Nemetschek NEM.DE
What does Nemetschek do?
Nemetschek is a software group headquartered in Munich that offers digital solutions for the entire life cycle of buildings and structures. Its offering is aimed at architects, engineers, specialist planners, construction companies, property operators, and the media and creative industry. At its core is Building Information Modeling (BIM), meaning data-based, model-driven planning and execution of construction projects. Revenue arises mainly from software licenses, increasingly as subscription and recurring models, supplemented by maintenance and services.
The business is divided into the segments Design, Build, Manage, and Media. Design includes brands such as Allplan, Graphisoft, and dRofus for planning and engineering. Build covers tendering, cost estimation, construction execution, and commercial control, Manage covers building operations and space and property management, and Media covers visualization and animation software. In terms of competition, Nemetschek operates with a portfolio of brands and open interfaces, but competes with large international providers of design and construction software as well as specialized niche providers.
Score profile
Rank vs. Software - Application (71 companies). 10 = top of the group, 5 = middle. Calculated from the metrics below, without AI.
Metrics compared with the industry
On profitability and quality, Nemetschek ranks in the middle in the group Software - Application (4.8/10). On growth, the company ranks in the middle in the group Software - Application (5.3/10). On valuation (higher = cheaper), the stock ranks below average in the group Software - Application (3.8/10). On financial strength, Nemetschek ranks in the middle in the group Software - Application (4.5/10).
| Metric | Stock | Group median | Ranking |
|---|---|---|---|
| Forward P/E | 23.2x | 18.0x | better than 25 % |
| Trailing P/E | 30.2x | 32.7x | better than 53 % |
| PEG ratio | 1.3x | 1.4x | better than 55 % |
| EV/EBITDA | 24.2x | 19.7x | better than 36 % |
| Price/sales | 5.6x | 4.4x | better than 36 % |
| Price/book | 3.5x | 5.5x | better than 70 % |
| Revenue growth | 26.6% | 10.8% | better than 87 % |
| Earnings growth | -16.4% | 9.4% | better than 19 % |
| Gross margin | 57.6% | 71.8% | better than 19 % |
| Operating margin | 17.1% | 15.7% | better than 56 % |
| Net margin | 17.8% | 12.3% | better than 67 % |
| Return on equity | 13.3% | 13.2% | better than 51 % |
| Debt/equity | 25.2% | 46.9% | better than 65 % |
| Current ratio | 0.7x | 1.2x | better than 11 % |
| Free cash flow yield | 5.7% | 5.3% | better than 59 % |
| Dividend yield | 1.1% | 1.1% | – |
| Payout ratio | 31.9% | 31.2% | – |
| Beta | 0.64 | 0.96 | – |
Valuation: what is Nemetschek worth?
Two valuation approaches – a discounted cash flow model and a valuation at the industry’s median multiples – give Nemetschek a model range of 49.81 EUR to 50.24 EUR per share.
17 analysts, average rating “Buy”, average price target 86.71 EUR (+34.9%).
The full DCF matrix, the reverse DCF (what growth the price implies) and scenarios are part of the Pro analysis.
What the business depends on
- The digitalization of planning, construction, and operation of buildings increases demand for BIM software and connected data platforms.
- The shift to subscription models and cloud solutions strengthens recurring revenue and improves the predictability of the business.
- Regulatory requirements on sustainability, efficiency, and digital construction processes promote the use of planning and management software.
Risks
- Demand depends on the construction and real estate cycle, as weak investment can weigh on customers' software budgets.
- Strong competitors with significant market power and new technologies such as AI may put pressure on market share and price levels.
- The transition to subscription models and the integration of acquired brands carry execution risks and can weigh on earnings and growth in the short term.
What to look for with Nemetschek
The share of recurring revenue is particularly informative because it shows how stable and predictable the subscription and maintenance business is relative to one-off license revenue.