Garmin Ltd Stock Price Forecast: Market Performance and Future Growth
Garmin Ltd. is a multinational technology company headquartered in Olathe, Kansas, USA, with its legal domicile in Schaffhausen, Switzerland. The company designs, develops, manufactures, markets, and distributes a range of wireless devices, including GPS receivers, avionics, wearable technology, and fitness equipment. Garmin serves various industries, including aviation, marine, automotive, outdoor, and fitness.
Garmin Ltd Financial Performance
As of 2023, company reported revenues of $5.23 billion, an operating income of $1.09 billion, and a net income of $1.29 billion. The company’s total assets were valued at $8.60 billion, and total equity stood at $7.01 billion. Garmin also announced a dividend of $0.75 per share for the year, with an annual dividend yield of 1.8%.
Garmin Ltd Stock Performance
Garmin’s stock (NYSE: GRMN) is currently trading at $167.58, with a market cap of $32.21 billion. Over the past 52 weeks, the stock price has ranged from $99.61 to $184.42. The company’s P/E ratio is 23.47, and it has a forward dividend yield of 1.79%.
Investment Insight
The company boasts a high investment rating, making it a compelling addition to your portfolio. Historically, the stock’s CAGR has been around 33%. However, we foresee more sustainable and realistic growth moving forward. This strong investment rating is backed by the company’s robust profitability, stable cash flow generation, and consistent growth.
Price forecast
MIN/MAX | 2024 | 2025 | 2026 | 2027 | 2028 |
---|---|---|---|---|---|
MIN | 124.77 | 134.36 | 144.69 | 155.81 | 167.79 |
MAX | 180.18 | 194.04 | 208.95 | 225.01 | 242.31 |
When to buy?
As of now, the stock price is hovering close to its historical highs, despite a slight correction. For potential new investors, it might be prudent to wait for a more substantial pullback. However, current shareholders could consider adding to their positions even at this level, given the company’s strong fundamentals.
Dividend Policy
Garmin Ltd. has a quarterly dividend policy, with dividends paid out every three months. The company recently announced a dividend of $0.75 per share for the year, resulting in an annual dividend yield of 1.8%. The dividend is well-covered by both cash flow and earnings, indicating a sustainable payout ratio of around 42%.
Garmin’s dividend has been remarkably stable over the years, growing from $1.80 annually in 2014 to $3.00 in recent years. The next ex-dividend date is March 14, 2025.
Conclusion
At the time of writing, Garmin’s stock price is close to its historical highs, showing robust performance. However, potential new investors might want to wait for a more substantial correction before entering. The forecast suggests a possible 10% price increase, supported by Garmin’s strong fundamentals and consistent dividend yield, which aligns with the average S&P 500 yield.