Rising inflation and the expected rate hikes by the international central banks have shaken up the stock markets.

Technology and growth stocks in particular came under pressure.

For many investors, the question arises as to which of these stocks are merely “victims of the general market weakness” and are likely to continue their highs of recent years relatively soon.

These stocks could include, for example, companies such as architect software provider Nemetschek SE, which continue to benefit from important trends such as digitization.

This is progressing in all sectors.

Intelligent software solutions also play an increasingly important role in construction and infrastructure projects.

This is where Nemetschek comes into play.

The Munich-based company, founded in 1963, sees itself as a pioneer of digital transformation in the so-called AEC/O industry (Architecture, Engineering, Construction and Operations).

The aim is to improve the digital workflow of everyone involved in the construction process.

In this way, buildings should be planned, built and operated in a more efficient, sustainable and resource-saving manner.

The focus here is on the use of so-called open standards.

Multiple pillars

A concrete starting point is more efficient processes on construction sites.

For this purpose, Nemetschek takes a stake in the Norwegian start-up Imerso.

The high-tech company offers a platform for automating construction quality monitoring.

The solution combines artificial intelligence (AI), reality capture and building information modeling (BIM) technologies.

With the help of 3D scanners, buildings, the floor or rooms are precisely digitized and analyzed in real time for relevant deviations.

Recent projects have shown that Imerso software can increase the efficiency of quality control on site by 400 percent.

However, Nemetschek has other mainstays and is not only concerned with the AEC/O industry.

With its push towards the Metaverse, Facebook has given an important boost to topics such as virtual and augmented reality and the creation of 3D worlds in the media and entertainment industry.

Gaming companies as well as representatives of the film and advertising industry had already asked for the relevant services beforehand.

Nemetschek also covers the topics of digital solutions for visualization, 3D modeling and animation.

Gaming industry in focus

Nemetschek's Maxon brand is a leading developer of professional 3D software solutions.

Maxon's digital content creation and visualization products are sold and serviced in more than 80 countries around the world.

The leading position in the dynamically growing, highly attractive 3D animation market was recently further strengthened by Maxon's takeover of Pixologic.

The focus is on even better coverage of the large, fast-growing gaming industry.

It is also such acquisitions that have helped Nemetschek to grow in recent years.

In the 2021 financial year, group sales were EUR 681.5 million.

An increase of 14.2 percent over the previous year.

Adjusted for currency effects, the increase was 15.6 percent.

Earnings before interest, taxes, depreciation and amortization (EBITDA) rose by 28.8 percent (adjusted for currency effects: 30.4 percent) to EUR 222.0 million.

The EBITDA margin climbed from 28.9 percent in the previous year to 32.6 percent and was thus also above the forecast corridor of 30 to 32 percent.

According to CEO Axel Kaufmann, Nemetschek is also optimistic for 2022 and sees itself very well positioned for further sustainable and profitable growth.

The bottom line is that investors should actually be satisfied with such balance sheet data and forecasts.

A look at the chart also shows that, viewed over the long term, the Nemetschek share is developing extremely well.

Over a ten-year period, the share has posted an impressive price gain of 42 percent per year on average.

This makes Nemetschek the second strongest stock in the M-Dax after Hypoport and also the second strongest stock in the Tec-Dax after Sartorius over the decade.

Nemetschek has even paid off as a dividend stock over the past decade.

The dividend yield is currently modest at 0.4 percent.

However, since Nemetschek is continuously increasing its dividends, a long-term investment also made a difference in this regard.

Anyone who bought the stock ten years ago now has a personal dividend yield of 13 percent.

Despite all the consistency, the consolidation of the technology stocks has also dragged down the Nemetschek share.

From the November record high of 116 euros, the price collapsed to a peak of 73 euros in mid-February.

The paper is currently trading below the 200-day line and has thus left the long-term upward trend.

In terms of the chart, prices above the 200-day line would again mean a new buy signal.

On the part of the analysts, the average target price is currently around EUR 88.

Most analyst firms have rated the share as "neutral" - and this against the background that the estimated price-earnings ratio for 2022 is 66 and the share is therefore rated as ambitious.