# Garmin Made GPS fundamental to our digital lives and paper maps are obsolete in < 2 decades. GPS can do much more than provide directions to tourists in unfamiliar territories. - **Fitness:** Running and cycling watches, as well as chest-strap heart monitors. - **Outdoor:** Handheld navigation devices and adventure watches. - **Marine:** Several tools including chart plotters, Fish-finders, and SONAR applications. - **Aviation:** Sold to original equipment manufacturers (OEMs), these tools include communications, weather, and navigation tools. - **Consumer Auto:** Personal navigation devices for vehicles. - **OEM Auto:** Provides navigation and infotainment pre-installs. ### MOATS - Reinvest to dominate new niches -> Capture an unknown and grow addressable market - Optionality in applicability of core tech - Rich IP --> 1,700 patents, 1,000 trademark registrations - Vertical Integration: wholly owned manufacturing facilities in Taiwan, China, Poland, and the United States —> complete control over product quality and time to market, Low production cost Fitness, Outdoor and Marine are largest and fastest growing ![[Pasted image 20220318010208.png]] ### Highlights - Cash Machine: Free cash flow positive every year since public in 2000 - Modest dividend of 2.4% grown by 67% in the last decade - Growth moderately at 15% pa - Today: ~40% below Aug '21 highs, Price is less than 10x earnings ### Risks - Supply chain b/c of war unrest and facilities in China and Poland - Fierce competition in fitness (Fitbit and Apple watch) ---- #kp #value1pager