Next Fifteen Communications (NFG) AI Stock Analysis

• Market Cap: £311.86M
• Dividend Yield: 4.88%
• Average Volume (3M): 670.98K
• Price to Earnings (P/E): 5.1
• Beta (1Y): 2.13
• Revenue Growth: -1.39%
• EPS Growth: 129.92%
• Country: UK
• Employees: 4,340
• Sector: Communication Services
• Sector Strength: 74
• Industry: Advertising Agencies
• EPS (TTM): 0.61
• Shares Outstanding: 100,924,810
• 10 Day Avg. Volume: 398,430
• 30 Day Avg. Volume: 670,977
• PEG Ratio: 0.04
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.42
• Price to Cash Flow (P/CF): 33.60
• P/FCF Ratio: 51.20
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: 725.00p
• Price Target Upside: 134.63% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

Next Fifteen Communications scores well due to its strong financial performance and attractive valuation, characterized by solid revenue growth, efficient cash management, and a low P/E ratio. However, technical analysis shows bearish momentum, with the stock trading below key moving averages. Changes in shareholder structure add some uncertainty but reflect mixed investor confidence. Overall, the company's financial health and valuation provide a promising outlook, offset by technical weaknesses and investor shifts.

Positive Factors

Cost Savings

Changes made to the business are expected to deliver £40m of annualized savings, which indicates a strategic response to weaker trading.

Valuation

Next 15 shares trade at a 10-year low valuation, making it an attractive entry point for investors willing to look beyond short-term challenges.

Negative Factors

Earnings

The loss of this contract is a significant hit to earnings, having represented 12% of FY24 revenue and 17% of EBIT.

Next Fifteen Communications Business Overview & Revenue Model

Company Description

Next Fifteen Communications Group (NFG) is a communications company that specializes in digital marketing, public relations, and business consultancy services. It operates across a variety of sectors including technology, consumer, healthcare, and professional services. The company provides a wide range of services including strategic communications, content creation, data analytics, and digital transformation to help clients enhance their brand visibility and market presence.

How the Company Makes Money

Next Fifteen Communications generates revenue primarily through service fees charged to clients for its consultancy and marketing services. The company operates various agencies under its umbrella, each focusing on specific aspects of communications such as digital marketing, PR, and data-driven insights. Revenue streams include retainer fees, project-based fees, and performance-based incentives. The company's earnings are bolstered by strategic partnerships with major technology companies and media platforms, enabling it to offer comprehensive and integrated marketing solutions. Additionally, acquisitions of complementary businesses allow Next Fifteen to expand its service offerings and client base, contributing significantly to its financial growth.

Next Fifteen Communications Financial Statement Overview

Summary

Next Fifteen Communications demonstrates a strong financial performance with robust revenue growth and efficient cash management. The company maintains a solid balance sheet with a reasonable debt level, although some volatility in equity may warrant attention. Despite minor fluctuations, the financial statements collectively portray a stable and profitable entity with a promising growth trajectory.

Income Statement

Next Fifteen Communications shows a strong revenue growth trajectory, with a significant increase from 2022 to 2023. The company maintains healthy gross and net profit margins, although there was a slight decline in gross profit margin from 2023 to 2024. Notably, the EBIT and EBITDA margins indicate robust operational efficiency. However, the volatility in net income over the years could pose potential risks to profitability stability.

Balance Sheet

The balance sheet reflects a solid equity position with an improving equity ratio, indicating sound financial stability. The debt-to-equity ratio is within a reasonable range, suggesting manageable leverage. However, fluctuations in stockholders' equity over the years highlight potential risks in financial structure. The company's ability to maintain a consistent asset base is a positive indicator of stability.

Cash Flow

Strong operating cash flow relative to net income underscores efficient cash management. The company exhibits positive free cash flow growth, although it experienced some fluctuations in investing and financing cash flows. The free cash flow to net income ratio is high, indicating effective conversion of earnings into cash. Overall, the cash flow statement suggests a healthy liquidity position.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
733.84M	734.67M	720.50M	470.06M	323.67M	300.71M
	Gross Profit
141.38M	143.78M	146.73M	74.40M	49.35M	50.88M
	EBIT
89.92M	95.54M	97.15M	58.64M	24.46M	26.56M
	EBITDA
124.36M	147.21M	50.51M	-50.12M	28.55M	34.33M
	Net Income Common Stockholders
60.78M	52.91M	1.62M	-69.22M	-4.94M	2.26M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
28.66M	42.87M	47.32M	58.22M	26.83M	28.66M
	Total Assets
324.02M	591.62M	594.43M	444.76M	321.65M	324.02M
	Total Debt
92.24M	77.66M	63.02M	55.46M	55.58M	92.24M
	Net Debt
63.58M	34.78M	15.70M	-2.75M	28.75M	63.58M
	Total Liabilities
211.31M	435.40M	480.03M	383.30M	204.77M	211.31M
	Stockholders Equity
113.30M	155.98M	113.95M	59.83M	116.96M	113.30M
Cash Flow		Free Cash Flow
63.45M	69.27M	66.25M	72.60M	60.35M	37.90M
	Operating Cash Flow
68.97M	76.42M	73.22M	78.40M	64.46M	43.19M
	Investing Cash Flow
-24.09M	-23.97M	-67.58M	-32.23M	-27.82M	-29.00M
	Financing Cash Flow
-33.38M	-55.08M	-19.39M	-14.79M	-38.24M	-5.85M

Next Fifteen Communications Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 309.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NFG, the sentiment is Neutral. The current price of 309 is above the 20-day moving average (MA) of 299.70, below the 50-day MA of 319.91, and below the 200-day MA of 509.63, indicating a neutral trend. The MACD of -3.03 indicates Negative momentum. The RSI at 54.20 is Neutral, neither overbought nor oversold. The STOCH value of 76.08 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:NFG.

Next Fifteen Communications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRE	74 Outperform	£586.60M	5.71	12.25%	7.95%	27.08%	-34.38%
NFG	70 Outperform	£311.86M	5.06	42.62%	4.88%	-1.39%	129.92%
YOU	64 Neutral	£362.16M	―	-1.26%	2.93%	29.81%	-106.55%
Sector *	59 Neutral	$27.95B	1.01	-25.70%	4.09%	2.12%	-49.76%

Next Fifteen Communications Corporate Events

Liontrust Increases Stake in Next Fifteen Communications

Next Fifteen Communications Group, a UK-based company, has announced a change in its major holdings. Liontrust Investment Partners LLP has increased its voting rights in Next Fifteen Group PLC to 11.5681%, up from a previous total of 11.5680%. This change reflects a slight increase in the company’s voting rights through both shares and financial instruments, indicating a potential shift in stakeholder influence within the company.

Next Fifteen Communications Sees Shift in Shareholder Structure as Aviva PLC Reduces Stake

Next Fifteen Communications has announced a significant change in its shareholder structure with Aviva PLC adjusting its stake. Aviva’s voting rights in Next 15 Group have decreased from 9.17% to 6.47%, signaling a shift in the company’s ownership dynamics. This reduction in stake may impact Next Fifteen’s strategic decisions and influence within the industry, as it represents a notable change in investor confidence and engagement.

Liontrust Adjusts Voting Rights in Next Fifteen Communications

Liontrust Investment Partners LLP, a prominent shareholder in Next Fifteen Communications, has undergone a change in its voting rights in the company. As of February 7, 2025, the total percentage of voting rights held by Liontrust has slightly decreased to 11.568% from a previous 11.569%. This adjustment, as disclosed on February 11, 2025, reflects minor shifts in shareholder positions, potentially impacting stakeholder perspectives on company governance.

Liontrust Boosts Stake in Next Fifteen Communications Group

Next Fifteen Communications Group plc announced that Liontrust Investment Partners LLP has increased its voting rights in the company to 11.569%, up from a previous position of 10.154%. This increase in voting rights signifies a strengthened position for Liontrust within Next Fifteen, potentially impacting company decisions and reflecting confidence in Next Fifteen’s strategic direction and market position.

Next Fifteen Communications Announces Change in Shareholding Structure

Next Fifteen Communications, also known as Next 15 Group PLC, has announced a change in the nature of its holdings due to the return of loaned shares. Aviva PLC, a major shareholder, has adjusted its holdings, now holding a total of 9.17% voting rights in the company, an increase from the previous 9.177%. This change was officially recognized on January 31, 2025, and notified on February 3, 2025. This adjustment represents a significant shift at the direct interest level, reflecting Aviva’s strategic positioning within Next Fifteen Communications.

Next 15 Group Announces Current Share Capital Details

Next 15 Group plc has announced that as of January 31, 2025, its issued share capital comprises 100,924,813 ordinary shares, with none held in treasury. This information is crucial for shareholders to assess their holdings in accordance with the Financial Conduct Authority’s rules, which may impact their reporting obligations.

Aviva Adjusts Holdings in Next Fifteen Communications

Next Fifteen Communications, a UK-based company, is known for its focus on strategic marketing and communications services. In a recent notification, Aviva PLC has adjusted its holdings in Next Fifteen Communications, changing its voting rights from a previous position of 10.61% to a new total of 9.177%. This shift indicates a strategic rebalancing of Aviva’s interest in the company, reflecting a decrease in both direct and indirect voting rights. This adjustment may have implications for stakeholders and the company’s market positioning.

Next Fifteen Announces CFO Departure and New Board Appointment

Next Fifteen Communications announced the departure of its Chief Financial Officer, Peter Harris, who will step down after 11 years of service. Harris played a crucial role in the company’s M&A strategy and growth, ensuring the preservation of its core values and culture. His departure marks a transition period, during which his deputy, Katie Smith, will help maintain stability while the search for a successor is underway. Concurrently, the company has appointed Mark Astaire as a non-executive director, bringing over 35 years of investment banking experience to further support Next Fifteen’s evolution. Astaire’s addition to the board is expected to enhance the company’s strategic capabilities as it continues to grow.

Next Fifteen Communications Sharpens AI Focus Amid Restructuring

Next Fifteen Communications has announced an enhanced focus on AI-driven products to stimulate growth, despite profits expected to be at the lower end of analyst expectations. The company has undergone significant restructuring to improve efficiency and plans to invest in AI and new initiatives, including expanding their retail media specialist SMG. While facing some economic uncertainties, the firm remains optimistic, anticipating strong consumer and retail client spending and a recovery in government-related work.

Next 15 Group Announces Total Voting Rights

Next 15 Group plc has announced its total voting rights, stating that as of December 31, 2024, the company’s issued share capital consists of 100,918,992 ordinary shares with a nominal value of 2.5p each. This information is relevant for shareholders to determine their notification requirements under the Financial Conduct Authority’s Disclosure and Transparency Rules.