Nemetschek (NEM) AI Stock Analysis

• Market Cap: €11.35B
• Dividend Yield: 0.6%
• Average Volume (3M): 152.70K
• Price to Earnings (P/E): 55.6
• Beta (1Y): 1.22
• Revenue Growth: 25.17%
• EPS Growth: 19.52%
• Country: DE
• 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: €123.44
• Price Target Upside: 34.61% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: €98.00 ▲(6.87% Upside)

Nemetschek's strong financial performance is a key strength, supported by robust revenue growth and profitability. However, technical analysis indicates bearish momentum, and the high P/E ratio suggests overvaluation, which are significant risks.

Positive Factors

Revenue Growth

Consistent revenue growth reflects Nemetschek's expanding market reach and the increasing adoption of its software solutions in the AECO sector, supporting long-term business sustainability.

Cash Flow Generation

Strong cash flow generation indicates Nemetschek's ability to support operational and investment needs, ensuring financial flexibility and potential for future growth initiatives.

Profit Margins

High profit margins demonstrate Nemetschek's efficient cost management and pricing power, which are crucial for sustaining profitability and competitive advantage in the software industry.

Negative Factors

Rising Debt Levels

Rising debt levels may strain Nemetschek's financial resources, potentially impacting its ability to invest in growth opportunities and maintain financial stability if not managed prudently.

Net Profit Margin Decline

A decline in net profit margin may indicate increasing cost pressures, which could affect Nemetschek's profitability and require strategic adjustments to maintain margin sustainability.

Valuation Concerns

High valuation metrics may limit Nemetschek's attractiveness to value investors, potentially affecting long-term investor sentiment and capital inflow.

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 demonstrates strong financial health with consistent revenue growth, solid profit margins, and effective cash flow management. The company maintains a balanced leverage position, although rising debt levels warrant monitoring.

Income Statement

Nemetschek has demonstrated strong revenue growth over the years, with a TTM revenue growth rate of 5.91%. The company maintains healthy profit margins, with a gross profit margin of 59.37% and a net profit margin of 16.86% in the TTM period. EBIT and EBITDA margins are also robust at 24.06% and 30.86%, respectively. The consistent growth and profitability indicate a well-managed income statement, although the slight decline in net profit margin from the previous year suggests some cost pressures.

Balance Sheet

The balance sheet of Nemetschek shows a moderate debt-to-equity ratio of 0.62, indicating a balanced approach to leveraging. The return on equity is strong at 22.17%, reflecting efficient use of equity to generate profits. The equity ratio stands at 40.47%, suggesting a stable financial structure. However, the increase in total debt over the years could pose a risk if not managed carefully.

Cash Flow

Nemetschek's cash flow is robust, with a free cash flow growth rate of 38.6% in the TTM period. The operating cash flow to net income ratio is 0.62, and the free cash flow to net income ratio is 0.96, indicating strong cash generation relative to net income. The company's ability to generate cash flow supports its operational and investment needs effectively.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.12B	995.57M	851.56M	801.81M	681.47M	596.90M
Gross Profit	663.01M	590.63M	398.61M	478.16M	404.28M	300.98M
EBITDA	344.58M	312.39M	265.80M	260.91M	223.00M	172.51M
Net Income	188.24M	175.42M	161.26M	161.90M	134.62M	96.95M
Balance Sheet
Total Assets	2.00B	2.14B	1.27B	1.20B	1.05B	889.66M
Cash, Cash Equivalents and Short-Term Investments	232.41M	210.52M	269.40M	199.31M	158.31M	140.94M
Total Debt	499.58M	569.87M	76.34M	149.24M	194.74M	197.89M
Total Liabilities	1.16B	1.19B	492.43M	508.90M	512.53M	472.37M
Stockholders Equity	810.69M	906.46M	746.58M	653.27M	525.86M	403.92M
Cash Flow
Free Cash Flow	351.17M	293.08M	240.20M	194.76M	204.44M	148.39M
Operating Cash Flow	365.10M	306.80M	252.88M	213.78M	214.36M	157.49M
Investing Cash Flow	-690.14M	-707.11M	-37.85M	-52.41M	-147.62M	-111.00M
Financing Cash Flow	260.19M	331.79M	-139.37M	-123.98M	-55.35M	-109.14M

Nemetschek Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 91.70
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 91.7 is below the 20-day moving average (MA) of 92.46, below the 50-day MA of 99.44, and below the 200-day MA of 113.10, indicating a bearish trend. The MACD of -1.39 indicates Negative momentum. The RSI at 39.25 is Neutral, neither overbought nor oversold. The STOCH value of 33.01 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	77 Outperform	€1.78B	38.73	74.27%	1.81%	10.61%	12.46%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
NEM	61 Neutral	€11.35B	55.58	24.84%	0.60%	25.17%	19.52%
MUM	60 Neutral	€727.15M	23.63	34.89%	4.20%	-33.50%	-6.00%