Man and machine has had 10 record years in a row. Business seems to be booming, but the share is not.
A European hidden champion with a global presence
Mensch und Maschine (MUM) is one of the leading developers of Computer Aided Design, Manufacturing and Engineering (CAD/CAM/CAE), Product Data Management (PDM) and Building Information Modeling/Management (BIM) with around 75 locations throughout Europe, Asia and America.
The business model is divided into the two segments M+M Software (standard software for CAM, BIM and CAE) and Digitalization (customer-specific digitalization solutions, training and consulting for customers from industry, construction and infrastructure).
The two segments each account for around half of Group sales, while M+M Software generates almost three quarters of the profit (EBIT).
The company's applications are used in a wide range of industries, including mechanical engineering, architecture/construction, infrastructure, electrical engineering, plant engineering, data management and so on.
Mensch und Maschine is broadly positioned and well diversified, with even its largest customer accounting for less than 1% of sales.
The biggest criticism of the company has always been its dependence on AutodeskMensch und Maschine has therefore consistently worked to reduce it.
Today, less than 20% of the Group's value added is attributable to Autodesk reselling. The former core business has long since been replaced by the company's own products.
Ten years in series production
For more than a decade, there has not been a year without growth at Mensch und Maschine, and for just as long, a new record profit has been achieved every year.
Ten record years in a row does not appear to be a coincidence, but a successful system.
During this time, profits have increased massively from EUR 0.40 to EUR 1.91 per share and the share has been a massive outperformer for long periods.
In the recent past, however, the share price has completely decoupled from the fundamental development. While earnings have continued to rise, the share price has been trending sideways for years and has really come under pressure in recent months.
We can only speculate as to the reasons for this, as the operating trend is clearly pointing upwards.
The fear of disruption from KI has exerted pressure on the share price in recent months. Another reason is probably chart technology. Falling share prices provoke falling share prices and exert mental pressure on shareholders, who at some point pull the ripcord out of frustration and impatience.
When fundamentals and share price diverge
There is also a change in the business model. The company used to buy software such as that from Autodesk itself and then sell it on to customers, thereby generating traditional trading margins.
In plain language: a lot of turnover, little profit.
This model is now gradually being replaced by a commission model. In this new model, Mensch und Maschine no longer sells Autodesk products in its own name. Instead, the customer concludes the contract directly with Autodesk, while Mensch und Maschine continues to handle sales and consulting. In return, the company receives a commission.
As a result of this change, the reported turnover is significantly lower because the throughput software revenues are eliminated. At the same time, however, the associated expenses are also reduced, so that the margin on the remaining revenue shares tends to increase.
In plain language, this means: less turnover, but the same or potentially even more profit.
At the Börse does not seem to understand this. There is no other way to explain the fall in the share price.
Sales illusion vs. profit reality
This transitional phase has now come to an end, making the underlying trends visible again. It can be assumed that the penny will also slowly drop on the stock market.
On April 21, the company presented an update on the first quarter of the current financial year.
Turnover increased by 8.4% to 71.6 million euros. At the same time, profitability improved, with EBIT increasing by 13.7% to 18.3 million euros.
Earnings even improved by 16% to EUR 0.73 per share, the highest quarterly figure ever.
Operating cash flow increased by 91% to EUR 19.1 million, which corresponds to EUR 1.17 per share.
Outlook and valuation
M+M founder/Chairman Adi Drotleff and CFO Markus Pech expressed their satisfaction: "Based on the strong start to the year and the reduced cost base, we are maintaining our targets for the current financial year 2026 unchanged, i.e. +11 - 19 % to 211 - 226 cents for EPS and EUR 54.5 - 58.5 million for EBIT, and are planning 220 - 240 cents Dividende after 200 cents for 2025."
As the company already earned EUR 0.73 per share in the first quarter and Q1 is often the weakest and Q4 the strongest quarter of the year, the outlook can be described as cautiously conservative.
In addition, the operating cash flow is likely to be higher than the reported profit.
Even if this point is ignored, Mensch und Maschine has a P/E ratio of 17.5 and a Dividendenrendite of 5.8 %.
The long-term average was KGV 37 and 35.8 in the last five years.
The Annual General Meeting is expected to take place on May 12. The dividend is expected to be paid out immediately afterwards
Mensch und Maschine share: chart from 21.04.2026, price: EUR 39.45 - symbol: MUM | source: TWS
The latest Quartalszahlen seem to have gone down well on the stock market. In response, the share price rose by almost 5% to EUR 39.45. The positive trend of the past week has thus continued.
If the share now manages to break out above the resistance band at 40.00 - 40.50 euros, a procyclical uptrend will ensue. Kaufsignal with possible price targets at EUR 45 and EUR 47.50 - 49.00.
However, if the share falls back below EUR 37.50, the bulls will have lost their chance for the time being
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