NEMETSCHEK SE (NEM.DE) Stock Fundamental Analysis
FRA:NEM - Deutsche Boerse Ag - DE0006452907 - Common Stock - Currency: EUR
NEM gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 100 industry peers in the Software industry. NEM scores excellent on profitability, but there are some minor concerns on its financial health. NEM shows excellent growth, but is valued quite expensive already. With these ratings, NEM could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
NEM had positive earnings in the past year.
NEM had a positive operating cash flow in the past year.
In the past 5 years NEM has always been profitable.
Each year in the past 5 years NEM had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 8.31%, NEM belongs to the best of the industry, outperforming 81.00% of the companies in the same industry.
NEM's Return On Equity of 19.80% is amongst the best of the industry. NEM outperforms 84.00% of its industry peers.
The Return On Invested Capital of NEM (12.53%) is better than 86.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEM is significantly above the industry average of 11.09%.
The last Return On Invested Capital (12.53%) for NEM is well below the 3 year average (16.57%), which needs to be investigated, but indicates that NEM had better years and this may not be a problem.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 19.8% | ||
| ROIC | 12.53% |
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
The Profit Margin of NEM (16.86%) is better than 82.00% of its industry peers.
NEM's Profit Margin has declined in the last couple of years.
The Operating Margin of NEM (22.93%) is better than 86.00% of its industry peers.
NEM's Operating Margin has been stable in the last couple of years.
NEM has a Gross Margin of 95.95%. This is amongst the best in the industry. NEM outperforms 98.00% of its industry peers.
NEM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 22.93% | ||
| PM (TTM) | 16.86% | ||
| GM | 95.95% |
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
NEM has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
NEM has about the same amout of shares outstanding than it did 1 year ago.
The number of shares outstanding for NEM remains at a similar level compared to 5 years ago.
Compared to 1 year ago, NEM has a worse debt to assets ratio.
2.2 Solvency
NEM has an Altman-Z score of 8.02. This indicates that NEM is financially healthy and has little risk of bankruptcy at the moment.
NEM's Altman-Z score of 8.02 is fine compared to the rest of the industry. NEM outperforms 79.00% of its industry peers.
The Debt to FCF ratio of NEM is 1.48, which is an excellent value as it means it would take NEM, only 1.48 years of fcf income to pay off all of its debts.
NEM's Debt to FCF ratio of 1.48 is fine compared to the rest of the industry. NEM outperforms 77.00% of its industry peers.
A Debt/Equity ratio of 0.56 indicates that NEM is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.56, NEM is not doing good in the industry: 60.00% 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 | 0.56 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 8.02 |
ROIC/WACC1.64
WACC7.64%
2.3 Liquidity
A Current Ratio of 0.76 indicates that NEM may have some problems paying its short term obligations.
NEM has a Current ratio of 0.76. This is in the lower half of the industry: NEM underperforms 78.00% of its industry peers.
A Quick Ratio of 0.76 indicates that NEM may have some problems paying its short term obligations.
NEM's Quick ratio of 0.76 is on the low side compared to the rest of the industry. NEM is outperformed by 78.00% of its industry peers.
The current and quick ratio evaluation for NEM is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
NEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 20.14%, which is quite impressive.
Measured over the past years, NEM shows a quite strong growth in Earnings Per Share. The EPS has been growing by 14.73% on average per year.
The Revenue has grown by 21.08% in the past year. This is a very strong growth!
Measured over the past years, NEM shows a quite strong growth in Revenue. The Revenue has been growing by 12.32% on average per year.
EPS 1Y (TTM)20.14%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%5.54%
Revenue 1Y (TTM)21.08%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%26.28%
3.2 Future
Based on estimates for the next years, NEM will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.59% on average per year.
Based on estimates for the next years, NEM will show a quite strong growth in Revenue. The Revenue will grow by 14.47% on average per year.
EPS Next Y16.37%
EPS Next 2Y20.11%
EPS Next 3Y20.74%
EPS Next 5Y16.59%
Revenue Next Year18.79%
Revenue Next 2Y16.66%
Revenue Next 3Y15.83%
Revenue Next 5Y14.47%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
NEM is valuated quite expensively with a Price/Earnings ratio of 72.16.
NEM's Price/Earnings ratio is in line with the industry average.
NEM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.45.
NEM is valuated quite expensively with a Price/Forward Earnings ratio of 50.02.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEM is on the same level as its industry peers.
NEM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.16 | ||
| Fwd PE | 50.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as NEM.
NEM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NEM is cheaper than 69.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.79 | ||
| EV/EBITDA | 45.12 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of NEM may justify a higher PE ratio.
A more expensive valuation may be justified as NEM's earnings are expected to grow with 20.74% in the coming years.
PEG (NY)4.41
PEG (5Y)4.9
EPS Next 2Y20.11%
EPS Next 3Y20.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.46%, NEM is not a good candidate for dividend investing.
NEM's Dividend Yield is a higher than the industry average which is at 2.13.
With a Dividend Yield of 0.46, NEM pays less dividend than the S&P500 average, which is at 2.42.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
5.2 History
The dividend of NEM is nicely growing with an annual growth rate of 12.20%!
Dividend Growth(5Y)12.2%
Div Incr Years5
Div Non Decr Years6
5.3 Sustainability
NEM pays out 31.19% of its income as dividend. This is a sustainable payout ratio.
The dividend of NEM is growing, but earnings are growing more, so the dividend growth is sustainable.
DP31.19%
EPS Next 2Y20.11%
EPS Next 3Y20.74%
FRA:NEM (7/3/2025, 7:00:00 PM)
120.5
+0.2 (+0.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners32.28%
Inst Owner ChangeN/A
Ins Owners51%
Ins Owner ChangeN/A
Market Cap13.92B
Analysts67.69
Price Target115.24 (-4.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.46% |
Yearly Dividend0.48
Dividend Growth(5Y)12.2%
DP31.19%
Div Incr Years5
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)2
Avg Revenue beat(2)3.21%
Min Revenue beat(2)0.94%
Max Revenue beat(2)5.49%
Revenue beat(4)3
Avg Revenue beat(4)1.64%
Min Revenue beat(4)-0.85%
Max Revenue beat(4)5.49%
Revenue beat(8)4
Avg Revenue beat(8)0.83%
Revenue beat(12)6
Avg Revenue beat(12)0.68%
Revenue beat(16)9
Avg Revenue beat(16)0.83%
PT rev (1m)1.02%
PT rev (3m)7.23%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.94%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.13%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.77%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.16 | ||
| Fwd PE | 50.02 | ||
| P/S | 13.2 | ||
| P/FCF | 39.79 | ||
| P/OCF | 38.46 | ||
| P/B | 15.5 | ||
| P/tB | N/A | ||
| EV/EBITDA | 45.12 |
EPS(TTM)1.67
EY1.39%
EPS(NY)2.41
Fwd EY2%
FCF(TTM)3.03
FCFY2.51%
OCF(TTM)3.13
OCFY2.6%
SpS9.13
BVpS7.77
TBVpS-4.93
PEG (NY)4.41
PEG (5Y)4.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.31% | ||
| ROE | 19.8% | ||
| ROCE | 15.81% | ||
| ROIC | 12.53% | ||
| ROICexc | 15.19% | ||
| ROICexgc | N/A | ||
| OM | 22.93% | ||
| PM (TTM) | 16.86% | ||
| GM | 95.95% | ||
| FCFM | 33.18% |
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-Score3
Asset Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.48 | ||
| Debt/EBITDA | 1.6 | ||
| Cap/Depr | 16.78% | ||
| Cap/Sales | 1.14% | ||
| Interest Coverage | 16.86 | ||
| Cash Conversion | 115.45% | ||
| Profit Quality | 196.79% | ||
| Current Ratio | 0.76 | ||
| Quick Ratio | 0.76 | ||
| Altman-Z | 8.02 |
F-Score3
WACC7.64%
ROIC/WACC1.64
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)20.14%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%5.54%
EPS Next Y16.37%
EPS Next 2Y20.11%
EPS Next 3Y20.74%
EPS Next 5Y16.59%
Revenue 1Y (TTM)21.08%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%26.28%
Revenue Next Year18.79%
Revenue Next 2Y16.66%
Revenue Next 3Y15.83%
Revenue Next 5Y14.47%
EBIT growth 1Y16.46%
EBIT growth 3Y10.78%
EBIT growth 5Y13.62%
EBIT Next Year48.24%
EBIT Next 3Y26.9%
EBIT Next 5Y21.74%
FCF growth 1Y76.54%
FCF growth 3Y12.76%
FCF growth 5Y15.74%
OCF growth 1Y66.94%
OCF growth 3Y12.7%
OCF growth 5Y13.85%