Nichols (NICL) AI Stock Analysis

• Market Cap: £361.96M
• Dividend Yield: 3.39%
• Average Volume (3M): 27.32K
• Price to Earnings (P/E): 16.3
• Beta (1Y): 0.49
• Revenue Growth: 3.04%
• EPS Growth: -6.67%
• Country: UK
• Employees: 297
• Sector: Consumer Defensive
• Sector Strength: 42
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.35
• Shares Outstanding: 36,569,570
• 10 Day Avg. Volume: 30,754
• 30 Day Avg. Volume: 27,324
• PEG Ratio: 0.80
• Price to Book (P/B): 3.68
• Price to Sales (P/S): 1.99
• P/FCF Ratio: 23.79
• 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: £1,435.00
• Price Target Upside: 53.64% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): 0.71
• Revenue Forecast (FY): £183.71M

• Rating: 69 Neutral
• Price Target: 1,060.00 p ▲(13.49% Upside)
• Action: Reiterated Date: 03/12/26
• Date: Action: Reiterated 03/12/26

The score is driven primarily by strong fundamentals—especially the conservatively positioned, debt-free balance sheet and improved profitability—partly offset by recent free-cash-flow volatility. Technical indicators are neutral-to-weak (below key moving averages and negative MACD), while valuation is supportive with a moderate P/E and a solid dividend yield.

Positive Factors

Debt-free balance sheet

Zero reported debt in 2025 and historically very low leverage provide durable financial flexibility. A conservative capital structure reduces refinancing and interest risk, supports investment or M&A optionality, and strengthens resilience through business cycles.

Improved profitability & recovery

The company recovered from a 2021 loss to materially stronger operating results across 2022–2025, culminating in a 42% revenue gain in 2025. Sustained margin recovery indicates structural improvements in cost control and product mix, supporting longer-term earnings quality.

Persistent positive free cash flow

Consistently positive free cash flow across the period demonstrates the business can self-fund operations and some reinvestment. This cash generation underpins dividend capacity and capital allocation flexibility, enhancing durability even as absolute levels fluctuate.

Negative Factors

Free cash flow volatility

A sharp ~36% FCF decline in 2025 despite higher earnings highlights weaker cash conversion and likely working-capital or investment swings. Reduced FCF predictability can constrain reinvestment, dividends, or require external funding, weakening long-term financial planning.

Uneven revenue growth

The dramatic 2025 revenue step-up after muted 2024 growth raises recurrence risk: if the jump reflects one-off factors, sustainable growth may be lower. This unevenness complicates forecasting, capex planning and margin sustainability over a multi-quarter to multi-year horizon.

Variable capital levels

Year-to-year shifts in equity and asset levels suggest variability in capital deployment or working-capital needs as the business grows. If capital cushions shrink or become inconsistent, the firm may face tighter financing flexibility or dilution risk when scaling operations.

Nichols Business Overview & Revenue Model

Company Description

Nichols plc, together with its subsidiaries, supplies soft drinks to the retail, wholesale, catering, licensed, and leisure industries in the United Kingdom. The company operates through two segments, Still and Carbonate. It offers still, cordial, carbonated, post-mix, and frozen drinks categories under the Vimto, Feel Good, Levi Roots, Starslush, ICEE, Slurp, FRYST, DOUWE EGBERTS, and Sunkist brands. The company offers its products through grocery stores, wholesalers, and convenience store, as well as cinemas, theme parks, pubs, and restaurants. It also exports its products to the Middle East, Africa, and internationally. Nichols plc was founded in 1908 and is headquartered in Newton-le-Willows, the United Kingdom.

How the Company Makes Money

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Nichols Financial Statement Overview

Summary

Strong profitability and recovery since 2021, with 2025 revenue up sharply (+42%) and a debt-free balance sheet. The main offset is weaker cash-flow quality recently, with free cash flow down materially in 2025 despite higher earnings, and some unevenness in revenue growth across years.

Income Statement

Profitability and growth look strong in the most recent year: revenue reached 175.1m in 2025 with a sharp 42% growth rate, and earnings improved versus prior years. The business has also recovered well from the 2021 loss year (negative EBIT and net income), showing a much healthier operating profile in 2022–2025. Offsetting this, top-line growth has been uneven (low growth in 2024, then a large jump in 2025), which adds some durability risk if the 2025 step-up proves non-recurring.

Balance Sheet

The balance sheet is conservatively positioned with very low leverage historically and zero total debt reported in 2025, alongside solid equity (94.8m) supporting 131.6m of assets. Prior years also show modest debt-to-equity (e.g., ~0.04 in 2024), indicating limited financial strain and good flexibility. The main watch-out is that equity and assets have moved around year-to-year, so investors should monitor whether capital levels remain steady as the business scales.

Cash Flow

Cash generation is positive, with free cash flow remaining meaningfully positive in every year shown, which supports reinvestment and resilience. However, free cash flow has become more volatile recently, including a steep decline in 2025 (down ~36%) after already slipping in 2024, despite higher earnings—suggesting working-capital or investment swings. In prior years, cash conversion versus earnings was generally solid (for example, free cash flow running close to net income in 2022–2024), but the recent drop lowers confidence in near-term cash consistency.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	175.05M	172.81M	170.74M	164.93M	144.33M
Gross Profit	80.67M	78.95M	72.18M	71.02M	65.17M
EBITDA	33.79M	26.06M	26.72M	18.49M	-12.53M
Net Income	21.44M	17.84M	18.36M	11.63M	-22.17M
Balance Sheet
Total Assets	131.56M	121.49M	130.96M	122.16M	131.17M
Cash, Cash Equivalents and Short-Term Investments	55.74M	55.19M	67.03M	56.30M	56.67M
Total Debt	0.00	3.75M	18.06M	2.54M	2.82M
Total Liabilities	36.81M	37.44M	33.62M	33.42M	38.14M
Stockholders Equity	94.75M	84.05M	97.34M	88.74M	93.03M
Cash Flow
Free Cash Flow	14.66M	16.05M	21.63M	15.09M	18.66M
Operating Cash Flow	15.61M	16.90M	22.11M	16.34M	19.90M
Investing Cash Flow	-791.00K	1.65M	1.81M	-802.00K	-1.25M
Financing Cash Flow	-12.76M	-31.91M	-11.09M	-15.91M	-9.27M

Nichols Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 934.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Neutral. The current price of 934 is below the 20-day moving average (MA) of 963.48, below the 50-day MA of 983.43, and below the 200-day MA of 1126.58, indicating a neutral trend. The MACD of -20.49 indicates Positive momentum. The RSI at 51.21 is Neutral, neither overbought nor oversold. The STOCH value of 33.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:NICL.

Nichols Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FEVR	74 Outperform	£970.09M	34.16	9.91%	2.11%	-6.03%	13.11%
BAG	70 Outperform	£749.81M	7.17	15.23%	2.74%	3.97%	34.09%
NICL	69 Neutral	£361.96M	16.26	20.45%	3.39%	3.04%	-6.67%
CCR	65 Neutral	£405.17M	9.36	3.72%	4.05%	-2.22%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
54GW	58 Neutral	£368.62M	―	―	7.69%	―	―
PZC	54 Neutral	£313.36M	14.34	-2.16%	4.82%	-2.67%	89.86%

Nichols Corporate Events

Nichols lifts profits and margins as Vimto drives record UK sales

Nichols reported a modest 1.3% increase in 2025 group revenue to £175.1m but delivered significantly stronger profitability, with adjusted operating profit up 9.9% and margins improving on the back of disciplined cost control, a shift to higher-margin concentrate sales in West Africa and the exit of low-margin Starslush. UK Packaged delivered record Vimto retail sales, International Packaged benefited from the new concentrate model, the Out of Home business was simplified, and a new ERP system began generating efficiencies, supporting a higher ordinary dividend and underlining the group’s confidence in its balance sheet and medium-term growth strategy.

The most recent analyst rating on (GB:NICL) stock is a Hold with a £1083.00 price target. To see the full list of analyst forecasts on Nichols stock, see the GB:NICL Stock Forecast page.

Nichols Sets March Date for 2025 Results and Investor Briefing

Nichols plc has announced it will publish its preliminary results for the year ended 31 December 2025 on 11 March 2026. The diversified soft drinks group plans to accompany the release with a live investor presentation, underlining its commitment to shareholder communication and transparency.

Chief executive Andrew Milne and finance director Rebecca Hughes will host the online presentation via the Investor Meet Company platform on 12 March 2026 at 2.30 p.m. GMT. The event is open to existing and potential investors, who can submit questions in advance or during the session, offering stakeholders a direct forum to engage with management on performance and outlook.

The most recent analyst rating on (GB:NICL) stock is a Hold with a £1083.00 price target. To see the full list of analyst forecasts on Nichols stock, see the GB:NICL Stock Forecast page.

Nichols Delivers Margin-Focused Growth and Signals Confidence for 2026

Nichols reported that revenue for the year to 31 December 2025 rose 1.3% to £175.0m, with adjusted profit before tax expected to be in line with market expectations, as it continued to shift towards a higher-margin concentrate model in Africa and exited low-margin Out of Home activities. UK Packaged revenue grew 2.6% on the back of strong performances across core products and innovation, while international packaged sales were flat on a reported basis but up 2% like-for-like, with Africa delivering 10% like-for-like growth and Middle East trading affected by shipment phasing around an earlier Ramadan. Gross margins were maintained despite inflationary pressures, supported by strict cost control and the completion of a new ERP system, leaving the group with a strengthened balance sheet, cash of £55.8m and a continued commitment to a progressive dividend policy. With the appointment of a new CFO in April and management’s focus on innovation and geographic expansion, Nichols underlined the strategic benefits of its asset-light, diversified model and signalled continued confidence in its medium-term growth plans and ability to create shareholder value in 2026 and beyond.

The most recent analyst rating on (GB:NICL) stock is a Hold with a £1083.00 price target. To see the full list of analyst forecasts on Nichols stock, see the GB:NICL Stock Forecast page.

Nichols Director Increases Stake with Share Purchase

Nichols plc announced that Alan Williams, a Non-Executive Director, purchased 2,500 ordinary shares at 969.99 pence each, increasing his total shareholding to 6,500 shares, which represents 0.018% of the company’s issued share capital. This transaction highlights the confidence of the company’s leadership in its market position and potential growth, potentially impacting stakeholder perceptions positively.

The most recent analyst rating on (GB:NICL) stock is a Hold with a £1083.00 price target. To see the full list of analyst forecasts on Nichols stock, see the GB:NICL Stock Forecast page.

Nichols PLC Chair Increases Stake with Share Purchase

Nichols PLC announced that Liz McMeikan, the Non-Executive Chair, purchased 1,940 ordinary shares of the company at a price of 966.59 pence per share, increasing her total holding to 5,780 shares. This transaction reflects a minor increase in insider ownership, which could be interpreted as a sign of confidence in the company’s future prospects. The purchase was conducted on the London Stock Exchange’s AIM Market.

The most recent analyst rating on (GB:NICL) stock is a Hold with a £1083.00 price target. To see the full list of analyst forecasts on Nichols stock, see the GB:NICL Stock Forecast page.

Nichols plc Grants Share Options to CEO Amid Remuneration Policy Review

Nichols plc has announced the grant of nil-cost options over 51,556 ordinary shares to its CEO, Andrew Milne, as part of the company’s Long Term Incentive Plan. This move follows a review of the company’s remuneration policy, which is set to be revised in 2026 to better align with market standards and strategic objectives. The grant is a transitional arrangement ahead of the new policy, reflecting feedback from major institutional shareholders and aiming to align executive incentives with shareholder expectations.

The most recent analyst rating on (GB:NICL) stock is a Hold with a £1083.00 price target. To see the full list of analyst forecasts on Nichols stock, see the GB:NICL Stock Forecast page.