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 95 industry peers in the Software industry. NEM has an excellent profitability rating, but 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.
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
NEM has a better Return On Assets (8.21%) than 78.95% of its industry peers.
The Return On Equity of NEM (19.35%) is better than 80.00% of its industry peers.
NEM's Return On Invested Capital of 11.60% is amongst the best of the industry. NEM outperforms 86.32% of its industry peers.
The Average Return On Invested Capital over the past 3 years for NEM is significantly above the industry average of 11.01%.
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
With a decent Profit Margin value of 17.62%, NEM is doing good in the industry, outperforming 80.00% of the companies in the same industry.
NEM's Profit Margin has declined in the last couple of years.
NEM has a better Operating Margin (23.53%) than 84.21% of its industry peers.
NEM's Operating Margin has been stable in the last couple of years.
NEM has a better Gross Margin (95.93%) than 97.89% of its industry peers.
NEM's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so NEM is creating value.
Compared to 1 year ago, NEM has about the same amount of shares outstanding.
Compared to 5 years ago, NEM has about the same amount of shares outstanding.
Compared to 1 year ago, NEM has a worse debt to assets ratio.
2.2 Solvency
NEM has an Altman-Z score of 7.59. This indicates that NEM is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of NEM (7.59) is better than 81.05% of its industry peers.
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.
Looking at the Debt to FCF ratio, with a value of 1.94, NEM is in the better half of the industry, outperforming 67.37% of the companies in the same industry.
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 | 7.59 |
ROIC/WACC1.57
WACC7.37%
2.3 Liquidity
A Current Ratio of 0.77 indicates that NEM may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.77, NEM is doing worse than 80.00% of the companies in the same industry.
A Quick Ratio of 0.77 indicates that NEM may have some problems paying its short term obligations.
NEM has a Quick ratio of 0.77. This is in the lower half of the industry: NEM underperforms 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.
NEM shows quite a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 14.73% yearly.
The Revenue has grown by 16.91% in the past year. This is quite good.
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)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
Based on estimates for the next years, NEM will show a quite strong growth in Earnings Per Share. The EPS will grow by 17.45% on average per year.
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.
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
The Price/Earnings ratio is 67.19, which means the current valuation is very expensive for NEM.
Compared to the rest of the industry, the Price/Earnings ratio of NEM is on the same level as its industry peers.
NEM's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.78.
Based on the Price/Forward Earnings ratio of 57.73, the valuation of NEM can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of NEM is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 21.32. NEM is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 67.19 | ||
| Fwd PE | 57.73 |
4.2 Price Multiples
NEM's Enterprise Value to EBITDA ratio is in line with the industry average.
NEM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. NEM is cheaper than 62.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.22 | ||
| EV/EBITDA | 44.27 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
NEM has an outstanding profitability rating, which may justify a higher PE ratio.
NEM's earnings are expected to grow with 20.74% in the coming years. This may justify a more expensive valuation.
PEG (NY)4.1
PEG (5Y)4.56
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 2.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0.5% |
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 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 (4/28/2025, 10:37:30 AM)
112.2
-0.1 (-0.09%)
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 Cap12.96B
Analysts67.41
Price Target113.59 (1.24%)
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 | 67.19 | ||
| Fwd PE | 57.73 | ||
| P/S | 13.02 | ||
| P/FCF | 44.22 | ||
| P/OCF | 42.24 | ||
| P/B | 14.3 | ||
| P/tB | N/A | ||
| EV/EBITDA | 44.27 |
EPS(TTM)1.67
EY1.49%
EPS(NY)1.94
Fwd EY1.73%
FCF(TTM)2.54
FCFY2.26%
OCF(TTM)2.66
OCFY2.37%
SpS8.62
BVpS7.85
TBVpS-5.3
PEG (NY)4.1
PEG (5Y)4.56
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 | 7.59 |
F-Score3
WACC7.37%
ROIC/WACC1.57
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%