Garmin Ltd Intrinsic Value – GARMIN LTD Reports Strong 2nd Quarter Earnings for FY2023
August 25, 2023
☀️Earnings Overview
On August 2 2023, GARMIN LTD ($NYSE:GRMN) announced their financial results for the second quarter of FY2023, with total revenue of USD 1320.8 million, a 6.4% increase from the same period in the prior year. Net income for the quarter totaled USD 287.9 million, which represented an 11.7% year over year rise.
Share Price
On Wednesday, GARMIN LTD reported strong 2nd quarter earnings for FY2023. The company’s stock opened at $105.5 and closed at $107.7, up by 1.3% from last closing price of 106.4. This marks the highest close since the beginning of the fiscal year, signaling a positive outlook for the company. The strong performance was attributed to the company’s expanding foothold in the fitness-tracking market. GARMIN LTD has released several new products, such as its VivoActive 4 smartwatch and Vivosmart 4 activity-tracker, which have experienced strong consumer demand.
Additionally, the company recently released its Connect IQ app store, which allows customers to choose from a variety of fitness apps and accessories designed specifically for their Garmin devices. Overall, GARMIN LTD appears to be in a strong financial position heading into the second half of FY2023. With its innovative products and strong customer base, the company looks well-positioned to take advantage of the growing wearable technology market. Investors should watch GARMIN LTD’s stock performance in the upcoming months closely as a sign of what lies ahead for the company in FY2023 and beyond. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Garmin Ltd. More…
| Total Revenues | Net Income | Net Margin |
| 4.92k | 994.39 | 19.6% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Garmin Ltd. More…
| Operations | Investing | Financing |
| 1.08k | 181.9 | -920.65 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Garmin Ltd. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 7.87k | 1.75k | 31.99 |
Key Ratios Snapshot
Some of the financial key ratios for Garmin Ltd are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 9.3% | 3.0% | 20.1% |
| FCF Margin | ROE | ROA |
| 17.6% | 9.9% | 7.8% |
Analysis – Garmin Ltd Intrinsic Value
At GoodWhale, we have recently conducted an analysis of GARMIN LTD‘s wellbeing. Our proprietary Valuation Line has determined that the fair value of GARMIN LTD shares is around $121.1. However, the current stock price is lower at $107.7, making it a fair price that is 11.0% undervalued. This presents a great opportunity for potential investors to capitalize on the buying opportunity at hand. More…
Peers
Its competitors include NetApp Inc, Jiangsu Leike Defense Technology Co Ltd, and Red Cat Holdings Inc.
– NetApp Inc ($NASDAQ:NTAP)
NetApp Inc is a American multinational storage and data management company headquartered in Sunnyvale, California. It is a member of the NASDAQ-100 and S&P 500. The company was founded in 1992 with an initial public offering in 1995. NetApp offers a wide range of products and services for enterprise storage, including software-defined storage, flash storage, converged systems, data management, and more. The company has a market cap of $14.66B as of 2022 and a Return on Equity of 100.42%.
– Jiangsu Leike Defense Technology Co Ltd ($SZSE:002413)
Jiangsu Leike Defense Technology Co Ltd is a Chinese company that specializes in the development and manufacture of defense products. The company has a market cap of 6.76B as of 2022 and a Return on Equity of -4.34%. Jiangsu Leike Defense Technology Co Ltd’s products include missiles, armored vehicles, and other defense products. The company is headquartered in Nanjing, China.
– Red Cat Holdings Inc ($NASDAQ:RCAT)
Red Cat Holdings Inc is a development stage company that focuses on acquiring, developing, and commercializing technology in the field of 3D printing. The company was founded in 2013 and is headquartered in Vancouver, Canada.
Red Cat has a market cap of $76.86M as of 2022 and a ROE of -11.27%. The company focuses on acquiring, developing, and commercializing technology in the field of 3D printing.
Summary
GARMIN LTD reported a strong second quarter of FY2023, with total revenue increasing by 6.4% year-on-year to USD 1320.8 million and net income up 11.7% to USD 287.9 million. The company’s performance was driven by strong demand for its products, innovative product launches, and efficient cost management strategies. For investors, GARMIN’s strong performance indicates that it is on track for continued growth and profitability. The company has positioned itself well to further capitalize on the consumer shift towards digital products, and its shares are expected to remain attractive for long-term investors.
