Grammer (GMM) AI Stock Analysis

• Market Cap: €96.11M
• Dividend Yield: N/A
• Average Volume (3M): 485.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.38
• Revenue Growth: -21.63%
• EPS Growth: -6045.90%
• 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: 430
• 30 Day Avg. Volume: 485
• 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: €6.50
• Price Target Upside: 4.84% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 44 Neutral
• Price Target: €6.50 ▲(4.84% Upside)

Grammer's overall stock score is primarily impacted by its challenging financial performance, characterized by declining revenues, negative profitability, and high leverage. Technical analysis indicates a bearish trend, while valuation metrics are weak due to negative earnings and lack of dividends. These factors collectively suggest caution for potential investors.

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 is facing financial headwinds with declining revenues, negative profitability, and high leverage. The income statement shows a negative net profit margin and revenue decline, while the balance sheet indicates high debt and negative return on equity. Cash flow analysis reveals liquidity constraints, with a significant decline in free cash flow.

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	1.76B	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: Negative
• Last Price: 6.20
• 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 6.2 is below the 20-day moving average (MA) of 6.43, below the 50-day MA of 6.59, and below the 200-day MA of 6.48, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 40.52 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 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	67 Neutral	86.25M	7.71	7.73%	6.34%	-4.25%	-22.32%
BDT	56 Neutral	180.69M	-1.79	-21.22%	1.36%	-11.16%	-463.07%
ED4	55 Neutral	171.00M	-4.84	-28.84%	8.04%	-10.93%	-238.05%
NVM	55 Neutral	160.93M	6.44	11.85%	―	-11.68%	4.45%
ZIL2	51 Neutral	291.46M	-1.75	-27.39%	3.26%	-4.26%	-412.06%
GMM	44 Neutral	€96.11M	―	-16.40%	―	-21.63%	-6045.90%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%