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Is this Large Market Cap Stock target price reasonable for Garmin Ltd. (NASDAQ:GRMN)?

The company in question is, Garmin Ltd. (NASDAQ:GRMN) currently with a stock price of 54.99 (0.13% today). The market cap for Garmin Ltd. is 10434.25, and is in the sector Technology, and Scientific & Technical Instruments industry. The target price for Garmin Ltd. is 48.83. Currently Garmin Ltd. is trading with a P/E of 20.82, and a forward P/E of 21.48. Average volume for Garmin Ltd. is 999.54 and so far today it is 341652.

Performance in the last year for Garmin Ltd. has been 42.25%. For EPS growth, Garmin Ltd. has seen a growth of 27.30%, and is looking to grow in the next year to 1.31%. More long term stats show that EPS growth has been -4.20% over the last five years and could be 7.35% for the next five years. Garmin Ltd. has seen sales growth quarter over quarter at 4.90%, with EPS growth quarter over quarter at 18.30%. The 20-day simple moving average is 22.83%, with the 200-day simple moving average coming to 40.90%.

Since the IPO date for Garmin Ltd. on the 12/8/2000, Garmin Ltd. has seen performance year to date to be 51.51%. With Garmin Ltd. trading at 54.99, the dividend yield is 3.71%, and the EPS is 2.64.

So could Garmin Ltd., be undervalued? Well as said before P/E is 20.82. The PEG is 2.83, P/S is 3.6 and the P/B is at 3.22. The P/cash is 9.9, with P/free cash flow at 91.61.

Garmin Ltd. ability to deal with debt shows that the current ratio is 2.2, and the quick ratio is 1.7. This is with long term debt/equity at 0, and total debt/equity at 0.

In terms of margins, Garmin Ltd. has a gross margin of 54.50%, an operating margin of 19.90% and a profit margin of 17.30%.Payout ratio for Garmin Ltd. is 77.20%. Return on assets come to 11.20% with return on investment coming to 13.10%.

Insider ownership for Garmin Ltd., is at 0.30% and institutional ownership comes to 40.20%. Outstanding shares are at 189.99. While shares float is 101.42. The float short is currently 9.65%, and short ratio is 9.79.

Disclaimer: Remember there is a risk to your investment, this is not a recommendation, nor personal advice, never invest more than you are able too loose.

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Stephen Butters

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