Garmin Ltd Intrinsic Value – Garmin Beats Earnings and Revenue Estimates by Narrow Margin
May 5, 2023
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The company’s Non-GAAP EPS of $1.02 exceeded expectations by $0.01, while revenue of $1.15B was higher than expected by $60M. Garmin Ltd ($NYSE:GRMN) is an American technology company primarily known for producing global positioning system (GPS) products. Garmin also provides software services designed to connect customers with various navigation systems.
Earnings
In the latest earnings report of FY2022 Q4 ending December 31 2022, GARMIN LTD reported total revenue of 1306.36M USD and net income of 293.27M USD, exceeding analysts’ estimates by a narrow margin. Compared to the same period of last year, the company saw a 6.1% decrease in total revenue and a 2.5% increase in net income. Over the last three years, GARMIN LTD’s total revenues have declined from 1351.4M USD to 1306.36M USD.
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 |
| 4.84k | 964.32 | 19.9% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Garmin Ltd. More…
| Operations | Investing | Financing |
| 881.84 | -17.14 | -909.59 |
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 |
| 7.73k | 1.32k | 33.46 |
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 |
| 7.9% | 0.8% | 20.6% |
| FCF Margin | ROE | ROA |
| 13.4% | 9.9% | 8.1% |
Share Price
Stock prices opened at $96.0 and closed at $100.1, finishing the session up 3.0% from the last closing price of 97.2. The results showed that the company was able to meet the earnings and revenue estimates despite challenging market conditions. The market sentiment was positive and investors responded accordingly, pushing the share price higher. Investors are hoping that this positive momentum will continue in the coming quarters as GARMIN LTD looks to capitalize on its strong performance. Live Quote…
Analysis – Garmin Ltd Intrinsic Value
We have conducted an analysis of GARMIN LTD‘s wellbeing and determined the intrinsic value of its share to be around $123.1. This was calculated using our proprietary Valuation Line, which takes into consideration the company’s financials, industry factors and other relevant variables. At the moment, the stock is trading at $100.1, which reflects a fair price that is undervalued by 18.7%. This presents a potentially lucrative opportunity for investors to purchase GARMIN LTD shares at a discounted rate. More…
Peers
Its competitors include NetApp Inc, Jiangsu Leike Defense Technology Co Ltd, and Red Cat Holdings Inc.
– NetApp Inc ($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 results showed EPS of $1.02, beating analysts’ expectations by $0.01. Furthermore, revenue was reported to be $1.15B, beating analysts’ estimates by $60M. On the back of these results, the stock price of GARMIN LTD rose the same day.
This is a positive sign, as it shows investors confidence in the company’s financial performance. Looking forward, investors should keep an eye on the company’s progress in the markets it operates in and its ability to develop innovative products that meet customer demands.
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