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NextEnergy Solar Fund Limited (GB:NESF)
LSE:NESF
UK Market
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NextEnergy Solar Fund Limited (NESF) AI Stock Analysis

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GB:NESF

NextEnergy Solar Fund Limited

(LSE:NESF)

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Neutral 57 (OpenAI - 5.2)
Rating:57Neutral
Price Target:
46.00 p
▼(-12.38% Downside)
Action:Reiterated
Date:06/24/26
The score is held back primarily by weak financial performance on the income statement (multi-year losses and sharp revenue deterioration), despite meaningful offsets from strong and improving cash generation and an improved balance sheet with zero reported debt. Technical indicators add a modest drag due to weak price trend and subdued momentum, while valuation is supported by a very high dividend yield but tempered by negative earnings.
Positive Factors
Zero net debt / stronger leverage
Zero reported debt in FY2026 materially lowers refinancing and interest-rate risk and improves financial flexibility. With a meaningful equity base, the fund can prioritize maintenance, reinvestment or distributions and better absorb electricity price swings without immediate liquidity strain.
Negative Factors
Swing to losses; revenue collapse
Material deterioration of profitability and a collapse into negative revenue reduce earnings quality and NAV visibility. Persistent accounting losses can deplete reserves, constrain retained earnings and may necessitate dividend cuts, asset sales or capital raises if not reversed.
Read all positive and negative factors
Positive Factors
Negative Factors
Zero net debt / stronger leverage
Zero reported debt in FY2026 materially lowers refinancing and interest-rate risk and improves financial flexibility. With a meaningful equity base, the fund can prioritize maintenance, reinvestment or distributions and better absorb electricity price swings without immediate liquidity strain.
Read all positive factors

NextEnergy Solar Fund Limited (NESF) vs. iShares MSCI United Kingdom ETF (EWC)

NextEnergy Solar Fund Limited Business Overview & Revenue Model

Company Description
NextEnergy Solar Fund Limited concentrates its investments on operational solar photovoltaic (PV) facilities. While its primary objective is to acquire existing, revenue-generating solar projects, the fund also considers opportunities in assets un...
How the Company Makes Money
NESF makes money primarily by owning solar PV assets that generate electricity and associated renewable-related revenues, and by distributing the net cash flows (after operating costs, financing costs, and fund expenses) to shareholders as dividen...

NextEnergy Solar Fund Limited Financial Statement Overview

Summary
Mixed fundamentals. The income statement is weak with a swing to sizable losses in FY2024–FY2026 and a sharp revenue deterioration (including negative revenue in FY2026), which reduces earnings quality and visibility. Offsetting this, cash flow is strong with positive and rising operating/free cash flow into FY2026 (~£80m), and the balance sheet improved with reported total debt at zero and a meaningful equity base (~£438m on ~£639m assets).
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
76
Positive
BreakdownMar 2026Mar 2025Mar 2023Mar 2022Mar 2022
Income Statement
Total Revenue-48.91M1.06M3.58M60.20M138.68M
Gross Profit-48.91M1.06M3.58M54.37M133.63M
EBITDA-60.90M-10.72M-8.22M57.95M137.14M
Net Income-61.04M-10.86M-8.36M48.32M127.55M
Balance Sheet
Total Assets638.80M748.62M819.61M875.23M878.34M
Cash, Cash Equivalents and Short-Term Investments25.10M3.22M8.86M14.35M19.61M
Total Debt0.00198.47M198.34M198.20M198.06M
Total Liabilities201.29M201.25M200.99M2.34M209.84M
Stockholders Equity437.51M547.37M618.62M674.42M668.50M
Cash Flow
Free Cash Flow80.20M64.24M51.46M46.44M58.14M
Operating Cash Flow80.20M64.24M51.46M46.44M58.14M
Investing Cash Flow0.000.000.00-26.10M6.86M
Financing Cash Flow-58.33M-69.89M-56.94M-51.90M-49.34M

NextEnergy Solar Fund Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
65
Neutral
$15.17B7.614.09%5.20%3.87%-62.32%
* Energy Sector Average
Performance Comparison

NextEnergy Solar Fund Limited Corporate Events

Business Operations and Strategy
NextEnergy Solar Fund Secures Natural Capital Status as It Publishes 2026 ESG Report
Positive
Jun 22, 2026
NextEnergy Solar Fund has published its 2026 standalone Sustainability and ESG Report, detailing how it integrates environmental, social and governance considerations into its strategy and operations. The report aligns with ISSB climate and genera...
Business Operations and StrategyDividendsFinancial DisclosuresShareholder Meetings
NextEnergy Solar Fund unveils strategic reset as NAV falls and sector discounts persist
Negative
Jun 22, 2026
NextEnergy Solar Fund has reported a sharp decline in net asset value, with NAV per share falling to 76.1p and gross asset value down to £922m, despite higher income and strong operational performance from its solar and storage portfolio. The...
Business Operations and StrategyFinancial Disclosures
NextEnergy Solar Fund to unveil full-year results with twin investor webcasts
Neutral
Jun 9, 2026
NextEnergy Solar Fund will publish its full-year results for the period to 31 March 2026 on 22 June 2026 and host a webcast presentation for investors and analysts that afternoon, followed by a question-and-answer session led by senior figures fro...
Business Operations and StrategyDividendsFinancial Disclosures
NextEnergy Solar Fund cuts NAV and resets dividend as it moves to de-lever
Negative
Jun 3, 2026
NextEnergy Solar Fund reported a sharp decline in its unaudited Q4 net asset value, with NAV per share falling to 76.1p at 31 March 2026 from 84.9p, driven by lower power price forecasts, weaker winter generation, changes to ROC and FiT indexation...
Business Operations and StrategyExecutive/Board ChangesRegulatory Filings and Compliance
NextEnergy Solar Fund director takes non-executive role at Harworth Group
Positive
May 18, 2026
NextEnergy Solar Fund has announced that board member Tony Quinlan will take on an additional role as a non-executive director at Harworth Group from the start of June 2026, in line with UK listing disclosure rules. The appointment underlines the ...
Business Operations and StrategyDividends
NextEnergy Solar Fund Confirms Fourth Interim Dividend for 2025–26
Positive
May 7, 2026
NextEnergy Solar Fund has declared a fourth interim dividend of 2.11p per ordinary share for the quarter to 31 March 2026, confirming its intention to deliver total dividends of 8.43p per share for the financial year. The payout, scheduled for 30 ...
Business Operations and StrategyFinancial Disclosures
NextEnergy Solar Fund flags modest NAV hit from early end to UK carbon price support
Negative
Apr 17, 2026
NextEnergy Solar Fund has responded to the UK Government’s plan to remove the Carbon Price Support tax on fossil fuels used in power generation from April 2028, a move intended to simplify the carbon pricing framework now that coal has large...
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.Date of analysis: Jun 24, 2026