Grammer (GMM) AI Stock Analysis

• Market Cap: €102.81M
• Dividend Yield: N/A
• Average Volume (3M): 827.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.36
• Revenue Growth: -21.63%
• EPS Growth: -6045.90%
• Country: DE
• Employees: 12,000
• Sector: Consumer Defensive
• Sector Strength: 60
• Industry: Auto - Parts
• EPS (TTM): 0.19
• Shares Outstanding: 15,237,922
• 10 Day Avg. Volume: 624
• 30 Day Avg. Volume: 827
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: 2.19% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: €7.00 ▲(2.19% Upside)

Grammer's overall stock score is primarily impacted by its weak financial performance, characterized by negative profitability and high leverage. While technical analysis shows some short-term bullish momentum, the valuation remains unattractive due to a negative P/E ratio. The absence of earnings call data and corporate events means these factors do not influence the score.

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 automobile manufacturers and suppliers in the automotive and commercial vehicle sectors. The company's revenue model is based on direct sales, long-term contracts, and partnerships with major automotive brands. Key revenue streams include the production of seating systems for passenger cars, trucks, and buses, as well as aftermarket services and parts. Significant partnerships with OEMs (Original Equipment Manufacturers) and collaborations in research and development projects further contribute to Grammer’s earnings, allowing the company to stay competitive and meet evolving market demands.

Grammer Financial Statement Overview

Summary

Grammer's financial health shows stress, with profitability and cash flow challenges. Revenue growth is inconsistent, and margins are under pressure. High leverage and declining equity raise concerns about financial stability.

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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.76B	1.92B	2.06B	2.16B	1.90B	1.71B
Gross Profit	165.51M	189.31M	245.81M	140.51M	175.31M	125.27M
EBITDA	96.08M	94.83M	63.96M	128.50M	112.83M	40.75M
Net Income	-76.47M	-92.54M	1.80M	-77.77M	1.85M	-64.71M
Balance Sheet
Total Assets	1.56B	1.70B	1.53B	1.44B	1.48B	1.38B
Cash, Cash Equivalents and Short-Term Investments	116.94M	219.85M	131.00M	108.59M	113.44M	89.84M
Total Debt	461.77M	696.30M	525.19M	535.85M	530.45M	445.64M
Total Liabilities	1.31B	1.43B	1.22B	1.14B	1.14B	1.07B
Stockholders Equity	240.11M	251.57M	263.94M	299.41M	343.02M	303.03M
Cash Flow
Free Cash Flow	-5.90M	-44.88M	52.19M	27.27M	-13.22M	-41.95M
Operating Cash Flow	59.07M	25.66M	132.41M	106.72M	71.28M	31.06M
Investing Cash Flow	-63.69M	-42.08M	-84.26M	-75.44M	-76.84M	-67.34M
Financing Cash Flow	44.23M	159.76M	-11.54M	-41.94M	-4.83M	-38.10M

Grammer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.85
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Positive
• 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 Positive. The current price of 6.85 is above the 20-day moving average (MA) of 6.80, above the 50-day MA of 6.59, and above the 200-day MA of 6.41, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 53.37 is Neutral, neither overbought nor oversold. The STOCH value of 48.72 is Neutral, 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
Sector *	63 Neutral	$20.95B	14.50	-4.08%	3.12%	2.72%	-11.24%
ED4	59 Neutral	€166.50M	8.20	-14.80%	8.26%	-6.39%	-181.07%
GMM	50 Neutral	€102.81M	―	-16.40%	―	-21.63%	-6045.90%
0NYZ	―	€200.09M	―	-26.01%	―	―	―
0MG5	―	€293.36M	―	-23.03%	―	―	―
0NHL	―	€90.63M	7.99	7.01%	―	―	―
NVM	55 Neutral	€165.24M	6.70	26.85%	8.87%	-11.68%	4.45%