Mensch und Maschine Software SE (MUM) AI Stock Analysis

• Market Cap: €582.39M
• Dividend Yield: 4.15%
• Average Volume (3M): 13.41K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.46
• Revenue Growth: -33.50%
• EPS Growth: -6.00%
• Country: DE
• Employees: 1,194
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.56
• Shares Outstanding: 17,149,052
• 10 Day Avg. Volume: 15,791
• 30 Day Avg. Volume: 13,412
• PEG Ratio: 3.85
• Price to Book (P/B): 9.52
• Price to Sales (P/S): 3.14
• P/FCF Ratio: 53.36
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 2.26
• Revenue Forecast (FY): €258.20M

• Rating: 58 Neutral
• Price Target: €37.00 ▼(-15.91% Downside)
• Action: Reiterated Date: 03/20/26
• Date: Action: Reiterated 03/20/26

The score is primarily held back by 2025 financial red flags (revenue/gross margin pressure, weaker cash conversion, and higher leverage). Technicals also reflect a clear downtrend with weak momentum. These negatives are partially offset by historically solid profitability/ROE and a supportive dividend yield.

Positive Factors

High return on equity and sustained profitability

Multi-year high ROE (~25%–40%) and historically solid profitability show efficient capital allocation and strong margins. This durable profitability indicates the business can generate shareholder returns and absorb cyclical shocks, supporting investment and dividend capacity over months.

Dual software-distribution and services business model

A two-pronged model (software distribution and services) creates diversified revenue streams and cross-sell opportunities. Recurring license/maintenance and project-based services increase customer stickiness and provide multiple durable levers for revenue and margin stability over a multi-month horizon.

Historically strong cash generation and FCF conversion

Consistent pre-2025 free cash flow conversion (~83%–87% of net income) demonstrates the firm's ability to turn earnings into cash. This track record supports funding of operations, capex, and distributions and offers a durable buffer to weather near-term operational setbacks.

Negative Factors

Sharp 2025 revenue and gross-margin decline

A large year-over-year revenue collapse and halving of gross margin materially change the company's economics. Such structural mix or pricing shifts reduce long-term earnings quality and create uncertainty about sustainable margins and recurring revenue, impairing planning and investment decisions.

Weaker cash conversion and operating cash flow deterioration

A sharp drop in OCF and FCF indicates worsening cash conversion despite reported earnings. This undermines the company's ability to self-fund operations and dividends, increases reliance on external financing, and signals potential working-capital or revenue-collection risks that persist for months.

Higher leverage and reduced equity in 2025

Meaningfully higher debt and lower equity in 2025 weaken the balance sheet and financial flexibility. Elevated leverage raises refinancing and interest risks, limits strategy execution (M&A, R&D spend, dividends), and amplifies downside if revenue weakness persists over the medium term.

Mensch und Maschine Software SE Business Overview & Revenue Model

Company Description

Mensch und Maschine Software SE provides computer aided design, manufacturing, and engineering (CAD/CAM/CAE), product data management, and building information modeling/management solutions in Germany and internationally. It operates in two segments, VAR Business and M+M Software. The VAR Business segment sells CAD software to end users, as well as provides associated services. The M+M Software segments develops CAD/CAM/CAE software. The company offers software solutions that are used for the process control of milling, drilling, and turning in various industries, such as mechanical engineering; tool, mold, and die making; automotive and aerospace industry; process control; medical technology; and toy industry, as well as watch, clock, and jewelry manufacturing. Mensch und Maschine Software SE was founded in 1984 and is headquartered in Starnberg, Germany.

How the Company Makes Money

MuM generates revenue mainly through two business models that correspond to its reporting segments. (1) MuM Software: The company earns money by distributing and selling software (notably Autodesk software) and by selling its own software products and add-ons that extend CAD/BIM workflows. Revenue in this segment typically comes from software license/subscription sales, renewals/maintenance where applicable, and associated sales-related services (e.g., packaging, deployment tooling, and customer enablement tied to software distribution). As an Autodesk partner/reseller, MuM’s earnings are influenced by Autodesk’s partner program economics (e.g., discounts/margins and incentives) and by the volume and renewal behavior of the installed customer base; specific contractual terms are not publicly detailed here (null). (2) MuM Services: The company earns service revenue by providing consulting, implementation, customization/development, integration, training, and support around CAD/BIM and related digitalization solutions. This segment is primarily project- and time-based, with revenue driven by billable hours, fixed-price project fees, and ongoing support arrangements. Across both segments, key drivers of earnings include the size and retention of the subscription customer base, demand for engineering digitization (CAD/BIM/PLM-adjacent workflows), cross-selling of services into the software customer base, and the strength of partner relationships—especially with Autodesk—supporting product access, go-to-market, and recurring renewal activity.

Mensch und Maschine Software SE Financial Statement Overview

Summary

Multi-year profitability and strong ROE are positives, but 2025 introduces material risks: sharp revenue and gross margin decline, weaker cash conversion (OCF and FCF drop), and higher leverage, which reduce near-term quality and flexibility despite still-resilient operating/net margins.

Income Statement

Profitability is solid and generally improving across 2020–2024, with net margin rising from ~7.7% (2020) to ~9.4% (2024) and steady mid-teens operating profitability. Revenue growth has been modest most years (low-single-digits in 2023–2024), with a notable exception in 2022 (~20%). A key weakness is the sharp 2025 revenue drop (238.6m vs. 325.8m in 2024) and a much lower gross margin (~25% in 2025 vs. ~53% in 2024), even though operating and net margins remain comparatively resilient—this creates uncertainty around the durability of the business mix and earnings quality going forward.

Balance Sheet

The balance sheet looks healthy overall with strong profitability on shareholder capital (return on equity consistently high, ~25%–40%), indicating effective capital use. Leverage was conservative in 2023–2024 (debt-to-equity ~0.19–0.21), but 2025 shows a meaningful increase in debt (to ~49.4m) and higher leverage (debt-to-equity ~0.63) alongside lower equity (78.7m vs. 98.5m in 2024). This higher leverage reduces financial flexibility and raises risk if the 2025 revenue contraction persists.

Cash Flow

Cash generation was strong in 2020–2024, with free cash flow closely tracking earnings (free cash flow about ~83%–87% of net income) and sizable operating cash flow. However, 2025 shows a sharp deterioration: operating cash flow fell to ~16.3m (from ~62.3m in 2024) and free cash flow dropped to ~14.0m (down ~8.5%), despite net income holding up. This divergence suggests weaker cash conversion in 2025 and increases reliance on working-capital timing or other non-cash supports to sustain earnings.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	238.59M	325.84M	322.31M	320.48M	266.16M
Gross Profit	60.20M	174.59M	168.53M	161.14M	138.42M
EBITDA	50.23M	56.29M	55.35M	51.80M	43.72M
Net Income	31.81M	30.49M	28.87M	26.01M	21.30M
Balance Sheet
Total Assets	201.16M	211.89M	187.20M	187.45M	160.79M
Cash, Cash Equivalents and Short-Term Investments	15.76M	43.00M	24.87M	24.37M	20.00M
Total Debt	49.41M	19.13M	19.20M	37.86M	23.41M
Total Liabilities	116.41M	106.98M	87.44M	101.69M	67.99M
Stockholders Equity	78.67M	98.46M	92.85M	78.69M	86.33M
Cash Flow
Free Cash Flow	14.04M	52.02M	44.16M	33.35M	31.60M
Operating Cash Flow	16.26M	62.32M	50.59M	39.05M	36.91M
Investing Cash Flow	-11.05M	-10.93M	-7.21M	-6.12M	-8.26M
Financing Cash Flow	-31.93M	-33.54M	-42.97M	-28.41M	-25.02M

Mensch und Maschine Software SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 44.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:MUM, the sentiment is Negative. The current price of 44 is above the 20-day moving average (MA) of 37.09, above the 50-day MA of 40.03, and below the 200-day MA of 45.70, indicating a bearish trend. The MACD of -1.39 indicates Positive momentum. The RSI at 30.74 is Neutral, neither overbought nor oversold. The STOCH value of 26.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:MUM.

Mensch und Maschine Software SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
IVU	76 Outperform	€337.18M	23.12	15.91%	1.34%	12.50%	10.93%
AOF	70 Outperform	€1.26B	37.95	74.27%	1.88%	10.61%	12.46%
NEM	62 Neutral	€8.00B	49.36	24.82%	0.59%	25.17%	19.52%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
MUM	58 Neutral	€582.39M	23.55	38.38%	4.15%	-33.50%	-6.00%
PSAN	58 Neutral	€705.34M	-4.16	-26.06%	―	9.19%	-37.73%