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 102 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 8.31%. This is in the better half of the industry: NEM outperforms 78.64% of its industry peers.
NEM has a Return On Equity of 19.80%. This is amongst the best in the industry. NEM outperforms 81.55% of its industry peers.
NEM has a better Return On Invested Capital (12.53%) than 85.44% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for NEM is significantly above the industry average of 10.45%.
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
NEM's Profit Margin of 16.86% is fine compared to the rest of the industry. NEM outperforms 76.70% of its industry peers.
NEM's Profit Margin has declined in the last couple of years.
With an excellent Operating Margin value of 22.93%, NEM belongs to the best of the industry, outperforming 82.52% 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 (95.95%) than 97.09% 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 | 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
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.
Compared to 5 years ago, NEM has about the same amount of shares outstanding.
The debt/assets ratio for NEM is higher compared to a year ago.
2.2 Solvency
NEM has an Altman-Z score of 8.13. This indicates that NEM is financially healthy and has little risk of bankruptcy at the moment.
NEM has a better Altman-Z score (8.13) than 83.50% of its industry peers.
The Debt to FCF ratio of NEM is 1.48, which is an excellent value as it means it would take NEM, only 1.48 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.48, NEM is in the better half of the industry, outperforming 75.73% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that NEM is somewhat dependend on debt financing.
NEM's Debt to Equity ratio of 0.56 is on the low side compared to the rest of the industry. NEM is outperformed by 62.14% of its industry peers.
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 | 8.13 |
ROIC/WACC1.56
WACC8.04%
2.3 Liquidity
A Current Ratio of 0.76 indicates that NEM may have some problems paying its short term obligations.
With a Current ratio value of 0.76, NEM is not doing good in the industry: 81.55% of the companies in the same industry are doing better.
A Quick Ratio of 0.76 indicates that NEM may have some problems paying its short term obligations.
With a Quick ratio value of 0.76, NEM is not doing good in the industry: 81.55% of the companies in the same industry are doing better.
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 | 0.76 | ||
| Quick Ratio | 0.76 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 20.14% over the past year.
The Earnings Per Share has been growing by 14.73% on average over the past years. This is quite good.
The Revenue has grown by 21.08% in the past year. This is a very strong growth!
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)20.14%
EPS 3Y12.59%
EPS 5Y14.73%
EPS Q2Q%5.54%
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 17.45% yearly.
NEM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.23% yearly.
EPS Next Y16.37%
EPS Next 2Y20.11%
EPS Next 3Y20.74%
EPS Next 5Y17.45%
Revenue Next Year18.79%
Revenue Next 2Y16.66%
Revenue Next 3Y15.83%
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.
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 73.23 indicates a quite expensive valuation of NEM.
Compared to the rest of the industry, the Price/Earnings ratio of NEM is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.25, NEM is valued quite expensively.
Based on the Price/Forward Earnings ratio of 50.76, the valuation of NEM can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as NEM.
NEM's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.15.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.23 | ||
| Fwd PE | 50.76 |
4.2 Price Multiples
NEM's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. NEM is more expensive than 62.14% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, NEM is valued a bit cheaper than 65.05% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.38 | ||
| EV/EBITDA | 45.85 |
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 20.74% in the coming years.
PEG (NY)4.47
PEG (5Y)4.97
EPS Next 2Y20.11%
EPS Next 3Y20.74%
5. Dividend
5.1 Amount
NEM has a yearly dividend return of 0.45%, which is pretty low.
Compared to an average industry Dividend Yield of 1.84, NEM pays a bit more dividend than its industry peers.
With a Dividend Yield of 0.45, NEM pays less dividend than the S&P500 average, which is at 2.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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 (5/30/2025, 7:00:00 PM)
122.3
+0.8 (+0.66%)
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 Cap14.13B
Analysts67.41
Price Target114.08 (-6.72%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.45% |
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)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
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)0.43%
PT rev (3m)6.7%
EPS NQ rev (1m)5.17%
EPS NQ rev (3m)-2.94%
EPS NY rev (1m)0%
EPS NY rev (3m)0.32%
Revenue NQ rev (1m)-0.27%
Revenue NQ rev (3m)0.33%
Revenue NY rev (1m)-0.08%
Revenue NY rev (3m)1.03%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 73.23 | ||
| Fwd PE | 50.76 | ||
| P/S | 13.4 | ||
| P/FCF | 40.38 | ||
| P/OCF | 39.04 | ||
| P/B | 15.73 | ||
| P/tB | N/A | ||
| EV/EBITDA | 45.85 |
EPS(TTM)1.67
EY1.37%
EPS(NY)2.41
Fwd EY1.97%
FCF(TTM)3.03
FCFY2.48%
OCF(TTM)3.13
OCFY2.56%
SpS9.13
BVpS7.77
TBVpS-4.93
PEG (NY)4.47
PEG (5Y)4.97
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 | 8.13 |
F-Score3
WACC8.04%
ROIC/WACC1.56
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%5.54%
EPS Next Y16.37%
EPS Next 2Y20.11%
EPS Next 3Y20.74%
EPS Next 5Y17.45%
Revenue 1Y (TTM)21.08%
Revenue growth 3Y13.47%
Revenue growth 5Y12.32%
Sales Q2Q%26.28%
Revenue Next Year18.79%
Revenue Next 2Y16.66%
Revenue Next 3Y15.83%
Revenue Next 5Y14.23%
EBIT growth 1Y16.46%
EBIT growth 3Y10.78%
EBIT growth 5Y13.62%
EBIT Next Year48.24%
EBIT Next 3Y26.9%
EBIT Next 5Y20.34%
FCF growth 1Y76.54%
FCF growth 3Y12.76%
FCF growth 5Y15.74%
OCF growth 1Y66.94%
OCF growth 3Y12.7%
OCF growth 5Y13.85%