Grammer (GMM) AI Stock Analysis

• Market Cap: €89.40M
• Dividend Yield: N/A
• Average Volume (3M): 824.00
• Price to Earnings (P/E): 5.5
• Beta (1Y): 0.36
• 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): 3.28
• Revenue Forecast (FY): €2.10B

• Rating: 46 Neutral
• Price Target: €6.00 ▲(6.19% 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

Global market leadership in seating systems

Grammer's status as a global leader in seating systems supplies durable scale, engineering depth and broad OEM access across trucks, buses, trains and agricultural machinery. This scale supports long-term product development, supply relationships and operational leverage versus smaller peers.

Stable long-term OEM contracts

Long-term OEM contracts create recurring, predictable revenue and order visibility that reduce cyclicality of sales. Predictable OEM volumes enable capacity planning, support long-term supplier relationships, and underpin strategic investments and product roadmaps over multiple years.

Ongoing R&D and OEM partnerships supporting differentiation

Sustained R&D investment and close OEM partnerships foster product differentiation in ergonomics and interior systems, raising switching costs and enabling tailored solutions. This technological moat aligns Grammer with structural trends (comfort, EV interiors), supporting durable competitive advantage and margin resilience.

Negative Factors

Negative profitability and low gross margin

Persistent negative net margin and low gross margin indicate structural profitability pressure from costs, pricing or product mix. Sustained margin weakness limits internal funding for R&D and capex, reduces resilience to input-cost inflation, and hampers the firm's ability to compete on investment-led differentiation.

Severely weakened cash generation

A dramatic decline in free cash flow and an OCF-to-net-income ratio of 0.10 show poor cash conversion. Weak cash generation constrains debt servicing, capex, and strategic flexibility, raising the probability of external financing needs that dilute long-term returns and limit growth initiatives.

High leverage and negative returns on equity

Elevated debt-to-equity and negative ROE signal balance-sheet stress and capital inefficiency. In a cyclical auto-parts market, high leverage amplifies solvency and refinancing risk, reducing the company's ability to absorb demand shocks and invest countercyclically in product development or capacity.

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

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: Neutral
• Last Price: 5.65
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 5.65 is below the 20-day moving average (MA) of 6.00, below the 50-day MA of 6.13, and below the 200-day MA of 6.62, indicating a neutral trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.48 is Neutral, neither overbought nor oversold. The STOCH value of 69.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	€92.50M	8.01	7.17%	5.91%	-4.01%	-10.36%
NVM	59 Neutral	€135.98M	6.90	19.67%	―	-9.08%	-34.48%
Sector *	55 Neutral	$6.65B	3.83	-15.92%	6.20%	10.91%	7.18%
ED4	46 Neutral	€126.50M	-2.00	-47.18%	10.96%	-13.53%	-394.79%
GMM	46 Neutral	€89.40M	5.46	9.81%	―	-10.08%	―
ZIL2	46 Neutral	€270.86M	-2.39	-16.55%	3.51%	-6.21%	-995.53%
BDT	45 Neutral	€197.46M	-3.56	-16.04%	1.38%	-17.63%	30.27%