Nichols (NICL) AI Stock Analysis

• Market Cap: £352.45M
• Dividend Yield: 3.39%
• Average Volume (3M): 27.32K
• Price to Earnings (P/E): 20.1
• Beta (1Y): 0.52
• 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: 61.83% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 67 Neutral
• Price Target: 1,083.00p ▲(12.34% Upside)

Nichols' overall stock score is driven by its solid financial performance and positive corporate event with the appointment of a new CFO. However, bearish technical indicators and fair valuation limit the score. The company is financially stable, but faces challenges in revenue growth and cash flow generation.

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 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

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: 964.00
• 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 964 is below the 20-day moving average (MA) of 978.05, below the 50-day MA of 1013.28, and below the 200-day MA of 1193.08, indicating a bearish trend. The MACD of -20.21 indicates Negative momentum. The RSI at 44.07 is Neutral, neither overbought nor oversold. The STOCH value of 24.76 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
FEVR	74 Outperform	£945.79M	38.44	9.97%	2.11%	-6.03%	13.11%
BAG	70 Outperform	£696.41M	14.30	15.73%	2.74%	3.97%	34.09%
NICL	67 Neutral	£352.45M	20.13	18.67%	3.39%	3.04%	-6.67%
CCR	65 Neutral	£494.30M	28.31	3.72%	4.05%	-2.22%	―
Sector *	62 Neutral	$20.33B	14.63	-3.31%	3.23%	1.93%	-12.26%
54GW	58 Neutral	£385.55M	―	―	7.69%	―	―
PZC	54 Neutral	£312.10M	-53.91	-2.51%	4.82%	-2.67%	89.86%

Nichols Corporate Events

Nichols plc Maintains Concert Party Holdings Despite Internal Share Transfer

Nichols plc announced a transfer of shares within the Nichols Concert Party, where John Nichols transferred 1.5 million shares to his three children, yet the overall holding of the Concert Party remains unchanged at 35.89% of the total voting rights. This internal transfer reflects a strategic move within the Nichols family without altering the company’s broader market position or affecting its stakeholders.

Nichols plc Announces Internal Share Transfer to Family Trusts

Nichols plc announced a transfer of 1,500,000 ordinary shares from John Nichols, a Non-Executive Director, to trusts managed by members of the Nichols family, including Matthew Nichols. This transaction does not alter the overall interests of the Nichols Concert Party, which maintains a 35.5% stake in the company. The transfer reflects internal family trust arrangements and does not impact the company’s market positioning or operations.

Nichols PLC Appoints New CFO to Drive Strategic Growth

Nichols PLC has announced the appointment of Matthew Rothwell as the new Chief Financial Officer and Company Secretary, effective by April 2026. Rothwell, who brings extensive experience from senior financial roles at major UK-listed companies, is expected to drive Nichols’ strategic growth and development. The transition will be supported by Rebecca Hughes as interim Finance Director, ensuring continuity until Rothwell’s arrival. This leadership change reflects Nichols’ commitment to strengthening its management team to support its growth strategy.