NEMETSCHEK SE (NEM.DE) Stock Fundamental Analysis
Europe - FRA:NEM - DE0006452907 - Common Stock
105.4 EUR
+0.1 (+0.09%)
We assign a fundamental rating of 6 out of 10 to NEM. NEM was compared to 110 industry peers in the Software industry. NEM has an excellent profitability rating, but there are some minor concerns on its financial health. NEM is valued quite expensive, but it does show an excellent growth. This makes NEM very considerable for growth investing!
1. Profitability
1.1 Basic Checks
NEM had positive earnings in the past year.
In the past year NEM had a positive cash flow from operations.
NEM had positive earnings in each of the past 5 years.
Each year in the past 5 years NEM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.40%, NEM is doing good in the industry, outperforming 77.27% of the companies in the same industry.
NEM has a better Return On Equity (23.22%) than 83.64% of its industry peers.
Looking at the Return On Invested Capital, with a value of 14.84%, NEM belongs to the top of the industry, outperforming 86.36% of the companies in the same industry.
NEM had an Average Return On Invested Capital over the past 3 years of 16.57%. This is above the industry average of 12.42%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.4% | ||
| ROE | 23.22% | ||
| ROIC | 14.84% |
ROA(3y)11.46%
ROA(5y)11.57%
ROE(3y)21.91%
ROE(5y)23.07%
ROIC(3y)16.57%
ROIC(5y)17.18%
1.3 Margins
Looking at the Profit Margin, with a value of 16.86%, NEM is in the better half of the industry, outperforming 70.91% of the companies in the same industry.
NEM's Profit Margin has declined in the last couple of years.
NEM has a Operating Margin of 23.67%. This is amongst the best in the industry. NEM outperforms 83.64% of its industry peers.
In the last couple of years the Operating Margin of NEM has remained more or less at the same level.
With an excellent Gross Margin value of 96.11%, NEM belongs to the best of the industry, outperforming 96.36% of the companies in the same industry.
In the last couple of years the Gross Margin of NEM has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.67% | ||
| PM (TTM) | 16.86% | ||
| GM | 96.11% |
OM growth 3Y-2.37%
OM growth 5Y1.16%
PM growth 3Y-3.74%
PM growth 5Y-5.05%
GM growth 3Y-0.12%
GM growth 5Y-0.09%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NEM is creating value.
NEM has about the same amout of shares outstanding than it did 1 year ago.
NEM has about the same amout of shares outstanding than it did 5 years ago.
The debt/assets ratio for NEM is higher compared to a year ago.
2.2 Solvency
NEM has an Altman-Z score of 7.57. This indicates that NEM is financially healthy and has little risk of bankruptcy at the moment.
NEM has a better Altman-Z score (7.57) than 78.18% of its industry peers.
NEM has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
NEM's Debt to FCF ratio of 1.42 is fine compared to the rest of the industry. NEM outperforms 67.27% of its industry peers.
NEM has a Debt/Equity ratio of 0.60. This is a neutral value indicating NEM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.60, NEM is not doing good in the industry: 70.91% of the companies in the same industry are doing better.
Even though the debt/equity ratio score it not favorable for NEM, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 7.57 |
ROIC/WACC1.87
WACC7.95%
2.3 Liquidity
NEM has a Current Ratio of 0.74. This is a bad value and indicates that NEM is not financially healthy enough and could expect problems in meeting its short term obligations.
The Current ratio of NEM (0.74) is worse than 80.91% of its industry peers.
NEM has a Quick Ratio of 0.74. This is a bad value and indicates that NEM is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Quick ratio value of 0.74, NEM is not doing good in the industry: 80.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 18.35% over the past year.
The Earnings Per Share has been growing by 14.73% on average over the past years. This is quite good.
Looking at the last year, NEM shows a very strong growth in Revenue. The Revenue has grown by 25.33%.
NEM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 12.32% yearly.
EPS 1Y (TTM)18.35%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%26.83%
Revenue 1Y (TTM)25.33%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%27.36%
3.2 Future
NEM is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.43% yearly.
NEM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.26% yearly.
EPS Next Y20.78%
EPS Next 2Y21.92%
EPS Next 3Y21.55%
EPS Next 5Y18.43%
Revenue Next Year20.19%
Revenue Next 2Y17.22%
Revenue Next 3Y16.25%
Revenue Next 5Y15.26%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 56.36 indicates a quite expensive valuation of NEM.
The rest of the industry has a similar Price/Earnings ratio as NEM.
NEM is valuated expensively when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
NEM is valuated quite expensively with a Price/Forward Earnings ratio of 42.46.
NEM's Price/Forward Earnings ratio is in line with the industry average.
NEM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 23.18.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.36 | ||
| Fwd PE | 42.46 |
4.2 Price Multiples
NEM's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, NEM is valued a bit cheaper than 65.45% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.67 | ||
| EV/EBITDA | 36.5 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NEM has a very decent profitability rating, which may justify a higher PE ratio.
NEM's earnings are expected to grow with 21.55% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.71
PEG (5Y)3.83
EPS Next 2Y21.92%
EPS Next 3Y21.55%
5. Dividend
5.1 Amount
With a yearly dividend of 0.52%, NEM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.80, NEM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.52, NEM pays less dividend than the S&P500 average, which is at 2.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
5.2 History
On average, the dividend of NEM grows each year by 12.20%, which is quite nice.
Dividend Growth(5Y)12.2%
Div Incr Years5
Div Non Decr Years6
5.3 Sustainability
NEM pays out 33.73% of its income as dividend. This is a sustainable payout ratio.
NEM's earnings are growing more than its dividend. This makes the dividend growth sustainable.
DP33.73%
EPS Next 2Y21.92%
EPS Next 3Y21.55%
FRA:NEM (10/21/2025, 3:40:49 PM)
105.4
+0.1 (+0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners32.21%
Inst Owner ChangeN/A
Ins Owners50.8%
Ins Owner ChangeN/A
Market Cap12.17B
Analysts67.5
Price Target125.79 (19.35%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.52% |
Yearly Dividend0.48
Dividend Growth(5Y)12.2%
DP33.73%
Div Incr Years5
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.86%
Min EPS beat(2)6.84%
Max EPS beat(2)14.89%
EPS beat(4)3
Avg EPS beat(4)8.39%
Min EPS beat(4)-1.24%
Max EPS beat(4)14.89%
EPS beat(8)6
Avg EPS beat(8)7.41%
EPS beat(12)6
Avg EPS beat(12)2.09%
EPS beat(16)9
Avg EPS beat(16)1.9%
Revenue beat(2)2
Avg Revenue beat(2)1.32%
Min Revenue beat(2)0.94%
Max Revenue beat(2)1.7%
Revenue beat(4)4
Avg Revenue beat(4)2.27%
Min Revenue beat(4)0.94%
Max Revenue beat(4)5.49%
Revenue beat(8)5
Avg Revenue beat(8)1.23%
Revenue beat(12)6
Avg Revenue beat(12)0.6%
Revenue beat(16)9
Avg Revenue beat(16)0.76%
PT rev (1m)-0.4%
PT rev (3m)8.11%
EPS NQ rev (1m)-0.42%
EPS NQ rev (3m)-0.39%
EPS NY rev (1m)2.98%
EPS NY rev (3m)3.79%
Revenue NQ rev (1m)-0.77%
Revenue NQ rev (3m)0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.36 | ||
| Fwd PE | 42.46 | ||
| P/S | 10.9 | ||
| P/FCF | 34.67 | ||
| P/OCF | 33.34 | ||
| P/B | 15.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 36.5 |
EPS(TTM)1.87
EY1.77%
EPS(NY)2.48
Fwd EY2.36%
FCF(TTM)3.04
FCFY2.88%
OCF(TTM)3.16
OCFY3%
SpS9.67
BVpS7.02
TBVpS-4.86
PEG (NY)2.71
PEG (5Y)3.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.4% | ||
| ROE | 23.22% | ||
| ROCE | 18.72% | ||
| ROIC | 14.84% | ||
| ROICexc | 17.76% | ||
| ROICexgc | N/A | ||
| OM | 23.67% | ||
| PM (TTM) | 16.86% | ||
| GM | 96.11% | ||
| FCFM | 31.45% |
ROA(3y)11.46%
ROA(5y)11.57%
ROE(3y)21.91%
ROE(5y)23.07%
ROIC(3y)16.57%
ROIC(5y)17.18%
ROICexc(3y)22.09%
ROICexc(5y)22.7%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)20.91%
ROCE(5y)21.68%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y-19.71%
ROICexc growth 5Y-12.55%
OM growth 3Y-2.37%
OM growth 5Y1.16%
PM growth 3Y-3.74%
PM growth 5Y-5.05%
GM growth 3Y-0.12%
GM growth 5Y-0.09%
F-Score4
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 18.32% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 12.55 | ||
| Cash Conversion | 107.25% | ||
| Profit Quality | 186.55% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 7.57 |
F-Score4
WACC7.95%
ROIC/WACC1.87
Cap/Depr(3y)24.89%
Cap/Depr(5y)22.56%
Cap/Sales(3y)1.75%
Cap/Sales(5y)1.64%
Profit Quality(3y)145.44%
Profit Quality(5y)148.25%
High Growth Momentum
Growth
EPS 1Y (TTM)18.35%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%26.83%
EPS Next Y20.78%
EPS Next 2Y21.92%
EPS Next 3Y21.55%
EPS Next 5Y18.43%
Revenue 1Y (TTM)25.33%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%27.36%
Revenue Next Year20.19%
Revenue Next 2Y17.22%
Revenue Next 3Y16.25%
Revenue Next 5Y15.26%
EBIT growth 1Y23.09%
EBIT growth 3Y10.78%
EBIT growth 5Y13.62%
EBIT Next Year50.3%
EBIT Next 3Y27.32%
EBIT Next 5Y23.08%
FCF growth 1Y73.09%
FCF growth 3Y12.76%
FCF growth 5Y15.74%
OCF growth 1Y64.98%
OCF growth 3Y12.7%
OCF growth 5Y13.85%