Grammer (GMM) AI Stock Analysis

• Market Cap: €99.09M
• Dividend Yield: N/A
• Average Volume (3M): 645.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.37
• Revenue Growth: -18.47%
• EPS Growth: -892.72%
• Country: DE
• Employees: 12,000
• Sector: Industrials
• Sector Strength: 89
• Industry: Auto - Parts
• EPS (TTM): -4.88
• Shares Outstanding: 15,237,922
• 10 Day Avg. Volume: 695
• 30 Day Avg. Volume: 645
• PEG Ratio: -0.08
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.88
• 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: €7.00
• Price Target Upside: 5.26% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 0

• Rating: 48 Neutral
• Price Target: €6.50 ▼(-2.26%Downside)

Grammer's overall stock score is primarily impacted by its financial performance, which faces significant challenges due to high leverage, declining margins, and inconsistent revenue growth. Technical analysis offers a slightly positive outlook with some bullish signals, but valuation concerns remain due to negative earnings. Addressing financial health and stabilizing profitability are key for improving the stock's outlook.

Grammer Business Overview & Revenue Model

Company Description

Grammer (GMM) is a leading global supplier in the automotive and commercial vehicle industry, specializing in the development and production of high-quality components and systems for vehicle interiors. The company operates in two primary sectors: Automotive and Commercial Vehicles. In the Automotive segment, Grammer focuses on the production of innovative solutions for car interiors, including headrests, armrests, and center consoles. In the Commercial Vehicles segment, the company provides seating systems for trucks, buses, and off-road vehicles, emphasizing ergonomics and safety.

How the Company Makes Money

Grammer generates revenue primarily through the sale of its automotive and commercial vehicle components to original equipment manufacturers (OEMs) and tier-one suppliers worldwide. The company's revenue streams are divided between its two main sectors, with the Automotive segment contributing significantly through contracts for interior components with leading car manufacturers. The Commercial Vehicles segment also provides a substantial portion of revenue through sales of seating systems to manufacturers of trucks, buses, and off-road vehicles. Additionally, Grammer may engage in strategic partnerships and joint ventures to enhance its product offerings and market reach, further contributing to its earnings.

Grammer Financial Statement Overview

Summary

Grammer's financial health is strained with declining profitability and cash flow issues. The income statement indicates pressure on gross and net profit margins. The balance sheet shows high leverage and a declining equity position, while cash flow analysis highlights concerns with fluctuating free cash flow and increased reliance on debt.

Income Statement

Grammer's income statement shows a mixed performance. The gross profit margin has been declining, indicating increased cost pressures. The net profit margin has been volatile, with a significant loss in the most recent year. Revenue growth shows inconsistency, and the EBIT and EBITDA margins have decreased, reflecting operational challenges.

Balance Sheet

The balance sheet reflects moderate financial stability. The debt-to-equity ratio is relatively high, suggesting significant leverage, which poses potential risks. Return on equity has been negative in recent years, and the equity ratio has decreased, indicating reduced shareholder value. However, the company maintains a reasonable level of assets to support operations.

Cash Flow

Cash flow analysis reveals some concerns. Free cash flow has fluctuated, with a negative trend recently, impacting future investment capacity. The operating cash flow to net income ratio is positive but highlights challenges in translating profits into cash. The company has managed its cash flows to support financing needs, albeit with increasing reliance on debt.

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

Grammer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 6.65
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:GMM, the sentiment is Negative. The current price of 6.65 is above the 20-day moving average (MA) of 6.49, below the 50-day MA of 6.75, and above the 200-day MA of 6.41, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 52.23 is Neutral, neither overbought nor oversold. The STOCH value of 83.33 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:GMM.

Grammer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PWO	78 Outperform	€92.50M	8.47	6.72%	5.91%	-2.91%	-33.41%
Sector *	67 Neutral	€8.31B	20.51	6.46%	2.85%	1.84%	-40.85%
ED4	59 Neutral	€154.50M	8.20	-14.80%	8.62%	-6.39%	-181.07%
BDT	56 Neutral	€199.49M	―	-26.01%	1.28%	-11.16%	-463.07%
NVM	55 Neutral	€171.26M	15.25	12.22%	8.87%	-14.80%	-67.71%
ZIL2	51 Neutral	€277.52M	―	-19.89%	3.41%	-3.49%	-421.15%
GMM	48 Neutral	€99.09M	―	-15.91%	―	-18.47%	-892.72%