Nagarro SE (DE:NA9)
XETRA:NA9
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Nagarro SE
(XETRA:NA9)
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Rating:61Neutral
Price Target:
€46.00
▼(-8.64% Downside)
Action:ReiteratedDate:05/02/26
The score is driven by solid cash generation but offset by balance-sheet leverage risk and a recent revenue/margin slowdown. Technicals are meaningfully weak with the stock trading below major moving averages, while valuation is supportive due to a low P/E and a moderate dividend yield. The latest earnings call adds a positive tilt from margin outperformance and buyback actions, tempered by subdued demand and FX headwinds.
Positive Factors
Strong cash generation
Nagarro's solid operating (~€103M) and free cash flow (~€95M) show durable cash generation. High FCF close to reported earnings supports reinvestment, buybacks, debt servicing and provides a cushion against timing volatility, enhancing financial resilience over months.
Negative Factors
Elevated leverage
Leverage risen to ~2.15x equity constrains financial flexibility and raises refinancing and interest-rate risk. Elevated debt limits scope for inorganic growth, reduces buffer against cyclical slowdowns, and increases downside vulnerability if revenue or cash flow deteriorates in coming quarters.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
Nagarro's solid operating (~€103M) and free cash flow (~€95M) show durable cash generation. High FCF close to reported earnings supports reinvestment, buybacks, debt servicing and provides a cushion against timing volatility, enhancing financial resilience over months.
Read all positive factors
Nagarro SE (NA9) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€562.12M
Dividend Yield1.29%
Average Volume (3M)53.35K
Price to Earnings (P/E)7.6
Beta (1Y)0.78
Revenue Growth2.81%
EPS Growth-16.53%
CountryDE
Employees17,938
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)N/A
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
€79.50Price Target Upside57.89% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.46
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:May 20, 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
67
Positive
Balance Sheet
48
Neutral
Cash Flow
74
Positive
| Breakdown | Dec 2025 | 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
Neutral
50.35
Price Trends
52.14
Negative
62.52
Negative
57.70
Negative
Market Momentum
-1.35
Negative
55.55
Neutral
77.84
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NA9, the sentiment is Neutral. The current price of 50.35 is above the 20-day moving average (MA) of 46.35, below the 50-day MA of 52.14, and below the 200-day MA of 57.70, indicating a neutral trend. The MACD of -1.35 indicates Negative momentum. The RSI at 55.55 is Neutral, neither overbought nor oversold. The STOCH value of 77.84 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 |
|---|---|---|---|---|---|---|---|
67 Neutral | €615.30M | 10.92 | 21.61% | ― | 16.49% | 57.07% | |
62 Neutral | €623.99M | 24.19 | 13.51% | 1.43% | 7.30% | -15.88% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
61 Neutral | €562.12M | 7.63 | 25.95% | 1.29% | 2.81% | -16.53% | |
60 Neutral | €489.66M | 14.91 | 12.64% | 2.65% | 1.99% | -28.51% | |
59 Neutral | €711.31M | 29.11 | 5.18% | 3.78% | -1.32% | -7.62% | |
57 Neutral | €380.60M | 12.03 | 9.77% | 0.85% | 13.01% | 127.28% |
* Technology Sector Average
DE:NA9
Nagarro SE
43.50
-17.97
-29.23%
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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.