Based on the aggregated intelligence of 115,000 investors participating in Motley Fool CAPS, the Fool's free investing community, navigation device maker Garmin (Nasdaq: GRMN ) has earned a respected four-star ranking. While five-star stocks have been the best performers, our data has shown that four-star stocks still outshine the market by a significant margin and shouldn't be taken lightly; conversely, low-rated stocks have woefully lagged the market average.
With that in mind, let's take a closer look at Garmin's business and see what CAPS investors are saying about the stock right now.
Garmin facts
| Headquarters (Founded) |
Camana Bay, Cayman Islands (1990) |
|
Market Cap
|
$8.01 billion
|
|
Industry
|
Consumer electronics
|
|
TTM Revenue
|
$3.52 billion
|
|
Management
|
CEO Min Kao (since 2002);
COO Clifton Pemble (since 2007)
|
|
Return on Equity (avg. past three years)
|
39.3%
|
|
CAPS members bullish on GRMN also bullish on
|
Google (Nasdaq: GOOG ) ,
General Electric (NYSE: GE ) ,
Nuance Communications (Nasdaq: NUAN )
|
|
CAPS members bearish on GRMN also bearish on
|
General Motors (NYSE: GM ) ,
Ford Motor (NYSE: F ) ,
Circuit City Stores (NYSE: CC )
|
Sources: Capital IQ, a division of Standard & Poor's, and Motley Fool CAPS. TTM = trailing 12 months.
Over on CAPS, fully 1,093 of the 1,149 All-Star members who have rated Garmin -- or 95% -- believe the stock will outperform the S&P 500. These All-Star bulls include jnifer4 and sandvig, both of whom are ranked in the top 10% of our community.
In March 2007, jnifer4 reminded our community that Garmin "is one of the most recognized names in the world of Global Positioning Systems (GPS). GPS units are no longer exclusively for the military. ... These days we can get a GPS unit placed into everything from our cell phones to our cars and lots more."
A more recent pitch from sandvig three months ago elaborated on that bullish reasoning, noting Garmin's growth and value characteristics:
This is a good entry point for a very good company. I believe the shares are way underpriced.
They have a wonderful return on equity of 35%; they have a low P/E of 10.57; they have no debt and outstanding growth. They have the competitive advantage of being the market leader.
Their product has a wide range of applications and users. Their customers are basically anyone who wants to know where they are. That is a big group of prospects.
They also appeal to sports enthusiasts who want to track or improve performance. You see their products tied to runner's shoes, clipped to bicycles, and used by golfers to calculate the distance to the hole. I think that broad range of applications gives them some protection of diversification.
What do you think about Garmin, or any other stock for that matter? Make your voice heard on Motley Fool CAPS today. More than 115,000 investors are waiting to hear what you have to say. CAPS is 100% free, so simply click here to get started.
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