Mensch und Maschine Software SE: Provider of CAD/CAM/CAE software solutions

Brief summary for investors: Mensch und Maschine Software SE is an established German software provider focusing on CAD/CAM/CAE solutions and Building Information Modeling. The company operates in the B2B sector and serves key industries such as mechanical engineering, automotive, and aerospace.

Development The share price trended upwards from 2020 to the beginning of 2022, reaching an all-time high (~€67) and then correcting significantly to a low of ~€42 in 2022 due to the overall economic slowdown and geopolitical uncertainties. Since then, the share price has largely moved sideways within a range of ~€45-58. Operating performance has been stable over the past four years, with steady growth in revenue (€244 million in 2020 to €322 million in 2023) and profitability (EBITDA from €39.3 million to €55.9 million). However, the most recent quarter (Q2 2025) shows a decline in revenue and EBIT compared to the previous quarter (Q1 2025), indicating potential economic headwinds.

Opportunities:

• Digital Transformation: The ongoing trend toward digitalization in industry (Industry 4.0) is driving demand for specialized CAD/CAM/CAE software.
• Recurring Revenue: The business model with software distribution and related services offers potentially stable sources of income.
• Industry Positioning: A focus on demanding industries with high quality requirements creates a certain degree of resilience.

Risks:

• Cyclical Dependence: Business performance is closely linked to the investment cycles of the manufacturing industry, which could suffer in the event of an economic slowdown.
• Competition: The company operates in a competitive market with large, global players.
• Liquidity: The current ratio (1.02) and quick ratio (0.91) indicate a tight liquidity situation.
• Debt: A debt-to-equity ratio of ~1.23 indicates significant leverage.

Additional Notes: Free cash flow generation per share was very weak at EUR 0.056 in the last reported quarter (Q2 2025), following significantly higher levels in previous quarters. Employee productivity (revenue/employee) declined in the current quarter.

Conclusion: Mensch und Maschine is a profitable, historically grown niche company. However, the latest quarterly figures indicate a cyclical slowdown. The strained liquidity situation and high debt levels are notable risk factors. The share price currently largely reflects the existing challenges without a significant growth premium. An investment would be tied to an economic recovery and an improvement in operational stability.

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