Nagarro SE (DE:NA9)
XETRA:NA9
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Nagarro SE
(XETRA:NA9)
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Rating:60Neutral
Price Target:
€46.00
▼(-8.64% Downside)
Action:Reiterated
Date:05/17/26
The score is primarily held back by balance-sheet leverage and weakening cash-flow trends, alongside bearish technicals (below major moving averages with negative MACD). Offsetting these are steady revenue growth and a constructive earnings-call tone with margin outperformance, maintained guidance, and shareholder-return actions; valuation is mixed due to a moderate yield but a negative P/E.
Positive Factors
Revenue Growth & Scale
Consistent ~12.5% TTM revenue growth reflects durable demand for Nagarro's digital engineering and managed services. Given a business model that mixes time-and-materials projects, fixed-price engagements and recurring managed services, steady top-line expansion supports reinvestment, capacity scaling and long-term client relationships.
Negative Factors
Elevated Financial Leverage
Debt-to-equity of ~2.47 materially increases financial risk and reduces flexibility to fund investments or weather demand shocks. Higher leverage inflates refinancing and interest exposure, can amplify earnings volatility and constrains strategic choices if macro or client demand weakens over the coming months.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Scale
Consistent ~12.5% TTM revenue growth reflects durable demand for Nagarro's digital engineering and managed services. Given a business model that mixes time-and-materials projects, fixed-price engagements and recurring managed services, steady top-line expansion supports reinvestment, capacity scaling and long-term client relationships.
Read all positive factors
Nagarro SE (NA9) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€526.45M
Dividend Yield1.29%
Average Volume (3M)53.35K
Price to Earnings (P/E)7.6
Beta (1Y)0.77
Revenue Growth2.04%
EPS Growth14.78%
CountryDE
Employees17,938
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)3.78
Shares Outstanding12,922,297
10 Day Avg. Volume51,109
30 Day Avg. Volume53,355
Financial Highlights & Ratios
PEG Ratio-1.50
Price to Book (P/B)6.30
Price to Sales (P/S)0.98
P/FCF Ratio10.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€74.50Price Target Upside47.96% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.17
Revenue Forecast (FY)€1.05B
Nagarro SE Business Overview & Revenue Model
Company Description
Nagarro SE, a digital engineering company, provides digital engineering and technology solutions in North America, Central Europe, rest of Europe, and internationally. The company offers agile; API management; application development and managemen...
How the Company Makes Money
Nagarro primarily makes money by providing IT and digital engineering services to business customers under contracted engagements. Revenue is largely generated from professional services billed on a time-and-materials basis (charging clients for c...
Nagarro SE Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 14, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong performance in revenue and profitability, with significant margins and strategic share buyback initiatives. However, challenges such as a subdued demand environment and foreign exchange headwinds were noted. Overall, the highlights significantly outweigh the lowlights, indicating a positive sentiment.Positive Updates
Strong Q3 Revenue Growth
Revenue growth reached 9.4% year-over-year at constant currency, tracking to the guidance provided earlier, demonstrating business model strength despite macroeconomic challenges.
Negative Updates
Subdued Demand Environment
The demand environment is described as subdued, with challenges such as foreign exchange noise affecting the early stages of benefiting from new initiatives.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Q3 Revenue Growth
Revenue growth reached 9.4% year-over-year at constant currency, tracking to the guidance provided earlier, demonstrating business model strength despite macroeconomic challenges.
Read all positive updates
Company Guidance
During Nagarro SE's Q3 2025 earnings call, the company provided detailed guidance and updates on its financial performance and strategic initiatives. The firm's revenue growth reached 9.4% year-over-year at constant currency, and its gross margin for Q3 was reported at 33.1%, exceeding expectations by over 300 basis points. The adjusted EBITDA margin also surpassed expectations, reaching over 17%, the highest since 2022. This was attributed to efficiency measures and operational discipline. The company is committed to enhancing shareholder returns, announcing the extinguishment of approximately 75% of its treasury shares and a EUR 20 million stock buyback program. Despite a subdued demand environment and foreign exchange challenges, Nagarro maintains its guidance for 2025, emphasizing the potential of its Fluidic Intelligence initiative to drive significant productivity improvements for clients. The company also highlighted its robust liquidity position, with a net leverage ratio of 1.7x and a cash balance of EUR 129.4 million.Nagarro SE Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
56
Neutral
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 999.30M | 971.99M | 912.05M | 856.34M | 546.04M |
| Gross Profit | 273.18M | 251.69M | 186.51M | 199.25M | 106.53M |
| EBITDA | 121.20M | 137.55M | 123.08M | 146.06M | 70.65M |
| Net Income | 39.49M | 49.16M | 52.14M | 77.38M | 30.00M |
Balance Sheet | |||||
| Total Assets | 742.96M | 795.70M | 679.86M | 618.14M | 524.87M |
| Cash, Cash Equivalents and Short-Term Investments | 130.48M | 197.41M | 123.33M | 115.81M | 109.00M |
| Total Debt | 382.15M | 384.09M | 323.44M | 272.32M | 272.60M |
| Total Liabilities | 587.94M | 573.04M | 498.75M | 453.46M | 428.04M |
| Stockholders Equity | 155.02M | 222.66M | 181.12M | 164.68M | 96.83M |
Cash Flow | |||||
| Free Cash Flow | 95.04M | 79.15M | 58.18M | 78.16M | 41.28M |
| Operating Cash Flow | 102.81M | 86.52M | 65.06M | 82.30M | 43.96M |
| Investing Cash Flow | -22.06M | -16.84M | -63.70M | -44.48M | -52.80M |
| Financing Cash Flow | -136.18M | 9.86M | -6.68M | -28.31M | 13.00K |
Nagarro SE Technical Analysis
Negative
50.35
Price Trends
45.33
Negative
54.56
Negative
56.05
Negative
Market Momentum
-1.52
Positive
38.98
Neutral
28.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NA9, the sentiment is Negative. The current price of 50.35 is above the 20-day moving average (MA) of 42.77, above the 50-day MA of 45.33, and below the 200-day MA of 56.05, indicating a bearish trend. The MACD of -1.52 indicates Positive momentum. The RSI at 38.98 is Neutral, neither overbought nor oversold. The STOCH value of 28.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:NA9.
Nagarro SE Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | €587.07M | 13.07 | 13.18% | 2.65% | 1.76% | -18.57% | |
69 Neutral | €603.67M | 14.15 | 21.61% | ― | 15.81% | 63.97% | |
65 Neutral | €784.59M | 23.37 | 6.15% | 3.78% | 0.21% | 33.16% | |
62 Neutral | €624.83M | 24.19 | 13.51% | 1.43% | 7.30% | -15.88% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | €526.45M | 7.59 | 28.91% | 1.29% | 2.04% | 14.78% | |
56 Neutral | €387.78M | 40.26 | 12.82% | 0.85% | 13.29% | 214.17% |
* Technology Sector Average
DE:NA9
Nagarro SE
41.26
-17.95
-30.31%
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.