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 96 industry peers in the Software industry. NEM gets an excellent profitability rating and is at the same time showing great financial health properties. NEM shows excellent growth, but is valued quite expensive already. This makes NEM very considerable for growth and quality 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.
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
Looking at the Return On Assets, with a value of 8.18%, NEM is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
With an excellent Return On Equity value of 21.89%, NEM belongs to the best of the industry, outperforming 84.38% of the companies in the same industry.
NEM has a better Return On Invested Capital (18.38%) than 88.54% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEM is significantly above the industry average of 11.83%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.18% | ||
| ROE | 21.89% | ||
| ROIC | 18.38% |
ROA(3y)12.91%
ROA(5y)12.89%
ROE(3y)23.99%
ROE(5y)26.49%
ROIC(3y)19.85%
ROIC(5y)18.71%
1.3 Margins
NEM has a Profit Margin of 18.49%. This is amongst the best in the industry. NEM outperforms 80.21% of its industry peers.
In the last couple of years the Profit Margin of NEM has grown nicely.
NEM's Operating Margin of 23.38% is amongst the best of the industry. NEM outperforms 84.38% of its industry peers.
In the last couple of years the Operating Margin of NEM has grown nicely.
The Gross Margin of NEM (95.80%) is better than 96.88% 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 | 23.38% | ||
| PM (TTM) | 18.49% | ||
| GM | 95.8% |
OM growth 3Y4.95%
OM growth 5Y2.37%
PM growth 3Y5.25%
PM growth 5Y2.7%
GM growth 3Y0%
GM growth 5Y-0.18%
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.
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.
The debt/assets ratio for NEM has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.75 indicates that NEM is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 6.75, NEM belongs to the best of the industry, outperforming 80.21% of the companies in the same industry.
The Debt to FCF ratio of NEM is 2.68, which is a good value as it means it would take NEM, 2.68 years of fcf income to pay off all of its debts.
NEM's Debt to FCF ratio of 2.68 is fine compared to the rest of the industry. NEM outperforms 62.50% of its industry peers.
NEM has a Debt/Equity ratio of 0.06. This is a healthy value indicating a solid balance between debt and equity.
NEM's Debt to Equity ratio of 0.06 is amongst the best of the industry. NEM outperforms 80.21% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.68 | ||
| Altman-Z | 6.75 |
ROIC/WACC2.52
WACC7.3%
2.3 Liquidity
NEM has a Current Ratio of 0.41. 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 0.41 is on the low side compared to the rest of the industry. NEM is outperformed by 82.29% of its industry peers.
NEM has a Quick Ratio of 0.41. 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 Quick ratio of NEM (0.41) is worse than 82.29% 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 | 0.41 | ||
| Quick Ratio | 0.41 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.35% over the past year.
The Earnings Per Share has been growing by 15.95% on average over the past years. This is quite good.
The Revenue has grown by 10.70% in the past year. This is quite good.
NEM shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 13.04% yearly.
EPS 1Y (TTM)28.35%
EPS 3Y18.28%
EPS 5Y15.95%
EPS Q2Q%12.82%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y12.57%
Revenue growth 5Y13.04%
Sales Q2Q%15.08%
3.2 Future
The Earnings Per Share is expected to grow by 19.03% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.84% on average over the next years. This is quite good.
EPS Next Y12.85%
EPS Next 2Y18.05%
EPS Next 3Y20.2%
EPS Next 5Y19.03%
Revenue Next Year15.73%
Revenue Next 2Y16.8%
Revenue Next 3Y16.23%
Revenue Next 5Y14.84%
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
With a Price/Earnings ratio of 67.06, NEM can be considered very expensive at the moment.
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 28.80, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 56.42 indicates a quite expensive valuation of NEM.
NEM's Price/Forward Earnings is on the same level as the industry average.
NEM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.91.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.06 | ||
| Fwd PE | 56.42 |
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.
62.50% 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 | 48.77 | ||
| EV/EBITDA | 48.07 |
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 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 20.20% in the coming years.
PEG (NY)5.22
PEG (5Y)4.21
EPS Next 2Y18.05%
EPS Next 3Y20.2%
5. Dividend
5.1 Amount
NEM has a yearly dividend return of 0.43%, which is pretty low.
Compared to an average industry Dividend Yield of 2.98, NEM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.43, NEM pays less dividend than the S&P500 average, which is at 2.39.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
5.2 History
The dividend of NEM is nicely growing with an annual growth rate of 12.47%!
Dividend Growth(5Y)12.47%
Div Incr Years5
Div Non Decr Years5
5.3 Sustainability
NEM pays out 32.44% 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.
DP32.44%
EPS Next 2Y18.05%
EPS Next 3Y20.2%
FRA:NEM (3/28/2025, 12:50:06 PM)
109.3
-1.5 (-1.35%)
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 Cap12.62B
Analysts66.15
Price Target106.92 (-2.18%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.43% |
Yearly Dividend0.45
Dividend Growth(5Y)12.47%
DP32.44%
Div Incr Years5
Div Non Decr Years5
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.06%
Min EPS beat(2)9.04%
Max EPS beat(2)13.08%
EPS beat(4)3
Avg EPS beat(4)5.45%
Min EPS beat(4)-7.06%
Max EPS beat(4)13.08%
EPS beat(8)4
Avg EPS beat(8)1.39%
EPS beat(12)6
Avg EPS beat(12)0.63%
EPS beat(16)10
Avg EPS beat(16)3.87%
Revenue beat(2)1
Avg Revenue beat(2)0.06%
Min Revenue beat(2)-0.85%
Max Revenue beat(2)0.97%
Revenue beat(4)1
Avg Revenue beat(4)-0.29%
Min Revenue beat(4)-0.85%
Max Revenue beat(4)0.97%
Revenue beat(8)2
Avg Revenue beat(8)-0.18%
Revenue beat(12)6
Avg Revenue beat(12)0.36%
Revenue beat(16)9
Avg Revenue beat(16)0.6%
PT rev (1m)0%
PT rev (3m)6.51%
EPS NQ rev (1m)-1.32%
EPS NQ rev (3m)3.3%
EPS NY rev (1m)0%
EPS NY rev (3m)-1.37%
Revenue NQ rev (1m)1.4%
Revenue NQ rev (3m)3.54%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)1.92%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.06 | ||
| Fwd PE | 56.42 | ||
| P/S | 13.66 | ||
| P/FCF | 48.77 | ||
| P/OCF | 46.43 | ||
| P/B | 16.17 | ||
| P/tB | N/A | ||
| EV/EBITDA | 48.07 |
EPS(TTM)1.63
EY1.49%
EPS(NY)1.94
Fwd EY1.77%
FCF(TTM)2.24
FCFY2.05%
OCF(TTM)2.35
OCFY2.15%
SpS8
BVpS6.76
TBVpS-5.76
PEG (NY)5.22
PEG (5Y)4.21
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.18% | ||
| ROE | 21.89% | ||
| ROCE | 22.56% | ||
| ROIC | 18.38% | ||
| ROICexc | 25.38% | ||
| ROICexgc | N/A | ||
| OM | 23.38% | ||
| PM (TTM) | 18.49% | ||
| GM | 95.8% | ||
| FCFM | 28.01% |
ROA(3y)12.91%
ROA(5y)12.89%
ROE(3y)23.99%
ROE(5y)26.49%
ROIC(3y)19.85%
ROIC(5y)18.71%
ROICexc(3y)26.96%
ROICexc(5y)25.95%
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)24.37%
ROCE(5y)22.97%
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3Y7.32%
ROICexc growth 5Y-4.66%
OM growth 3Y4.95%
OM growth 5Y2.37%
PM growth 3Y5.25%
PM growth 5Y2.7%
GM growth 3Y0%
GM growth 5Y-0.18%
F-Score4
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.06 | ||
| Debt/FCF | 2.68 | ||
| Debt/EBITDA | 0.17 | ||
| Cap/Depr | 22.12% | ||
| Cap/Sales | 1.41% | ||
| Interest Coverage | 47.99 | ||
| Cash Conversion | 98.84% | ||
| Profit Quality | 151.47% | ||
| Current Ratio | 0.41 | ||
| Quick Ratio | 0.41 | ||
| Altman-Z | 6.75 |
F-Score4
WACC7.3%
ROIC/WACC2.52
Cap/Depr(3y)24.66%
Cap/Depr(5y)27.62%
Cap/Sales(3y)1.77%
Cap/Sales(5y)2.06%
Profit Quality(3y)140.37%
Profit Quality(5y)137.03%
High Growth Momentum
Growth
EPS 1Y (TTM)28.35%
EPS 3Y18.28%
EPS 5Y15.95%
EPS Q2Q%12.82%
EPS Next Y12.85%
EPS Next 2Y18.05%
EPS Next 3Y20.2%
EPS Next 5Y19.03%
Revenue 1Y (TTM)10.7%
Revenue growth 3Y12.57%
Revenue growth 5Y13.04%
Sales Q2Q%15.08%
Revenue Next Year15.73%
Revenue Next 2Y16.8%
Revenue Next 3Y16.23%
Revenue Next 5Y14.84%
EBIT growth 1Y17.17%
EBIT growth 3Y18.15%
EBIT growth 5Y15.72%
EBIT Next Year42.24%
EBIT Next 3Y27.63%
EBIT Next 5Y22.21%
FCF growth 1Y23.89%
FCF growth 3Y17.42%
FCF growth 5Y22.12%
OCF growth 1Y21.04%
OCF growth 3Y17.1%
OCF growth 5Y20.45%