$Garmin (GRMN.US)$In the analysis on 9th August 2022, it was...

Swiss company listed in 2000, mainly engaged in navigation and wearable business, operating in global markets, with the current price of 162.66.

Over the past 5 years, revenue has grown for 4 years excluding 2022, with an average growth rate of 9.3%. Operating profit had an average growth rate of 7%. In 2023, it was lower than the peak in 2021. The net profit had an average growth rate of 13.2%, however, the net profit in 2023 was affected by gains from the sale of securities and tax refunds, impacting about 10% of net income. In recent years, there has only been interest income without interest expenses. The gross margin decreased from 59.5% to 57.5% in the past 5 years, while the net margin dropped from 25.4% to 20% and then recovered to 24.7%. The return on net assets decreased from 21% to 16% but then recovered to 19.5%.

In Q1 of 2024, revenue grew by 20.4%, operating profit increased by 51.5%, and net profit increased by 36.4%.

Over the past 5 years, the asset-liability ratio decreased from 22.3% to 18.5%, with significant growth in total assets and net assets. The proportion and growth rates of accounts receivable and inventory are relatively normal. Goodwill and other intangible assets amount to 0.8 billion, accounting for 11.4% of the 7 billion net assets, with no interest-bearing liabilities. Treasury stock is at 0.331 billion.

Currently, the cash reserve is nearly 2 billion, with no liquidity risk.

Over the past 5 years, operating cash flow has been significantly higher than investment cash flow, resulting in a high shareholder surplus ratio.

The current PE ratio is 24.2, and the trailing PE ratio is 22.9. The valuation is within a reasonable range, considering the very outstanding long-term performance, careful selection is advised (⭐️).