GRMN as Undervalued at the current price of $30.51. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… GARMIN coming out next year it will have 19% of the overall mobile market and it will grow even more in 2011. It's up 0. 9% and papa john's came out with some guidance. …”
News on GRMN From the Pundits on Power Lunch
The latest news from business television and influential blogs is always available through Ockham's RazorWire, and this news is in relation to Garmin Limited.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Garmin Limited will perform just about the same as the index. We consider GRMN as Undervalued at the current price of $31.04. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GRMN has been less covered in the news compared to the rest of our universe of stocks.
“… GARMIN say next year sales units up 10% but prices down 10%. Year over year, they are up. Apple doing better than expected. …”
Earnings News Regarding Garmin Limited Noted on Squawk On The Street
Whenever a reliable source like Squawk On The Street talks about earnings or news on earnings, we think it warrants bringing attention to it.
Crowd sentiment is neutral from the millions of opinions submitted through Motley Fool CAPS, which suggests most investors on their platform believe Garmin Limited will perform just about the same as the index. As we analyze the results from RazorWire, one thing we do is rank each stock in terms of amount of news coverage. Recently, GRMN has been less covered in the news compared to the rest of our universe of stocks. We consider GRMN as Undervalued at the current price of $31.50. According to our methodology, this stock has appreciation potential based on current fundamentals which only improves if earnings or revenue surprise.
“… GARMIN chiming in on the current quarter. Things looking good moving forward to 2010. They say sales of the units will be up 10% but prices will be they are protecting their ... …”