Garmin: Heady Multiples That Can't Be Justified

Gary Alexander33.59K FollowersFollow5ShareSavePlay(12min)CommentsSummaryGarmin has surged ~30% YTD, but I rate it a sell due to an unsustainable premium valuation amid macro headwinds.GRMN’s fitness segment is the primary growth engine, posting 33% y/y revenue growth and driving 39% of operating profit in FY25.Despite strong fitness sales, GRMN faces rising product costs, margin compression, and decelerating growth in other segments.Capital returns are increasing—dividend up 17% and a $500M buyback—but yield remains modest and buyback impact limited at current prices. NguyenDucQuang/iStock Editorial via Getty Images As we navigate a choppy stock market in 2026, stock selection remains of the utmost importance. With the S&P 500 roughly flat again since the start of the year, we can no longer count on a risingThis article was written byGary Alexander33.59K FollowersFollowWith combined experience of covering technology companies on Wall Street and working in Silicon Valley, and serving as an outside adviser to several seed-round startups, Gary Alexander has exposure to many of the themes shaping the industry today. He has been a regular contributor on Seeking Alpha since 2017. He has been quoted in many web publications and his articles are syndicated to company pages in popular trading apps like Robinhood.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.