Nemetschek (NEM) AI Stock Analysis

• Market Cap: €14.83B
• Dividend Yield: 0.43%
• Average Volume (3M): 106.62K
• Price to Earnings (P/E): 83.4
• Beta (1Y): 1.16
• Revenue Growth: 21.08%
• EPS Growth: 6.11%
• Country: DE
• Employees: 3,994
• Sector: Technology
• Sector Strength: 83
• Industry: Software - Application
• EPS (TTM): 0.39
• Shares Outstanding: 115,500,000
• 10 Day Avg. Volume: 110,082
• 30 Day Avg. Volume: 106,624
• PEG Ratio: 60.49
• Price to Book (P/B): 15.76
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 40.52
• 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: €115.20
• Price Target Upside: -10.28% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 12

• Rating: 75 Outperform
• Price Target: ―

Nemetschek demonstrates a strong financial position with impressive revenue growth and profitability. The technical analysis indicates positive momentum, though caution is warranted due to overbought signals. The valuation is a concern, with a high P/E ratio suggesting the stock may be overvalued. Overall, the company's solid financial foundation supports a favorable outlook, though investors should be mindful of potential valuation risks.

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 contracts. Its business model includes both perpetual licenses and subscription-based licensing, catering to a wide range of customer preferences. A significant portion of its revenue comes from recurring sources, such as software updates, maintenance services, and cloud-based offerings. Additionally, Nemetschek benefits from strategic partnerships and collaborations within the AEC industry, enhancing its market reach and integration capabilities with other software solutions. The company's focus on innovation and expanding its product portfolio also contributes to its financial performance by attracting new customers and retaining existing ones.

Nemetschek Financial Statement Overview

Summary

Nemetschek maintains strong financial health with consistent revenue growth, robust profitability, and effective cash management. Despite increasing liabilities, the company's ability to manage debt and equity is evident, supporting future growth prospects.

Income Statement

Nemetschek shows strong financial performance with a consistent upward trend in revenue, growing from $596.9M in 2020 to $1.05B in TTM 2025. The gross profit margin remains robust at 57.8% in TTM, reflecting effective cost management. Net profit margin is healthy at 16.9%, and EBITDA margin stands at 31.0%, indicating high operational efficiency. Revenue growth rate is impressive at 6% from 2024 to TTM 2025, showcasing sustainable growth.

Balance Sheet

The balance sheet is strong, with an equity ratio of 41.9% in TTM, suggesting a solid capital structure. Debt-to-equity ratio is manageable at 0.57, indicating low leverage risk. Return on equity is robust at 19.8%, reflecting high profitability relative to shareholders' equity. While liabilities are increasing, the company's ability to manage debt and equity effectively is evident.

Cash Flow

Cash flow performance is solid, with a substantial operating cash flow to net income ratio of 2.03, indicating strong cash generation capability. The free cash flow has grown by 19.1% from 2024 to TTM 2025, demonstrating effective cash management. However, the high investing cash outflows might require monitoring to ensure continued liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.05B	995.57M	851.56M	801.81M	681.47M	596.90M
	Gross Profit
609.97M	590.63M	398.61M	478.16M	404.28M	300.98M
	EBIT
241.75M	234.22M	199.50M	198.14M	171.99M	122.52M
	EBITDA
326.63M	312.39M	265.80M	260.91M	223.00M	172.51M
	Net Income Common Stockholders
177.76M	175.42M	161.26M	161.90M	134.62M	96.95M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
267.63M	210.52M	269.40M	199.31M	158.31M	140.94M
	Total Assets
2.14B	2.14B	1.27B	1.20B	1.05B	889.66M
	Total Debt
516.14M	569.87M	76.34M	149.24M	194.74M	197.89M
	Net Debt
252.12M	364.13M	-191.70M	-47.58M	37.64M	58.57M
	Total Liabilities
1.21B	1.19B	492.43M	508.90M	512.53M	472.37M
	Stockholders Equity
897.97M	906.46M	746.58M	653.27M	525.86M	403.92M
Cash Flow		Free Cash Flow
349.19M	293.08M	240.20M	194.76M	204.44M	148.39M
	Operating Cash Flow
361.21M	306.80M	252.88M	213.78M	214.36M	157.49M
	Investing Cash Flow
-705.50M	-707.11M	-37.85M	-52.41M	-147.62M	-111.00M
	Financing Cash Flow
269.22M	331.79M	-139.37M	-123.98M	-55.35M	-109.14M

Nemetschek Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 128.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NEM, the sentiment is Positive. The current price of 128.4 is above the 20-day moving average (MA) of 121.46, above the 50-day MA of 114.23, and above the 200-day MA of 104.93, indicating a bullish trend. The MACD of 2.81 indicates Negative momentum. The RSI at 69.99 is Neutral, neither overbought nor oversold. The STOCH value of 93.00 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:NEM.

Nemetschek Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NEM	75 Outperform	€14.83B	83.42	21.00%	0.43%	21.08%	6.11%
Sector *	62 Neutral	$11.80B	10.37	-7.29%	2.91%	7.39%	-7.96%
0N66		€2.17B	48.09	64.04%	1.55%	―	―
RKET		€1.47B	―		―	―	―
SJJ		€157.50M	―	-0.21%	―	―	―
BSS		€107.45M	49.56		―	―	―
MUM	77 Outperform	€934.18M	30.93	31.87%	3.33%	-9.10%	1.20%