Nemetschek SEFRA:NEM -0.47%89 ROE % is 24.87% as of Mar. 2026, which is 7% below its 10-year median of 26.62. GuruFocus rates FRA:NEM with a GF Score™ of 89/100 and a GF Value™ of €124.00 (Significantly Undervalued). The stock has 1 warning sign investors should review. Among 2,682 Software companies, Nemetschek SE ranks better than 87.21% on this metric.
ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Nemetschek SE's annualized net income for the quarter that ended in Mar. 2026 was €241 Mil. Nemetschek SE's average Total Stockholders Equity over the quarter that ended in Mar. 2026 was €971 Mil. Therefore, Nemetschek SE's annualized ROE % for the quarter that ended in Mar. 2026 was 24.87%.
The historical rank and industry rank for Nemetschek SE's ROE % or its related term are showing as below:
FRA:NEM'
s ROE % Range Over the Past 10 Years
Min: 21.22 Med: 26.62 Max: 42.53
Current: 25.78
During the past 13 years, Nemetschek SE's highest ROE % was 42.53%. The lowest was 21.22%. And the median was 26.62%.
FRA:NEM's ROE % is ranked better than 87.21% of 2682
companies
in the Software industry
Industry Median: 4.72
vs FRA:NEM: 25.78
Nemetschek SE (FRA:NEM) ROE % Explanation
ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.
The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:
Note:
The net income data used here is four times the quarterly (Mar. 2026) net income data. The Revenue data used here is four times the quarterly (Mar. 2026) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Be Aware
Net Income is used.
Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.
Nemetschek SE ROE % Related Terms
Nemetschek SE ROE % Historical Data
* Premium members only.
The historical data trend for Nemetschek SE's ROE % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Software - Application subindustry, Nemetschek SE's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Nemetschek SE ROE % vs Software Industry
For the Software industry and Technology sector, Nemetschek SE's ROE % distribution charts can be found below:
* The bar in red indicates where Nemetschek SE's ROE % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is four times the quarterly (Mar. 2026) net income data.
ROE % is displayed in the 30-year financial page.
Nemetschek SE (FRA:NEM) has a ROE % of 24.87% as of Mar. 2026. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Nemetschek SE and its competitors. This is near median its historical median of 26.62. Over the past decade, Nemetschek SE's ROE % has ranged from 21.22 to 42.53. According to the industry distribution chart, Nemetschek SE ranks #343 out of 2682 companies in the Software industry, placing it in the top 12.8%.
Is Nemetschek SE's ROE % too high?
Nemetschek SE's current ROE % of 24.87% is near median its 10-year median of 26.62. Over the past 10 years, this metric has ranged from a low of 21.22 to a high of 42.53. The Software industry median ROE % is 4.72. Nemetschek SE's value of 24.87% is 426.9% above this industry median. Based on the distribution chart, Nemetschek SE ranks #343 out of 2682 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Nemetschek SE has a GF Score™ of 89/100 and is considered Significantly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Nemetschek SE's ROE % compare to CRM and SHOP?
According to the Software industry distribution chart, Nemetschek SE ranks #343 out of 2682 companies for ROE %. This places Nemetschek SE in the top 13% of its industry — outperforming the majority of peers. The industry median ROE % is 4.72. Nemetschek SE's value of 24.87% is 426.9% above this benchmark. Historically, Nemetschek SE's own ROE % has ranged from 21.22 to 42.53 over the past decade. While the company's 10-year median is 26.62 vs. the industry median of 4.72, Nemetschek SE has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a Software company?
The median ROE % among Software companies is 4.72, based on 2,682 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Nemetschek SE's current ROE % of 24.87% is 426.9% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Nemetschek SE and its competitors. For the Software industry, the median ROE % is 4.72 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Nemetschek SE's current ROE % is 24.87%, which is near median its own 10-year median of 26.62. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Nemetschek SE stock overvalued right now?
Based on GuruFocus' analysis, Nemetschek SE (FRA:NEM) is currently considered Significantly Undervalued. The stock's GF Value™ is €124.00, compared to a current price of €52.70 — trading 57.5% below its estimated fair value. The current ROE % is 24.87%, which is near median its 10-year median of 26.62 and 426.9% above the Software industry median of 4.72. Nemetschek SE's overall GF Score™ is 89/100 with 1 warning sign to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Nemetschek SE (FRA:NEM), the current ROE % is 24.87% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Nemetschek SE (FRA:NEM) Overvalued in 2026?
Based on GuruFocus' analysis, Nemetschek SE stock appears to be undervalued.
The current stock price of €52.70 is trading 57.5% below its estimated GF Value™ of €124.00.
GuruFocus considers Nemetschek SE to be Significantly Undervalued.
Key valuation signals for FRA:NEM:
ROE %: 24.87% (near median its 10-year median of 26.62)
GF Value™: €124.00 vs. price of €52.70 (57.5% below fair value)
Industry Position: 426.9% above the Software median (#343 of 2682)
No single metric tells the full story. See the FRA:NEM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Nemetschek is a German company that makes software products for the architecture, engineering, and construction industry, mainly, but also for the media and entertainment industry. Its software solutions cover the entire life cycle of building and infrastructure projects (design, build, and manage). In media and entertainment, it is one of the world's leading providers of software for the creation of 3D animation and visual effects in movies, TV shows, and gaming.
89GF Score
Get the complete analysis for FRA:NEM
ROE % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
FRA:NEM has been successfully added to your 
