Nagarro SE (0AA3) AI Stock Analysis

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Nagarro SE

(LSE:0AA3)

Rating:―N/A

Action:N/A

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Positive Factors

Strong cash generation and earnings qualityStrong 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 flexibilityDebt 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.

Nagarro SE (0AA3) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: EUR 1.09B
Dividend Yield: 1.28%
Average Volume (3M): 1,910
Price to Earnings (P/E): 19.7
Beta (1Y): 0.97
Revenue Growth: 1.27%
EPS Growth: 30.41%
Country: UK
Employees: 18,711
Sector: Technology
Sector Strength: 61
Industry: Information Technology Services

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 metho...

Nagarro SE Earnings Call Summary

Earnings Call Date:Aug 14, 2026(Q2-2026)|% Change Since:0.77%|Next Earnings Date:May 13, 2022

Earnings Call SentimentNeutral

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.

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 Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

GB:0AA3 against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DE:D6H0	69Neutral	EUR 674.81M	33.70	10.84%	0.05%	―	―
Sector *	61Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
DE:GFT	59Neutral	EUR 722.65M	19.20	13.66%	1.82%	3.01%	-3.62%
DE:COK	55Neutral	EUR 586.29M	16.86	7.07%	4.90%	-1.13%	104.45%
DE:ADN1	53Neutral	EUR 447.84M	24.15	9.65%	1.14%	12.73%	51.34%
DE:AEIN	52Neutral	EUR 158.01M	8.78	13.38%	7.30%	-9.97%	280.10%

* Technology Sector Average

Performance Comparison

GB:0AA3 and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0AA3	Nagarro SE	78.60	34.84	79.64%
DE:ADN1	adesso AG	68.60	-25.07	-26.77%
DE:AEIN	Allgeier SE	13.70	-2.28	-14.29%
DE:COK	CANCOM SE	20.40	-2.68	-11.59%
DE:GFT	GFT Technologies	27.45	10.28	59.85%
DE:D6H0	Datagroup Se	81.00	13.54	20.07%

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.

Nagarro SE AI Stock Analysis