Buffett Brain · Research note
Score updated 29 Oct 2026 · analysis from 3 Jul 2026
GRMN· Technology
Garmin
Garmin's 17% ROIC and 26% operating margin indicate solid performance, but the high valuation raises concerns about future returns.
Buffett fit
Partial fit
Owner
69
Durability
85
Management
78
Price
24
Score updated 29 Oct 2026 · analysis from 3 Jul 2026
Buffett's checklist
Each number against Buffett's bar, and where it ranks among Technology stocks in our database.
How much profit the business makes on each dollar invested in it. Higher is better.
What is left of each sale after the cost of making the product. A high number often means pricing power.
The cash the business earns for its owners, compared with the price of the whole company.
How fast sales grew each year over the last five years.
How many years of today's profit you pay for at today's price. Lower means cheaper.
How much the company owes compared with what it owns outright. Lower is safer.
The four pillars
How the business measures up on each of Buffett's four tests.
If I owned 100% of Garmin, I would focus on maintaining its strong brand and exploring new product innovations to drive growth.
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Garmin's business has shown resilience with consistent profitability over the last 5 years, and its 5-year EPS max decline of only -10.12% indicates strong durability.
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Garmin's share count has remained relatively flat over the last 5 years, with a CAGR of only 0.04%, indicating a lack of aggressive .
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With an yield of 2.97% and a of 26.4, Garmin's valuation appears stretched compared to Buffett's preferred 8-10% yield.
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- The 5-year price target and the return it implies
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For and against
The strongest points on each side, with the numbers behind them.
In its favor
5- 1 of 17.1% exceeds the sector top-quintile cutoff of 13.3%, indicating strong capital efficiency.
- 2 of 26.5% is well above the sector top-quintile of 17.9%, showcasing operational strength.
- 3Net margin of 23.3% ranks in the top quintile for the sector, reflecting effective cost management.
- 4Consistent revenue growth with a 5-year CAGR of 9.81%, indicating a solid demand for products.
Concerns
5- 1 of 59.1% is below the sector top-quintile cutoff of 61.0%, suggesting pricing pressure.
- 2 of 26.4 is high relative to the yield of 2.97%, indicating potential overvaluation.
- 3Interest coverage ratio is reported as 0.0, which raises concerns about financial flexibility.
- 4 conversion of 0.82 indicates that not all reported net income is translating to cash flow.
Price history
$280+96.9%· 5-year return
Weekly closing prices. Touch or hover the line for a date.
The business
How the business works
Garmin generates revenue through various segments including Fitness, Outdoor, Aviation, and Marine, with TTM revenue of $7.25B. The Fitness segment, which includes smartwatches and accessories, is a key growth driver. The business model is robust, with a focus on innovation and quality. Overall, Garmin's unit economics appear strong, supported by diverse revenue streams.
How this analysis has moved
The call has held across 6 reviews.
Sep 27, 2026 → Oct 29, 2026
What other investors would say
The same company, judged by three other documented playbooks.
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