Nemetschek's Stock Rout Continues Unabated Despite Dividend Hike and Strong Cash Flow

Nemetschek shares hit third straight loss, dropping 3.5% to €60.55, while strong Q1 growth and raised dividend fail to halt a 56% decline from August 2025 peak.

The software group Nemetschek fell 3.51 percent on Thursday to close at €60.55, a decline that stood in stark contrast to the broader market — the TecDAX gained 1.44 percent over the same session. During the day the stock briefly touched €59.75, inching ever closer to its 52-week low.

The Thursday drop was not an isolated setback. It marked the third consecutive daily loss, following declines of 2.16 percent on May 26 and 1.58 percent on May 27. The ex-dividend date was May 22, with the payout occurring on May 27, meaning the slide on the 28th cannot be attributed to the usual ex-dividend adjustment. Over the past twelve months the stock has lost more than half its value, and since the start of 2026 it is down 33 percent. From the August 2025 high of €137.90, the share price has cratered 56 percent.

Nemetschek raised its dividend for the 2025 fiscal year by 23.6 percent to €0.68 per share, yet even that increase failed to stem the selling. The total payout of €78.5 million represents roughly 20 percent of the group’s operating cash flow of €402.9 million — itself up 31.3 percent year-on-year. Net debt has been trimmed to €107.5 million. Operationally, the business appears solid: first-quarter 2026 revenue rose 17 percent on a currency-adjusted basis to €313.1 million, subscription and SaaS revenue jumped 35.4 percent to €248.3 million, EBITDA climbed 29.6 percent to €98.4 million, and the EBITDA margin reached 31.4 percent. Management reaffirmed its full-year guidance.

The technical picture, however, offers little comfort. The stock now trades 28 percent below its 200-day moving average, and the 50-day line at €63.80 sits well above current levels. The relative strength index (RSI) stands at 89.1, according to one measure, and at 90.3 by another — both levels flagging extreme overbought conditions that can sometimes precede a short-term bounce. Volatility remains elevated at an annualized 53 percent, reflecting deep investor unease. The market cap has shrunk to about €7.3 billion.

Herein lies the central disconnection: Nemetschek continues to deliver double-digit growth, expanding margins, and a rising cash flow, while the market continues to mark down the stock. Analysts and investors are left to debate whether the selloff reflects a sector-wide reassessment of software valuations or a specific loss of faith in Nemetschek’s growth story. With the price hovering just 5 percent above the 52-week floor of €57.60, the next quarterly results will be closely watched to see if operating momentum can finally break the downward cycle — or whether this rout has further to run.