Garmin

Management balances heavy organic reinvestment with disciplined shareholder returns. R&D intensity is high and strategic, supporting moats across avionics, marine, maps, and sensors.

Garmin pays a regular dividend, approved at 3.60 dollars per share for 2025, and maintains a measured buyback approach with a 300 million dollar program authorized through December 2026, 143 million dollars of which remained as of June 28, 2025. Stock-based compensation is present but moderate relative to revenue and cash flow.

M&A has been selective, with prior moves such as JL Audio adding capabilities in marine. We would like repurchases to be more valuation-sensitive, but overall capital allocation has been prudent and long-term oriented.

Quality Value Investing checklist snapshot with scores and concise rationale: Wide or Narrow Moat: 85 - Multiple durable moats strongest in aviation and marine; defendable niche in wearables. 2) High and Consistent Return on Capital: 80 - High-teens to mid-20s ROIC depending on cash treatment and segment mix; robust operating margins. 3) Revenue and FCF Growth: 80 - Multi-year revenue and FCF growth resumed strongly in 2023-2025 after normalization. 4) High Margins: 90 - ~59 percent gross and mid-20s operating margins with guidance to sustain. 5) Owner-CEO: 80 - Founder-led ethos with long-tenured CEO Clifton Pemble and significant founder influence. 6) Simplicity: 75 - Clear segment model but technical certification adds complexity. 7) Very Low Debt: 100 - No financial debt and large net cash. 8) Dilution: 80 - SBC moderate and offset by buybacks. 9) Favorable Jurisdiction: 85 - Swiss domicile, U.S. listing, strong governance. 10) Trend Alignment and Boringness: 80 - Fitness, outdoor, avionics, and marine tailwinds; not faddish. 11) Superinvestor Inspiration: 70 - High-quality cash generator but consumer-exposed elements dampen typical compounding narratives. 12) Valuation: 60 - Quality is high, but we prefer a disciplined entry multiple versus TTM FCF.