NASDAQ:GRMN
$36.13
(3/19 4:00PM)
-1.7%
| Open | $37 |
Mkt Cap | $7.4 Billion |
| High | $37.35 |
52Wk High | $39.65 |
| Low | $35.9 |
52Wk Low | $19.40 |
| Volume | 1.8 Million |
Avg Vol 10D | 1.7 Million |
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 7.35x and 3.09x respectively.
Notice that GRMN's current Price to Sales per share ratio is 2.45x, 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 $35.91, GRMN is 54% 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 10.40 and 25.88 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 $35.91) and most recent level of Cash Earnings reported, we see significant opportunity from a value perspective. At its current price level, GRMN is 42% 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 2.09%. The highest dividend yield from GRMN over recent history was 5.26% while the lowest dividend yield was 0.00%. It is never a good sign for a company to pay significantly lower dividends, in this case 20.53% below the median yield. Although, dividends are a relatively small portion of our analysis framework, we still see this as a negative factor.
Garmin Limited Dividend News from Mad Money
Dividends are a management decision and can be seen as a signal of strength or weakness depending on the latest news. RazorWire captured a discussion of GRMN's dividends recently on Mad Money.
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Learn About RazorWire?Garmin Limited Dividend News from Squawk On The Street
Dividends are a management decision and can be seen as a signal of strength or weakness depending on the latest news. RazorWire captured a discussion of GRMN's dividends recently on Squawk On The Street.
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. Our valuation of GRMN has become less favorable recently, and we have seen it necessary to downgrade the stock. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on GRMN. 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.
“… GARMIN is up 2. 5%, increasing its dividend by 1% from $1. 50 from 75 cents. Also, watch polycom, plcm the ticker. It has a video conferencing pact. Stock's up about 8%. …”
Income Investors: A Discussion of GRMN and Dividends on Squawk On The Street
Dividends are a management decision and can be seen as a signal of strength or weakness depending on the latest news. RazorWire captured a discussion of GRMN's dividends recently on Squawk On The Street.
The Motley Fool CAPS crowd believes this stock will perform generally in line with the benchmark, or in other words the crowd is neutral. Due to deterioration in our valuation, we downgraded GRMN as of Saturday, March 06, 2010. Garmin Limited receives our Fairly Valued rating in our latest report because the current price does not seem out of line with the fundamentals. 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.
“… GARMIN is increasing its dividend. We've talked about many companies raising dividends. GARMIN is up 100% from $1. 50 from $0. 75. > > thanks very much, scott. …”
News Developing on National Post Network Blogs for GRMN
Garmin Limited is one of the thousands of companies that Ockham has news analytics on, and it was recently discussed on National Post Network Blogs.
When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Garmin Limited has been talked about more than normal recently. Our valuation of GRMN has become less favorable recently, and we have seen it necessary to downgrade the stock. 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. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on GRMN.
“… "GARMIN is the largest [original equipment manufacturer] of these products in the world," he said. Investors liked the move enough to drive shares in the company up as much as 18% ... …”
RazorWire has Detected News About GRMN on National Post Network Blogs
Staying informed on the news is invaluable for investors, and RazorWire has captured a recently discussion on GRMN from National Post Network Blogs.
In comparison to the other stocks that we follow, Garmin Limited has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. The Ockham valuation currently has a Fairly Valued stance on GRMN because it trades within the price range that we would expect given current market conditions and fundamentals. We have recently (Saturday, March 06, 2010) downgraded this stock due to deteriorating fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards GRMN and think that it will generally perform in-line with the S&P 500.
“… Bullock said GARMIN will not need to modify its existing products, which allows for the quick move to market. He expects Intermap mapping to expand to GARMIN's North ... …”
Discussion of Debt at GRMN on Naked Capitalism
At Ockham, we look to make sure that any debt taken on by a company corresponds directly to increases is sales. Take a look at RazorWire for the latest on GRMN's debt from Naked Capitalism.
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. When looking at our entire coverage universe and ranking stocks by the attention they receive on RazorWire, it is clear that Garmin Limited has been talked about more than normal recently. Our valuation of GRMN has become less favorable recently, and we have seen it necessary to downgrade the stock. After factoring in the current fundamentals versus their historically normal ranges, we have established a Fairly Valued stance on GRMN.
“… Analysis released by Leverage World, a publication of debt research firm GARMAN Research, showed that companies that have issued debt at a coupon rate of 8%, as is typical for ... …”
Does Garmin Limited Have a Debt Issue? See the Report from Zero Hedge
In the aftermath of the credit crisis, debt is a key area investors should understand. A recent news story on Zero Hedge talks about GRMN's debt load.
The Ockham valuation currently has a Fairly Valued stance on GRMN because it trades within the price range that we would expect given current market conditions and fundamentals. Our sentiment indicator, provided through the Motley Fool CAPS survey, suggests that investors are neutral overall towards GRMN and think that it will generally perform in-line with the S&P 500. In comparison to the other stocks that we follow, Garmin Limited has seen more discussion in relation to its normal ranking among the group. Be aware that the news sources we track are focusing on this stock more often these days. We have recently (Saturday, March 06, 2010) downgraded this stock due to deteriorating fundamentals.
“… Analysis released by Leverage World, a publication of debt research firm GARMAN Research, showed that companies that have issued debt at a coupon rate of 8%, as is typical for ... …”
Power Lunch Has News on GRMN
The latest news on Power Lunch in regards to GRMN came through on RazorWire recently.
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. 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.
“… dennis GARMIN, what role does it play according to the cftc and the euro in terms of how it actually plays and the danger for the individual investor if there is a danger, to be ... …”
Look Out for Garmin Limited: Its Very Active in the News
We are observing a lot of attention being paid to GRMN in the news, so if you hold the stock you may want to take a look at what is going on.
A significant sell off of $2.03 is underway right now, so investors in GRMN should pay close attention to the news. 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. Based on our methodology, Garmin Limited should hold some appeal to value investors as we view it as Undervalued.
“… The outlook is up over 10% and what's interesting today is GARMIN to me, jim, because they said they were raising their outlook and everyone is so worried about apple and google ... …”
Squawk On The Street: GRMN is Among Most Active Stocks in the News Today
Something important is going on with GRMN today, as it is getting a lot of attention on business television and influential blogs.
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 $32.08. 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. Please be aware that GRMN is trading off $2.37 today, and is clearly being affected by the latest news.
“… GARMIN stock has been volatile it started off to the upside because it did boost guidance for the first quarter but when you look past that headline it. …”