Garmin Hits an All-Time High

Garmin (GRMN) has beat analyst expectations in Q4 as well as for the year in terms of revenue. Investors of Garmin were happy to hear that it hit its record high revenue which has helped the stock double over the past 12 months.

GRMN boasted a 40% jump in its EPS as well as a 23% jump in revenue compared to the previous year which helped it achieve a staggering 6.3 billion in yearly revenue. 

Notable Facts

According to Investopedia, "the gains came as sales grew 31% at Garmin's fitness division, 30% at its auto OEM segment, and 29% at its outdoor segment, trailed by a 9% rise in aviation, and 5% climb in its marine division". This is important to digest because it shows that not only is Garmin growing but also expanding.

Should You Invest?

As always, do your own research. I believe GRMN would make a pretty good investment to add to your long-term portfolio. I actually have a good friend who works at the company and just how they treat their employees is telling of their integrity and how they are as a company. Looking past that, their numbers speak for themselves. They are doing very well for themselves and have been beating expectations. Their CEO has also stated that a lot of their success stems from the fact they have such a diverse product range. I think as companies go on, they need to expand, and Garmin seems to be doing well in that sector. 

When we dig a bit into the numbers, we can see that:

PE Ratio: 31.69.
ROE: 22%

Looking at these numbers we have 2 things to see. The PE ratio is a bit higher than what is considered normal so the stock may be considered "overvalued". This is not a 100% tell-tale sign because the company is growing rapidly so it could also just be that. The next thing we see is the ROE. The industry average is 13% so anything more is good because they are basically making even more money per $1 invested.

I think GRMN is definitely a stock to research and learn more about. A lot of the world is going more digital, and they seem to be open to expansion. I could see this stock making a lot of long-term investors happy.