Garmin Ltd.'s Share Price Soars 132% in 3 Years, Outpacing Earnings Growth

Garmin's share price has increased 132% over the past three years, outpacing the company's earnings growth of 16% per year. The company's CEO is remunerated modestly compared to other CEOs at similar-sized companies. The article suggests that considering the TSR, which takes into account dividends, provides a more complete picture for investors.

Garmin Ltd. (GRMN) has seen its share price surge by 132% over the past three years, significantly outpacing its earnings growth of 16% per year. This impressive performance raises questions about the company's future trajectory and the role of its CEO's compensation in the overall picture. This article delves into the company's stock performance, CEO compensation, and the Total Shareholder Return (TSR) to provide a comprehensive view for investors.

Garmin's stock price increase is noteworthy, but it's essential to understand the context of CEO compensation. According to the latest earnings reports, Garmin's CEO, Cliff Pemble, is remunerated modestly compared to other CEOs at similar-sized companies. While the specific figures for CEO compensation are not detailed in the provided materials, the company's focus on innovation and market differentiation could be a significant factor in driving its stock performance.

The Total Shareholder Return (TSR) offers a more complete picture for investors by considering dividends alongside stock price appreciation. For the period ending June 2025, Garmin's TSR was 115.5%, compared to the stock price appreciation of 132%. This discrepancy suggests that while the stock price has seen significant growth, the dividend component has been relatively modest. However, the TSR still indicates a substantial return for shareholders over the past three years.

In terms of international operations, Garmin's revenue from foreign markets has been a significant driver of growth. For the quarter ending June 2025, EMEA and APAC contributed $677.4 million and $259.15 million, respectively, to the total revenue. This reliance on international markets underscores the company's ability to navigate diverse economic cycles and provides a hedge against domestic economic downturns.

Garmin's future prospects are promising, with projected revenues and earnings growth expected to continue. The company's focus on innovation and market differentiation, as highlighted by CEO Cliff Pemble, is likely to drive further growth. However, investors should remain vigilant to the complexities of international markets and the potential impact of geopolitical risks on the company's performance.

In conclusion, Garmin's stock performance has been impressive, with a significant increase in share price outpacing earnings growth. The company's CEO compensation is modest, and the TSR provides a more complete picture of shareholder returns. The reliance on international markets for revenue underscores the company's ability to navigate diverse economic cycles and provides a hedge against domestic economic downturns. Investors should continue to monitor Garmin's performance and the evolving landscape of international markets.

References:
[1] https://www.ceoutlook.com/2025/08/04/garmin-marine-and-voxx-sales-reported/
[2] https://www.nasdaq.com/articles/garmin-grmn-reliance-international-sales-what-investors-need-know