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Nagarro SE
(XETRA:NA9)
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Rating:67Neutral
Price Target:
€85.00
▲(8.70% Upside)
Action:Reiterated
Date:08/19/26
The score is driven primarily by solid financial performance, especially strong free cash flow, tempered by elevated leverage and margin compression. Technically, the stock is in an uptrend with positive momentum, but RSI is stretched, increasing near-term pullback risk. Valuation is reasonable but not cheap, and the latest earnings call was balanced: strong Q2 margin metrics and expected cash-flow improvement are offset by slowing growth and execution/volatility concerns.
Positive Factors
Strong cash generation and earnings quality
Strong operating and free cash flow indicate that reported profits are converting into liquidity. This supports reinvestment in talent and capabilities, debt service, and resilience across the company’s service-based business cycle.
Negative Factors
Elevated leverage limits financial flexibility
Debt materially exceeds equity, leaving less flexibility if demand or margins weaken. Although cash generation is strong, leverage increases sensitivity to execution setbacks and may constrain investment or shareholder returns over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation and earnings quality
Strong operating and free cash flow indicate that reported profits are converting into liquidity. This supports reinvestment in talent and capabilities, debt service, and resilience across the company’s service-based business cycle.
Read all positive factors
Nagarro SE (NA9) vs. iShares MSCI Germany ETF (EWG)
Market Cap
€1.01B
Dividend Yield1.27%
Average Volume (3M)53.35K
Price to Earnings (P/E)19.6
Beta (1Y)1.38
Revenue Growth1.27%
EPS Growth30.41%
CountryDE
Employees18,711
SectorTechnology
Sector Strength88
IndustryInformation Technology Services
Share Statistics
EPS (TTM)3.98
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
€81.00Price Target Upside3.58% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)5.08
Revenue Forecast (FY)€1.02B
Nagarro SE Business Overview & Revenue Model
Company Description
Nagarro SE functions as a global digital engineering firm, providing advanced technology solutions across North America, Central Europe, other European territories, and on an international scale. Its comprehensive suite of services covers agile me...
How the Company Makes Money
Nagarro primarily makes money by delivering IT services and digital engineering work for enterprise clients, generating revenue from client contracts rather than selling a single mass-market software product. Its core revenue model is service-base...
Nagarro SE Earnings Call Summary
Earnings Call Date:Aug 14, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 13, 2026
Earnings Call Sentiment Neutral
The call presented a mix of strengths and headwinds. Key positives include solid H1 revenue growth (4.2% CC), strong Q2 margin metrics (gross margin >32%, adjusted EBITDA 15%), outstanding customer satisfaction (NPS 70, CSAT 93.2) and strategic recognition and client wins. Offsetting these are decelerating Q2 growth, Germany/Austria revenue declines, lower operating cash flow versus prior year driven by receivable timing, modest leverage (net liabilities EUR 246.6m, net leverage 1.7x), and P&L volatility from FX and ESOP adjustments. Management highlighted opportunities to improve sustainable profitability and expects remediation actions by Q4, while a pending combination with Persistent introduces strategic upside but regulatory uncertainty. Overall the positives and negatives are roughly balanced, producing cautious confidence but not a clear overwhelmingly positive picture.Positive Updates
H1 2026 Revenue Growth
Total revenue for H1 2026 was EUR 501 million, representing 4.2% constant-currency growth year-over-year (Q1 +6.5% CC; Q2 +2.0% CC).
Negative Updates
Q2 Growth Deceleration
Revenue growth slowed to 2.0% constant currency in Q2 versus 6.5% CC in Q1, indicating deceleration in momentum through the quarter.
Read all updates
Q2-2026 Updates
Positive
Negative
H1 2026 Revenue Growth
Total revenue for H1 2026 was EUR 501 million, representing 4.2% constant-currency growth year-over-year (Q1 +6.5% CC; Q2 +2.0% CC).
Read all positive updates
Company Guidance
Management's guidance was cautious but concrete: H1 revenue was €501m (4.2% constant‑currency YoY; Q1 +6.5%, Q2 +2.0%) with Q2 gross margin above 32% and adjusted EBITDA margin of 15.0% (noting some FX assistance), and management said they expect pending collections to be received in Q3 (first 1.5 months of Q3 have been “very productive”), which should help reduce DSO (86 days at June 30 vs 85 a year ago) and improve operating cash flow (Q2 OCF €29.8m; H1 OCF €29.5m). They reiterated a strong liquidity position (cash €131.3m, working capital €236.2m, net liabilities €246.6m, net leverage 1.7x), minimal CapEx (€1m, <1% of six‑month revenue) and fewer financing outflows (H1 financing outflow €22.1m vs €95.8m prior year), and said there are significant low‑hanging opportunities to lift sustainable profitability through higher utilization and streamlined investments with visible improvements expected by Q4.Nagarro SE Financial Statement Overview
Summary
Income Statement
67
Positive
Balance Sheet
52
Neutral
Cash Flow
78
Positive
| Breakdown | TTM | Mar 2026 | Mar 2025 | Mar 2024 | Dec 2022 | Mar 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.00B | 999.30M | 971.99M | 912.05M | 856.34M | 546.04M |
| Gross Profit | 231.43M | 273.18M | 251.69M | 186.51M | 199.25M | 106.53M |
| EBITDA | 119.81M | 121.20M | 137.55M | 123.08M | 146.06M | 70.65M |
| Net Income | 49.71M | 39.49M | 49.16M | 52.14M | 77.38M | 30.00M |
Balance Sheet | ||||||
| Total Assets | 760.24M | 742.96M | 795.70M | 679.86M | 618.14M | 524.87M |
| Cash, Cash Equivalents and Short-Term Investments | 131.26M | 130.48M | 197.41M | 123.33M | 115.81M | 109.00M |
| Total Debt | 377.90M | 382.15M | 384.09M | 323.44M | 272.32M | 272.60M |
| Total Liabilities | 585.23M | 587.94M | 573.04M | 498.75M | 453.46M | 428.04M |
| Stockholders Equity | 175.01M | 155.02M | 222.66M | 181.12M | 164.68M | 96.83M |
Cash Flow | ||||||
| Free Cash Flow | 95.40M | 95.04M | 79.15M | 58.18M | 78.16M | 41.28M |
| Operating Cash Flow | 102.15M | 102.81M | 86.52M | 65.06M | 82.30M | 43.96M |
| Investing Cash Flow | -21.02M | -22.06M | -16.84M | -63.70M | -44.48M | -52.80M |
| Financing Cash Flow | -57.97M | -136.18M | 9.86M | -6.68M | -28.31M | 13.00K |
Nagarro SE Technical Analysis
Positive
78.20
Price Trends
71.00
Positive
56.47
Positive
59.60
Positive
Market Momentum
1.79
Positive
73.66
Negative
51.52
Neutral
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 78.2 is above the 20-day moving average (MA) of 77.97, above the 50-day MA of 71.00, and above the 200-day MA of 59.60, indicating a bullish trend. The MACD of 1.79 indicates Positive momentum. The RSI at 73.66 is Negative, neither overbought nor oversold. The STOCH value of 51.52 is Neutral, 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 |
|---|---|---|---|---|---|---|---|
78 Outperform | €593.65M | 15.77 | 13.66% | 2.42% | 3.01% | -3.62% | |
69 Neutral | €641.49M | 33.70 | 10.84% | 0.05% | 7.30% | -15.88% | |
67 Neutral | €1.01B | 19.65 | 29.36% | 1.31% | 1.27% | 30.41% | |
62 Neutral | €188.00M | 10.13 | 13.38% | 6.37% | -9.97% | 280.10% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
59 Neutral | €379.94M | 20.39 | 9.65% | 1.48% | 12.73% | 51.34% | |
55 Neutral | €616.47M | 17.73 | 7.07% | 4.18% | -1.13% | 104.45% |
* Technology Sector Average
DE:NA9
Nagarro SE
78.20
27.72
54.93%
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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.