Revenue Downgrade: Here's What Analysts Forecast For Mensch und Maschine Software SE (ETR:MUM)

Market forces rained on the parade of Mensch und Maschine Software SE (ETR:MUM) shareholders today, when the analysts downgraded their forecasts for this year. This report focused on revenue estimates, and it looks as though the consensus view of the business has become substantially more conservative.

After the downgrade, the consensus from Mensch und Maschine Software's four analysts is for revenues of €227m in 2025, which would reflect a disturbing 30% decline in sales compared to the last year of performance. Before the latest update, the analysts were foreseeing €265m of revenue in 2025. The consensus view seems to have become more pessimistic on Mensch und Maschine Software, noting the substantial drop in revenue estimates in this update.

Check out our latest analysis for Mensch und Maschine Software

We'd point out that there was no major changes to their price target of €66.50, suggesting the latest estimates were not enough to shift their view on the value of the business.

Another way we can view these estimates is in the context of the bigger picture, such as how the forecasts stack up against past performance, and whether forecasts are more or less bullish relative to other companies in the industry. We would highlight that sales are expected to reverse, with a forecast 30% annualised revenue decline to the end of 2025. That is a notable change from historical growth of 7.7% over the last five years. Compare this with our data, which suggests that other companies in the same industry are, in aggregate, expected to see their revenue grow 11% per year. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Mensch und Maschine Software is expected to lag the wider industry.

The Bottom Line

The clear low-light was that analysts slashing their revenue forecasts for Mensch und Maschine Software this year. They also expect company revenue to perform worse than the wider market. Often, one downgrade can set off a daisy-chain of cuts, especially if an industry is in decline. So we wouldn't be surprised if the market became a lot more cautious on Mensch und Maschine Software after today.

Want more information? We have estimates for Mensch und Maschine Software from its four analysts out until 2027, and you can see them free on our platform here.

Of course, seeing company management invest large sums of money in a stock can be just as useful as knowing whether analysts are downgrading their estimates. So you may also wish to search this free list of stocks with high insider ownership.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.