GRMN Value Scorecard - Garmin

Value Scorecard · run 2026-10-18

13 value checks: 12 scored 1 to 5, plus moat evidence

48/60

high value score

Earnings & returns

EPS Trend

5/5

Diluted EPS: $5.04 (2022), $6.71 (2023), $7.30 (2024), $8.59 (2025). It rose every year; the framework scores that as 5.

ROE Trend

4/5

ROE (net income / common equity): 15.7% (2022), 18.4% (2023), 18.0% (2024), 18.5% (2025). Median 18.2%, lowest 15.7%; the framework scores a median 15-20% as 4.

ROIC

5/5

ROIC of 20.2%: operating income of $1.88B divided by $9.27B of capital (total assets $10.99B minus current liabilities $1.72B), fiscal year to Dec 27, 2025, as filed in the 10-K (SEC EDGAR). The framework scores above 20% as 5.

Profit Margins

5/5

Net margin of 24.5%; the framework scores above 20% as 5; gross margin 60.1%, operating margin 30.4%.

Balance sheet & cash

Debt-to-Equity

5/5

Net cash: total debt $226.86M, total cash $2.67B. The framework scores a net cash position as 5.

Free Cash Flow

5/5

Free cash flow (operating cash flow minus capital expenditure): $543.97M (2022), $1.18B (2023), $1.24B (2024), $1.36B (2025). It rose every year; the framework scores that as 5.

Retained Earnings

5/5

Retained earnings, as filed in the 10-Ks (SEC EDGAR): $4.73B (2022), $5.26B (2023), $6.00B (2024), $6.97B (2025). It rose every year; the framework scores that as 5.

Valuation models

Graham IV

4/5

IV = EPS x (8.5 + 2g) x (4.4 / Y) = $9.69 x (8.5 + 2 x 13.1) x (4.4 / 4.5) = $328.77. Current price $284.79; price is 13.4% below the model value.

DCF Value

1/5

FCF/share = $5.412, stage 1 growth = 17.7% for 5 years, terminal growth = 3%, discount rate = 10%. Stage 1 PV = $33.30, PV of terminal value = $111.68, DCF value = $144.98. Current price $284.79; price is 96.4% above the model value.

Margin of Safety

3/5

Graham value $328.77 (price is 13.4% below the model value); DCF value $144.98 (price is 96.4% above the model value).

Price-to-Book

1/5

P/B of 6.08; the framework scores above 5.0 as 1.

Business quality

Moat Evidence

Not scored

A moat (a brand, a network, switching costs, patents, scale, a licence) is not a number in the filings, so Valerius doesn’t score it. Below are the figures and the words moat analysis starts from, from the company’s own 10-K filings. The conclusion is yours.

Return on capital, each year

Above 15% in 9 of 10 years (2016-2025); lowest 15.0%, highest 20.2%.

Gross margin, each year

Between 55.9% and 59.5% over 10 years (a range of 3.6 points).

Competition, in the company’s own words · 10-K filed Feb 18, 2026

Garmin operates in highly competitive markets, though competitive conditions vary among the diverse target markets and geographies. Garmin believes the principal competitive factors impacting the market for its products are design, functionality, quality and reliability, customer service, brand, price, time-to-market and availability. Garmin believes that it generally competes favorably in each of these areas and as

The opening of the company’s “Competition” section in its 10-K, quoted word for word, not summarized or edited. It is the company’s own description, not Valerius’s view, and may include the company’s expectations. Open the filing.

Return on capital = operating income / (total assets − current liabilities), the ROIC row’s definition; 15% is the framework’s return threshold. Gross margin = gross profit / revenue. Both from each year’s 10-K via SEC EDGAR. Moat analysis commonly looks at whether returns and margins held up over many years. These figures don’t say whether the company has an advantage, what it is, or whether it will last.

Capital Allocation

5/5

Capital allocation, 2022-2025: dividends or buybacks paid in every year (pass); $3.02B paid out against $4.33B of free cash flow (pass); total debt $114.54M to $164.84M, up 43.9%, 0.1x EBITDA (pass: at most 2x EBITDA); shares outstanding 0.19B to 0.19B, up 0.5% (pass). 4 of 4 tests passed; the framework scores that as 5.

Filings

Company notices to the SEC

Not scored

Three kinds of event the company reported to the SEC in the last 5 years, from its filings on SEC EDGAR.

These are events the company reported to the SEC. An auditor change or a late filing can have many causes; each date links to the filing, where the company explains it. Valerius does not score these.

How the Graham and DCF values were calculated

  Graham Formula:
    IV = EPS x (8.5 + 2g) x (4.4 / Y)
    EPS = $9.69, g = 13.1%, Y = 4.5
    IV = $328.77
    Current price $284.79 vs Graham value $328.77 — price is 13.4% below the model value.

  DCF:
    FCF/share = $5.412
    Stage 1 growth = 17.7% for 5 years | terminal growth = 3.0% | discount rate = 10.0%
      Y1: $6.369 → PV $5.790
      Y2: $7.497 → PV $6.196
      Y3: $8.824 → PV $6.629
      Y4: $10.386 → PV $7.093
      Y5: $12.224 → PV $7.590
    Stage 1 PV sum = $33.30
    Terminal value at end of Y5 = $179.86
    PV of terminal value = $111.68
    DCF value = $144.98
    Current price $284.79 vs DCF value $144.98 — price is 96.4% above the model value.

Data from yfinance summary figures and financial statements, and from the company’s 10-K filings via SEC EDGAR; computed at a price of $284.79. Every score is calculated from the figures by the framework’s fixed rules, and the explanation beside it is generated from the same figures: Graham value, DCF value, margin of safety, ROIC, profit margins, debt-to-equity, price-to-book, EPS trend, ROE trend, free cash flow, retained earnings and capital allocation. No AI is involved in this scorecard. The moat is shown as evidence, without a score. Read each score with the figures beside it. Intrinsic value calculations are model outputs based on stated assumptions, not predictions.

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