Risk factor
Resilient to price shocks
Profitability factor
Very strong margins and returns
About
Nemetschek SE is a German-based global provider of software solutions specializing in the architecture, engineering, construction (AEC), and media and entertainment industries. The company's reach extends across Germany, the rest of Europe, the Americas, and the Asia Pacific region. Its operations are structured into four key segments: Design, Build, Manage, and Media & Entertainment. The Design division supplies an array of software, notably under brands like Allplan, Graphisoft, Solibri, Vectorworks, and RISA, catering to professionals such as architects, designers, engineers, structural specialists, landscape designers, developers, and general contractors. This segment's core offering includes comprehensive Building Information Modeling (BIM) tools for both 2D and 3D computer-aided design (CAD) and engineering (CAE) for building projects and visualization. Focusing on the construction phase, the Build segment delivers advanced 5D BIM solutions, primarily via its Bluebeam brand. These tools streamline critical processes like bidding, project awarding, invoicing, budget management, scheduling, and cost analysis. It also provides commercial enterprise resource planning (ERP) solutions. Its clientele encompasses construction firms, developers, material suppliers, general contractors, as well as planning and civil engineering offices. The Manage segment features commercial property management services through the Crem brand. Furthermore, it offers integrated and modular software from Spacewell for efficient property, facility, and workplace administration, including an intelligent smart building platform. This segment supports facility and property managers, financial institutions, and insurance and real estate firms. Under the Maxon brand, the Media & Entertainment segment develops sophisticated software for 3D modeling, animation, rendering, and visual effects. These tools are widely adopted in film, television, advertising, and video game production, along with specialized applications in medicine, product design, and infographics. Established in 1963, Nemetschek SE maintains its corporate headquarters in Munich, Germany.
Company Valuation
Based on key historical and expected multiples, the stock is greatly overvalued relative to its peers. Specifically, the stock is 'expensive' on P/E, overvalued on EV/EBI
Target Price
The average target price of NEM.DE is 93.1 and suggests 23% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to incr