Garmin at 'Neutral' Over Stiff Competition, Despite 4.6% Dividend

Just a few years ago, Garmin (GRMN) was a popular stock with the growth investing set. Today, with an 14.6% earnings yield (8.9 P/E) and a place in the Magic Formula Investing screen, the company is firmly in value stock territory. What happened to bring this rocket stock back to earth, and have investors overreacted? For those unfamiliar, Garmin is one of the leading manufacturers of global positioning system (GPS) devices worldwide. The company sells products in four segments. The largest is Automotive/Mobile, contributing about 60% of revenue and 38% of operating profits. The Automotive side consists of mounted or in-dash navigation and multi-function devices for vehicles, often factory-installed by manufacturers. The Mobile side is mainly Garmin's line of "nuvi" branded handheld personal navigation devices (PND).... Read more

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