Nagarro SE (FRA:NA9) Stocks Shoot Up 31% But Its P/E Still Looks Reasonable
Nov 30
German (DAX) IT Industry Analysis
UpdatedDec 04, 2023
DataAggregated Company Financials
Companies33
- 7D-2.1%
- 3M-0.9%
- 1Y-3.8%
- YTD3.5%
Over the last 7 days, the IT industry has dropped 2.1%, driven by Bechtle declining 4.8%. The industry has fallen 3.8% in the last year. As for the next few years, earnings are expected to grow by 19% per annum.
Industry Valuation and Performance
Has the German IT Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE | Absolute PE | PS |
|---|---|---|---|---|---|---|
| Mon, 04 Dec 2023 | €13.2b | €14.8b | €462.4m | 21x | 28.5x | 0.9x |
| Wed, 01 Nov 2023 | €12.1b | €14.6b | €461.0m | 19.7x | 26.3x | 0.8x |
| Fri, 29 Sep 2023 | €12.7b | €14.6b | €458.4m | 18.5x | 27.8x | 0.9x |
| Sun, 27 Aug 2023 | €13.2b | €14.1b | €445.7m | 18.8x | 29.7x | 0.9x |
| Tue, 25 Jul 2023 | €12.5b | €14.3b | €487.8m | 18x | 25.7x | 0.9x |
| Thu, 22 Jun 2023 | €12.8b | €14.3b | €486.9m | 19x | 26.3x | 0.9x |
| Sat, 20 May 2023 | €13.0b | €14.0b | €498.3m | 20.4x | 26.2x | 0.9x |
| Mon, 17 Apr 2023 | €14.3b | €13.7b | €486.7m | 22x | 29.4x | 1x |
| Wed, 15 Mar 2023 | €14.1b | €13.8b | €579.4m | 22.9x | 24.3x | 1x |
| Fri, 10 Feb 2023 | €15.0b | €13.7b | €579.0m | 25.5x | 25.8x | 1.1x |
| Sun, 08 Jan 2023 | €13.2b | €13.7b | €576.6m | 23.3x | 22.8x | 1x |
| Tue, 06 Dec 2022 | €9.0b | €8.0b | €334.4m | 23.5x | 26.9x | 1.1x |
| Thu, 03 Nov 2022 | €12.3b | €13.2b | €592.2m | 20.5x | 20.7x | 0.9x |
| Sat, 01 Oct 2022 | €12.2b | €13.2b | €594.4m | 19.2x | 20.4x | 0.9x |
| Mon, 29 Aug 2022 | €13.8b | €13.2b | €592.4m | 22.4x | 23.4x | 1x |
| Wed, 27 Jul 2022 | €14.8b | €12.8b | €572.9m | 23.8x | 25.8x | 1.2x |
| Fri, 24 Jun 2022 | €14.6b | €12.8b | €573.6m | 24.9x | 25.4x | 1.1x |
| Sun, 22 May 2022 | €10.8b | €7.4b | €331.9m | 26.9x | 32.5x | 1.5x |
| Tue, 19 Apr 2022 | €17.8b | €12.3b | €541.5m | 28.6x | 32.8x | 1.4x |
| Thu, 17 Mar 2022 | €18.5b | €13.6b | €568.9m | 26.9x | 32.5x | 1.4x |
| Sat, 12 Feb 2022 | €17.9b | €13.5b | €560.9m | 29.7x | 31.8x | 1.3x |
| Mon, 10 Jan 2022 | €20.5b | €13.5b | €560.6m | 35.4x | 36.5x | 1.5x |
| Wed, 08 Dec 2021 | €21.1b | €13.5b | €561.5m | 32.9x | 37.5x | 1.6x |
| Fri, 05 Nov 2021 | €23.1b | €13.2b | €491.1m | 37x | 47x | 1.8x |
| Sun, 03 Oct 2021 | €19.8b | €13.2b | €489.4m | 35.9x | 40.4x | 1.5x |
| Tue, 31 Aug 2021 | €20.5b | €15.8b | €970.6m | 37.1x | 21.1x | 1.3x |
| Wed, 07 Jul 2021 | €17.5b | €15.8b | €970.6m | 35x | 18x | 1.1x |
| Sat, 10 Apr 2021 | €16.4b | €15.4b | €913.0m | 33.1x | 17.9x | 1.1x |
| Fri, 01 Jan 2021 | €16.2b | €15.1b | €877.7m | 31.6x | 18.5x | 1.1x |
Price to Earnings Ratio
20.3x
Current Industry PE
- Investors are relatively neutral on the German IT industry at the moment, indicating that they anticipate long term growth rates to remain steady.
- The industry is trading close to its 3-year average PE ratio of 26.7x.
- The 3-year average PS ratio of 1.1x is higher than the industry's current PS ratio of 0.89x.
Past Earnings Growth
- The earnings for companies in the IT industry have declined 16% per year over the last three years.
- Meanwhile revenues have remained mostly flat.
- This means that although sales have remained flat, either the cost of doing business or the level of investment back into businesses has increased, which has decreased profits.
Industry Trends
Which industries have driven the changes within the German Tech industry?
| DE Market | 1.41% | |
| Tech | 3.83% | |
| IT | -2.11% | |
| Internet Services and Infrastructure | 2.93% | |
| Data Processing Services | 0% | |
| IT Consulting | -2.14% | |
Industry PE
- Investors are most optimistic about the IT Consulting industry even though it's trading below its 3-year average PE ratio of 30.4x.
- Analysts are expecting annual earnings growth of 18.4%, which is higher than its past year's earnings decline of 11.8% per year.
Forecasted Growth
- Analysts are most optimistic on the Internet Services and Infrastructure industry, expecting annual earnings growth of 97% over the next 5 years.
- This is better than its past earnings decline of 40% per year.
- In contrast, the IT Consulting industry is expected to see its earnings grow by 18% per year over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | Last Price | 7D | 1Y | Valuation | |
|---|---|---|---|---|---|
| IOS IONOS Group | €14.16 | 1.9% +€36.4m | n/a | PE13.5x | |
| NA9 Nagarro | €83.45 | 3.2% +€35.0m | -27.2% | PE20.7x | |
| GFT GFT Technologies | €32.50 | 1.8% +€15.3m | -10.2% | PE18.1x | |
| AEIN Allgeier | €21.50 | 5.4% +€12.6m | -34.7% | PE20.8x | |
| AMI medondo holding | €0.73 | 64.8% +€4.4m | -58.5% | n/a |
