Grammer (GMM) AI Stock Analysis

• Market Cap: €80.46M
• Dividend Yield: N/A
• Average Volume (3M): 824.00
• Price to Earnings (P/E): 5.2
• Beta (1Y): 0.32
• Revenue Growth: -10.08%
• EPS Growth: N/A
• Country: DE
• Employees: 12,000
• Sector: Consumer Defensive
• Sector Strength: 42
• 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): 3.28
• Revenue Forecast (FY): €2.10B

• Rating: 46 Neutral
• Price Target: €6.00 ▲(2.56% Upside)

Grammer's overall stock score is primarily impacted by its financial performance challenges, including high leverage and negative profitability margins. The technical analysis further indicates bearish momentum, while the valuation suggests potential undervaluation. The absence of earnings call data and corporate events limits additional insights.

Positive Factors

Long-term Contracts

Long-term contracts with OEMs provide Grammer with a stable revenue stream, reducing volatility and enhancing financial predictability.

Product Innovation

Continuous R&D efforts help maintain Grammer's competitive edge in ergonomic seating solutions, supporting long-term market leadership.

Strategic Partnerships

Partnerships with major brands can lead to exclusive contracts and increased market share, strengthening Grammer's position in the industry.

Negative Factors

High Leverage

High leverage increases financial risk, potentially impacting Grammer's ability to invest in growth and weather economic downturns.

Negative Profit Margins

Negative profit margins indicate ongoing profitability challenges, which can hinder Grammer's ability to reinvest in its business and reward shareholders.

Cash Flow Challenges

Declining free cash flow growth limits Grammer's capacity to fund operations and strategic initiatives, affecting long-term financial health.

Grammer Business Overview & Revenue Model

Company Description

Grammer AG is a global leader in the development and production of seating systems and interior solutions for commercial and passenger vehicles. Operating primarily in the automotive and commercial vehicle sectors, Grammer specializes in ergonomic seating solutions for trucks, buses, trains, and agricultural machinery. The company also offers a range of interior components and systems designed to enhance comfort and functionality in various vehicle applications.

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

Grammer is facing financial headwinds with declining revenues, negative profitability, and high leverage. The income statement shows a negative net profit margin and declining revenue. The balance sheet highlights significant leverage and negative return on equity, while cash flow analysis indicates liquidity constraints and challenges in funding operations.

Income Statement

Grammer's income statement reveals a challenging financial environment. The TTM data shows a negative net profit margin of -4.34%, indicating ongoing losses. Revenue has declined by 4.95% compared to the previous period, reflecting a downward trend. Gross profit margin is relatively low at 9.40%, and EBIT margin is also modest at 1.50%. These factors suggest pressure on profitability and efficiency.

Balance Sheet

The balance sheet highlights significant leverage, with a debt-to-equity ratio of 1.92 in the TTM period, which is a concern for financial stability. Return on equity is negative at -31.93%, indicating that the company is not generating returns for shareholders. The equity ratio stands at 15.35%, suggesting a lower proportion of equity financing, which could pose risks in volatile markets.

Cash Flow

Cash flow analysis shows a negative free cash flow growth rate of -93.92% in the TTM period, indicating a substantial decline in cash generation. The operating cash flow to net income ratio is low at 0.10, and the free cash flow to net income ratio is negative, highlighting challenges in converting income into cash. These metrics suggest liquidity constraints and potential difficulties in funding operations.

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: Negative
• Last Price: 5.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 5.85 is below the 20-day moving average (MA) of 6.04, below the 50-day MA of 6.22, and below the 200-day MA of 6.67, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 44.65 is Neutral, neither overbought nor oversold. The STOCH value of 34.62 is Neutral, 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	72 Outperform	€91.25M	8.01	7.17%	5.99%	-4.01%	-10.36%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NVM	59 Neutral	€119.19M	6.81	19.67%	―	-9.08%	-34.48%
GMM	46 Neutral	€80.46M	5.20	9.81%	―	-10.08%	―
ED4	46 Neutral	€125.00M	-2.02	-47.18%	10.38%	-13.53%	-394.79%
ZIL2	46 Neutral	€274.98M	-2.35	-16.55%	3.51%	-6.21%	-995.53%
BDT	45 Neutral	€182.91M	-3.40	-16.04%	1.38%	-17.63%	30.27%