Grounds Real Estate Development AG (FRA:AMM) Cash Conversion Cycle Explanation
Generally, the lower this number is, the better for the company. Although it should be combined with other metrics (such as ROE % and ROA %), it can be especially useful for comparing close competitors, because the company with the lowest CCC is often the one with better management.
Be Aware
CCC is most effective with retail-type companies, which have inventories that are sold to customers. Consulting businesses, software companies and insurance companies are all examples of companies for whom this metric is meaningless.
The CCC is one of several tools that can help you evaluate management, especially if it is calculated for several consecutive time periods and for several competitors. Decreasing or steady CCCs are good, while rising ones should motivate you to dig a bit deeper.
Grounds Real Estate Development AG Cash Conversion Cycle Related Terms
Grounds Real Estate Development AG Cash Conversion Cycle Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Grounds Real Estate Development AG Cash Conversion Cycle Chart
FRA:AMM vs CBRE, BEKE, JLL: Cash Conversion Cycle Comparison
For the Real Estate Services subindustry, Grounds Real Estate Development AG's Cash Conversion Cycle, along with its competitors' market caps and Cash Conversion Cycle data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Grounds Real Estate Development AG Cash Conversion Cycle vs Real Estate Industry
For the Real Estate industry and Real Estate sector, Grounds Real Estate Development AG's Cash Conversion Cycle distribution charts can be found below:
* The bar in red indicates where Grounds Real Estate Development AG's Cash Conversion Cycle falls into.
Grounds Real Estate Development AG Cash Conversion Cycle Calculation
Cash Conversion Cycle (CCC) measures how fast a company can convert cash on hand into even more cash on hand. This metric looks at the amount of time needed to sell inventory, the amount of time needed to collect receivables and the length of time the company is afforded to pay its bills without incurring penalties.
Cash Conversion Cycle is one of several measures of management effectiveness.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
What does a Cash Conversion Cycle of 8,763.16 mean?
Grounds Real Estate Development AG (FRA:AMM) has a Cash Conversion Cycle of 8,763.16 as of Jun. 2025. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Grounds Real Estate Development AG and its competitors.
Is Grounds Real Estate Development AG's Cash Conversion Cycle too high?
Grounds Real Estate Development AG's current Cash Conversion Cycle is 8,763.16. The Real Estate industry median Cash Conversion Cycle is 320.77. Grounds Real Estate Development AG's value of 8,763.16 is 2631.9% above this industry median. Overall, Grounds Real Estate Development AG has a GF Score™ of 39/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Grounds Real Estate Development AG's Cash Conversion Cycle compare to CBRE and BEKE?
Grounds Real Estate Development AG's Cash Conversion Cycle of 8,763.16 can be compared against companies in the Real Estate industry. The industry median Cash Conversion Cycle is 320.77. Grounds Real Estate Development AG's value of 8,763.16 is 2631.9% above this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash Conversion Cycle for a Real Estate company?
The median Cash Conversion Cycle among Real Estate companies is 320.77, based on 1,735 companies in the industry. Companies in the top quartile (top 25%) have a Cash Conversion Cycle significantly above this median, while those in the bottom quartile fall well below. However, Cash Conversion Cycle should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Grounds Real Estate Development AG's current Cash Conversion Cycle of 8,763.16 is 2631.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash Conversion Cycle mean?
A high Cash Conversion Cycle can signal that a stock is expensive relative to its fundamentals. Cash conversion cycle equals sum of days inventory and days sales outstanding less days payable. View historical data on Grounds Real Estate Development AG and its competitors. For the Real Estate industry, the median Cash Conversion Cycle is 320.77 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Grounds Real Estate Development AG's current Cash Conversion Cycle is 8,763.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Grounds Real Estate Development AG stock overvalued right now?
Based on GuruFocus' analysis, Grounds Real Estate Development AG (FRA:AMM) is currently considered Significantly Overvalued. The stock's GF Value™ is €0.14, compared to a current price of €0.48 — trading 242.9% above its estimated fair value. The current Cash Conversion Cycle is 8,763.16 and 2631.9% above the Real Estate industry median of 320.77. Grounds Real Estate Development AG's overall GF Score™ is 39/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash Conversion Cycle calculated?
Cash Conversion Cycle is calculated from a company's financial statements. For Grounds Real Estate Development AG (FRA:AMM), the current Cash Conversion Cycle is 8,763.16 as of Jun. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Grounds Real Estate Development AG (FRA:AMM) Overvalued in 2026?
Based on GuruFocus' analysis, Grounds Real Estate Development AG stock appears to be overvalued.
The current stock price of €0.48 is trading 242.9% above its estimated GF Value™ of €0.14.
GuruFocus considers Grounds Real Estate Development AG to be Significantly Overvalued.
Key valuation signals for FRA:AMM:
Cash Conversion Cycle: 8,763.16
GF Value™: €0.14 vs. price of €0.48 (242.9% above fair value)
Industry Position: 2631.9% above the Real Estate median
No single metric tells the full story. See the FRA:AMM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Grounds Real Estate Development AG Business Description
Grounds Real Estate Development AG carries out housing projects in German metropolitan regions. Its business activities cover three core areas, including the company's plan to establish its property portfolio for long-term rental income, which is referred to as the portfolio management business. the company also works to develop the existing properties and sell them as part-ownership, known as the privatization business. Additionally, planning to construct new housing and sell it to institutional investors, capital investors, and owner-occupiers. This is referred to as the project development business. The group's primary sources of income are the construction work on project developments, privatization income, and rental income from existing properties.
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