Garmin Ltd Intrinsic Value Calculation – Alaska Department of Revenue Decreases Stake in Garmin Ltd. by 30.1% in Third Quarter
October 31, 2024
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Garmin Ltd ($NYSE:GRMN). is a multinational technology company that specializes in producing GPS navigation and wearable technology products. The company is known for its high-quality, reliable devices that are used by a wide range of consumers, from hikers and runners to pilots and boaters. Recently, it was reported that the Alaska Department of Revenue has decreased its stake in Garmin Ltd. by 30.1% in the third quarter. This news may come as a surprise to some, as the company’s stock has been performing well in the market, with a steady increase in value over the past year. The Alaska Department of Revenue is a government agency responsible for managing the state’s revenue and overseeing its investments.
However, according to filings with the Securities and Exchange Commission, the department decreased its ownership in the company by over 30% in the third quarter. Some analysts speculate that the decrease in stake could be due to a change in investment strategy or a need for liquidity. It is also worth noting that other institutional investors have also decreased their stake in the company in recent months. Despite this decrease in ownership, Garmin Ltd. continues to show strong financials and growth potential. The company also announced that it expects full-year revenue to exceed its initial guidance. In conclusion, while the decrease in stake by the Alaska Department of Revenue may raise some concerns, it should not overshadow Garmin Ltd.’s overall performance and potential for growth. The company remains a leader in its industry and continues to innovate and expand its product offerings, making it a promising investment option for individuals and institutions alike.
Earnings
This decision was made during the third quarter of FY2023, with the department selling off 30.1% of their existing shares in the company. This news has sparked interest and speculation among investors and industry analysts, as it could potentially impact the company’s performance and financial outlook. According to Garmin Ltd.’s latest earnings report for the fourth quarter of FY2023, which covers the period up to December 31, 2021, the company recorded a total revenue of 1391.59 million USD. This represents a 6.5% increase compared to the previous year’s revenue.
However, the net income for the quarter was 286.14 million USD, showing a 2.4% decrease from the previous year. These figures indicate that while the company’s overall revenue has been on the rise, their profitability has slightly decreased. One noteworthy aspect of Garmin Ltd.’s performance is their consistent growth in total revenue over the last 3 years. In fact, their total revenue has increased from 1391.59 million USD to 1482.5 million USD during this period. This further highlights the company’s strong financial standing and their ability to generate steady income. With the Alaska Department of Revenue reducing their stake in Garmin Ltd., investors may be concerned about the impact this could have on the company’s stock value and future earnings. It is unclear at this point what prompted this decision by the department or how it may affect Garmin Ltd.’s operations. However, it will be important to closely monitor any developments in the coming months to assess the implications of this stake decrease.
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 |
| 5.23k | 1.29k | 24.2% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Garmin Ltd. More…
| Operations | Investing | Financing |
| 1.38k | -332.97 | -636.51 |
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 |
| 8.6k | 1.59k | 36.56 |
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 |
| 7.7% | 1.2% | 20.9% |
| FCF Margin | ROE | ROA |
| 22.6% | 10.2% | 7.9% |
Analysis – Garmin Ltd Intrinsic Value Calculation
As an experienced analysis firm, GoodWhale has conducted a thorough evaluation of GARMIN LTD‘s financial health. Our comprehensive analysis has taken into account various factors such as revenue, profitability, and market trends to determine the overall well-being of the company. One key finding from our analysis is that the fair value of GARMIN LTD’s shares is estimated to be around $123.1. This valuation has been calculated using our proprietary Valuation Line, which takes into consideration the company’s financial performance, growth potential, and industry benchmarks. However, we have observed that currently, GARMIN LTD’s stock is trading at a much higher price of $205.06. Based on our analysis, this indicates that the stock is overvalued by 66.6%. This overvaluation can be attributed to various factors such as market speculation, investor sentiment, and external events. In conclusion, our analysis suggests that while GARMIN LTD may be performing well financially, its current stock price may not accurately reflect its true value. As such, investors should carefully consider all factors before making any investment decisions related to this company. We will continue to monitor GARMIN LTD’s performance and provide updates on any significant changes in its valuation. More…
Peers
Its competitors include NetApp Inc, Jiangsu Leike Defense Technology Co Ltd, and Red Cat Holdings Inc.
– NetApp Inc ($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
The State of Alaska Department of Revenue has reduced its shares in Garmin Ltd. by 30.1% in the third quarter, according to recent reports. This means that the government agency has decided to decrease its investment in the company, potentially signaling a lack of confidence in its future performance. Despite this, the stock price for Garmin Ltd. actually increased on the same day, suggesting that other investors are still optimistic about the company’s prospects. This divergence in opinions highlights the complexity of investing decisions and the importance of thorough analysis before making any investment decisions.
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