Norcros (NXR) AI Stock Analysis

• Market Cap: £269.84M
• Dividend Yield: 3.58%
• Average Volume (3M): 89.64K
• Price to Earnings (P/E): 76.7
• Beta (1Y): 1.14
• Revenue Growth: -3.93%
• EPS Growth: 41.83%
• Country: UK
• Employees: 2,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.16
• Shares Outstanding: 89,947,975
• 10 Day Avg. Volume: 123,352
• 30 Day Avg. Volume: 89,636
• PEG Ratio: -0.68
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 0.56
• P/FCF Ratio: 17.82
• 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: £375.00
• Price Target Upside: 29.31% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: 321.00p ▲(10.69% Upside)

The overall stock score of 64 reflects a mixed outlook. The most significant factor is the company's financial performance, which shows challenges in profitability and rising leverage. Technical analysis indicates strong momentum, but the valuation suggests the stock may be overpriced. The absence of earnings call data and corporate events means these factors did not influence the score.

Positive Factors

Diverse Revenue Streams

Diverse revenue streams from direct sales, retail, and exports reduce dependency on a single market, enhancing resilience against economic fluctuations.

Strong Brand Portfolio

A strong brand portfolio with recognized names supports market positioning and customer loyalty, providing a competitive edge in the home improvement sector.

Stable Balance Sheet

A stable balance sheet with a healthy equity ratio suggests financial stability, enabling the company to withstand economic volatility and invest in growth opportunities.

Negative Factors

Declining Revenue Growth

Declining revenue growth and narrowing margins indicate potential difficulties in maintaining competitive positioning and profitability, impacting long-term financial health.

Rising Leverage

Increased leverage can strain financial resources and limit strategic flexibility, posing risks if profitability does not improve to support debt obligations.

Decreased Cash Flow

Reduced cash flow generation can hinder the company's ability to fund operations and growth initiatives, potentially affecting long-term sustainability and investment capacity.

Norcros Business Overview & Revenue Model

Company Description

Norcros (NXR) is a leading manufacturer and supplier of innovative bathroom and kitchen products, operating primarily in the UK and South Africa. The company operates through various segments, including bathroom products, tiles, adhesives, and other related goods. Norcros is known for its strong portfolio of brands, which includes Triton Showers, Merlyn Showering, and Johnson Tiles, focusing on quality, design, and sustainability to meet consumer demands.

How the Company Makes Money

Norcros generates revenue primarily through the sale of its bathroom and kitchen products across multiple channels, including retail, wholesale, and online sales. The company benefits from a diversified revenue model, with key revenue streams coming from the sale of bathroom fittings, shower systems, tiles, and adhesives. Additionally, Norcros invests in brand development and marketing to strengthen its market presence and drive sales growth. Strategic partnerships with retailers and distributors also enhance its distribution capabilities, contributing to revenue stability. The company's focus on innovation and customer service further solidifies its position in the market, ensuring ongoing demand for its products.

Norcros Financial Statement Overview

Summary

Norcros faces challenges in revenue and profit growth, with narrowing margins affecting overall profitability. The balance sheet remains stable, though rising leverage could pose risks if profitability does not improve. Cash flow management is effective, but declining cash generation could impact future operations. Overall, the company needs to address profitability and leverage to improve its financial position.

Income Statement

Norcros has shown inconsistent revenue growth over the past years, with a significant decline in the latest fiscal year. The gross profit margin stood at approximately 43.5%, reflecting solid cost management. However, the net profit margin decreased sharply to around 0.95%, indicating challenges in maintaining profitability. Additionally, EBIT and EBITDA margins have also narrowed considerably, signaling potential operational inefficiencies or cost pressures.

Balance Sheet

The balance sheet indicates a stable equity position with an equity ratio of approximately 53.6%, suggesting a healthy balance between assets and liabilities. However, the debt-to-equity ratio has increased to 0.39, indicating a rise in leverage. The return on equity has decreased, reflecting reduced profitability relative to equity.

Cash Flow

Cash flow analysis showed a decrease in operating cash flow and free cash flow. The free cash flow to net income ratio suggests a strong cash conversion from earnings. The operating cash flow to net income ratio remains positive, indicating efficient cash operations despite reduced profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	368.10M	368.10M	392.10M	441.00M	396.30M	324.20M
Gross Profit	188.40M	160.10M	165.00M	169.30M	140.80M	118.40M
EBITDA	47.30M	18.70M	55.30M	54.50M	48.80M	35.00M
Net Income	3.50M	3.50M	26.80M	16.80M	25.70M	15.00M
Balance Sheet
Total Assets	388.00M	388.00M	425.30M	446.20M	359.50M	312.20M
Cash, Cash Equivalents and Short-Term Investments	22.70M	22.70M	30.80M	29.00M	27.40M	28.30M
Total Debt	80.10M	80.10M	90.30M	103.60M	42.80M	42.00M
Total Liabilities	180.10M	180.10M	202.90M	235.80M	159.20M	163.80M
Stockholders Equity	207.90M	207.90M	222.40M	210.40M	200.30M	148.40M
Cash Flow
Free Cash Flow	11.60M	11.60M	29.30M	18.50M	9.20M	50.50M
Operating Cash Flow	18.50M	18.50M	36.60M	24.50M	14.60M	53.30M
Investing Cash Flow	-3.40M	-3.40M	-7.30M	-84.30M	-5.40M	-2.80M
Financing Cash Flow	-23.40M	-23.40M	-26.00M	64.30M	-11.70M	-70.00M

Norcros Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 290.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NXR, the sentiment is Positive. The current price of 290 is below the 20-day moving average (MA) of 294.03, above the 50-day MA of 285.79, and above the 200-day MA of 258.73, indicating a bullish trend. The MACD of 2.95 indicates Positive momentum. The RSI at 55.35 is Neutral, neither overbought nor oversold. The STOCH value of 19.39 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:NXR.

Norcros Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EPWN	77 Outperform	―	―	16.23%	4.27%	4.67%	93.06%
ALU	69 Neutral	£91.22M	9.59	―	4.15%	19.86%	19.09%
ECEL	66 Neutral	£125.71M	16.82	7.23%	4.08%	5.51%	-33.75%
NXR	64 Neutral	£269.84M	76.73	10.01%	3.58%	-3.93%	41.83%
JHD	64 Neutral	£585.89M	14.32	22.36%	5.78%	-4.70%	-2.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
SRAD	58 Neutral	£215.23M	42.68	9.50%	4.89%	-3.51%	-67.38%

Norcros Corporate Events

Norcros Reports Strong First-Half Performance and Strategic Acquisition

Norcros has reported a robust first-half performance, driven by strategic initiatives and market share gains, despite challenging market conditions. The company has completed the acquisition of Fibo Holding AS, enhancing its product offerings and market position, and expects to meet its full-year profit expectations while continuing to pursue growth in the RMI and Housebuilding markets.

The most recent analyst rating on (GB:NXR) stock is a Hold with a £288.00 price target. To see the full list of analyst forecasts on Norcros stock, see the GB:NXR Stock Forecast page.

Norcros Completes Acquisition of Fibo Holding AS

Norcros plc has completed the acquisition of Fibo Holding AS, a leading Norwegian supplier of waterproof decorative wall panels, after receiving clearance from the UK Competition and Markets Authority. This acquisition is set to enhance Norcros’s presence in the waterproof wall coverings market across the UK, Ireland, Scandinavia, and Central Europe, aligning with its strategy for geographic expansion. The acquisition, valued at £46 million, will be financed through Norcros’s existing credit facility and is expected to be materially earnings accretive in the first year. The integration of Fibo under Norcros’s ownership is anticipated to leverage growth accelerators and operational efficiencies, benefiting from Fibo’s strong geographic growth plan and experienced management team.

The most recent analyst rating on (GB:NXR) stock is a Hold with a £288.00 price target. To see the full list of analyst forecasts on Norcros stock, see the GB:NXR Stock Forecast page.