| Nagarro SE (DE000A3H2200) | |||
58,60 EURStand (close): 04.07.25 |
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| Datum / Uhrzeit | Titel | Bewertung |
| 06.12.23 08:08:55 | Calculating The Intrinsic Value Of Nagarro SE (FRA:NA9) |  |
| Key Insights Using the 2 Stage Free Cash Flow to Equity, Nagarro fair value estimate is €98.31 With €79.70 share price, Nagarro appears to be trading close to its estimated fair value The €119 analyst price target for NA9 is 21% more than our estimate of fair value How far off is Nagarro SE (FRA:NA9) from its intrinsic value? Using the most recent financial data, we'll take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. We will take advantage of the Discounted Cash Flow (DCF) model for this purpose. Models like these may appear beyond the comprehension of a lay person, but they're fairly easy to follow. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. See our latest analysis for Nagarro Step By Step Through The Calculation We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To begin with, we have to get estimates of the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we need to discount the sum of these future cash flows to arrive at a present value estimate: Story continues 10-year free cash flow (FCF) estimate 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 Levered FCF (€, Millions) €70.7m €79.0m €81.0m €82.6m €83.8m €84.8m €85.6m €86.3m €86.9m €87.5m Growth Rate Estimate Source Analyst x4 Analyst x4 Est @ 2.56% Est @ 1.93% Est @ 1.49% Est @ 1.18% Est @ 0.96% Est @ 0.81% Est @ 0.71% Est @ 0.63% Present Value (€, Millions) Discounted @ 6.7% €66.3 €69.4 €66.7 €63.8 €60.6 €57.5 €54.4 €51.5 €48.6 €45.8 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF) = €585m After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 0.5%. We discount the terminal cash flows to today's value at a cost of equity of 6.7%. Terminal Value (TV)= FCF2033 × (1 + g) ÷ (r – g) = €87m× (1 + 0.5%) ÷ (6.7%– 0.5%) = €1.4b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= €1.4b÷ ( 1 + 6.7%)10= €740m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is €1.3b. In the final step we divide the equity value by the number of shares outstanding. Relative to the current share price of €79.7, the company appears about fair value at a 19% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. dcf The Assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Nagarro as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.7%, which is based on a levered beta of 1.243. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. SWOT Analysis for Nagarro Strength Debt is well covered by earnings and cashflows. Weakness Earnings declined over the past year. Opportunity Annual earnings are forecast to grow faster than the German market. Good value based on P/E ratio and estimated fair value. Threat Revenue is forecast to grow slower than 20% per year. Next Steps: Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" If a company grows at a different rate, or if its cost of equity or risk free rate changes sharply, the output can look very different. For Nagarro, there are three essential aspects you should further research: Risks: We feel that you should assess the 2 warning signs for Nagarro we've flagged before making an investment in the company. Future Earnings: How does NA9's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. Simply Wall St updates its DCF calculation for every German stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. |
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| 22.11.23 05:27:58 | Shareholders Should Be Pleased With Nagarro SE's (FRA:NA9) Price |  |
| With a price-to-earnings (or "P/E") ratio of 20.5x Nagarro SE (FRA:NA9) may be sending bearish signals at the moment, given that almost half of all companies in Germany have P/E ratios under 15x and even P/E's lower than 8x are not unusual. However, the P/E might be high for a reason and it requires further investigation to determine if it's justified. With earnings that are retreating more than the market's of late, Nagarro has been very sluggish. One possibility is that the P/E is high because investors think the company will turn things around completely and accelerate past most others in the market. If not, then existing shareholders may be very nervous about the viability of the share price. Check out our latest analysis for Nagarro pe-multiple-vs-industry Want the full picture on analyst estimates for the company? Then our free report on Nagarro will help you uncover what's on the horizon. How Is Nagarro's Growth Trending? There's an inherent assumption that a company should outperform the market for P/E ratios like Nagarro's to be considered reasonable. Taking a look back first, the company's earnings per share growth last year wasn't something to get excited about as it posted a disappointing decline of 23%. As a result, earnings from three years ago have also fallen 99% overall. Therefore, it's fair to say the earnings growth recently has been undesirable for the company. Shifting to the future, estimates from the four analysts covering the company suggest earnings should grow by 15% over the next year. That's shaping up to be materially higher than the 9.5% growth forecast for the broader market. With this information, we can see why Nagarro is trading at such a high P/E compared to the market. Apparently shareholders aren't keen to offload something that is potentially eyeing a more prosperous future. The Bottom Line On Nagarro's P/E While the price-to-earnings ratio shouldn't be the defining factor in whether you buy a stock or not, it's quite a capable barometer of earnings expectations. Story continues We've established that Nagarro maintains its high P/E on the strength of its forecast growth being higher than the wider market, as expected. At this stage investors feel the potential for a deterioration in earnings isn't great enough to justify a lower P/E ratio. Unless these conditions change, they will continue to provide strong support to the share price. You always need to take note of risks, for example - Nagarro has 2 warning signs we think you should be aware of. Of course, you might find a fantastic investment by looking at a few good candidates. So take a peek at this freelist of companies with a strong growth track record, trading on a low P/E. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. |
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| 14.11.23 09:10:00 | Nagarro posts 12.9% YoY constant-currency revenue growth in 9M 2023 | |
| MUNICH, Nov. 14, 2023 /PRNewswire/ -- Nagarro, a global digital engineering leader, today presented its unaudited financial numbers for Q3 2023 and released its nine-month statement. Nagarro_Logo Nagarro's superior client experience and its strategic diversification continued to deliver resilient growth. In Q3 2023, revenue grew to €234.3 million, up 1.9% YoY from €229.8 million in Q3 2022 and up 6.6% YoY in constant currency. Organic YoY revenue growth for the quarter was 2.3% in constant currency. Gross profit declined to €56.1 million in Q3 2023 from €69.8 million in Q3 2022. Due to excess production capacity and a shift to consultative selling, gross margin dropped to 23.9% in Q3 2023 from 30.4% in Q3 2022. Adjusted EBITDA declined to €32.0 million (13.7% of revenue) in Q3 2023 from €48.4 million (21.1% of revenue) in Q3 2022. The main EBITDA adjustment was on account of the stock option expense of €1.2 million. EBITDA declined to €30.6 million in Q3 2023 from €47.6 million in Q3 2022. EBIT declined to €22.1 million in Q3 2023 from €39.2 million in Q3 2022. Net profit decreased to €12.6 million in Q3 2023 from €25.8 million in Q3 2022. The company's headcount was trimmed by 500 during Q3 2023 to 19,182. The Net Promoter Score from the customer satisfaction survey conducted in Q3 2023 was 67. Nine-month results Revenue grew to €690.6 million in 9M 2023, up 10.4% YoY from €625.4 million in 9M 2022. Constant currency revenue growth for 9M 2023 was 12.9%. Organic YoY revenue growth for 9M 2023 was 10.6% in constant currency. Gross profit decreased to €175.0 million in 9M 2023 from €180.3 million in 9M 2022. Gross margin dropped to 25.3% in 9M 2023 from 28.8% in 9M 2022. Adjusted EBITDA declined to €92.4 million (13.4% of revenue) in 9M 2023 from €117.6 million (18.8% of revenue) in 9M 2022. EBITDA decreased to €88.7 million in 9M 2023 from €114.9 million in 9M 2022. EBIT declined to €64.7 million in 9M 2023 from €90.7 million in 9M 2022. Net profit declined to €39.1 million in 9M 2023 against €62.1 million in 9M 2022. Operating cash flow adjusted for changes in factoring (including interest on factored amounts) was €61.7 million in 9M 2023 as compared to €32.0 million in 9M 2022. The cash balance decreased by €18.5 million from December 31, 2022, to €91.6 million, mainly on account of the buyback of shares. Story continues Manas Human, co-founder of Nagarro and Custodian of Entrepreneurship, said, "Given the external circumstances, we are satisfied with the overall financial result. Meanwhile, we continue to improve our offerings, our differentiation, and our ways of working. We believe our industry will continue to evolve, and we want to be prepared to lead the next phase of evolution. We are particularly excited by our vision of the AI-enabled Fluidic Enterprise, which we are gearing up to deliver to our clients." Nagarro will hold its analyst meeting as a video call to discuss Q3 report 2023 on November 14, 2023, at 01:00 pm CET (04:00 am PT / 06:00 am CT / 07:00 am ET / 12:00 pm GMT / 04:00 pm GST / 05:30 pm IST / 08:00 pm SGT / 09:00 pm JST). Nagarro will hold its retail investors call to discuss Q3 report 2023 on November 14, 2023, at 03:00 pm CET (06:00 am PT / 08:00 am CT / 09:00 am ET / 2:00 pm GMT / 06:00 pm GST / 07:30 pm IST / 10:00 pm SGT / 11:00 pm JST). To attend, please register in advance at https://www.nagarro.com/en/investor-relations/quarterly-statement-call-q3-2023. About Nagarro Nagarro, a global digital engineering leader, helps clients become fluidic, innovative, digital-first companies and thus win in their markets. The company is distinguished by its entrepreneurial, agile, and global character, its CARING mindset, and its Fluidic Enterprise vision. Nagarro employs over 19,000 people and is present in 36 countries. For more information, visit www.nagarro.com. FRA: NA9 (SDAX/TecDAX, ISIN DE000A3H2200, WKN A3H220) For inquiries, please contact press@nagarro.com. Logo: https://mma.prnewswire.com/media/844192/3850575/Nagarro_Logo.jpg Cision View original content:https://www.prnewswire.com/news-releases/nagarro-posts-12-9-yoy-constant-currency-revenue-growth-in-9m-2023--301987211.html SOURCE Nagarro |
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| 07.11.23 12:42:41 | Is Nagarro SE (FRA:NA9) Potentially Undervalued? | |
| Nagarro SE (FRA:NA9), might not be a large cap stock, but it saw a double-digit share price rise of over 10% in the past couple of months on the DB. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, what if the stock is still a bargain? Today I will analyse the most recent data on Nagarro’s outlook and valuation to see if the opportunity still exists. See our latest analysis for Nagarro What Is Nagarro Worth? Good news, investors! Nagarro is still a bargain right now. According to my valuation, the intrinsic value for the stock is €98.15, which is above what the market is valuing the company at the moment. This indicates a potential opportunity to buy low. Although, there may be another chance to buy again in the future. This is because Nagarro’s beta (a measure of share price volatility) is high, meaning its price movements will be exaggerated relative to the rest of the market. If the market is bearish, the company's shares will likely fall by more than the rest of the market, providing a prime buying opportunity. What kind of growth will Nagarro generate? earnings-and-revenue-growth Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. Nagarro's earnings growth are expected to be in the teens in the upcoming years, indicating a solid future ahead. This should lead to robust cash flows, feeding into a higher share value. What This Means For You Are you a shareholder? Since NA9 is currently undervalued, it may be a great time to accumulate more of your holdings in the stock. With a positive outlook on the horizon, it seems like this growth has not yet been fully factored into the share price. However, there are also other factors such as capital structure to consider, which could explain the current undervaluation. Story continues Are you a potential investor? If you’ve been keeping an eye on NA9 for a while, now might be the time to enter the stock. Its prosperous future outlook isn’t fully reflected in the current share price yet, which means it’s not too late to buy NA9. But before you make any investment decisions, consider other factors such as the track record of its management team, in order to make a well-informed investment decision. With this in mind, we wouldn't consider investing in a stock unless we had a thorough understanding of the risks. For example - Nagarro has 1 warning sign we think you should be aware of. If you are no longer interested in Nagarro, you can use our free platform to see our list of over 50 other stocks with a high growth potential. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. |
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| 22.10.23 07:30:43 | Nagarro (FRA:NA9) Is Achieving High Returns On Its Capital | |
| If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven return on capital employed (ROCE) that is increasing, and secondly, an expanding base of capital employed. If you see this, it typically means it's a company with a great business model and plenty of profitable reinvestment opportunities. With that in mind, the ROCE of Nagarro (FRA:NA9) looks great, so lets see what the trend can tell us. Understanding Return On Capital Employed (ROCE) Just to clarify if you're unsure, ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business. To calculate this metric for Nagarro, this is the formula: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) 0.22 = €108m ÷ (€686m - €186m) (Based on the trailing twelve months to June 2023). So, Nagarro has an ROCE of 22%. In absolute terms that's a great return and it's even better than the IT industry average of 9.9%. Check out our latest analysis for Nagarro roce Above you can see how the current ROCE for Nagarro compares to its prior returns on capital, but there's only so much you can tell from the past. If you'd like to see what analysts are forecasting going forward, you should check out our freereport for Nagarro. The Trend Of ROCE We like the trends that we're seeing from Nagarro. Over the last five years, returns on capital employed have risen substantially to 22%. Basically the business is earning more per dollar of capital invested and in addition to that, 347% more capital is being employed now too. This can indicate that there's plenty of opportunities to invest capital internally and at ever higher rates, a combination that's common among multi-baggers. In another part of our analysis, we noticed that the company's ratio of current liabilities to total assets decreased to 27%, which broadly means the business is relying less on its suppliers or short-term creditors to fund its operations. Therefore we can rest assured that the growth in ROCE is a result of the business' fundamental improvements, rather than a cooking class featuring this company's books. Story continues The Bottom Line On Nagarro's ROCE All in all, it's terrific to see that Nagarro is reaping the rewards from prior investments and is growing its capital base. Given the stock has declined 31% in the last year, this could be a good investment if the valuation and other metrics are also appealing. With that in mind, we believe the promising trends warrant this stock for further investigation. If you want to continue researching Nagarro, you might be interested to know about the 1 warning signthat our analysis has discovered. Nagarro is not the only stock earning high returns. If you'd like to see more, check out our free list of companies earning high returns on equity with solid fundamentals. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. |
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| 11.09.23 07:58:00 | Nagarro initiates change of group auditor | |
| MUNICH, Sept. 11, 2023 /PRNewswire/ -- Nagarro's Supervisory Board decides to propose the election of KPMG AG Wirtschaftsprüfungsgesellschaft as auditor of the Nagarro group for the year 2024 to the upcoming Annual Shareholders' Meeting in 2024. Nagarro_Logo On the recommendation of the Audit Committee, the Supervisory Board of Nagarro SE has resolved in its meeting of September 07, 2023, to propose the election of KPMG AG Wirtschaftsprüfungsgesellschaft as the auditor for the annual financial statements and the consolidated financial statements of Nagarro SE for the financial year 2024, to the upcoming Annual Shareholders' Meeting in 2024. This recommendation is the result of several consultations between the Supervisory Board, the Audit Committee, Nagarro's internal project team, and the Management Board of Nagarro SE, as well as a comprehensive public and non-discriminatory tender procedure in accordance with the relevant provisions of the EU Audit Regulation. In the Annual Shareholders' Meeting of Nagarro SE held in June 2023, LOHR + COMPANY GmbH was re-appointed as auditor of Nagarro SE for the audit of the annual financial statements and the consolidated financial statements for the financial year 2023. Subsequent to this, Nagarro has shortlisted globally recognized audit firms that will conduct the fit for consolidation audits based on instructions provided by LOHR + COMPANY or statutory audits of several legal group entities for the year 2023, which in 2022 together accounted for approximately 60% of the consolidated revenues of the Nagarro group. "We initiated the selection process early on to ensure a smooth transition of the engagement in line with the requirements of auditor independence," said Christian Bacherl, chairperson of the Audit Committee. Manas Human, Custodian of Entrepreneurship in the Organization, added: "Every investor is important to us. Still, we would like to make Nagarro even more attractive for large international institutional investors who are familiar with our peer group. Nagarro has taken several steps in this direction, like expanding our Supervisory Board with independent directors and adding US representation. Globally recognized audit firms are already auditing some key Nagarro legal entities, and this move towards appointing a global audit firm at the group level further demonstrates our commitment towards the highest levels of corporate governance and transparency." Story continues About Nagarro Nagarro, a global digital engineering leader, helps clients become innovative, digital-first companies and thus win in their markets. The company is distinguished by its entrepreneurial, agile, and global character, its CARING mindset, and its approach of thinking breakthroughs. Nagarro employs over 19,500 people in 35 countries. or more information, visit, www.nagarro.com FRA: NA9 (SDAX/TecDAX, ISIN DE000A3H2200, WKN A3H220) Media contact: press@nagarro.com Logo: https://mma.prnewswire.com/media/844192/Nagarro_Logo.jpg Cision View original content:https://www.prnewswire.com/news-releases/nagarro-initiates-change-of-group-auditor-301923084.html SOURCE Nagarro |
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| 29.08.23 07:01:00 | Nagarro's Genome AI platform to revolutionize customer experience | |
| To deliver on its vision of the 'Fluidic Enterprise', Nagarro introduces the Genome AI platform, which revolutionizes how businesses interact with and delight their customers. MUNICH, Aug. 29, 2023 /PRNewswire/ -- Nagarro, a leader in digital engineering, has launched a cutting-edge digital experience offering, the Genome AI platform. This platform promises to revolutionize the way enterprises innovate and personalize digital experiences for their customers. The platform has been built to deliver the customer-facing part of Nagarro's vision of the AI-driven Fluidic Enterprise. It joins Ginger AI, which delivers the employee experience part of the Fluidic Enterprise vision. Nagarro_Logo In today's landscape of digital experiences, the key to brand success lies in enabling personalized offerings and smooth user journeys powered by data and AI technologies. This requires micro-level and nuanced experience analysis, individualized interactions, and real-time performance metrics. Nagarro's Genome AI platform excels in delivering hyper-personalized experiences, smart recommendations, cutting-edge loyalty programs, and versatile enterprise planning solutions. Designed with modularity, the platform accommodates a diverse range of stakeholder needs. Users can either integrate specific modules into their existing cloud infrastructure or deploy them as standalone services. The Genome AI platform equips enterprises with interactive tools for knowledge discovery facilitated through an easily navigable, micro-attribute-based ontology. It also supports collaborative simulations and optimizations, all seamlessly integrated with intuitive, language-based user interfaces. "As next-gen AI becomes more accessible, we're witnessing a major shift toward enterprise-wide AI adoption. Customer experience is one of the areas where we see a lot of action. Factors like AI explainability, data vectorization, semantic modeling, robust AI security, and knowledge engineering are now in high demand. Our platform employs a flexible, plug-and-play architecture for seamless onboarding and state-of-the-art observability features," said Rahul Mahajan, a CTO at Nagarro. Story continues "The Genome AI platform offers interoperability with a range of foundational AI models and integrates seamlessly with hyperscaler-specific managed-AI services. It also incorporates a strong governance layer for AI, ensuring data privacy and organizational security," added Mahajan. Nagarro's Genome AI platform is a transformative digital experience offering that empowers brands and enterprises to deeply understand their customers through AI and data insights. About Nagarro Nagarro, a global digital engineering leader, helps clients become innovative, digital-first companies and thus win in their markets. The company is distinguished by its entrepreneurial, agile, and global character, its CARING mindset, and its approach of thinking breakthroughs. Nagarro employs around 19,500 people in 35 countries. For more information, visit, www.nagarro.com Contact: press@nagarro.com Logo: https://mma.prnewswire.com/media/844192/Nagarro_Logo.jpg Cision View original content:https://www.prnewswire.com/news-releases/nagarros-genome-ai-platform-to-revolutionize-customer-experience-301912114.html SOURCE Nagarro |
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| 17.08.23 04:01:41 | Nagarro SE Just Beat Revenue Estimates By 31% | |
| It's been a sad week for Nagarro SE (FRA:NA9), who've watched their investment drop 14% to €73.75 in the week since the company reported its first-quarter result. Revenue of €300m beat expectations by an impressive 31%, while statutory earnings per share (EPS) were €5.62, in line with estimates. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year. See our latest analysis for Nagarro earnings-and-revenue-growth Following last week's earnings report, Nagarro's four analysts are forecasting 2023 revenues to be €915.0m, approximately in line with the last 12 months. Statutory earnings per share are forecast to fall 19% to €4.03 in the same period. Yet prior to the latest earnings, the analysts had been anticipated revenues of €939.6m and earnings per share (EPS) of €4.82 in 2023. The analysts seem less optimistic after the recent results, reducing their revenue forecasts and making a substantial drop in earnings per share numbers. The consensus price target fell 7.1% to €125, with the weaker earnings outlook clearly leading valuation estimates. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. Currently, the most bullish analyst values Nagarro at €190 per share, while the most bearish prices it at €84.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business. These estimates are interesting, but it can be useful to paint some more broad strokes when seeing how forecasts compare, both to the Nagarro's past performance and to peers in the same industry. We would highlight that revenue is expected to reverse, with a forecast 0.2% annualised decline to the end of 2023. That is a notable change from historical growth of 33% over the last three years. By contrast, our data suggests that other companies (with analyst coverage) in the same industry are forecast to see their revenue grow 9.5% annually for the foreseeable future. So although its revenues are forecast to shrink, this cloud does not come with a silver lining - Nagarro is expected to lag the wider industry. Story continues The Bottom Line The biggest concern is that the analysts reduced their earnings per share estimates, suggesting business headwinds could lay ahead for Nagarro. Unfortunately, they also downgraded their revenue estimates, and our data indicates underperformance compared to the wider industry. Even so, earnings per share are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business. With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have estimates - from multiple Nagarro analysts - going out to 2025, and you can see them free on our platform here. And what about risks? Every company has them, and we've spotted 1 warning sign for Nagarro you should know about. Have feedback on this article? Concerned about the content?Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. |
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| 14.08.23 12:43:00 | Nagarro posts 16.5% YoY revenue growth in constant currency in H1 2023 despite global macroeconomic challenges | |
| Nagarro, a global digital engineering leader, today presented its unaudited financial numbers for Q2 2023 and released its half-yearly report. MUNICH, Aug. 14, 2023 /PRNewswire/ -- Nagarro's superior client experience and its strategic diversification continued to deliver resilient growth in the face of global economic uncertainties. In Q2 2023, revenue grew to €226.8 million, up 8.0% YoY from €210.0 million in Q2 2022. Constant currency YoY revenue growth for Q2 2023 was 10.7%. Organic YoY revenue growth for the quarter was 8.7% in constant currency, which translated to 6.1% organic YoY revenue growth in Euro terms. Gross profit declined to €57.5 million in Q2 2023 from €60.2 million in Q2 2022. Due to excess production capacity which is reflected in the cost of revenues, gross margin dropped to 25.3% in Q2 2023 from 28.7% in Q2 2022. Adjusted EBITDA declined to €28.9 million (12.8% of revenue) in Q2 2023, from €40.2 million (19.1% of revenue) in Q2 2022. Nagarro Logo EBITDA declined to €27.3 million in Q2 2023, from €39.4 million in Q2 2022. The main EBITDA adjustments were on account of the share payment expenses of €0.9 million and acquisition expenses of €0.7 million. EBIT declined to €19.5 million in Q2 2023, from €31.1 million in Q2 2022. Net profit declined to €11.5 million in Q2 2023 against €22.4 million in Q2 2022. The company added net 736 professionals in Q2 2023, 642 of which were via the acquired entities. H1 results Nagarro released its half-yearly report. Revenue grew to €456.4 million in H1 2023, up 15.4 % YoY from €395.6 million in H1 2022. Constant currency revenue growth for H1 2023 was 16.5%. Organic YoY revenue growth for H1 2023 was 14.9% in constant currency, which translated to 14.2% organic YoY revenue growth in Euro terms. Gross profit increased to €118.9 million in H1 2023 from €110.5 million in H1 2022. Gross margin dropped to 26.1% in H1 2023 from 27.9% in H1 2022. Adjusted EBITDA declined to €60.3 million (13.2 % of revenue) in H1 2023, from €69.1 million (17.5% of revenue) in H1 2022. EBITDA decreased to €58.1 million in H1 2023, from €67.2 million in H1 2022. EBIT declined to €42.6 million in H1 2023, from €51.6 million in H1 2022. Net profit declined to €26.6 million in H1 2023 against €36.3 million in H1 2022. The cash balance decreased by €10.8 million from December 31, 2022 to €99.3 million, mainly on account of buyback of shares. Story continues Manas Human, co-founder, said, "Nagarro has continued to grow and expand in H1, even as a digital engineering company in a business environment that has not been very conducive to discretionary spending. Though a few of our client projects had to scale back, fully 168 clients generated over 1 million Euro in revenue in the trailing twelve months to June 30, 2023, compared to just 131 for the same period a year ago. This reflects the growth dynamism that is present in most of Nagarro's business. Our long-term investments in diversifying across geographies and industries have paid off. So has our long-term focus on superior client experience, exemplified by a Net Promoter Score of over 60, which drives client stickiness and loyalty in difficult times. Nagarro is taking strong steps to trim its cost base, but our strategy remains to prioritize long-term growth." Nagarro will hold its analyst meeting as a video call to discuss half-yearly report 2023 on August 14, 2023, at 01:00 pm CEST (04:00 am PT / 06:00 am CT / 07:00 am ET / 12:00 pm BST / 03:00 pm GST / 04:30 pm IST /07:00pm SGT/08:00pm JST).To attend, please register in advance: https://web.lumiconnect.com/#/m/134797148. About Nagarro Nagarro, a global digital engineering leader, helps clients become innovative, digital-first companies and thus win in their markets. The company is distinguished by its entrepreneurial, agile, and global character, its CARING mindset, and its approach of thinking breakthroughs. Nagarro employs around 19,500 people in 35 countries. For more information, visit, www.nagarro.com. FRA: NA9 (SDAX/TecDAX, ISIN DE000A3H2200, WKN A3H220) For inquiries, please contact press@nagarro.com. Media Contact: Gagan Bakshi gagan.bakshi@nagarro.com Cision View original content:https://www.prnewswire.com/apac/news-releases/nagarro-posts-16-5-yoy-revenue-growth-in-constant-currency-in-h1-2023-despite-global-macroeconomic-challenges-301899749.html SOURCE Nagarro |
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| 22.06.23 17:35:00 | Nagarro's Annual General Meeting of June 21, 2023 passes all resolutions and adds Christian Bacherl and Vishal Gaur to the Supervisory Board | |
| MUNICH, June 22, 2023 /PRNewswire/ -- Nagarro, a global leader in digital engineering, held its Annual General Meeting in Munich on June 21, 2023. Nagarro_Logo The shareholders voted with a vast majority in favor of all resolutions, including the expansion of the Supervisory Board to four members, appointing new Supervisory Board members, and the possibility of holding future annual general meetings virtually. Christian Bacherl was appointed by the shareholders to the Supervisory Board. He was initially appointed by the local court of Munich at the company's request following the resignation of Detlef Dinsel. Christian Bacherl is a former banker turned entrepreneur with capital markets expertise and a vast understanding of the financial markets. Vishal Gaur was appointed as a new member of the Supervisory Board, expanding the board from three to four people. Vishal Gaur is a professor of technology, operations, and information management and the incoming Dean of Cornell University'sJohnson School of Business, which was recently ranked by the Financial Times as among the top 10 in the world. Vishal Gaur brings academic and business understanding and has a long history of success advising global IT and technology companies. "I have had the pleasure of interacting with Manas Human and Nagarro's senior management over the last several years. I have been impressed with the many things I have seen, the excellence of the colleagues, the non-hierarchal innovation-driven culture of the company, and the strategic push into new software services in Machine Learning, Artificial Intelligence, automation, and digital transformation. There is no doubt that Nagarro is a fast-growing global company with a future-oriented vision. As an independent director of Nagarro, I am very excited to contribute to these strengths," said Vishal Gaur. About Nagarro: Nagarro, a global digital engineering leader, helps clients become innovative, digital-first companies and thus win in their markets. The company is distinguished by its entrepreneurial, agile, and global character, its CARING mindset, and its approach of thinking breakthroughs. Nagarro employs over 19,000 people in 34 countries. For more information, visit www.nagarro.com. FRA: NA9 (SDAX/TecDAX, ISIN DE000A3H2200, WKN A3H220) For inquiries, please contact press@nagarro.com. Logo - https://mma.prnewswire.com/media/844192/3850575/Nagarro_Logo.jpg Cision View original content:https://www.prnewswire.com/news-releases/nagarros-annual-general-meeting-of-june-21-2023-passes-all-resolutions-and-adds-christian-bacherl-and-vishal-gaur-to-the-supervisory-board-301858408.html SOURCE Nagarro |
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