Nagarro SE (DE:NA9)
XETRA:NA9
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Nagarro SE
(XETRA:NA9)
Select Model
Select Model
Rating:68Neutral
Price Target:
€73.00
▲(62.01% Upside)
Action:DowngradedDate:12/11/25
Nagarro SE's overall stock score is driven by strong earnings call performance and positive financial trends, despite high leverage and valuation concerns. The technical indicators suggest bullish momentum, but potential overvaluation and market conditions warrant caution.
Positive Factors
Revenue Growth
Sustained top-line expansion (17.8% TTM; Q3 +9.4% CC) reflects strong demand for digital engineering services and successful client engagements. Recurring T&M, fixed-price and managed-service contracts plus distributed delivery help stabilize revenue and support durable growth over the next 2–6 months.
Negative Factors
High Leverage
Significant leverage (debt/equity ~2.39 and disclosed net leverage ~1.7x) increases refinancing, interest and covenant risk. High leverage reduces balance sheet flexibility to pursue organic investments or weather slower demand, constraining strategic options if macro headwinds persist.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth
Sustained top-line expansion (17.8% TTM; Q3 +9.4% CC) reflects strong demand for digital engineering services and successful client engagements. Recurring T&M, fixed-price and managed-service contracts plus distributed delivery help stabilize revenue and support durable growth over the next 2–6 months.
Read all positive factors
Nagarro SE (NA9) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€580.73M
Dividend Yield1.29%
Average Volume (3M)53.35K
Price to Earnings (P/E)7.6
Beta (1Y)0.70
Revenue Growth5.63%
EPS Growth-7.19%
CountryDE
Employees17,938
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)1.69
Shares Outstanding12,922,297
10 Day Avg. Volume51,109
30 Day Avg. Volume53,355
Financial Highlights & Ratios
PEG Ratio-4.61
Price to Book (P/B)4.74
Price to Sales (P/S)1.09
P/FCF Ratio13.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€90.73Price Target Upside101.35% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.82
Revenue Forecast (FY)€1.08B
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 generates revenue primarily through its consulting and IT services, which are billed based on project engagements, time-and-materials contracts, and fixed-price contracts. The company has established key revenue streams from software devel...
Nagarro SE Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 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
75
Positive
Balance Sheet
60
Neutral
Cash Flow
70
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Dec 2022 | Mar 2022 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.00B | 971.99M | 912.05M | 856.34M | 546.04M | 430.37M |
| Gross Profit | 234.87M | 251.69M | 186.51M | 199.25M | 106.53M | 106.93M |
| EBITDA | 145.02M | 137.55M | 123.08M | 146.06M | 70.65M | 66.68M |
| Net Income | 48.79M | 49.16M | 52.14M | 77.38M | 30.00M | 18.45M |
Balance Sheet | ||||||
| Total Assets | 750.30M | 795.70M | 679.86M | 618.14M | 524.87M | 386.82M |
| Cash, Cash Equivalents and Short-Term Investments | 137.26M | 197.41M | 123.33M | 115.81M | 109.00M | 109.35M |
| Total Debt | 371.93M | 384.09M | 323.44M | 272.32M | 272.60M | 237.74M |
| Total Liabilities | 577.55M | 573.04M | 498.75M | 453.46M | 428.04M | 340.29M |
| Stockholders Equity | 172.76M | 222.66M | 181.12M | 164.68M | 96.83M | 43.80M |
Cash Flow | ||||||
| Free Cash Flow | 89.13M | 79.15M | 58.18M | 78.16M | 41.28M | 65.87M |
| Operating Cash Flow | 98.72M | 86.52M | 65.06M | 82.30M | 43.96M | 69.44M |
| Investing Cash Flow | -19.46M | -16.84M | -63.70M | -44.48M | -52.80M | -10.12M |
| Financing Cash Flow | -82.03M | 9.86M | -6.68M | -28.31M | 13.00K | 6.48M |
Nagarro SE Technical Analysis
Negative
45.06
Price Trends
54.92
Negative
63.61
Negative
58.09
Negative
Market Momentum
-2.58
Negative
38.57
Neutral
46.75
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 45.06 is below the 20-day moving average (MA) of 47.39, below the 50-day MA of 54.92, and below the 200-day MA of 58.09, indicating a bearish trend. The MACD of -2.58 indicates Negative momentum. The RSI at 38.57 is Neutral, neither overbought nor oversold. The STOCH value of 46.75 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 |
|---|---|---|---|---|---|---|---|
68 Neutral | €580.73M | 7.63 | 25.95% | 1.29% | 5.63% | -7.19% | |
67 Neutral | €590.57M | 10.92 | 21.61% | ― | 20.52% | 84.19% | |
62 Neutral | €625.66M | 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 | €457.54M | 11.26 | 12.64% | 2.65% | 3.28% | -26.16% | |
59 Neutral | €773.70M | 29.11 | 5.18% | 3.78% | -0.61% | -52.28% | |
57 Neutral | €366.23M | 12.03 | 7.22% | 0.85% | 12.37% | 196.11% |
* Technology Sector Average
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-36.23%
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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.