XTRA:GMM

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Very undervalued with adequate balance sheet.


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

0.3%

GMM

1.3%

DE Auto Components

2.8%

DE Market


1 Year Return

-44.8%

GMM

-24.7%

DE Auto Components

0.3%

DE Market

Return vs Industry: GMM underperformed the German Auto Components industry which returned -24.7% over the past year.

Return vs Market: GMM underperformed the German Market which returned 0.3% over the past year.


Shareholder returns

GMMIndustryMarket
7 Day0.3%1.3%2.8%
30 Day-11.3%-5.9%0.5%
90 Day0.3%36.3%27.7%
1 Year-43.6%-44.8%-23.3%-24.7%2.3%0.3%
3 Year-58.6%-60.3%-47.6%-51.4%3.5%-4.9%
5 Year-33.6%-39.3%-52.5%-56.9%11.4%-3.4%

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?

45.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GMM (€18.45) is trading below our estimate of fair value (€33.67)

Significantly Below Fair Value: GMM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: GMM is good value based on its PE Ratio (10.2x) compared to the Auto Components industry average (17.5x).

PE vs Market: GMM is good value based on its PE Ratio (10.2x) compared to the German market (20.5x).


Price to Earnings Growth Ratio

PEG Ratio: GMM is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: GMM is good value based on its PB Ratio (0.6x) compared to the DE Auto Components industry average (0.7x).


Next Steps

Future Growth

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

49.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GMM's forecast earnings growth (49.2% per year) is above the savings rate (0.2%).

Earnings vs Market: GMM's earnings (49.2% per year) are forecast to grow faster than the German market (22.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: GMM's revenue (5.7% per year) is forecast to grow slower than the German market (5.9% per year).

High Growth Revenue: GMM's revenue (5.7% 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 (7.6%).


Next Steps

Past Performance

How has Grammer performed over the past 5 years?

-0.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GMM has high quality earnings.

Growing Profit Margin: GMM's current net profit margins (1.1%) are lower than last year (1.2%).


Past Earnings Growth Analysis

Earnings Trend: GMM's earnings have declined by -0.7% per year over the past 5 years.

Accelerating Growth: GMM's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: GMM had negative earnings growth (-2.4%) over the past year, making it difficult to compare to the Auto Components industry average (-50.2%).


Return on Equity

High ROE: GMM's Return on Equity (6.1%) is considered low.


Next Steps

Financial Health

How is Grammer's financial position?


Financial Position Analysis

Short Term Liabilities: GMM's short term assets (€596.0M) exceed its short term liabilities (€524.1M).

Long Term Liabilities: GMM's short term assets (€596.0M) exceed its long term liabilities (€535.6M).


Debt to Equity History and Analysis

Debt Level: GMM's debt to equity ratio (121.7%) is considered high.

Reducing Debt: GMM's debt to equity ratio has increased from 75.1% to 121.7% over the past 5 years.

Debt Coverage: GMM's debt is well covered by operating cash flow (28%).

Interest Coverage: GMM's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet


Next Steps

Dividend

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

2.51%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate GMM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate GMM's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if GMM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if GMM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: GMM is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of GMM's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

0.9yrs

Average management tenure


CEO

Thorsten Seehars (46yo)

0.92

Tenure

€520,833

Compensation

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


CEO Compensation Analysis

Compensation vs Market: Thorsten's total compensation ($USD585.53K) is about average for companies of similar size in the German market ($USD751.97K).

Compensation vs Earnings: Insufficient data to compare Thorsten's compensation with company performance.


Leadership Team

NamePositionTenureCompensationOwnership
Thorsten Seehars
CEO & Chairman of Executive Board0.92yr€520.83kno data
Jurate Keblyte
CFO & Member of Executive Board0.92yr€300.00kno data
Jens Ohlenschlager
COO & Member of Executive Board1.5yrs€720.00kno data
Boris Mutius
Director of Investor Relationsno datano datano data
Astrid Franzky
Head of Controllingno data€5.10kno data
Ralf Hoppe
Head of Strategic Product Planningno datano datano data

0.9yrs

Average Tenure

46yo

Average Age

Experienced Management: GMM's management team is not considered experienced ( 0.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Wolfram Hatz
Independent Member of Supervisory Board20.08yrs€46.00kno data
Klaus Probst
Independent Chairman of Supervisory Board9.17yrs€88.00kno data
Peter Merten
Independent Member of Supervisory Board5.17yrs€40.00kno data
Bernhard Wankerl
Independent Member of Supervisory Board16.67yrs€42.00kno data
Ingrid Hunger
Independent Member of Supervisory Board8.92yrs€37.00kno data
Harald Jung
Employee Representative Member of Supervisory Board8.58yrs€37.00kno data
Horst Ott
Employee Representative Deputy Chairman of Supervisory Board7.83yrs€63.00kno data
Lars Roder
Employee Representative Member of Supervisory Board5.83yrs€42.00kno data
Andrea Elsner
Employee Representative Member of Supervisory Board5.17yrs€46.00kno data
Martin Heiß
Employee Representative Member of Supervisory Board5.17yrs€42.00kno data

8.2yrs

Average Tenure

56.5yo

Average Age

Experienced Board: GMM's board of directors are considered experienced (8.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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.


Top Shareholders

Company Information

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


Key Information

  • Name: Grammer AG
  • Ticker: GMM
  • Exchange: XTRA
  • Founded: 1880
  • Industry: Auto Parts and Equipment
  • Sector: Automobiles
  • Market Cap: €226.512m
  • 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, produces, and sells components and systems for automotive interiors worldwide. It operates in two divisions, Automotive and Commercial Vehicles. The Automotive division supplies headrests, armrests, center consoles, and interior components and operating elements to automakers and automotive tier-I suppliers. The Commercial Vehicles division offers driver and passenger seats for agricultural and construction machinery, forklifts, trucks, buses, and trains, as well as to bus and rolling stock OEMs and railway operators. The company was founded in 1880 and is headquartered in Amberg, Germany. As of August 23, 2018, Grammer AG operates as a subsidiary of Ningbo Jifeng Auto Parts Co., Ltd.  


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/04 21:02
End of Day Share Price2020/07/03 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


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.