NEMETSCHEK SE (NEM.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:NEM - DE0006452907 - Common Stock
92.75 EUR
+2.4 (+2.66%)
We assign a fundamental rating of 6 out of 10 to NEM. NEM was compared to 114 industry peers in the Software industry. While NEM has a great profitability rating, there are some minor concerns on its financial health. NEM shows excellent growth, but is valued quite expensive already. This makes NEM very considerable for growth investing!
1. Profitability
1.1 Basic Checks
In the past year NEM was profitable.
NEM had a positive operating cash flow in the past year.
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 has a Return On Assets of 10.02%. This is in the better half of the industry: NEM outperforms 76.32% of its industry peers.
NEM's Return On Equity of 23.65% is amongst the best of the industry. NEM outperforms 85.09% of its industry peers.
NEM has a Return On Invested Capital of 15.37%. This is amongst the best in the industry. NEM outperforms 87.72% of its industry peers.
NEM had an Average Return On Invested Capital over the past 3 years of 16.57%. This is above the industry average of 12.49%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.02% | ||
| ROE | 23.65% | ||
| ROIC | 15.37% |
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 (17.65%) is better than 71.05% of its industry peers.
NEM's Profit Margin has declined in the last couple of years.
NEM's Operating Margin of 24.54% is amongst the best of the industry. NEM outperforms 83.33% of its industry peers.
In the last couple of years the Operating Margin of NEM has remained more or less at the same level.
NEM has a better Gross Margin (96.22%) than 94.74% of its industry peers.
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 | 24.54% | ||
| PM (TTM) | 17.65% | ||
| GM | 96.22% |
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.
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
An Altman-Z score of 6.89 indicates that NEM is not in any danger for bankruptcy at the moment.
NEM's Altman-Z score of 6.89 is fine compared to the rest of the industry. NEM outperforms 78.95% of its industry peers.
NEM has a debt to FCF ratio of 1.30. This is a very positive value and a sign of high solvency as it would only need 1.30 years to pay back of all of its debts.
The Debt to FCF ratio of NEM (1.30) is better than 71.05% 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: 67.54% 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 | 1.3 | ||
| Altman-Z | 6.89 |
ROIC/WACC2.01
WACC7.63%
2.3 Liquidity
A Current Ratio of 0.87 indicates that NEM may have some problems paying its short term obligations.
With a Current ratio value of 0.87, NEM is not doing good in the industry: 78.95% of the companies in the same industry are doing better.
A Quick Ratio of 0.87 indicates that NEM may have some problems paying its short term obligations.
The Quick ratio of NEM (0.87) is worse than 78.07% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 |
3. Growth
3.1 Past
NEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.18%, which is quite good.
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 25.17%.
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)17.18%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%9.09%
Revenue 1Y (TTM)25.17%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%15.86%
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 19.40% yearly.
NEM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.28% yearly.
EPS Next Y20.18%
EPS Next 2Y21.36%
EPS Next 3Y21.51%
EPS Next 5Y19.4%
Revenue Next Year20.5%
Revenue Next 2Y17.22%
Revenue Next 3Y16.18%
Revenue Next 5Y15.28%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 48.56, the valuation of NEM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as NEM.
Compared to an average S&P500 Price/Earnings ratio of 27.00, NEM is valued quite expensively.
NEM is valuated quite expensively with a Price/Forward Earnings ratio of 37.71.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEM is on the same level as its industry peers.
NEM is valuated expensively when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.56 | ||
| Fwd PE | 37.71 |
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.
69.30% of the companies in the same industry are more expensive than NEM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.15 | ||
| EV/EBITDA | 29.55 |
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.
The decent profitability rating of NEM may justify a higher PE ratio.
NEM's earnings are expected to grow with 21.51% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.41
PEG (5Y)3.3
EPS Next 2Y21.36%
EPS Next 3Y21.51%
5. Dividend
5.1 Amount
NEM has a yearly dividend return of 0.59%, which is pretty low.
Compared to an average industry Dividend Yield of 0.53, NEM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.59, NEM pays less dividend than the S&P500 average, which is at 1.94.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
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
31.09% 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.
DP31.09%
EPS Next 2Y21.36%
EPS Next 3Y21.51%
FRA:NEM (1/9/2026, 2:57:54 PM)
92.75
+2.4 (+2.66%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners32.56%
Inst Owner ChangeN/A
Ins Owners45.3%
Ins Owner ChangeN/A
Market Cap10.71B
Revenue(TTM)1.16B
Net Income(TTM)204.22M
Analysts71.2
Price Target123.6 (33.26%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.59% |
Yearly Dividend0.48
Dividend Growth(5Y)12.2%
DP31.09%
Div Incr Years5
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)4.9%
Min EPS beat(2)-5.08%
Max EPS beat(2)14.89%
EPS beat(4)2
Avg EPS beat(4)3.85%
Min EPS beat(4)-5.08%
Max EPS beat(4)14.89%
EPS beat(8)5
Avg EPS beat(8)4.65%
EPS beat(12)6
Avg EPS beat(12)2.21%
EPS beat(16)8
Avg EPS beat(16)1.43%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-0.25%
Max Revenue beat(2)1.7%
Revenue beat(4)3
Avg Revenue beat(4)1.97%
Min Revenue beat(4)-0.25%
Max Revenue beat(4)5.49%
Revenue beat(8)4
Avg Revenue beat(8)0.84%
Revenue beat(12)5
Avg Revenue beat(12)0.53%
Revenue beat(16)9
Avg Revenue beat(16)0.76%
PT rev (1m)-1.8%
PT rev (3m)-1.74%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)-2.26%
EPS NY rev (1m)-0.03%
EPS NY rev (3m)-0.5%
Revenue NQ rev (1m)0.27%
Revenue NQ rev (3m)0.86%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.56 | ||
| Fwd PE | 37.71 | ||
| P/S | 9.26 | ||
| P/FCF | 28.15 | ||
| P/OCF | 27.15 | ||
| P/B | 12.4 | ||
| P/tB | N/A | ||
| EV/EBITDA | 29.55 |
EPS(TTM)1.91
EY2.06%
EPS(NY)2.46
Fwd EY2.65%
FCF(TTM)3.3
FCFY3.55%
OCF(TTM)3.42
OCFY3.68%
SpS10.02
BVpS7.48
TBVpS-4.29
PEG (NY)2.41
PEG (5Y)3.3
Graham Number17.93
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.02% | ||
| ROE | 23.65% | ||
| ROCE | 19.39% | ||
| ROIC | 15.37% | ||
| ROICexc | 19.47% | ||
| ROICexgc | N/A | ||
| OM | 24.54% | ||
| PM (TTM) | 17.65% | ||
| GM | 96.22% | ||
| FCFM | 32.9% |
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%
ROICexgc growth 3YN/A
ROICexgc 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-Score7
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 1.3 | ||
| Debt/EBITDA | 1.34 | ||
| Cap/Depr | 18.49% | ||
| Cap/Sales | 1.21% | ||
| Interest Coverage | 13.96 | ||
| Cash Conversion | 109.78% | ||
| Profit Quality | 186.37% | ||
| Current Ratio | 0.87 | ||
| Quick Ratio | 0.87 | ||
| Altman-Z | 6.89 |
F-Score7
WACC7.63%
ROIC/WACC2.01
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)17.18%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%9.09%
EPS Next Y20.18%
EPS Next 2Y21.36%
EPS Next 3Y21.51%
EPS Next 5Y19.4%
Revenue 1Y (TTM)25.17%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%15.86%
Revenue Next Year20.5%
Revenue Next 2Y17.22%
Revenue Next 3Y16.18%
Revenue Next 5Y15.28%
EBIT growth 1Y31.39%
EBIT growth 3Y10.78%
EBIT growth 5Y13.62%
EBIT Next Year51.44%
EBIT Next 3Y27.34%
EBIT Next 5Y23.48%
FCF growth 1Y81.03%
FCF growth 3Y12.76%
FCF growth 5Y15.74%
OCF growth 1Y73.99%
OCF growth 3Y12.7%
OCF growth 5Y13.85%
NEMETSCHEK SE / NEM.DE FAQ
Can you provide the ChartMill fundamental rating for NEMETSCHEK SE?
ChartMill assigns a fundamental rating of 6 / 10 to NEM.DE.
What is the valuation status of NEMETSCHEK SE (NEM.DE) stock?
ChartMill assigns a valuation rating of 3 / 10 to NEMETSCHEK SE (NEM.DE). This can be considered as Overvalued.
Can you provide the profitability details for NEMETSCHEK SE?
NEMETSCHEK SE (NEM.DE) has a profitability rating of 7 / 10.
How financially healthy is NEMETSCHEK SE?
The financial health rating of NEMETSCHEK SE (NEM.DE) is 5 / 10.
Can you provide the dividend sustainability for NEM stock?
The dividend rating of NEMETSCHEK SE (NEM.DE) is 5 / 10 and the dividend payout ratio is 31.09%.