WBAG:GMM

Stock Analysis Report

Executive Summary

Grammer AG develops and produces components and systems for automotive interiors worldwide.

Snowflake

Fundamentals

Adequate balance sheet and fair value.


Similar Companies

Share Price & News

How has Grammer's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: GMM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.1%

GMM

-2.2%

AT Auto Components

-0.6%

AT Market


1 Year Return

-6.5%

GMM

7.3%

AT Auto Components

2.0%

AT Market

Return vs Industry: GMM underperformed the Austrian Auto Components industry which returned 7.3% over the past year.

Return vs Market: GMM underperformed the Austrian Market which returned 2% over the past year.


Shareholder returns

GMMIndustryMarket
7 Day1.1%-2.2%-0.6%
30 Day4.6%8.1%3.0%
90 Day8.8%23.0%6.7%
1 Year-4.4%-6.5%11.3%7.3%5.7%2.0%
3 Yearn/a-1.6%-9.7%46.0%32.8%
5 Yearn/a24.5%10.2%65.2%42.0%

Price Volatility Vs. Market

How volatile is Grammer's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Grammer undervalued compared to its fair value and its price relative to the market?

11.03x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: GMM (€32.65) is trading above our estimate of fair value (€27.23)

Significantly Below Fair Value: GMM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: GMM is good value based on its PE Ratio (11x) compared to the Auto Components industry average (11.6x).

PE vs Market: GMM is good value based on its PE Ratio (11x) compared to the Austrian market (14.5x).


Price to Earnings Growth Ratio

PEG Ratio: GMM is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: GMM is overvalued based on its PB Ratio (1.2x) compared to the XE Auto Components industry average (1.2x).


Next Steps

Future Growth

How is Grammer forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMM's forecast earnings growth (14% per year) is above the savings rate (0.5%).

Earnings vs Market: GMM's earnings (14% per year) are forecast to grow faster than the Austrian market (8.4% per year).

High Growth Earnings: GMM's earnings are forecast to grow, but not significantly.

Revenue vs Market: GMM's revenue (4.8% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: GMM's revenue (4.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GMM's Return on Equity is forecast to be low in 3 years time (13.5%).


Next Steps

Past Performance

How has Grammer performed over the past 5 years?

-1.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMM has a high level of non-cash earnings.

Growing Profit Margin: GMM's current net profit margins (1.8%) are higher than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: GMM's earnings have declined by -1% per year over the past 5 years.

Accelerating Growth: GMM's earnings growth over the past year (68.7%) exceeds its 5-year average (-1% per year).

Earnings vs Industry: GMM earnings growth over the past year (68.7%) exceeded the Auto Components industry -8.3%.


Return on Equity

High ROE: GMM's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Grammer's financial position?


Financial Position Analysis

Short Term Liabilities: GMM's short term assets (€654.0M) exceeds its short term liabilities (€541.4M)

Long Term Liabilities: GMM's short term assets (654.0M) exceeds its long term liabilities (581.6M)


Debt to Equity History and Analysis

Debt Level: GMM's debt to equity ratio (127.7%) is considered high

Reducing Debt: GMM's debt to equity ratio has increased from 71.3% to 127.7% over the past 5 years.

Debt Coverage: GMM's debt is well covered by operating cash flow (50.8%).

Interest Coverage: GMM's interest payments on its debt are well covered by EBIT (6.4x coverage).


Balance Sheet

Inventory Level: GMM has a high level of physical assets or inventory.

Debt Coverage by Assets: GMM's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

What is Grammer's current dividend yield, its reliability and sustainability?

2.27%

Current Dividend Yield


Dividend Yield vs Market

company2.3%marketbottom25%1.7%markettop25%4.3%industryaverage3.4%forecastin3Years3.7%

Current dividend yield vs market & industry

Notable Dividend: GMM's dividend (2.27%) is higher than the bottom 25% of dividend payers in the Austrian market (1.69%).

High Dividend: GMM's dividend (2.27%) is low compared to the top 25% of dividend payers in the Austrian market (4.26%).


Stability and Growth of Payments

Stable Dividend: GMM has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: GMM's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.1%), GMM's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GMM's dividends in 3 years are forecast to be well covered by earnings (31% payout ratio).


Next Steps

Management

What is the CEO of Grammer's salary, the management and board of directors tenure and is there insider trading?

0.3yrs

Average management tenure


CEO

Thorsten Seehars (46yo)

0.3yrs

Tenure

0

Mr. Thorsten Seehars serves as Chief Executive Officer and Member of Executive Board at Grammer AG since August 01, 2019. He served as Member of Management Board at BorgWarner Ludwigsburg GmbH. Mr. Seehars ...


Management Age and Tenure

0.3yrs

Average Tenure

46yo

Average Age

Experienced Management: GMM's management team is not considered experienced ( 0.3 years average tenure), which suggests a new team.


Board Age and Tenure

7.5yrs

Average Tenure

55.5yo

Average Age

Experienced Board: GMM's board of directors are considered experienced (7.5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Astrid Franzky

    Head of Controlling

    • Tenure: 0yrs
    • Compensation: €5.10k
  • Jurate Keblyte (44yo)

    CFO & Member of Executive Board

    • Tenure: 0.3yrs
  • Thorsten Seehars (46yo)

    CEO & Member of Executive Board

    • Tenure: 0.3yrs
  • Ralf Hoppe

    Head of Strategic Product Planning

    • Tenure: 0yrs
  • Jens Öhlenschläger (55yo)

    COO & Member of Executive Board

    • Tenure: 0.8yrs
  • Boris Mutius

    Director of Investor Relations

    • Tenure: 0yrs

Board Members

  • Wolfram Hatz (58yo)

    Member of Supervisory Board

    • Tenure: 19.4yrs
    • Compensation: €54.00k
  • Klaus Probst (66yo)

    Chairman of Supervisory Board

    • Tenure: 8.5yrs
    • Compensation: €99.00k
  • Peter Merten (65yo)

    Member of Supervisory Board

    • Tenure: 4.5yrs
    • Compensation: €47.00k
  • Bernhard Wankerl (60yo)

    Member of Supervisory Board

    • Tenure: 16yrs
    • Compensation: €52.00k
  • Ingrid Hunger (67yo)

    Member of Supervisory Board

    • Tenure: 8.3yrs
    • Compensation: €42.00k
  • Harald Jung (49yo)

    Employee Representative Member of Supervisory Board

    • Tenure: 7.9yrs
    • Compensation: €42.00k
  • Horst Ott (53yo)

    Deputy Chairman of Supervisory Board

    • Tenure: 7.2yrs
    • Compensation: €65.00k
  • Schelenz Roder (52yo)

    Employee Representative Member of Supervisory Board

    • Tenure: 5.2yrs
    • Compensation: €52.00k
  • Andrea Elsner (40yo)

    Member of Supervisory Board

    • Tenure: 4.5yrs
    • Compensation: €50.00k
  • Martin Heiß (48yo)

    Employee Representative Member of Supervisory Board

    • Tenure: 4.5yrs
    • Compensation: €47.00k

Company Information

Grammer AG's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Grammer AG
  • Ticker: GMM
  • Exchange: WBAG
  • Founded: 1880
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €405.143m
  • Shares outstanding: 12.28m
  • Website: https://www.grammer.com

Number of Employees


Location

  • Grammer AG
  • Georg-Grammer-Strasse 2
  • Amberg
  • Bavaria
  • 92224
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GMMDB (Deutsche Boerse AG)YesCommon SharesDEEURJul 1996
GMMXTRA (XETRA Trading Platform)YesCommon SharesDEEURJul 1996
0OQXLSE (London Stock Exchange)YesCommon SharesGBEURJul 1996
GMMDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon SharesGBEURJul 1996
GMMSWX (SIX Swiss Exchange)YesCommon SharesCHCHFJul 1996
GMMWBAG (Wiener Boerse AG)YesCommon SharesATEURJul 1996

Biography

Grammer AG develops and produces components and systems for automotive interiors worldwide. It operates in two divisions, Automotive and Commercial Vehicles. The Automotive division supplies headrests, arm ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/16 21:27
End of Day Share Price2019/11/15 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.