Garmin

Methodology

Garmin's GPS and wearable technology business generates stable earnings from diversified end markets including fitness, aviation, marine, and automotive. The company successfully transitioned from declining automotive navigation toward fitness wearables and specialty GPS. This calculation works well given the recurring revenue from device replacements and premium product positioning, though competitive intensity in fitness wearables creates some margin pressure.

Methodology

Garmin typically shows moderate PEG ratios reflecting steady but unspectacular growth in mature GPS and wearables markets. The company's niche focus in aviation and marine provides defensibility against mass-market competitors. Compare to other consumer electronics companies to assess whether Garmin's specialty positioning and loyal customer base in enthusiast categories justify valuations relative to broader wearables players.

Methodology

Garmin pays a substantial dividend reflecting strong cash generation and capital-light business model. The company balances dividends with ongoing R&D in new GPS applications and product categories. PEGY is relevant given the meaningful yield combined with modest growth, making Garmin attractive to investors seeking income from consumer technology with more stability than typical electronics companies.