Nichols (NICL) AI Stock Analysis

• Market Cap: £367.45M
• Dividend Yield: 3.16%
• Average Volume (3M): 27.32K
• Price to Earnings (P/E): 21.0
• Beta (1Y): 0.69
• Revenue Growth: 3.04%
• EPS Growth: -6.67%
• Country: UK
• Employees: 297
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.30
• Shares Outstanding: 36,569,570
• 10 Day Avg. Volume: 30,754
• 30 Day Avg. Volume: 27,324
• PEG Ratio: -13.00
• Price to Book (P/B): 5.52
• Price to Sales (P/S): 2.68
• P/FCF Ratio: 28.90
• 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: £1,560.00
• Price Target Upside: 53.69% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: 1,092.00p ▲(7.59% Upside)

Nichols' overall stock score is driven primarily by its solid financial performance, characterized by strong profitability and low leverage. However, bearish technical indicators and a relatively high P/E ratio suggest caution. The dividend yield offers some appeal, but the lack of earnings call data and corporate events limits additional insights.

Positive Factors

Strong Profitability

Nichols' strong profitability indicates effective cost management and pricing power, supporting long-term financial health and shareholder returns.

Low Leverage

Low leverage enhances financial stability and provides Nichols with flexibility to invest in growth opportunities without excessive debt burden.

Strong Equity Base

A strong equity base provides Nichols with a solid foundation for long-term growth and resilience against market fluctuations.

Negative Factors

Modest Revenue Growth

Modest revenue growth may limit Nichols' ability to expand market share and could impact long-term competitiveness in the beverage industry.

Decline in Free Cash Flow

A decline in free cash flow can constrain Nichols' ability to invest in new projects and return capital to shareholders, affecting long-term growth.

Negative EPS Growth

Negative EPS growth suggests challenges in profitability and could signal difficulties in maintaining earnings momentum, impacting investor confidence.

Nichols Business Overview & Revenue Model

Company Description

Nichols (NICL) is a UK-based company specializing in the distribution of premium beverages and products, primarily focusing on soft drinks, mixers, and health-oriented beverages. Operating mainly within the wholesale and retail sectors, Nichols serves a diverse customer base including convenience stores, restaurants, and pubs. The company is known for its flagship brands, including the iconic Vimto, which is complemented by a range of other soft drink offerings aimed at various consumer segments.

How the Company Makes Money

Nichols generates revenue through several key streams, primarily from the sale of its branded products, including soft drinks and mixers. The company's revenue model is heavily reliant on its distribution agreements and partnerships with retailers and food service providers, allowing it to reach a wide audience. Additionally, Nichols benefits from a strong focus on innovation and product development, introducing new flavors and health-conscious options that cater to changing consumer preferences. The company also engages in promotional activities and marketing campaigns to boost brand visibility and drive sales. Strategic partnerships with major retailers enhance its market presence, leading to increased sales volume and revenue growth.

Nichols Financial Statement Overview

Summary

Nichols demonstrates solid profitability and financial stability with strong margins and low leverage. However, the company faces challenges such as modest revenue growth and a recent decline in free cash flow. Overall, Nichols is financially healthy with room for growth in revenue and cash flow generation.

Income Statement

Nichols exhibits strong profitability with a Gross Profit Margin of 45.7% and a Net Profit Margin of 10.3% for 2024. However, the Revenue Growth Rate is relatively modest at 1.2% over the year. The EBIT Margin stands at 12.4% and the EBITDA Margin at 15.1%, indicating solid operational efficiency. The company's profitability metrics are stable, though revenue growth could be more robust.

Balance Sheet

The company maintains a healthy balance sheet with a Debt-to-Equity Ratio of 0.04, reflecting low leverage. Return on Equity is strong at 21.2%, indicating effective use of equity to generate profits. The Equity Ratio is 69.2%, suggesting a strong equity base relative to total assets, which enhances financial stability.

Cash Flow

Nichols shows a decrease in Operating Cash Flow to Net Income Ratio to 0.95, and a Free Cash Flow Growth Rate of -25.8% due to lower free cash flow in 2024. Despite the decrease, Free Cash Flow remains positive, and the Free Cash Flow to Net Income Ratio is 0.90, indicating good cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	174.32M	172.81M	170.74M	164.93M	144.33M	118.66M
Gross Profit	79.70M	78.95M	72.18M	71.02M	65.17M	49.64M
EBITDA	24.37M	26.06M	26.72M	18.49M	-12.53M	11.70M
Net Income	17.49M	17.84M	18.36M	11.63M	-22.17M	4.85M
Balance Sheet
Total Assets	129.62M	121.49M	130.96M	122.16M	131.17M	145.95M
Cash, Cash Equivalents and Short-Term Investments	61.59M	55.19M	67.03M	56.30M	56.67M	47.29M
Total Debt	1.68M	3.75M	18.06M	2.54M	2.82M	3.75M
Total Liabilities	42.61M	37.44M	33.62M	33.42M	38.14M	26.08M
Stockholders Equity	87.01M	84.05M	97.34M	88.74M	93.03M	119.88M
Cash Flow
Free Cash Flow	22.75M	16.05M	21.63M	15.09M	18.66M	18.64M
Operating Cash Flow	23.63M	16.90M	22.11M	16.34M	19.90M	21.51M
Investing Cash Flow	-651.00K	1.65M	1.81M	-802.00K	-1.25M	-3.57M
Financing Cash Flow	-32.63M	-31.91M	-11.09M	-15.91M	-9.27M	-11.59M

Nichols Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1015.00
• 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:NICL, the sentiment is Negative. The current price of 1015 is below the 20-day moving average (MA) of 1025.15, below the 50-day MA of 1074.46, and below the 200-day MA of 1219.68, indicating a bearish trend. The MACD of -15.46 indicates Negative momentum. The RSI at 43.44 is Neutral, neither overbought nor oversold. The STOCH value of 46.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NICL.

Nichols Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CCH	75 Outperform	£12.58B	16.43	28.56%	1.99%	6.00%	42.42%
FEVR	68 Neutral	£934.03M	37.87	9.97%	2.13%	-6.03%	13.11%
BAG	68 Neutral	£746.47M	15.33	15.73%	2.65%	3.97%	34.09%
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
NICL	62 Neutral	£367.45M	20.99	18.67%	3.16%	3.04%	-6.67%
CCR	61 Neutral	£509.77M	29.20	3.72%	4.18%	-2.22%	―
PZC	52 Neutral	£286.09M	-49.42	-2.51%	4.49%	-2.67%	89.86%

Nichols Corporate Events

Nichols plc Executives Increase Shareholdings

Nichols plc announced that Liz McMeikan, the Non-Executive Chair, and Rachel Armer, the People Director, have purchased additional shares in the company. McMeikan acquired 840 shares, while Armer bought 85 shares, both at a price of 1,167 pence per share. These transactions slightly increase their respective stakes in the company, with McMeikan now holding 3,840 shares and Armer holding 85 shares. This move indicates confidence in the company’s future prospects and may positively influence stakeholder perception.

The most recent analyst rating on (GB:NICL) stock is a Hold with a £12.50 price target. To see the full list of analyst forecasts on Nichols stock, see the GB:NICL Stock Forecast page.

Nichols PLC Interim Finance Director Increases Shareholding

Nichols PLC announced that David Taylor, the Interim Finance Director and a person discharging managerial responsibilities (PDMR), has purchased 500 ordinary shares of the company at a price of 1,165 pence each. This transaction increases Taylor’s total shareholding to 750 ordinary shares, representing 0.002% of the company’s issued share capital. This move may indicate confidence in the company’s future prospects and could have implications for investor sentiment and market perception.

The most recent analyst rating on (GB:NICL) stock is a Buy with a £16.30 price target. To see the full list of analyst forecasts on Nichols stock, see the GB:NICL Stock Forecast page.

Nichols PLC Reports Steady Growth in H1 2025 Amid Strategic Advancements

Nichols PLC reported its interim results for the first half of 2025, showing continued progress in line with its strategic plan. The company achieved a 1.8% increase in group revenue to £85.5 million and a 4.1% rise in adjusted operating profit to £13.6 million. The UK Packaged business saw growth driven by distribution gains and product innovation, while the transition to a concentrate model in Africa boosted margins. Nichols also expanded its international presence, notably in Malaysia. The successful launch of a new ERP system marks a significant step in its business transformation efforts. Despite economic uncertainties, Nichols remains confident in its growth strategy and financial objectives.

The most recent analyst rating on (GB:NICL) stock is a Hold with a £12.50 price target. To see the full list of analyst forecasts on Nichols stock, see the GB:NICL Stock Forecast page.