Grammer (GMM) AI Stock Analysis

• Market Cap: €96.85M
• Dividend Yield: N/A
• Average Volume (3M): 824.00
• Price to Earnings (P/E): 6.5
• Beta (1Y): 0.32
• Revenue Growth: -10.08%
• EPS Growth: N/A
• Country: DE
• Employees: 12,000
• Sector: General
• Sector Strength: N/A
• Industry: Auto - Parts
• EPS (TTM): 0.19
• Shares Outstanding: 15,237,922
• 10 Day Avg. Volume: 696
• 30 Day Avg. Volume: 824
• PEG Ratio: <0.01
• Price to Book (P/B): 0.28
• Price to Sales (P/S): 0.04
• P/FCF Ratio: -1.59
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 46 Neutral
• Price Target: €7.00 ▲(23.89% Upside)

The score is held back primarily by weak financial performance driven by negative profitability, high leverage, and very poor free cash flow trends. Technicals are mixed with a short-term lift but longer-term averages still above price and MACD negative. Valuation is a relative positive due to the low P/E, but it does not offset the fundamental cash flow and balance sheet risks.

Positive Factors

Market leadership in seating systems

Leading market position in engineered seating and interior solutions gives Grammer durable competitive advantages: scale in production, entrenched OEM relationships, and design expertise that raise switching costs and support stable order flow across commercial vehicle segments over multiple quarters.

Long-term OEM contracts

Multi-year contracts and partnerships with major OEMs deliver predictable revenue streams and higher order visibility, enabling better capacity planning and capital allocation. This structural revenue stability reduces short-term cyclicality and supports investment in product development and manufacturing efficiency.

R&D and diversified commercial end-markets

Ongoing R&D and product specialization across multiple commercial vehicle markets build sustainable product differentiation and broaden addressable markets. Diversified end-markets reduce revenue concentration risk and increase resilience to single-segment downturns, supporting durable demand for engineered seating.

Negative Factors

Negative profitability and thin margins

Persistently negative net margin and low gross margin indicate structural profitability pressure. This erodes retained earnings, limits reinvestment capacity, and reduces buffer against cost inflation or price competition, making long-term margin recovery and competitive reinvestment harder without structural change.

High financial leverage

A debt-to-equity ratio near 2x creates elevated financial fixed costs and reduces flexibility for capex or cyclical downturns. High leverage magnifies downside risk from operating shortfalls and can constrain strategic investments or require equity issuance if cash flows do not improve sustainably.

Severely deteriorating free cash flow

An extreme decline in free cash flow and very low operating cash conversion signal weak cash generation versus reported earnings. This undermines the firm's ability to service debt, fund R&D or capex organically, and may force external financing or asset sales, weakening financial resilience over months.

Grammer Business Overview & Revenue Model

Company Description

Grammer AG engages in the development, producing, and selling of components and systems for automotive interiors worldwide. It operates in two divisions, Automotive and Commercial Vehicles. The Automotive division supplies headrests, armrests, center console systems, interior components and operating elements, and thermoplastic solutions to automakers and automotive system suppliers. The Commercial Vehicles division offers driver and passenger seats for trucks, tractors, construction machinery, and forklifts; to commercial vehicles OEMs; and to bus and rolling stock OEMs and railway operators, as well as seats and seating systems for trains and buses. The company was founded in 1880 and is based in Ursensollen, Germany. Grammer AG is a subsidiary of Ningbo Jifeng Auto Parts Co., Ltd.

How the Company Makes Money

Grammer generates revenue primarily through the sale of its seating systems and interior components to automotive manufacturers and suppliers. Key revenue streams include the mass production of high-quality ergonomic seats for commercial vehicles, which are sold to major clients in the automotive industry. Additionally, Grammer benefits from long-term contracts with OEMs (Original Equipment Manufacturers) that provide a stable source of income. The company also engages in research and development to innovate its product offerings, which helps maintain competitive advantage and profitability. Significant partnerships with leading automotive brands further bolster its earnings, as these collaborations often lead to exclusive contracts and increased market share in the seating and interior solutions market.

Grammer Financial Statement Overview

Summary

Weak overall fundamentals: negative net margin (-4.34%) and low gross margin (9.4%) point to profitability pressure, leverage is high (debt-to-equity 1.92) with negative ROE, and cash flow is a major concern with sharply negative free cash flow growth (-1754.96%) and low operating cash flow to net income (0.10).

Income Statement

Grammer's income statement shows a mixed performance. The TTM data indicates a slight revenue growth of 4.3%, but the net profit margin remains negative at -4.34%, reflecting ongoing profitability challenges. The gross profit margin is relatively low at 9.4%, and the EBIT margin is modest at 1.5%. Despite some improvement in EBIT and EBITDA margins, the company struggles with consistent profitability.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.92, indicating significant leverage, which poses financial risk. The return on equity is negative, suggesting inefficiencies in generating returns for shareholders. The equity ratio is not explicitly calculated, but the high leverage and negative ROE highlight potential stability concerns.

Cash Flow

Cash flow analysis shows a concerning decline in free cash flow growth, with a significant drop of -1754.96% in the TTM period. The operating cash flow to net income ratio is low at 0.10, and the free cash flow to net income ratio is negative, indicating cash flow challenges and limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.84B	1.92B	2.06B	2.16B	1.90B	1.71B
Gross Profit	175.90M	189.31M	245.81M	140.51M	175.31M	125.27M
EBITDA	140.31M	94.83M	63.96M	128.50M	112.83M	40.75M
Net Income	12.54M	-92.54M	1.80M	-77.77M	1.85M	-64.71M
Balance Sheet
Total Assets	1.60B	1.70B	1.53B	1.44B	1.48B	1.38B
Cash, Cash Equivalents and Short-Term Investments	136.71M	219.85M	131.00M	108.59M	113.44M	89.84M
Total Debt	519.51M	696.30M	525.19M	535.85M	530.45M	445.64M
Total Liabilities	1.41B	1.43B	1.22B	1.14B	1.14B	1.07B
Stockholders Equity	170.67M	251.57M	263.94M	299.41M	343.02M	303.03M
Cash Flow
Free Cash Flow	97.63M	-44.88M	52.19M	27.27M	-13.22M	-41.95M
Operating Cash Flow	160.67M	25.66M	132.41M	106.72M	71.28M	31.06M
Investing Cash Flow	-106.36M	-42.08M	-84.26M	-75.44M	-76.84M	-67.34M
Financing Cash Flow	16.98M	159.76M	-11.54M	-41.94M	-4.83M	-38.10M

Grammer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.65
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:GMM, the sentiment is Positive. The current price of 5.65 is below the 20-day moving average (MA) of 6.24, below the 50-day MA of 6.11, and below the 200-day MA of 6.58, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 75.83 is Negative, neither overbought nor oversold. The STOCH value of 84.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:GMM.

Grammer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWO	72 Outperform	€83.75M	7.26	7.17%	5.91%	-4.01%	-10.36%
NVM	59 Neutral	€133.39M	7.28	19.67%	―	-9.08%	-34.48%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
GMM	46 Neutral	€96.85M	6.48	9.81%	―	-10.08%	―
ZIL2	46 Neutral	€269.91M	-2.31	-16.55%	3.51%	-6.21%	-995.53%
BDT	45 Neutral	€194.23M	-3.57	-16.04%	1.38%	-17.63%	30.27%
ED4	42 Neutral	€94.25M	-1.54	-47.18%	10.96%	-13.53%	-394.79%