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Nagarro SE (DE:NA9)
OTHER OTC:NA9
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Nagarro SE
(OTC:NA9)
Select Model
Select Model
Rating:68Neutral
Price Target:
€85.00
▲(71.30% Upside)
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
Consistent revenue growth indicates strong business model resilience and ability to adapt to macroeconomic challenges, supporting long-term expansion.
Profitability Improvements
Improved profitability margins reflect operational efficiency and cost management, enhancing long-term financial stability and shareholder value.
Share Buyback Program
The share buyback program demonstrates management's confidence in the company's future prospects and commitment to enhancing shareholder returns.
Negative Factors
High Leverage
High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.
Subdued Demand Environment
A subdued demand environment may hinder revenue growth and delay the realization of benefits from new initiatives, affecting long-term performance.
Foreign Exchange Headwinds
Foreign exchange volatility can affect financial results, posing challenges to maintaining stable margins and consistent earnings growth over time.
Nagarro SE (NA9) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€918.13M
Dividend Yield1.29%
Average Volume (3M)53.35K
Price to Earnings (P/E)18.8
Beta (1Y)0.77
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
€93.00Price Target Upside87.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Nagarro SE Business Overview & Revenue Model
Company DescriptionNagarro SE (NA9) is a global technology consulting and services company that specializes in digital transformation, software engineering, and IT services. The company operates in various sectors, including automotive, healthcare, financial services, and consumer goods, providing innovative solutions that enhance operational efficiency and customer engagement. Nagarro's core offerings include custom software development, cloud services, data analytics, and digital experience design, aimed at helping businesses navigate complex digital landscapes and leverage emerging technologies.
How the Company Makes MoneyNagarro 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 development projects, system integration, and maintenance services. Additionally, Nagarro benefits from long-term partnerships with major clients across various industries, allowing for recurring revenue opportunities and the ability to scale projects. The company's focus on digital transformation services positions it well to capitalize on the growing demand for innovative technology solutions, further enhancing its earnings potential.
Nagarro SE Earnings Call Summary
Earnings Call Date:Nov 14, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Apr 24, 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.Q3-2025 Updates
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.
Profitability Outperformance
Gross margins came in at 33.1%, over 300 basis points better than guidance. Adjusted EBITDA margins were over 17%, the highest level since 2022, reflecting efficiency measures.
Share Buyback Program
Nagarro announced extinguishing approximately 75% of treasury shares and buying back EUR 20 million worth of stock, indicating confidence in the company's long-term outlook.
Sustainability Rating Improvement
Nagarro's sustainability commitment was validated by an EcoVadis Gold Star rating, placing it in the top 5% of assessed companies.
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.
Foreign Exchange Headwinds
Significant headwind from foreign exchange rates, especially between the dollar and euro, impacted revenue and adjusted EBITDA, presenting challenges throughout the year.
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
Nagarro SE demonstrates strong revenue growth and profitability, supported by efficient operations. However, the high leverage on the balance sheet presents potential risks that need careful management. The cash flow position is stable, with good cash conversion metrics, although recent free cash flow growth has been negative.Income Statement
Nagarro SE has shown strong revenue growth, particularly in the TTM period with a significant increase of 79.9%. The company maintains healthy gross and net profit margins, although there is a slight decline in margins compared to the previous year. The EBIT and EBITDA margins are stable, indicating efficient operational management. Overall, the income statement reflects robust growth and profitability, with minor concerns regarding margin compression.Balance Sheet
The balance sheet reveals a high debt-to-equity ratio, which indicates significant leverage and potential risk if not managed properly. However, the company has a reasonable return on equity, suggesting effective use of equity to generate profits. The equity ratio is moderate, reflecting a balanced asset structure. While the company is leveraging debt for growth, the high debt levels could pose risks in volatile market conditions.Cash Flow
Nagarro SE's cash flow statement shows a slight decline in free cash flow growth in the TTM period, but the company maintains a strong free cash flow to net income ratio, indicating good cash conversion. The operating cash flow to net income ratio is moderate, suggesting adequate cash generation from operations. Despite the recent dip in free cash flow growth, the overall cash flow position remains solid, supporting ongoing operations and investments.| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | 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
Positive
49.62
Price Trends
66.81
Positive
58.99
Positive
59.62
Positive
Market Momentum
0.91
Positive
42.52
Neutral
14.83
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:NA9, the sentiment is Positive. The current price of 49.62 is below the 20-day moving average (MA) of 75.96, below the 50-day MA of 66.81, and below the 200-day MA of 59.62, indicating a neutral trend. The MACD of 0.91 indicates Positive momentum. The RSI at 42.52 is Neutral, neither overbought nor oversold. The STOCH value of 14.83 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
77 Outperform | €550.21M | 15.72 | 13.78% | 2.65% | 3.28% | -26.16% | |
68 Neutral | €918.13M | 18.77 | 24.22% | 1.29% | 5.63% | -7.19% | |
65 Neutral | €871.40M | 50.42 | 3.09% | 3.78% | -0.61% | -52.28% | |
65 Neutral | €594.94M | 22.68 | 19.08% | ― | 20.52% | 84.19% | |
62 Neutral | €576.51M | 26.15 | 13.54% | 1.43% | 7.30% | -15.88% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | €596.68M | 43.96 | 6.82% | 0.85% | 12.37% | 196.11% |
* Technology Sector Average
DE:NA9
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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.