NEMETSCHEK SE (NEM.DE) Stock Fundamental Analysis
FRA:NEM - Deutsche Boerse Ag - DE0006452907 - Common Stock - Currency: EUR
Taking everything into account, NEM scores 6 out of 10 in our fundamental rating. NEM was compared to 103 industry peers in the Software industry. While NEM has a great profitability rating, there are some minor concerns on its financial health. NEM is valued quite expensively, but it does show have an excellent growth rating. These ratings would make NEM suitable 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.
In the past 5 years NEM always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 8.31%, NEM is doing good in the industry, outperforming 74.76% of the companies in the same industry.
NEM's Return On Equity of 19.80% is amongst the best of the industry. NEM outperforms 81.55% of its industry peers.
Looking at the Return On Invested Capital, with a value of 12.53%, NEM belongs to the top of the industry, outperforming 82.52% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for NEM is significantly above the industry average of 11.25%.
The 3 year average ROIC (16.57%) for NEM is well above the current ROIC(12.53%). The reason for the recent decline needs to be investigated.
| 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 73.79% of its industry peers.
NEM's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 22.93%, NEM belongs to the top of the industry, outperforming 82.52% of the companies in the same industry.
NEM's Operating Margin has been stable in the last couple of years.
The Gross Margin of NEM (95.95%) is better than 99.03% 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NEM is creating value.
The number of shares outstanding for NEM remains at a similar level compared to 1 year ago.
NEM has about the same amout of shares outstanding than it did 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 8.61. This indicates that NEM is financially healthy and has little risk of bankruptcy at the moment.
NEM has a better Altman-Z score (8.61) than 82.52% of its industry peers.
NEM has a debt to FCF ratio of 1.48. This is a very positive value and a sign of high solvency as it would only need 1.48 years to pay back of all of its debts.
NEM has a better Debt to FCF ratio (1.48) than 73.79% 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: 65.05% of the companies in the same industry are doing better.
Although NEM does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.48 | ||
| Altman-Z | 8.61 |
ROIC/WACC1.66
WACC7.56%
2.3 Liquidity
NEM has a Current Ratio of 0.76. This is a bad value and indicates that NEM is not financially healthy enough and could expect problems in meeting its short term obligations.
NEM's Current ratio of 0.76 is on the low side compared to the rest of the industry. NEM is outperformed by 76.70% of its industry peers.
NEM has a Quick Ratio of 0.76. This is a bad value and indicates that NEM is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.76, NEM is doing worse than 76.70% of the companies in the same industry.
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 21.38%, which is quite impressive.
NEM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.73% yearly.
Looking at the last year, NEM shows a very strong growth in Revenue. The Revenue has grown by 21.08%.
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)21.38%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%24.32%
Revenue 1Y (TTM)21.08%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%26.28%
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 16.59% yearly.
The Revenue is expected to grow by 14.47% on average over the next years. This is quite good.
EPS Next Y16.37%
EPS Next 2Y20.11%
EPS Next 3Y20.74%
EPS Next 5Y16.59%
Revenue Next Year18.79%
Revenue Next 2Y16.57%
Revenue Next 3Y15.78%
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
A Price/Earnings ratio of 75.17 indicates a quite expensive valuation of NEM.
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 27.24.
Based on the Price/Forward Earnings ratio of 54.91, the valuation of NEM can be described as expensive.
NEM's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.42. NEM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.17 | ||
| Fwd PE | 54.91 |
4.2 Price Multiples
NEM's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, NEM is valued a bit cheaper than the industry average as 63.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 43.68 | ||
| EV/EBITDA | 49.02 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates NEM does not grow enough to justify the current Price/Earnings ratio.
NEM has an outstanding profitability rating, which 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)4.59
PEG (5Y)5.1
EPS Next 2Y20.11%
EPS Next 3Y20.74%
5. Dividend
5.1 Amount
With a yearly dividend of 0.42%, NEM is not a good candidate for dividend investing.
NEM's Dividend Yield is a higher than the industry average which is at 2.05.
Compared to an average S&P500 Dividend Yield of 2.40, NEM's dividend is way lower than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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
31.19% of the earnings are spent on dividend by NEM. This is a low number and 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 (8/5/2025, 5:29:58 PM)
132.3
+1.4 (+1.07%)
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 Cap15.28B
Analysts68.33
Price Target116.36 (-12.05%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.42% |
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)1
Avg EPS beat(2)2.8%
Min EPS beat(2)-1.24%
Max EPS beat(2)6.84%
EPS beat(4)3
Avg EPS beat(4)6.93%
Min EPS beat(4)-1.24%
Max EPS beat(4)13.08%
EPS beat(8)5
Avg EPS beat(8)3.88%
EPS beat(12)6
Avg EPS beat(12)1.44%
EPS beat(16)9
Avg EPS beat(16)1.8%
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)0.97%
PT rev (3m)2.43%
EPS NQ rev (1m)1.39%
EPS NQ rev (3m)5.58%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)1.19%
Revenue NQ rev (3m)1.33%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.08%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 75.17 | ||
| Fwd PE | 54.91 | ||
| P/S | 14.49 | ||
| P/FCF | 43.68 | ||
| P/OCF | 42.23 | ||
| P/B | 17.02 | ||
| P/tB | N/A | ||
| EV/EBITDA | 49.02 |
EPS(TTM)1.76
EY1.33%
EPS(NY)2.41
Fwd EY1.82%
FCF(TTM)3.03
FCFY2.29%
OCF(TTM)3.13
OCFY2.37%
SpS9.13
BVpS7.77
TBVpS-4.93
PEG (NY)4.59
PEG (5Y)5.1
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 | 8.61 |
F-Score3
WACC7.56%
ROIC/WACC1.66
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)21.38%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%24.32%
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 2Y16.57%
Revenue Next 3Y15.78%
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%