Based on the aggregated intelligence of 165,000-plus investors participating in Motley Fool CAPS, the Fool's free investing community, navigation device maker Garmin (Nasdaq: GRMN) has received a distressing two-star ranking.

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

$6.36 billion


Consumer electronics

Trailing-12-Month Revenue

$2.94 billion


CEO Dr. Min Kao (since 2002)

CFO Kevin Rauckman (since 2000)

Compound Annual Revenue and Net Income Growth (Over Past 2 Years)

(6.3%) and (10.4%)


$1.31 billion / $0

1-Year Return




Google (Nasdaq: GOOG)

Apple (Nasdaq: AAPL)

Sources: Capital IQ (a division of Standard & Poor's) and Motley Fool CAPS.

On CAPS, 7.6% of the 5,151 members who have rated Garmin believe the stock will underperform the S&P 500 going forward. These bears include dougfunk and WPThatcher.

Just last month, dougfunk tapped the stock as a not-so-smart opportunity: "Garmin and other GPS companies are really going to start hurting with all of the newer smart phones being equipped with turn-by-turn directions."

A secular decline in demand for personal navigation devices continues to hurt Garmin. With giants like Apple, Google, and Research In Motion continuing to improve the turn-by-turn directions and GPS-enabled features offered in their smartphones, our community just doesn't see those trends reversing anytime soon. Garmin remains a rock financially, but as CAPS member WPThatcher writes, its growth prospects just aren't as bright as they once were:

Without a doubt, Garmin is the industry leader and is gaining in Asia and Europe in particular. They have a great balance sheet. I am worried by the decreased operating margins of Q1 of this year. I am also worried by their determination to make an acquisition. Don't make a move to just to make a move, unless there's an outstanding value somewhere. Why not increase the cash pile? If they must do something, they should increase the dividend or do another share buyback. To make a long story short, there are better places to put one's money than a company in a fairly mature market where Google is eating away at the margins.

What do you think about Garmin, or any other stock for that matter? If you want to retire rich, you need to protect your portfolio from any undue risk. Staying away from dangerous stocks is crucial to securing your financial future, and on Motley Fool CAPS, thousands of investors are working every day to flag them. CAPS is 100% free, so get started!

Fool contributor Brian Pacampara owns no position in any of the companies mentioned. Google is a Motley Fool Rule Breakers recommendation. Apple is a selection of Stock Advisor. The Fool's disclosure policy always gets a perfect score.