NEMETSCHEK SE (NEM.DE) Stock Fundamental Analysis
FRA:NEM - DE0006452907 - Common Stock
103.85 EUR
-8.25 (-7.36%)
Overall NEM gets a fundamental rating of 6 out of 10. We evaluated NEM against 101 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. 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.
Each year in the past 5 years NEM has been profitable.
Each year in the past 5 years NEM had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 9.40%, NEM is doing good in the industry, outperforming 79.21% of the companies in the same industry.
The Return On Equity of NEM (23.22%) is better than 84.16% of its industry peers.
NEM has a Return On Invested Capital of 14.84%. This is amongst the best in the industry. NEM outperforms 87.13% 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 12.69%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.4% | ||
| ROE | 23.22% | ||
| ROIC | 14.84% |
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
NEM has a better Profit Margin (16.86%) than 70.30% of its industry peers.
In the last couple of years the Profit Margin of NEM has declined.
With an excellent Operating Margin value of 23.67%, NEM belongs to the best of the industry, outperforming 82.18% of the companies in the same industry.
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 (96.11%) than 95.05% of its industry peers.
NEM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.67% | ||
| PM (TTM) | 16.86% | ||
| GM | 96.11% |
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.
NEM has a worse debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 7.97 indicates that NEM is not in any danger for bankruptcy at the moment.
The Altman-Z score of NEM (7.97) is better than 82.18% of its industry peers.
NEM has a debt to FCF ratio of 1.42. This is a very positive value and a sign of high solvency as it would only need 1.42 years to pay back of all of its debts.
NEM's Debt to FCF ratio of 1.42 is fine compared to the rest of the industry. NEM outperforms 69.31% of its industry peers.
NEM has a Debt/Equity ratio of 0.60. This is a neutral value indicating NEM is somewhat dependend on debt financing.
NEM has a worse Debt to Equity ratio (0.60) than 68.32% of its industry peers.
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 | 0.6 | ||
| Debt/FCF | 1.42 | ||
| Altman-Z | 7.97 |
ROIC/WACC1.98
WACC7.49%
2.3 Liquidity
NEM has a Current Ratio of 0.74. 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 0.74 is on the low side compared to the rest of the industry. NEM is outperformed by 81.19% of its industry peers.
NEM has a Quick Ratio of 0.74. 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 Quick ratio of 0.74 is on the low side compared to the rest of the industry. NEM is outperformed by 80.20% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
NEM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 18.35%, which is quite good.
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 25.33%.
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)18.35%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%26.83%
Revenue 1Y (TTM)25.33%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%27.36%
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 18.63% 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 15.62% on average per year.
EPS Next Y17.28%
EPS Next 2Y21.25%
EPS Next 3Y21.25%
EPS Next 5Y18.63%
Revenue Next Year19.79%
Revenue Next 2Y17.09%
Revenue Next 3Y16.25%
Revenue Next 5Y15.62%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 55.53, the valuation of NEM can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as NEM.
When comparing the Price/Earnings ratio of NEM to the average of the S&P500 Index (27.03), we can say NEM is valued expensively.
The Price/Forward Earnings ratio is 42.30, which means the current valuation is very expensive for 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 22.54.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.53 | ||
| Fwd PE | 42.3 |
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 62.38% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.16 | ||
| EV/EBITDA | 38.81 |
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.
A more expensive valuation may be justified as NEM's earnings are expected to grow with 21.25% in the coming years.
PEG (NY)3.21
PEG (5Y)3.77
EPS Next 2Y21.25%
EPS Next 3Y21.25%
5. Dividend
5.1 Amount
With a yearly dividend of 0.48%, NEM is not a good candidate for dividend investing.
Compared to an average industry Dividend Yield of 2.06, NEM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.48, NEM pays less dividend than the S&P500 average, which is at 2.45.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
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
33.73% 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.
DP33.73%
EPS Next 2Y21.25%
EPS Next 3Y21.25%
FRA:NEM (9/11/2025, 4:39:20 PM)
103.85
-8.25 (-7.36%)
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 Cap11.99B
Analysts68.33
Price Target126.05 (21.38%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.48% |
Yearly Dividend0.48
Dividend Growth(5Y)12.2%
DP33.73%
Div Incr Years5
Div Non Decr Years6
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11.23%
Min EPS beat(2)6.84%
Max EPS beat(2)15.62%
EPS beat(4)3
Avg EPS beat(4)8.58%
Min EPS beat(4)-1.24%
Max EPS beat(4)15.62%
EPS beat(8)6
Avg EPS beat(8)7.5%
EPS beat(12)6
Avg EPS beat(12)2.16%
EPS beat(16)9
Avg EPS beat(16)1.95%
Revenue beat(2)2
Avg Revenue beat(2)1.32%
Min Revenue beat(2)0.94%
Max Revenue beat(2)1.7%
Revenue beat(4)4
Avg Revenue beat(4)2.27%
Min Revenue beat(4)0.94%
Max Revenue beat(4)5.49%
Revenue beat(8)5
Avg Revenue beat(8)1.23%
Revenue beat(12)6
Avg Revenue beat(12)0.6%
Revenue beat(16)9
Avg Revenue beat(16)0.76%
PT rev (1m)8.33%
PT rev (3m)9.96%
EPS NQ rev (1m)-1.03%
EPS NQ rev (3m)-0.19%
EPS NY rev (1m)0.78%
EPS NY rev (3m)0.78%
Revenue NQ rev (1m)1.17%
Revenue NQ rev (3m)-1%
Revenue NY rev (1m)0.85%
Revenue NY rev (3m)0.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.53 | ||
| Fwd PE | 42.3 | ||
| P/S | 10.74 | ||
| P/FCF | 34.16 | ||
| P/OCF | 32.85 | ||
| P/B | 14.8 | ||
| P/tB | N/A | ||
| EV/EBITDA | 38.81 |
EPS(TTM)1.87
EY1.8%
EPS(NY)2.46
Fwd EY2.36%
FCF(TTM)3.04
FCFY2.93%
OCF(TTM)3.16
OCFY3.04%
SpS9.67
BVpS7.02
TBVpS-4.86
PEG (NY)3.21
PEG (5Y)3.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.4% | ||
| ROE | 23.22% | ||
| ROCE | 18.72% | ||
| ROIC | 14.84% | ||
| ROICexc | 17.76% | ||
| ROICexgc | N/A | ||
| OM | 23.67% | ||
| PM (TTM) | 16.86% | ||
| GM | 96.11% | ||
| FCFM | 31.45% |
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-Score4
Asset Turnover0.56
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.6 | ||
| Debt/FCF | 1.42 | ||
| Debt/EBITDA | 1.42 | ||
| Cap/Depr | 18.32% | ||
| Cap/Sales | 1.25% | ||
| Interest Coverage | 12.55 | ||
| Cash Conversion | 107.25% | ||
| Profit Quality | 186.55% | ||
| Current Ratio | 0.74 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z | 7.97 |
F-Score4
WACC7.49%
ROIC/WACC1.98
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)18.35%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%26.83%
EPS Next Y17.28%
EPS Next 2Y21.25%
EPS Next 3Y21.25%
EPS Next 5Y18.63%
Revenue 1Y (TTM)25.33%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%27.36%
Revenue Next Year19.79%
Revenue Next 2Y17.09%
Revenue Next 3Y16.25%
Revenue Next 5Y15.62%
EBIT growth 1Y23.09%
EBIT growth 3Y10.78%
EBIT growth 5Y13.62%
EBIT Next Year48.24%
EBIT Next 3Y26.9%
EBIT Next 5Y23.65%
FCF growth 1Y73.09%
FCF growth 3Y12.76%
FCF growth 5Y15.74%
OCF growth 1Y64.98%
OCF growth 3Y12.7%
OCF growth 5Y13.85%