| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 96.29 | 1381 |
| Intrinsic value (DCF) | 2.98 | -54 |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
Grammer AG (GMM.DE) is a leading German automotive and commercial vehicle components manufacturer specializing in interior systems and seating solutions. Founded in 1880 and headquartered in Ursensollen, Germany, Grammer operates through two key divisions: Automotive and Commercial Vehicles. The Automotive division supplies high-quality headrests, armrests, center consoles, and thermoplastic components to global automakers and suppliers. The Commercial Vehicles division provides ergonomic seating for trucks, agricultural machinery, buses, and trains, serving OEMs and operators worldwide. As a subsidiary of China's Ningbo Jifeng Auto Parts Co., Grammer benefits from cross-border synergies in the competitive auto parts sector. With a revenue of €1.92 billion (2023), the company plays a critical role in the Consumer Cyclical sector, combining German engineering with cost-efficient production. Grammer's focus on comfort, safety, and lightweight materials positions it as a key player in evolving automotive interior trends, including electrification and autonomous driving.
Grammer AG presents a mixed investment profile. The company's strong market position in automotive interiors and commercial vehicle seating is offset by recent financial challenges, including a 2023 net loss of €92.5 million and negative EPS. While its €219.8 million cash position provides liquidity, high debt (€696.3 million) raises leverage concerns. The stock's low beta (0.799) suggests relative stability versus the broader market, but the suspended dividend reflects financial stress. Growth potential lies in Grammer's exposure to commercial vehicle OEMs and Chinese parent company synergies, but margin pressures from raw material costs and automotive sector cyclicality pose risks. Investors should monitor restructuring progress and free cash flow generation (€25.7 million operating cash flow vs. €62.2 million capex in 2023).
Grammer competes in the fragmented automotive interior components market through engineering expertise and vertical integration. Its competitive advantages include: 1) Long-standing OEM relationships with automakers and commercial vehicle manufacturers, 2) Specialization in ergonomic seating systems with patented technologies, 3) Dual revenue streams balancing cyclical automotive demand with more stable commercial vehicle orders, and 4) Cost advantages from Chinese ownership and Eastern European production sites. However, Grammer faces intense competition from larger Tier-1 suppliers with greater R&D budgets for smart interior technologies. The company's smaller scale limits its ability to compete on price with Asian suppliers in high-volume segments. In commercial vehicle seating, Grammer's German engineering is differentiated but faces pressure from low-cost competitors. Strategic challenges include managing debt while investing in lightweight materials and electrification-ready components. The Ningbo Jifeng ownership provides access to China's auto market but creates integration complexities. Grammer's future positioning depends on improving profitability in core seating products while selectively expanding into higher-margin interior systems.