WBAG:NEM

Stock Analysis Report

Executive Summary

Nemetschek SE provides software solutions for architecture, engineering, construction, media, and entertainment markets worldwide.


Snowflake Analysis

Solid track record with reasonable growth potential.


Similar Companies

Share Price & News

How has Nemetschek's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NEM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.9%

NEM

-3.8%

AT Software

-4.5%

AT Market


1 Year Return

47.9%

NEM

23.7%

AT Software

-0.2%

AT Market

Return vs Industry: NEM exceeded the Austrian Software industry which returned 23.7% over the past year.

Return vs Market: NEM exceeded the Austrian Market which returned -0.2% over the past year.


Shareholder returns

NEMIndustryMarket
7 Day-6.9%-3.8%-4.5%
30 Day-5.5%-4.4%-3.7%
90 Day17.1%2.6%-5.2%
1 Year48.7%47.9%26.3%23.7%3.4%-0.2%
3 Yearn/a51.5%42.9%23.2%12.1%
5 Yearn/a115.3%97.6%46.4%26.1%

Price Volatility Vs. Market

How volatile is Nemetschek's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Nemetschek undervalued compared to its fair value and its price relative to the market?

59.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NEM (€62.45) is trading above our estimate of fair value (€33.55)

Significantly Below Fair Value: NEM is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NEM is poor value based on its PE Ratio (59.7x) compared to the Software industry average (32.4x).

PE vs Market: NEM is poor value based on its PE Ratio (59.7x) compared to the Austrian market (14x).


Price to Earnings Growth Ratio

PEG Ratio: NEM is poor value based on its PEG Ratio (5.9x)


Price to Book Ratio

PB vs Industry: NEM is overvalued based on its PB Ratio (22.2x) compared to the XE Software industry average (3.5x).


Next Steps

Future Growth

How is Nemetschek forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

10.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NEM's forecast earnings growth (10.1% per year) is above the savings rate (-0.1%).

Earnings vs Market: NEM's earnings (10.1% per year) are forecast to grow faster than the Austrian market (2.4% per year).

High Growth Earnings: NEM's earnings are forecast to grow, but not significantly.

Revenue vs Market: NEM's revenue (12.2% per year) is forecast to grow faster than the Austrian market (2.7% per year).

High Growth Revenue: NEM's revenue (12.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NEM's Return on Equity is forecast to be high in 3 years time (28.6%)


Next Steps

Past Performance

How has Nemetschek performed over the past 5 years?

25.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NEM has a large one-off gain of €32.0M impacting its September 30 2019 financial results.

Growing Profit Margin: NEM's current net profit margins (22.2%) are higher than last year (19.3%).


Past Earnings Growth Analysis

Earnings Trend: NEM's earnings have grown significantly by 25.8% per year over the past 5 years.

Accelerating Growth: NEM's earnings growth over the past year (41.2%) exceeds its 5-year average (25.8% per year).

Earnings vs Industry: NEM earnings growth over the past year (41.2%) exceeded the Software industry 8.5%.


Return on Equity

High ROE: NEM's Return on Equity (37.1%) is considered high.


Next Steps

Financial Health

How is Nemetschek's financial position?


Financial Position Analysis

Short Term Liabilities: NEM's short term assets (€263.5M) do not cover its short term liabilities (€285.0M).

Long Term Liabilities: NEM's short term assets (€263.5M) exceed its long term liabilities (€223.9M).


Debt to Equity History and Analysis

Debt Level: NEM's debt to equity ratio (58.1%) is considered high.

Reducing Debt: NEM's debt to equity ratio has increased from 2.8% to 58.1% over the past 5 years.

Debt Coverage: NEM's debt is well covered by operating cash flow (75.9%).

Interest Coverage: NEM's interest payments on its debt are well covered by EBIT (58.5x coverage).


Balance Sheet

Inventory Level: NEM has a low level of unsold assets or inventory.

Debt Coverage by Assets: NEM's debt is covered by short term assets (assets are 1.4x debt).


Next Steps

Dividend

What is Nemetschek's current dividend yield, its reliability and sustainability?

0.44%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NEM's dividend (0.44%) isn’t notable compared to the bottom 25% of dividend payers in the Austrian market (1.64%).

High Dividend: NEM's dividend (0.44%) is low compared to the top 25% of dividend payers in the Austrian market (4.69%).


Stability and Growth of Payments

Stable Dividend: NEM is not paying a notable dividend for the Austrian market, therefore no need to check if payments are stable.

Growing Dividend: NEM is not paying a notable dividend for the Austrian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: NEM is not paying a notable dividend for the Austrian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NEM's dividend in 3 years as they are not forecast to pay a notable one for the Austrian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.0yrs

Average management tenure


CEO

Harald Egel 0

Mr. Harald Egel is the Co-Founder of MAXON Computer GmbH and serves as its Chief Executive Officer Managing Partner. Mr. Egel served as Managing Director of MAXON Computer GmbH. 


Leadership Team

NamePositionTenureCompensationOwnership
Georg Nemetschek
Founder & Deputy Chairman of the Supervisory Board17.3yrsno data4.7% 335.0m
Viktor Várkonyi
Chief Division Officer of Planning & Design Division and Member of Executive Board6.3yrs€895.00kno data
Axel Kaufmann
Spokesman of Executive Board and Chief Financial & Operations Officer0.08yrsno datano data
Jon Elliott
Chief Division Officer of Build & Construct Div0.9yrsno datano data
Stefanie Zimmermann
Head of Investor Relations & Corporate Communication0yrsno datano data
Matthias Glaser
Managing Director of Glaser0yrsno datano data
Koen Matthijs
Chief Division Officer of Operate & Manage Division1yrsno datano data
Harald Egel
Chief Executive Officer of MAXON Computers GmbH and Managing Partner of MAXON Computers GmbH0yrsno datano data
Uwe Baertels
Chief Financial Officer of MAXON Computers GmbH and Managing Partner of MAXON Computers GmbH0yrsno datano data
Harald Schneider
Managing Partner of MAXON Computers GmbH and Chief Technology Officer of MAXON Computers GmbH0yrsno datano data

1.0yrs

Average Tenure

50yo

Average Age

Experienced Management: NEM's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Georg Nemetschek
Founder & Deputy Chairman of the Supervisory Board17.3yrsno data4.7% 335.0m
Kurt Dobitsch
Chairman of the Supervisory Board12yrsno datano data
Rüdiger Herzog
Member of the Supervisory Board16.6yrsno datano data
Bill Krouch
Member of Supervisory Board1.8yrsno datano data

14.3yrs

Average Tenure

67yo

Average Age

Experienced Board: NEM's board of directors are seasoned and experienced ( 14.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Nemetschek SE's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Nemetschek SE
  • Ticker: NEM
  • Exchange: WBAG
  • Founded: 1963
  • Industry: Application Software
  • Sector: Software
  • Market Cap: €7.126b
  • Shares outstanding: 115.50m
  • Website: https://www.nemetschek.com

Number of Employees


Location

  • Nemetschek SE
  • Konrad-Zuse-Platz 1
  • Munich
  • 81829
  • Germany

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NEMDB (Deutsche Boerse AG)YesCommon Bearer SharesDEEURMar 1999
NEMXTRA (XETRA Trading Platform)YesCommon Bearer SharesDEEURMar 1999
0FDTLSE (London Stock Exchange)YesCommon Bearer SharesGBEURMar 1999
NEMT.FOTCPK (Pink Sheets LLC)YesCommon Bearer SharesUSUSDMar 1999
NEMDBATS-CHIXE (BATS 'Chi-X Europe')YesCommon Bearer SharesGBEURMar 1999
NEMWBAG (Wiener Boerse AG)YesCommon Bearer SharesATEURMar 1999
NEMASWX (SIX Swiss Exchange)YesCommon Bearer SharesCHCHFMar 1999
NEMETLX (Eurotlx)YesCommon Bearer SharesITEURMar 1999

Biography

Nemetschek SE provides software solutions for architecture, engineering, construction, media, and entertainment markets worldwide. It operates through four segments: Design, Build, Manage, and Media & Entertainment. The Design segment offers software solutions primarily under the Allplan, Graphisoft, Precast, Vectorworks, SCIA, dRofus, Data Design System, Frilo, and RISA brands for architects, specialist planners, an dlandscape architects, as well as developers and general contractors. This segment provides building information modeling solutions for computer aided design and computer aided engineering in 2D and 3D building design and imaging. The Build segment offers commercial software solutions primarily under the Nevaris, Bluebeam, SDS/2, and Solibri brands that support bidding and awarding, invoicing, budgeting, scheduling, and cost calculation. This segment serves construction companies, property developers, suppliers, 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 integrated software solutions for property, facility, and workplace management under the Spacewell brand for facility managers, banks, and insurance and property companies. 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 architecture imaging, medicine, product design, and infographics. Nemetschek SE was founded in 1963 and is headquartered in Munich, Germany. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 23:06
End of Day Share Price2020/02/24 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.