Nichols (NICL) AI Stock Analysis

• Market Cap: £526.49M
• Dividend Yield: 0.01%
• Average Volume (3M): 32.25K
• Price to Earnings (P/E): 29.5
• Beta (1Y): 0.68
• Revenue Growth: 1.21%
• EPS Growth: -2.98%
• Country: UK
• Employees: 297
• Sector: Consumer Defensive
• Sector Strength: 55
• Industry: Beverages - Non-Alcoholic
• EPS (TTM): 0.49
• Shares Outstanding: 36,569,570
• 10 Day Avg. Volume: 38,668
• 30 Day Avg. Volume: 32,248
• PEG Ratio: -0.22
• Price to Book (P/B): 4.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 25.96
• 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: £1,760.00
• Price Target Upside: 20.14% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 73 Outperform
• Price Target: 1,544.00p ▲(5.39%Upside)

Nichols exhibits solid financial performance and technical strength. However, high valuation and the recent loss of the CFO pose challenges. Positive corporate events and strategic initiatives bolster the outlook, but revenue growth remains a concern.

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 makes money primarily through the production and sale of its soft drink products in both domestic and international markets. The company's revenue streams include direct sales to retailers and wholesalers, licensing and franchising agreements, and export sales. Nichols benefits from strong brand recognition, particularly of its Vimto product line, which helps drive consumer demand. Strategic partnerships and distribution agreements further enhance its market reach and contribute to its earnings. Additionally, Nichols invests in marketing and brand development to maintain and grow its market position.

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.

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

Nichols Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1465.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 1465 is above the 20-day moving average (MA) of 1391.75, above the 50-day MA of 1327.20, and above the 200-day MA of 1239.62, indicating a bullish trend. The MACD of 23.06 indicates Negative momentum. The RSI at 67.34 is Neutral, neither overbought nor oversold. The STOCH value of 70.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:NICL.

Nichols Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NICL	73 Outperform	£526.49M	29.48	19.67%	0.01%	1.21%	-2.98%
Sector *	65 Neutral	$27.33B	15.36	-4.01%	3.14%	1.00%	1.98%
FQVTF		$1.53B	46.52	10.23%	2.37%	―	―
BAG	76 Outperform	£773.17M	19.41	13.01%	2.94%	5.10%	3.23%
CCH	75 Outperform	£14.41B	20.79	26.05%	1.63%	2.77%	26.43%
CCR	56 Neutral	£619.42M	54.56	2.40%	3.61%	-2.68%	-511.88%
PZC	50 Neutral	£311.26M	―	-2.48%	2.02%	-16.16%	80.50%

Nichols Corporate Events

Octopus Investments Increases Stake in Nichols PLC

Nichols PLC, a UK-based company, has announced a change in its major holdings. Octopus Investments Limited, based in London, has increased its voting rights in Nichols PLC to 9.11%, crossing the previous threshold of 8.99%. This acquisition of voting rights signifies a strategic move by Octopus Investments, potentially impacting Nichols PLC’s governance and decision-making processes.

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 CEO Exercises Share Options, Boosting Stake

Nichols plc, a diversified soft drinks company, announced that its CEO, Andrew Milne, exercised options for 1,513 ordinary shares under the company’s 2020 SAYE Scheme. This transaction increases Milne’s total shareholding to 55,407 shares, representing 0.152% of the company’s issued share capital. The exercise of these options reflects ongoing engagement with the company’s employee share ownership initiatives, potentially strengthening stakeholder confidence in Nichols’ leadership and strategic direction.

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 Announces Change in Voting Rights

Nichols PLC, a UK-based company, has announced a change in its voting rights structure following an acquisition or disposal by Octopus Investments Limited. The transaction resulted in Octopus Investments holding 8.99% of the voting rights in Nichols PLC, a slight decrease from their previous position of 9.06%. This adjustment in voting rights may impact the company’s governance and decision-making processes.

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 Announces Share Option Exercise and Director Share Sales

Nichols plc, a diversified soft drinks group, announced the exercise of share options over 39,206 ordinary shares under the company’s Hybrid Incentive Plan. Following this, certain directors and employees sold shares to satisfy tax liabilities, impacting the company’s total voting rights. This transaction highlights the company’s ongoing management of its share capital and the financial obligations of its key personnel, potentially influencing stakeholder perceptions and market positioning.

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.

Octopus Investments Increases Stake in Nichols PLC

Nichols PLC, a UK-based company, has announced a change in its major holdings, with Octopus Investments Limited increasing its voting rights to 9.06%. This acquisition of voting rights signifies a slight increase from the previous 8.99%, indicating a strategic move by Octopus Investments to strengthen its influence within Nichols PLC.

Nichols PLC Announces Change in Voting Rights Structure

Nichols PLC has announced a change in its voting rights structure following an acquisition or disposal of shares by Octopus Investments Limited. The transaction resulted in Octopus Investments holding 8.99% of Nichols’ voting rights, slightly down from a previous position of 9.00%. This adjustment in shareholding may influence Nichols’ corporate governance and decision-making processes.

Nichols PLC Launches 2025 SAYE Schemes to Boost Employee Engagement

Nichols PLC has introduced two Save As You Earn (SAYE) schemes for 2025, offering eligible employees the opportunity to subscribe to options over the company’s ordinary shares at a discounted exercise price. This initiative, which involves 66 employees and grants 24,953 options, aims to enhance employee engagement and align their interests with the company’s performance. The SAYE schemes reflect Nichols’ commitment to fostering a participative corporate culture and could potentially strengthen its market position by incentivizing key personnel.

Octopus Investments Increases Stake in Nichols PLC

Nichols PLC, a UK-based company, has announced a change in its major holdings as Octopus Investments Limited has acquired additional voting rights, increasing its stake to 9%. This acquisition signifies a slight increase from the previous holding of 8.99%, potentially impacting Nichols PLC’s shareholder dynamics and reflecting Octopus Investments’ strategic interest in the company.

Nichols PLC AGM 2025: All Resolutions Approved

Nichols plc, a diversified soft drinks group, successfully conducted its Annual General Meeting where all proposed resolutions were approved. This includes the approval of the annual report, directors’ remuneration report, declaration of a final dividend, and the election and re-election of directors. The meeting’s outcomes reflect strong shareholder support for the company’s strategic direction and governance, potentially reinforcing Nichols’ market position and operational stability.

Nichols PLC Reports Steady Q1 Growth Amid Strategic Shifts

Nichols PLC reported a 1.2% increase in revenue for the first quarter of 2025, aligning with expectations and showcasing growth in its UK Packaged and Out of Home segments. Despite a decline in International Packaged revenue due to strategic shifts and shipment timing, the company remains confident in achieving profitable growth. Nichols maintains a strong balance sheet and is well-positioned to navigate global market volatility, with less than 2% exposure to the most affected markets. The company’s diversified business model and strategic focus on higher-margin concentrate sales in West Africa are expected to drive long-term growth.