NEMETSCHEK SE (NEM.DE) Stock Fundamental Analysis
FRA:NEM - Deutsche Boerse Ag - DE0006452907 - Common Stock - Currency: EUR
We assign a fundamental rating of 6 out of 10 to NEM. NEM was compared to 95 industry peers in the Software industry. While NEM belongs to the best of the industry regarding profitability, there are some minor concerns on its financial health. NEM shows excellent growth, but is valued quite expensive already. These ratings would make NEM suitable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year NEM was profitable.
In the past year NEM had a positive cash flow from operations.
Each year in the past 5 years NEM has been profitable.
In the past 5 years NEM always reported a positive cash flow from operatings.
1.2 Ratios
NEM's Return On Assets of 8.21% is fine compared to the rest of the industry. NEM outperforms 78.95% of its industry peers.
NEM has a better Return On Equity (19.35%) than 80.00% of its industry peers.
With an excellent Return On Invested Capital value of 11.60%, NEM belongs to the best of the industry, outperforming 86.32% 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 11.01%.
The last Return On Invested Capital (11.60%) 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 | 8.21% | ||
| ROE | 19.35% | ||
| ROIC | 11.6% |
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 17.62%, NEM is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
In the last couple of years the Profit Margin of NEM has declined.
NEM has a better Operating Margin (23.53%) than 84.21% 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 95.93%, NEM belongs to the best of the industry, outperforming 97.89% 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 | 23.53% | ||
| PM (TTM) | 17.62% | ||
| GM | 95.93% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), NEM is creating value.
NEM has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, NEM has about the same amount of shares outstanding.
NEM has a worse debt/assets ratio than last year.
2.2 Solvency
NEM has an Altman-Z score of 7.81. This indicates that NEM is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 7.81, NEM belongs to the best of the industry, outperforming 82.11% of the companies in the same industry.
NEM has a debt to FCF ratio of 1.94. This is a very positive value and a sign of high solvency as it would only need 1.94 years to pay back of all of its debts.
NEM has a Debt to FCF ratio of 1.94. This is in the better half of the industry: NEM outperforms 67.37% of its industry peers.
NEM has a Debt/Equity ratio of 0.61. This is a neutral value indicating NEM is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.61, NEM is doing worse than 67.37% of the companies in the same industry.
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 | 0.61 | ||
| Debt/FCF | 1.94 | ||
| Altman-Z | 7.81 |
ROIC/WACC1.58
WACC7.36%
2.3 Liquidity
NEM has a Current Ratio of 0.77. 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 has a worse Current ratio (0.77) than 80.00% of its industry peers.
A Quick Ratio of 0.77 indicates that NEM may have some problems paying its short term obligations.
NEM's Quick ratio of 0.77 is on the low side compared to the rest of the industry. NEM is outperformed by 78.95% of its industry peers.
NEM does not score too well on the current and quick ratio evaluation. However, as it has 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 | 0.77 | ||
| Quick Ratio | 0.77 |
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.
The Earnings Per Share has been growing by 14.73% on average over the past years. This is quite good.
NEM shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 16.91%.
The Revenue has been growing by 12.32% on average over the past years. This is quite good.
EPS 1Y (TTM)20.14%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%9.76%
Revenue 1Y (TTM)16.91%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%32.48%
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 17.45% yearly.
The Revenue is expected to grow by 14.23% on average over the next years. This is quite good.
EPS Next Y16.37%
EPS Next 2Y20.11%
EPS Next 3Y20.74%
EPS Next 5Y17.45%
Revenue Next Year18.89%
Revenue Next 2Y16.83%
Revenue Next 3Y15.98%
Revenue Next 5Y14.23%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 71.50, the valuation of NEM can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of NEM is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.85. NEM is valued rather expensively when compared to this.
With a Price/Forward Earnings ratio of 61.44, NEM can be considered very expensive at the moment.
NEM's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of NEM to the average of the S&P500 Index (20.77), we can say NEM is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.5 | ||
| Fwd PE | 61.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of NEM is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of NEM indicates a somewhat cheap valuation: NEM is cheaper than 61.05% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.05 | ||
| EV/EBITDA | 45.8 |
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)4.37
PEG (5Y)4.85
EPS Next 2Y20.11%
EPS Next 3Y20.74%
5. Dividend
5.1 Amount
NEM has a yearly dividend return of 0.50%, which is pretty low.
NEM's Dividend Yield is a higher than the industry average which is at 1.86.
With a Dividend Yield of 0.50, NEM pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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 Years5
5.3 Sustainability
NEM pays out 31.60% 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.
DP31.6%
EPS Next 2Y20.11%
EPS Next 3Y20.74%
FRA:NEM (5/2/2025, 10:17:19 AM)
119.4
+3.1 (+2.67%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners32.91%
Inst Owner ChangeN/A
Ins Owners51%
Ins Owner ChangeN/A
Market Cap13.79B
Analysts67.41
Price Target113.59 (-4.87%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
Yearly Dividend0.48
Dividend Growth(5Y)12.2%
DP31.6%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)5.92%
Min EPS beat(2)-1.24%
Max EPS beat(2)13.08%
EPS beat(4)2
Avg EPS beat(4)3.46%
Min EPS beat(4)-7.06%
Max EPS beat(4)13.08%
EPS beat(8)4
Avg EPS beat(8)2.59%
EPS beat(12)6
Avg EPS beat(12)1.26%
EPS beat(16)9
Avg EPS beat(16)3.41%
Revenue beat(2)2
Avg Revenue beat(2)3.23%
Min Revenue beat(2)0.97%
Max Revenue beat(2)5.49%
Revenue beat(4)2
Avg Revenue beat(4)1.29%
Min Revenue beat(4)-0.85%
Max Revenue beat(4)5.49%
Revenue beat(8)3
Avg Revenue beat(8)0.51%
Revenue beat(12)6
Avg Revenue beat(12)0.77%
Revenue beat(16)9
Avg Revenue beat(16)0.9%
PT rev (1m)6.24%
PT rev (3m)11.72%
EPS NQ rev (1m)-3.13%
EPS NQ rev (3m)-5.25%
EPS NY rev (1m)-0.13%
EPS NY rev (3m)-1.21%
Revenue NQ rev (1m)1.46%
Revenue NQ rev (3m)3.08%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)2.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 71.5 | ||
| Fwd PE | 61.44 | ||
| P/S | 13.85 | ||
| P/FCF | 47.05 | ||
| P/OCF | 44.95 | ||
| P/B | 15.21 | ||
| P/tB | N/A | ||
| EV/EBITDA | 45.8 |
EPS(TTM)1.67
EY1.4%
EPS(NY)1.94
Fwd EY1.63%
FCF(TTM)2.54
FCFY2.13%
OCF(TTM)2.66
OCFY2.22%
SpS8.62
BVpS7.85
TBVpS-5.3
PEG (NY)4.37
PEG (5Y)4.85
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.21% | ||
| ROE | 19.35% | ||
| ROCE | 14.63% | ||
| ROIC | 11.6% | ||
| ROICexc | 13.35% | ||
| ROICexgc | N/A | ||
| OM | 23.53% | ||
| PM (TTM) | 17.62% | ||
| GM | 95.93% | ||
| FCFM | 29.44% |
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 Turnover0.47
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.61 | ||
| Debt/FCF | 1.94 | ||
| Debt/EBITDA | 1.84 | ||
| Cap/Depr | 20.55% | ||
| Cap/Sales | 1.38% | ||
| Interest Coverage | 19.62 | ||
| Cash Conversion | 101.93% | ||
| Profit Quality | 167.07% | ||
| Current Ratio | 0.77 | ||
| Quick Ratio | 0.77 | ||
| Altman-Z | 7.81 |
F-Score3
WACC7.36%
ROIC/WACC1.58
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%9.76%
EPS Next Y16.37%
EPS Next 2Y20.11%
EPS Next 3Y20.74%
EPS Next 5Y17.45%
Revenue 1Y (TTM)16.91%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%32.48%
Revenue Next Year18.89%
Revenue Next 2Y16.83%
Revenue Next 3Y15.98%
Revenue Next 5Y14.23%
EBIT growth 1Y17.41%
EBIT growth 3Y10.78%
EBIT growth 5Y13.62%
EBIT Next Year48.78%
EBIT Next 3Y26.94%
EBIT Next 5Y20.34%
FCF growth 1Y22.01%
FCF growth 3Y12.76%
FCF growth 5Y15.74%
OCF growth 1Y21.32%
OCF growth 3Y12.7%
OCF growth 5Y13.85%