| Nemetschek AG O.N. (DE0006452907) | |||
121,20 EURStand (close): 01.07.25 |
 |
||
Nachrichten |
||
| Datum / Uhrzeit | Titel | Bewertung |
| 22.04.25 12:38:48 | With EPS Growth And More, Nemetschek (ETR:NEM) Makes An Interesting Case |  |
| Investors are often guided by the idea of discovering 'the next big thing', even if that means buying 'story stocks' without any revenue, let alone profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. While a well funded company may sustain losses for years, it will need to generate a profit eventually, or else investors will move on and the company will wither away. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Nemetschek (ETR:NEM). Even if this company is fairly valued by the market, investors would agree that generating consistent profits will continue to provide Nemetschek with the means to add long-term value to shareholders. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. How Fast Is Nemetschek Growing? Generally, companies experiencing growth in earnings per share (EPS) should see similar trends in share price. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Over the last three years, Nemetschek has grown EPS by 9.3% per year. That's a pretty good rate, if the company can sustain it. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. EBIT margins for Nemetschek remained fairly unchanged over the last year, however the company should be pleased to report its revenue growth for the period of 17% to €996m. That's encouraging news for the company! You can take a look at the company's revenue and earnings growth trend, in the chart below. For finer detail, click on the image.XTRA:NEM Earnings and Revenue History April 22nd 2025 View our latest analysis for Nemetschek Of course the knack is to find stocks that have their best days in the future, not in the past. You could base your opinion on past performance, of course, but you may also want to check this interactive graph of professional analyst EPS forecasts for Nemetschek. Are Nemetschek Insiders Aligned With All Shareholders? Since Nemetschek has a market capitalisation of €12b, we wouldn't expect insiders to hold a large percentage of shares. But we do take comfort from the fact that they are investors in the company. Notably, they have an enviable stake in the company, worth €986m. Holders should find this level of insider commitment quite encouraging, since it would ensure that the leaders of the company would also experience their success, or failure, with the stock. Story Continues Is Nemetschek Worth Keeping An Eye On? One important encouraging feature of Nemetschek is that it is growing profits. To add an extra spark to the fire, significant insider ownership in the company is another highlight. The combination definitely favoured by investors so consider keeping the company on a watchlist. Of course, identifying quality businesses is only half the battle; investors need to know whether the stock is undervalued. So you might want to consider this freediscounted cashflow valuation of Nemetschek. While opting for stocks without growing earnings and absent insider buying can yield results, for investors valuing these key metrics, here is a carefully selected list of companies in DE with promising growth potential and insider confidence. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. View Comments |
||
| 28.03.25 04:35:03 | Why Nemetschek's (ETR:NEM) Earnings Are Better Than They Seem | |
| The market seemed underwhelmed by last week's earnings announcement from Nemetschek SE (ETR:NEM) despite the healthy numbers. We did some analysis to find out why and believe that investors might be missing some encouraging factors contained in the earnings. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.XTRA:NEM Earnings and Revenue History March 28th 2025 A Closer Look At Nemetschek's Earnings One key financial ratio used to measure how well a company converts its profit to free cash flow (FCF) is the accrual ratio. The accrual ratio subtracts the FCF from the profit for a given period, and divides the result by the average operating assets of the company over that time. You could think of the accrual ratio from cashflow as the 'non-FCF profit ratio'. That means a negative accrual ratio is a good thing, because it shows that the company is bringing in more free cash flow than its profit would suggest. While it's not a problem to have a positive accrual ratio, indicating a certain level of non-cash profits, a high accrual ratio is arguably a bad thing, because it indicates paper profits are not matched by cash flow. That's because some academic studies have suggested that high accruals ratios tend to lead to lower profit or less profit growth. Nemetschek has an accrual ratio of -0.13 for the year to December 2024. That implies it has good cash conversion, and implies that its free cash flow solidly exceeded its profit last year. Indeed, in the last twelve months it reported free cash flow of €293m, well over the €175.4m it reported in profit. Nemetschek's free cash flow improved over the last year, which is generally good to see. That might leave you wondering what analysts are forecasting in terms of future profitability. Luckily, you can click here to see an interactive graph depicting future profitability, based on their estimates. Our Take On Nemetschek's Profit Performance As we discussed above, Nemetschek has perfectly satisfactory free cash flow relative to profit. Because of this, we think Nemetschek's earnings potential is at least as good as it seems, and maybe even better! And the EPS is up 30% annually, over the last three years. At the end of the day, it's essential to consider more than just the factors above, if you want to understand the company properly. While it's really important to consider how well a company's statutory earnings represent its true earnings power, it's also worth taking a look at what analysts are forecasting for the future. Luckily, you can check out what analysts are forecasting by clicking here. Story Continues This note has only looked at a single factor that sheds light on the nature of Nemetschek's profit. But there is always more to discover if you are capable of focussing your mind on minutiae. Some people consider a high return on equity to be a good sign of a quality business. So you may wish to see this free collection of companies boasting high return on equity, or this list of stocks with high insider ownership. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. View Comments |
||
| 23.03.25 06:42:40 | The Nemetschek SE (ETR:NEM) Full-Year Results Are Out And Analysts Have Published New Forecasts |  |
| Nemetschek SE (ETR:NEM) shareholders are probably feeling a little disappointed, since its shares fell 3.3% to €112 in the week after its latest annual results. Nemetschek reported in line with analyst predictions, delivering revenues of €996m and statutory earnings per share of €1.52, suggesting the business is executing well and in line with its plan. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. Readers will be glad to know we've aggregated the latest statutory forecasts to see whether the analysts have changed their mind on Nemetschek after the latest results.XTRA:NEM Earnings and Revenue Growth March 23rd 2025 After the latest results, the 17 analysts covering Nemetschek are now predicting revenues of €1.17b in 2025. If met, this would reflect a decent 18% improvement in revenue compared to the last 12 months. Per-share earnings are expected to grow 20% to €1.82. In the lead-up to this report, the analysts had been modelling revenues of €1.17b and earnings per share (EPS) of €1.85 in 2025. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates. See our latest analysis for Nemetschek There were no changes to revenue or earnings estimates or the price target of €111, suggesting that the company has met expectations in its recent result. Fixating on a single price target can be unwise though, since the consensus target is effectively the average of analyst price targets. As a result, some investors like to look at the range of estimates to see if there are any diverging opinions on the company's valuation. There are some variant perceptions on Nemetschek, with the most bullish analyst valuing it at €142 and the most bearish at €68.00 per share. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nemetschek's past performance and to peers in the same industry. The analysts are definitely expecting Nemetschek's growth to accelerate, with the forecast 18% annualised growth to the end of 2025 ranking favourably alongside historical growth of 11% per annum over the past five years. By contrast, our data suggests that other companies (with analyst coverage) in a similar industry are forecast to grow their revenue at 11% per year. It seems obvious that, while the growth outlook is brighter than the recent past, the analysts also expect Nemetschek to grow faster than the wider industry. Story Continues The Bottom Line The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. Fortunately, they also reconfirmed their revenue numbers, suggesting that it's tracking in line with expectations. Additionally, our data suggests that revenue is expected to grow faster than the wider industry. There was no real change to the consensus price target, suggesting that the intrinsic value of the business has not undergone any major changes with the latest estimates. Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have estimates - from multiple Nemetschek analysts - going out to 2027, and you can see them free on our platform here. It might also be worth considering whether Nemetschek's debt load is appropriate, using our debt analysis tools on the Simply Wall St platform, here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. View Comments |
||
| 21.03.25 07:03:24 | Nemetschek SE (NEMTF) (FY 2024) Earnings Call Highlights: Strong Revenue Growth and Strategic ... | |
| Total Revenue: EUR996 million, organic growth of 14%. Revenue Contribution from GoCanvas: Added around 300 basis points to revenue growth. Annual Recurring Revenue (ARR) Growth: 34.6% organic, 41.9% including GoCanvas. EBITDA: EUR301 million, growth of 16.8%. Reported EBITDA Margin: 32%, organic EBITDA margin 31.1%. Recurring Revenue Share: Increased to 86.5% of total revenue. Q4 Revenue Growth: 32.5% to EUR290.9 million, organic growth of 26.2%. Q4 EBITDA: EUR95.1 million, margin of 32.7%. EPS Increase: 9.6% year-over-year. Equity Ratio: 44.2%. Net Debt: EUR295 million. Design Segment Revenue Growth: 13.1% to EUR489 million. Build Segment Revenue Growth: 28.4%, including GoCanvas. Managed Segment Revenue Decline: 1.5%. Media Segment Revenue Growth: 7.8% to EUR120.1 million. International Revenue Growth: Americas 24%, Asia Pacific 28%. 2025 Revenue Growth Outlook: 17% to 19%, including 350 basis points from GoCanvas. 2025 EBITDA Margin Outlook: Around 31%. Warning! GuruFocus has detected 5 Warning Sign with NEMTF. Release Date: March 20, 2025 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Positive Points Nemetschek SE (NEMTF) achieved a total revenue of EUR 996 million in 2024, with organic growth of 14%, exceeding their guidance range of 10% to 11%. The company's annual recurring revenue (ARR) grew by 34.6% organically, surpassing the target of more than 25%. The acquisition of GoCanvas contributed significantly, adding around 300 basis points to revenue growth. Nemetschek SE (NEMTF) reported an EBITDA growth of 16.8% to EUR 301 million, with margins slightly above the forecast range. The transition to a subscription and SaaS-centric business model resulted in recurring revenues reaching a new high of 86.5% of total revenue. Negative Points The construction industry faces global challenges and economic uncertainties, impacting Nemetschek SE (NEMTF)'s market environment. The integration of GoCanvas, while progressing, still presents challenges and dilutive effects on profitability. The design segment faces prolonged sales cycles and hesitations in European markets, particularly in Germany. The transition to subscription models in the design segment may lead to temporary accounting-related impacts. The company's growth strategy requires continuous investment, potentially limiting immediate margin expansion. Q & A Highlights Q: How do you view the current demand environment, particularly in the US and Germany, and what are your expectations for organic growth seasonality in 2025? A: Yves Padrines, CEO, explained that while there are potential changes, the market conditions in Q1 2025 are similar to 2024. The US market remains strong despite some indicators suggesting otherwise, and the German infrastructure spending fund could have positive effects, though it's too early to tell. Organic growth seasonality will see some volatility, with strong demand in Q1, especially in the build segment, and a higher comparison base in Q4 2025. Story Continues Q: Can you provide insights into the revenue growth outlook beyond 2025, and how do you prioritize margin improvements versus growth? A: Yves Padrines, CEO, stated that while specific guidance for 2026 and beyond isn't provided, they foresee attractive double-digit growth potential in the coming years, with a focus on mid-teens growth. The company prioritizes growth over margin expansion, with continued investments in innovation, AI, and market expansion. Q: What is the status of the GoCanvas integration, and are there any joint offerings planned? A: Yves Padrines, CEO, reported that the integration of GoCanvas is progressing as planned, with strong collaboration between teams. Joint offerings are being well-received, particularly by large resellers, and cross-selling between GoCanvas and Bluebeam is starting to gain traction. Q: How is the transition to subscription models progressing in the design segment, and what impact do AI functionalities have on monetization? A: Yves Padrines, CEO, noted that the transition to subscription models is accelerating, with brands like Graphisoft and Vectorworks stopping perpetual license sales. AI functionalities are being integrated into premium packages, enhancing user experience and driving subscription adoption, though industry-wide AI usage remains below 10%. Q: What are the expectations for the build division's growth trajectory post-transition and GoCanvas integration? A: Yves Padrines, CEO, expects the build division to achieve 20%-plus revenue growth in 2025, normalizing to mid to high-teens growth over time, supported by strong demand and the successful integration of GoCanvas. For the complete transcript of the earnings call, please refer to the full earnings call transcript. This article first appeared on GuruFocus. View Comments |
||
| 21.03.25 04:15:42 | Nemetschek Full Year 2024 Earnings: In Line With Expectations | |
| Nemetschek (ETR:NEM) Full Year 2024 Results Key Financial Results Revenue: €1.01b (up 18% from FY 2023). Net income: €175.4m (up 8.8% from FY 2023). Profit margin: 17% (down from 19% in FY 2023). The decrease in margin was driven by higher expenses. EPS: €1.52 (up from €1.40 in FY 2023).XTRA:NEM Earnings and Revenue Growth March 21st 2025 All figures shown in the chart above are for the trailing 12 month (TTM) period Nemetschek Meets Expectations Revenue was in line with analyst estimates. Earnings per share (EPS) was also in line with analyst expectations. Looking ahead, revenue is forecast to grow 13% p.a. on average during the next 3 years, compared to a 11% growth forecast for the Software industry in Germany. Performance of the German Software industry. The company's shares are up 2.9% from a week ago. Valuation Our analysis of Nemetschek based on 6 different valuation metrics shows it might be overvalued. To access our thorough examination of analyst consensus click here and discover the expected future direction of the company. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. View Comments |
||
| 18.03.25 12:05:00 | Nemetschek SE (ETR:NEM) Shares Could Be 26% Above Their Intrinsic Value Estimate | |
| Key Insights The projected fair value for Nemetschek is €90.75 based on 2 Stage Free Cash Flow to Equity Nemetschek's €115 share price signals that it might be 26% overvalued The €106 analyst price target for NEM is 17% more than our estimate of fair value Does the March share price for Nemetschek SE (ETR:NEM) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to today's value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Don't get put off by the jargon, the math behind it is actually quite straightforward. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. See our latest analysis for Nemetschek Crunching The Numbers We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) estimate 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (€, Millions) €277.0m €328.7m €400.0m €451.0m €487.2m €516.2m €539.4m €558.1m €573.5m €586.4m Growth Rate Estimate Source Analyst x8 Analyst x8 Analyst x2 Analyst x1 Est @ 8.03% Est @ 5.95% Est @ 4.49% Est @ 3.47% Est @ 2.76% Est @ 2.26% Present Value (€, Millions) Discounted @ 5.8% €262 €293 €337 €360 €367 €367 €363 €355 €344 €333 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = €3.4b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 1.1%. We discount the terminal cash flows to today's value at a cost of equity of 5.8%. Story Continues Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = €586m× (1 + 1.1%) ÷ (5.8%– 1.1%) = €13b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €13b÷ ( 1 + 5.8%)10= €7.1b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is €10b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of €115, the company appears slightly overvalued at the time of writing. Remember though, that this is just an approximate valuation, and like any complex formula - garbage in, garbage out.XTRA:NEM Discounted Cash Flow March 18th 2025 Important Assumptions The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Nemetschek as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 5.8%, which is based on a levered beta of 1.095. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. SWOT Analysis for Nemetschek Strength Earnings growth over the past year exceeded its 5-year average. Debt is well covered by earnings and cashflows. Weakness Earnings growth over the past year underperformed the Software industry. Dividend is low compared to the top 25% of dividend payers in the Software market. Expensive based on P/E ratio and estimated fair value. Opportunity Annual earnings are forecast to grow faster than the German market. Threat Revenue is forecast to grow slower than 20% per year. Next Steps: Whilst important, the DCF calculation shouldn't be the only metric you look at when researching a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. Why is the intrinsic value lower than the current share price? For Nemetschek, we've compiled three further factors you should look at: Risks: We feel that you should assess the 1 warning sign for Nemetschek we've flagged before making an investment in the company. Future Earnings: How does NEM's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the XTRA every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. View Comments |
||
| 04.03.25 10:08:20 | High Growth Tech Stocks In Europe To Watch March 2025 | |
| As the pan-European STOXX Europe 600 Index continues its longest streak of weekly gains since August 2012, driven by positive company results and resilience in defense stocks amid global trade uncertainties, the European tech sector remains a focal point for investors seeking growth opportunities. In this dynamic landscape, identifying promising high-growth tech stocks involves looking at companies that demonstrate strong innovation capabilities and adaptability to evolving market conditions. Top 10 High Growth Tech Companies In Europe Name Revenue Growth Earnings Growth Growth Rating Elicera Therapeutics 63.53% 97.24% ★★★★★★ Pharma Mar 23.58% 40.13% ★★★★★★ Yubico 21.27% 26.82% ★★★★★★ CD Projekt 27.11% 39.37% ★★★★★★ Ascelia Pharma 46.09% 66.93% ★★★★★★ Bonesupport Holding 30.50% 48.59% ★★★★★★ Xbrane Biopharma 73.73% 139.21% ★★★★★★ XTPL 97.45% 117.95% ★★★★★★ Skolon 29.71% 91.18% ★★★★★★ Elliptic Laboratories 49.89% 89.90% ★★★★★★ Click here to see the full list of 248 stocks from our European High Growth Tech and AI Stocks screener. Below we spotlight a couple of our favorites from our exclusive screener. Kinepolis Group Simply Wall St Growth Rating: ★★★★☆☆ Overview: Kinepolis Group NV operates cinema complexes across several countries, including Belgium, the Netherlands, France, Spain, Luxembourg, Switzerland, Poland, Canada, and the United States with a market cap of €906.08 million. Operations: Kinepolis Group generates revenue primarily through its box office sales (€294.05 million) and in-theatre sales (€177.61 million), with additional contributions from real estate and film distribution activities. Kinepolis Group, navigating a challenging entertainment landscape, shows potential with its robust earnings forecast to grow by 26% annually, outpacing the Belgian market's average of 16.5%. Despite a recent dip in earnings growth by 9.8% over the past year against an industry average of 21.6%, Kinepolis maintains high-quality earnings and is poised for significant advancement with an expected Return on Equity of 23.8% in three years. The company's revenue growth projection at 5% per year may trail the broader Belgian market trend of 7%, yet it underscores a steady upward trajectory bolstered by positive free cash flow dynamics, laying groundwork for sustained financial health and shareholder value creation. Navigate through the intricacies of Kinepolis Group with our comprehensive health report here. Explore historical data to track Kinepolis Group's performance over time in our Past section.ENXTBR:KIN Revenue and Expenses Breakdown as at Mar 2025 CD Projekt Simply Wall St Growth Rating: ★★★★★★ Overview: CD Projekt S.A., along with its subsidiaries, focuses on developing, publishing, and digitally distributing video games for PCs and consoles in Poland, with a market cap of PLN22.08 billion. Story Continues Operations: The company generates revenue primarily through its CD PROJEKT RED segment, contributing PLN937.83 million, and GOG.com segment, which adds PLN203.76 million. The business involves the creation and distribution of video games for PCs and consoles in Poland. CD Projekt, a standout in the European tech landscape, is charting a robust growth trajectory with its revenue expected to surge by 27.1% annually, significantly outpacing the Polish market's growth of 5.1%. This performance is underpinned by an aggressive R&D strategy, where recent figures show an investment increase to $120 million this year alone—accounting for nearly 15% of their total revenue. With earnings also projected to climb at an impressive rate of 39.4% per year, CD Projekt not only eclipses local market averages but also positions itself as a leader in innovation and market expansion. Recent presentations at major technology conferences across Europe further underscore their active engagement with industry trends and commitment to maintaining a competitive edge in high-growth sectors. Click here to discover the nuances of CD Projekt with our detailed analytical health report. Gain insights into CD Projekt's past trends and performance with our Past report.WSE:CDR Revenue and Expenses Breakdown as at Mar 2025 Nemetschek Simply Wall St Growth Rating: ★★★★☆☆ Overview: Nemetschek SE offers software solutions for architecture, engineering, construction, media, and entertainment sectors globally and has a market capitalization of approximately €13.19 billion. Operations: Nemetschek SE generates revenue primarily from its software solutions across four segments: Design (€449.12 million), Build (€302.33 million), Media (€117.81 million), and Manage (€59.77 million). The Design segment is the largest contributor to its revenue stream, highlighting its strong presence in architecture and engineering software solutions. Nemetschek SE, a prominent figure in the European tech arena, recently showcased its strategic agility at multiple industry conferences, signaling robust engagement with market trends and customer needs. With an annual revenue growth forecast at 13.5%, Nemetschek outpaces the German market's 5.7% expansion rate. The firm is also set to enhance shareholder value through a tactical share repurchase program initiated in February 2025, reflecting a strong financial posture with €11.1 million allocated to buy back shares. Moreover, under new executive leadership, Nemetschek is poised to further its technological edge and market presence, particularly through innovations driven by significant R&D investments which underscore its commitment to maintaining competitiveness in a rapidly evolving sector. Get an in-depth perspective on Nemetschek's performance by reading our health report here. Understand Nemetschek's track record by examining our Past report.XTRA:NEM Earnings and Revenue Growth as at Mar 2025 Make It Happen Discover the full array of 248 European High Growth Tech and AI Stocks right here. Have you diversified into these companies? Leverage the power of Simply Wall St's portfolio to keep a close eye on market movements affecting your investments. Unlock the power of informed investing with Simply Wall St, your free guide to navigating stock markets worldwide. Contemplating Other Strategies? Explore high-performing small cap companies that haven't yet garnered significant analyst attention. Fuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management. Find companies with promising cash flow potential yet trading below their fair value. 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. Companies discussed in this article include ENXTBR:KIN WSE:CDR and XTRA:NEM. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com View Comments |
||
| 25.02.25 12:23:59 | Is Nemetschek SE's (ETR:NEM) Latest Stock Performance A Reflection Of Its Financial Health? | |
| Most readers would already be aware that Nemetschek's (ETR:NEM) stock increased significantly by 18% over the past three months. Since the market usually pay for a company’s long-term fundamentals, we decided to study the company’s key performance indicators to see if they could be influencing the market. Particularly, we will be paying attention to Nemetschek's ROE today. Return on equity or ROE is a key measure used to assess how efficiently a company's management is utilizing the company's capital. Put another way, it reveals the company's success at turning shareholder investments into profits. Check out our latest analysis for Nemetschek How Is ROE Calculated? The formula for return on equity is: Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity So, based on the above formula, the ROE for Nemetschek is: 21% = €174m ÷ €817m (Based on the trailing twelve months to September 2024). The 'return' refers to a company's earnings over the last year. Another way to think of that is that for every €1 worth of equity, the company was able to earn €0.21 in profit. What Has ROE Got To Do With Earnings Growth? So far, we've learned that ROE is a measure of a company's profitability. We now need to evaluate how much profit the company reinvests or "retains" for future growth which then gives us an idea about the growth potential of the company. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics. Nemetschek's Earnings Growth And 21% ROE First thing first, we like that Nemetschek has an impressive ROE. Additionally, the company's ROE is higher compared to the industry average of 16% which is quite remarkable. This likely paved the way for the modest 9.1% net income growth seen by Nemetschek over the past five years. Next, on comparing with the industry net income growth, we found that Nemetschek's growth is quite high when compared to the industry average growth of 6.8% in the same period, which is great to see.XTRA:NEM Past Earnings Growth February 25th 2025 The basis for attaching value to a company is, to a great extent, tied to its earnings growth. What investors need to determine next is if the expected earnings growth, or the lack of it, is already built into the share price. By doing so, they will have an idea if the stock is headed into clear blue waters or if swampy waters await. If you're wondering about Nemetschek's's valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry. Story Continues Is Nemetschek Using Its Retained Earnings Effectively? With a three-year median payout ratio of 32% (implying that the company retains 68% of its profits), it seems that Nemetschek is reinvesting efficiently in a way that it sees respectable amount growth in its earnings and pays a dividend that's well covered. Besides, Nemetschek has been paying dividends for at least ten years or more. This shows that the company is committed to sharing profits with its shareholders. Our latest analyst data shows that the future payout ratio of the company is expected to drop to 23% over the next three years. Despite the lower expected payout ratio, the company's ROE is not expected to change by much. Summary On the whole, we feel that Nemetschek's performance has been quite good. In particular, it's great to see that the company is investing heavily into its business and along with a high rate of return, that has resulted in a sizeable growth in its earnings. With that said, the latest industry analyst forecasts reveal that the company's earnings are expected to accelerate. To know more about the latest analysts predictions for the company, check out this visualization of analyst forecasts for the company. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. View Comments |
||
| 29.01.25 13:07:06 | Nemetschek's (ETR:NEM) five-year earnings growth trails the respectable shareholder returns | |
| Generally speaking the aim of active stock picking is to find companies that provide returns that are superior to the market average. Buying under-rated businesses is one path to excess returns. For example, the Nemetschek SE (ETR:NEM) share price is up 78% in the last 5 years, clearly besting the market return of around 3.6% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 33% in the last year, including dividends. Since the stock has added €728m to its market cap in the past week alone, let's see if underlying performance has been driving long-term returns. View our latest analysis for Nemetschek In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). During five years of share price growth, Nemetschek achieved compound earnings per share (EPS) growth of 7.5% per year. This EPS growth is slower than the share price growth of 12% per year, over the same period. So it's fair to assume the market has a higher opinion of the business than it did five years ago. That's not necessarily surprising considering the five-year track record of earnings growth. This favorable sentiment is reflected in its (fairly optimistic) P/E ratio of 77.99. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image).XTRA:NEM Earnings Per Share Growth January 29th 2025 We know that Nemetschek has improved its bottom line lately, but is it going to grow revenue? You could check out this freereport showing analyst revenue forecasts. What About Dividends? It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, Nemetschek's TSR for the last 5 years was 83%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective It's nice to see that Nemetschek shareholders have received a total shareholder return of 33% over the last year. That's including the dividend. That gain is better than the annual TSR over five years, which is 13%. Therefore it seems like sentiment around the company has been positive lately. Someone with an optimistic perspective could view the recent improvement in TSR as indicating that the business itself is getting better with time. I find it very interesting to look at share price over the long term as a proxy for business performance. But to truly gain insight, we need to consider other information, too. Take risks, for example - Nemetschek has 1 warning sign we think you should be aware of. Story Continues But note: Nemetschek may not be the best stock to buy. So take a peek at this freelist of interesting companies with past earnings growth (and further growth forecast). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on German exchanges. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. View Comments |
||
| 23.12.24 07:51:50 | Institutions own 29% of Nemetschek SE (ETR:NEM) shares but private companies control 39% of the company | |
| Key Insights Nemetschek's significant private companies ownership suggests that the key decisions are influenced by shareholders from the larger public 54% of the business is held by the top 4 shareholders Institutions own 29% of Nemetschek To get a sense of who is truly in control of Nemetschek SE (ETR:NEM), it is important to understand the ownership structure of the business. The group holding the most number of shares in the company, around 39% to be precise, is private companies. Put another way, the group faces the maximum upside potential (or downside risk). And institutions on the other hand have a 29% ownership in the company. Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. Let's delve deeper into each type of owner of Nemetschek, beginning with the chart below. See our latest analysis for Nemetschek XTRA:NEM Ownership Breakdown December 23rd 2024 What Does The Institutional Ownership Tell Us About Nemetschek? Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index. We can see that Nemetschek does have institutional investors; and they hold a good portion of the company's stock. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there's always a risk that they are in a 'crowded trade'. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Nemetschek's historic earnings and revenue below, but keep in mind there's always more to the story.XTRA:NEM Earnings and Revenue Growth December 23rd 2024 Hedge funds don't have many shares in Nemetschek. Looking at our data, we can see that the largest shareholder is Pro. Georg Nemetschek Foundation with 39% of shares outstanding. For context, the second largest shareholder holds about 5.5% of the shares outstanding, followed by an ownership of 5.4% by the third-largest shareholder. Our research also brought to light the fact that roughly 54% of the company is controlled by the top 4 shareholders suggesting that these owners wield significant influence on the business. While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future. Story Continues Insider Ownership Of Nemetschek While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves. I generally consider insider ownership to be a good thing. However, on some occasions it makes it more difficult for other shareholders to hold the board accountable for decisions. Our most recent data indicates that insiders own some shares in Nemetschek SE. The insiders have a meaningful stake worth €862m. It is good to see this level of investment. You can check here to see if those insiders have been buying recently. General Public Ownership The general public, who are usually individual investors, hold a 21% stake in Nemetschek. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders. Private Company Ownership It seems that Private Companies own 39%, of the Nemetschek stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company. Next Steps: I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. For instance, we've identified 1 warning sign for Nemetschek that you should be aware of. If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future. NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. 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. View Comments |
||
