Garmin Ltd. (GRMN)

Every smart phone has navigation included. I recently played with a Nuviphone. Not only is it expensive, but the interface is terrible. Iphone and blackberry and Droid kill it. I don't know how Garmin will continue to grow. They have some cash, but smart phone makers move much more quickly to introduce new technology than Garmin. I think they are a one trick pony.

GRMN is currently a very good looking company. they are selling more and becoming more efficient in their operations. They have FCF and are held heavily by insiders. However, much of their revenues do come from small portable GPS systems. As cell phones applications become cheaper and cell phone technology becomes more robust, many potential Garmin users may turn to cell phone applications with turn by turn directions. It will be hard for Garmin to sustain in the future marketplace.

Let us assume for a minute that the company won't grow at all in the future. It is trading at ~4x working capital, and about 2x book. Not bad for a technology company. Then it is trading at 7x Q3 earnings (about 10x TTM). Most tech stocks trade at 15-25x earnings.

If this looks undervalued without growth imagine what it will look like with it. Long term EPS growth expectations are roughly 13%.

Add in that Christmas sales are just around the corner and I think we have ourselves a winner.

Garmin is an excellent company that's exceptionally well priced right now.

1. Trading at a 9.8 P/E for a tech company
2. Excellent liquidity with current/quick ratio well above two
3. Improving margins

Yes, we know, the Nuviphone will have a hard if not impossible time competing against products such as the iPhone, Droid, HTC, Storm, did I mention iPhone? However, we cannot ignore the fundamentals with Garmin. They're still producing excellent products. As of now, smartphones will be unable to fully replace the functionality and features of an actual GPS unit.

one word: google

Navigator? What is that?

This company is well diversified in marine, aviation, auto, and outdoor GPS. Even if phone sales break even, they will continue to grow. International phone sales will likely be better than USA. Recent huge drop not justified without knowing earnings and guidance, due out next week.

RIP - killed by google. murder in the 1st.

Leader in GPS systems. GPS will become standard in every car.

it is difficult to compete with googles free navigation

Future doesn't seem to bright. Google is coming out with a free turn by turn nav app.

Garmin phone is also a failure.

Financials, diversity, market share & inside ownership say hold on for the long term.

While the stock appears cheap, the contracting margins and the expensive foray into the cell phone business will keep the stock price depressed. This company is just fighting against the wave that is the GPS commoditization.

I haven't looked at there numbers, I don't know how sales are doing, this is purely based on the Nuvifone. What a disappointment! Two years ago it might have had a chance but not today. The product is getting horrid reviews and is plagued with problems......

Garmin makes great standalone GPS's, but this one is going to give them indigestion. They didn't want to develop for the iPhone or Android, they wanted to be different and release there own device and I respect that. However, then they need to compete with the others in price, features and quality. In this case they failed on all accounts. Sorry but this was a big mistake.

Why would I need a Garmin GPS device when I can get one in my iPhone, blackberry, palm etc?

It seems like this company's business is being commoditized, bad for Garmin good for customers who want to use their iPhone, blackberry, palm as a GPS device too.

Mmm...GPS...

great products

Solid product and lots of need

Will follow cyclical consumer spending and economic growth, which may or may not be substantial.