Nemetschek (NEM) AI Stock Analysis

• Market Cap: €8.86B
• Dividend Yield: 0.59%
• Average Volume (3M): 152.70K
• Price to Earnings (P/E): 43.4
• Beta (1Y): 1.25
• Revenue Growth: 25.17%
• EPS Growth: 19.52%
• Country: US
• Employees: 3,994
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.48
• Shares Outstanding: 115,500,000
• 10 Day Avg. Volume: 118,728
• 30 Day Avg. Volume: 152,701
• PEG Ratio: 7.19
• Price to Book (P/B): 11.93
• Price to Sales (P/S): 10.86
• P/FCF Ratio: 36.89
• 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: €125.36
• Price Target Upside: 63.34% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: €80.00 ▲(4.23% Upside)

Nemetschek's overall stock score is primarily supported by its strong financial performance, reflecting solid revenue growth and profitability. However, the technical analysis indicates bearish momentum, and the high P/E ratio suggests potential overvaluation, which weigh down the overall score.

Positive Factors

Recurring Revenue / Subscription Model

A shift to subscriptions creates recurring, more predictable revenue and strengthens customer retention and upsell mechanics. Over 2-6 months this supports steadier cash flow, better planning for R&D and product investment, and reduces reliance on one-time license spikes.

High Profitability and Margins

Sustained high gross and operating margins reflect scalable software economics and pricing power in AEC niches. Durable margin levels support reinvestment in product development and sales, funding long-term competitive positioning without immediate need for additional capital.

Strong Free Cash Flow Conversion

Near-parity FCF conversion and positive FCF growth indicate effective cash conversion of earnings, enabling self-funded R&D, acquisitions, or shareholder returns. Over several months this bolsters balance sheet resilience and strategic optionality without heavy external financing.

Negative Factors

Moderate Leverage

A moderate debt load increases fixed financial obligations and can constrain flexibility during industry downturns. Maintaining or reducing leverage would improve resilience; otherwise interest and repayment needs could limit capital allocation for growth initiatives over the medium term.

Slowing Trailing Revenue Growth

A single-digit TTM growth rate signals maturation in core markets and potential saturation of near-term addressable demand. Without new product expansion or geographic penetration, slower top-line momentum may limit long-term upside in ARR and slow the pace of strategic reinvestment.

Operating Cash-to-Income Gap

An OCF-to-net-income ratio below 1 indicates earnings are not fully converting to cash, possibly due to working-capital timing or deferred revenue dynamics. Persisting gaps can constrain free cash flow availability for investments or buffers during cyclical slowdowns.

Nemetschek Business Overview & Revenue Model

Company Description

Nemetschek SE provides software solutions for architecture, engineering, construction, media, and entertainment markets in Germany, rest of Europe, the Americas, the Asia Pacific, and internationally. It operates through four segments: Design, Build, Manage, and Media & Entertainment. The Design segment offers software solutions primarily under the Allplan, Graphisoft, Solibri, Precast, Vectorworks, SCIA, dRofus, Data Design System, Frilo, and RISA brands for architects, designers, engineers, structural engineers, specialist planners, and landscape designers, as well as developers and general contractors. This segment provides building information modeling (BIM) solutions for computer aided design and computer aided engineering in 2D and 3D building design and imaging. The Build segment offers integrated complete 5D BIM solutions primarily under the Bluebeam brand that support bidding and awarding, invoicing, budgeting, scheduling, and cost calculation; and commercial enterprise resource planning solutions. This segment serves construction companies, developers, building supplies, and general contractors, as well as planning offices, architects, and civil engineers. The Manage segment provides commercial property management services under the Crem brand; and modular and integrated software solutions for property, facility, and workplace management under the Spacewell brand for facility and property managers, banks, and insurance and property companies; and intelligent smart building platform. The Media & Entertainment segment offers software solutions under the Maxon name for rendering 3D modeling, animation, and visual effects that are used in film, television, advertising, and video game productions, as well as in medicine, product design, and infographics. The company was founded in 1963 and is headquartered in Munich, Germany.

How the Company Makes Money

Nemetschek generates revenue primarily through the sale of software licenses, subscriptions, and maintenance services. The company has transitioned to a subscription-based model, which provides recurring revenue opportunities and allows clients to access the latest software updates and features. Key revenue streams include direct sales to end-users, as well as partnerships with other firms in the construction and design sectors that may integrate Nemetschek's solutions into their offerings. Additionally, the company benefits from strategic alliances and partnerships that enhance its market reach and product capabilities, contributing significantly to its earnings.

Nemetschek Financial Statement Overview

Summary

Nemetschek exhibits a solid financial position with consistent revenue growth, strong profitability, and efficient cash flow management. The company's balance sheet reflects a prudent approach to leveraging, while the income statement and cash flow statement highlight its operational efficiency and financial health.

Income Statement

Nemetschek has demonstrated consistent revenue growth, with a TTM growth rate of 3.59%. The company maintains strong profitability with a gross profit margin of 58.24% and a net profit margin of 17.65% in the TTM period. EBIT and EBITDA margins are also robust at 24.96% and 31.47%, respectively, indicating efficient operations. Overall, the income statement reflects a healthy financial performance with stable growth and profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.57, indicating a balanced approach to leveraging. Return on equity is strong at 23.48%, reflecting effective use of equity to generate profits. The equity ratio stands at 42.34%, suggesting a solid equity base relative to total assets. While the company has managed its debt well, there is room for improvement in reducing leverage further.

Cash Flow

Nemetschek's cash flow statement is strong, with a free cash flow growth rate of 7.81% in the TTM period. The operating cash flow to net income ratio is 0.68, and the free cash flow to net income ratio is 0.96, indicating efficient cash generation relative to earnings. The company has demonstrated the ability to convert earnings into cash effectively, supporting its financial stability and growth potential.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.16B	995.57M	851.56M	801.81M	681.47M	596.90M
Gross Profit	673.82M	590.63M	398.61M	478.16M	404.28M	300.98M
EBITDA	364.10M	312.39M	265.80M	260.91M	223.00M	172.51M
Net Income	204.22M	175.42M	161.26M	161.90M	134.62M	96.95M
Balance Sheet
Total Assets	2.04B	2.14B	1.27B	1.20B	1.05B	889.66M
Cash, Cash Equivalents and Short-Term Investments	307.50M	210.52M	269.40M	199.31M	158.31M	140.94M
Total Debt	495.17M	569.87M	76.34M	149.24M	194.74M	197.89M
Total Liabilities	1.14B	1.19B	492.43M	508.90M	512.53M	472.37M
Stockholders Equity	863.58M	906.46M	746.58M	653.27M	525.86M	403.92M
Cash Flow
Free Cash Flow	378.59M	293.08M	240.20M	194.76M	204.44M	148.39M
Operating Cash Flow	392.54M	306.80M	252.88M	213.78M	214.36M	157.49M
Investing Cash Flow	-34.75M	-707.11M	-37.85M	-52.41M	-147.62M	-111.00M
Financing Cash Flow	-302.44M	331.79M	-139.37M	-123.98M	-55.35M	-109.14M

Nemetschek Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 76.75
• 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:NEM, the sentiment is Negative. The current price of 76.75 is below the 20-day moving average (MA) of 85.61, below the 50-day MA of 89.78, and below the 200-day MA of 109.68, indicating a bearish trend. The MACD of -4.19 indicates Positive momentum. The RSI at 33.48 is Neutral, neither overbought nor oversold. The STOCH value of 33.87 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:NEM.

Nemetschek Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AOF	72 Outperform	€1.59B	34.64	74.27%	1.88%	10.61%	12.46%
MUM	69 Neutral	€747.35M	24.69	34.89%	4.15%	-33.50%	-6.00%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NEM	59 Neutral	€8.86B	43.40	24.84%	0.59%	25.17%	19.52%