Company Reports

Narrow-moat Nemetschek reported first-quarter results that were in line with FactSet consensus and our expectations. Shares are trading roughly flat intraday. We don’t expect to make a material change to our EUR 61 fair value estimate. At current levels, the shares look overvalued.

Nemetschek, based in Germany, is a leader in the software market for the architecture, engineering, construction, and building operations industry. The company’s software helps architects and other construction professionals plan, design, and manage construction projects, as well as collaborate with others more efficiently. Nemetschek is also active in the software market for the media and entertainment industry, where its flagship product Maxon is a leader in 3D animation.

Narrow-moat Nemetschek reported fourth-quarter results that were in line with the preliminary numbers released in February. We don’t expect to make a material change to our EUR 54 fair value estimate. At current levels, the shares look overvalued.

Narrow-moat Nemetschek announced preliminary results for fiscal 2023 that were broadly in line with FactSet consensus and at the top end of the guidance ranges for revenue growth and EBITDA margin. Full details and 2024 guidance will not be released until March 21. We don’t expect to make a material change to our EUR 54 fair value estimate. At current levels, the shares look overvalued.

Narrow-moat Nemetschek delivered solid results in the third quarter. While the company beat the FactSet consensus on revenue and EBITDA and raised 2023 guidance, we surmise this was broadly in line with market expectations as shares traded flat on the day. We are currently updating our model for the latest developments but do not anticipate a material change to our EUR 54 fair value estimate. At current levels, the shares look moderately overvalued.

Nemetschek, based in Germany, is a leader in the software market for the architecture, engineering, construction, and building operations industry. The company’s software helps architects and other construction professionals plan, design, and manage construction projects, as well as collaborate with others more efficiently. Nemetschek is also active in the software market for the media and entertainment industry, where its flagship product Maxon is a leader in 3D animation.

We’re initiating coverage of Nemetschek with a narrow moat rating and EUR 54 fair value estimate. Our fair value estimate implies a 2023 enterprise value/EBITDA multiple of 25 times and a P/E ratio of 45 times. Our estimates are broadly in line with FactSet consensus. Consequently, the shares look fairly valued at current levels.