Norcros (NXR) AI Stock Analysis

• Market Cap: £242.51M
• Dividend Yield: 3.81%
• Average Volume (3M): 105.39K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 1.10
• Revenue Growth: -10.36%
• EPS Growth: -41.41%
• Country: UK
• Employees: 2,100
• Sector: Industrials
• Sector Strength: 93
• Industry: Construction
• EPS (TTM): 0.10
• Shares Outstanding: 89,818,985
• 10 Day Avg. Volume: 52,728
• 30 Day Avg. Volume: 105,392
• PEG Ratio: -0.39
• Price to Book (P/B): 1.12
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.82
• 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: £350.00
• Price Target Upside: 27.27% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 76 Outperform
• Price Target: ―

Norcros exhibits a strong financial performance with significant strengths in cash flow and profitability improvements. Technical analysis shows potential upward momentum, although caution is advised due to overbought indicators. Valuation metrics are reasonable, with a good dividend yield. Positive corporate events further enhance confidence in the stock's outlook.

Norcros Business Overview & Revenue Model

Company Description

Norcros plc, together with its subsidiaries, designs, manufactures, and distributes bathroom and kitchen products in the United Kingdom and South Africa. The company manufactures and distributes electric and mixer showers, and accessories under the Triton brand name; shower enclosures and trays to the residential, commercial, and hospitality sectors under the Merlyn brand; taps, mixer showers, bathroom accessories, and valves under the Vado brand name; and accessories and furniture for the bathroom, such as toilet seats, wall-mounted cupboards, vanity units, shower rods, rails, and curtains to retail and trade customers under the Croydex brand name. It also offers kitchen taps, sinks, and instant hot water taps under the Abode brand name; ceramic wall and floor tiles under the Johnson Tiles brand name; and adhesives, grouts, and surface preparation products under the Norcros Adhesives brand name for fixing ceramic and porcelain tiles, mosaics, natural stones, and marbles. In addition, the company provides tile adhesives, pourable floor coverings, and tiling tools for various types of ceramic, porcelain, or natural stone tiles; and various products for the preparation of floors before the installation of hard and soft floor coverings, including primers, additives, patching and repair compounds, and screeds and self-levelling screeds, as well as waterproofing systems under the TAL brand name, as well as specialist plumbing materials under the House of Plumbing brand name. Further, it manufactures waterproof decorative bathroom wall panels under the Home of Multipanel brand name; and retails wall and floor tiles, adhesives, showers, sanitaryware, and bathroom fittings under the Tile Africa brand name. The company serves consumers, architects, designers, developers, retailers, and wholesalers. Norcros plc was incorporated in 1999 and is headquartered in Wilmslow, the United Kingdom.

How the Company Makes Money

Norcros makes money by designing, manufacturing, and distributing a wide range of bathroom and kitchen products. The company's revenue model is largely based on the sale of its products through a network of distributors, retailers, and trade customers. Norcros leverages its strong brand portfolio to capture various segments of the market, from cost-effective to premium offerings. Key revenue streams include sales from its established brands like Triton Showers, which is a market leader in electric showers, and Johnson Tiles, known for its ceramic wall and floor tiles. Norcros also benefits from strategic partnerships with builders, architects, and contractors, enhancing its reach in both residential and commercial construction projects. Additionally, the company invests in innovation and product development to maintain competitiveness and expand its market share.

Norcros Financial Statement Overview

Summary

Norcros demonstrates a solid financial standing with notable strengths in cash flow generation and profitability improvements. Despite a dip in revenue, the company has managed to enhance its margins and leverage position. The balance sheet remains stable, albeit with slight increases in financial risk. Overall, Norcros is in a strong position to sustain its operations and capitalize on growth opportunities.

Income Statement

Norcros's income statement shows a mixed performance. The gross profit margin was stable at 42.1% in 2024. However, the net profit margin increased to 6.8% from 3.8% in 2023, reflecting improved profitability. The revenue decline of 11.1% from 2023 may be a concern, but EBIT and EBITDA margins showed slight improvements, indicating operational efficiency gains.

Balance Sheet

The balance sheet is stable but presents some risks. The debt-to-equity ratio decreased to 0.41 in 2024, showing better leverage management. ROE improved to 12.1%, indicating effective use of equity. However, the equity ratio decreased slightly to 52.3%, reflecting a marginal increase in financial risk.

Cash Flow

Norcros's cash flow statement is strong with substantial improvements. The free cash flow grew by 58.4% in 2024, showing robust cash generation. The operating cash flow to net income ratio is 1.37, signifying healthy cash earnings. The free cash flow to net income ratio of 1.09 indicates solid cash availability relative to earnings.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
378.90M	392.10M	441.00M	396.30M	324.20M	342.00M
	Gross Profit
371.00M	165.00M	169.30M	140.80M	118.40M	124.50M
	EBIT
16.00M	39.90M	38.70M	36.40M	28.70M	27.10M
	EBITDA
54.20M	55.30M	54.50M	48.80M	35.00M	33.70M
	Net Income Common Stockholders
8.90M	26.80M	16.80M	25.70M	15.00M	10.90M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
37.50M	30.80M	29.00M	27.40M	28.30M	47.30M
	Total Assets
264.10M	425.30M	446.20M	359.50M	312.20M	344.50M
	Total Debt
60.70M	90.30M	103.60M	42.80M	42.00M	108.80M
	Net Debt
23.20M	59.50M	74.60M	15.40M	13.70M	61.50M
	Total Liabilities
207.50M	202.90M	235.80M	159.20M	163.80M	240.10M
	Stockholders Equity
56.60M	222.40M	210.40M	200.30M	148.40M	104.40M
Cash Flow		Free Cash Flow
16.90M	29.30M	18.50M	9.20M	50.50M	21.20M
	Operating Cash Flow
24.40M	36.60M	24.50M	14.60M	53.30M	26.00M
	Investing Cash Flow
-7.50M	-7.30M	-84.30M	-5.40M	-2.80M	-14.00M
	Financing Cash Flow
-27.80M	-26.00M	64.30M	-11.70M	-70.00M	13.40M

Norcros Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 275.00
• 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:NXR, the sentiment is Positive. The current price of 275 is above the 20-day moving average (MA) of 260.20, above the 50-day MA of 242.55, and above the 200-day MA of 241.09, indicating a bullish trend. The MACD of 6.85 indicates Negative momentum. The RSI at 63.05 is Neutral, neither overbought nor oversold. The STOCH value of 73.02 is Neutral, 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	80 Outperform	£134.30M	8.72	16.03%	4.97%	-6.20%	83.31%
SRAD	78 Outperform	£185.93M	11.06	29.29%	5.33%	-5.72%	7.10%
ALU	77 Outperform	£135.94M	14.30	29.95%	2.84%	19.86%	19.09%
NXR	76 Outperform	£242.51M	27.22	4.25%	3.81%	-10.36%	-41.41%
ECEL	75 Outperform	£157.42M	15.72	9.56%	3.90%	-1.81%	15.19%
JHD	74 Outperform	£676.19M	15.82	24.63%	5.43%	-7.53%	-4.50%
Sector *	66 Neutral	$4.48B	12.26	5.32%	248.53%	4.10%	-12.36%

Norcros Corporate Events

Norcros Reports Stable Profits and Initiates Strategic Review in South Africa

Norcros plc has announced that its underlying operating profit for the year ended 31 March 2025 is expected to align with market expectations, with group revenue marginally ahead on a constant currency basis despite a reported decline. The company has initiated a strategic review of Johnson Tiles South Africa due to challenging market conditions, which may impact its operations and market positioning. Despite these challenges, Norcros remains financially strong with a solid balance sheet and is poised to capitalize on market opportunities.

Spark’s Take on GB:NXR Stock

According to Spark, TipRanks’ AI Analyst, GB:NXR is a Outperform.

Norcros’s overall stock score reflects its strong financial performance and positive corporate events, which are somewhat offset by bearish technical indicators and a fair valuation. The company’s ability to generate cash and improve profitability is a key strength, while its technical indicators suggest caution in the short term. The recent positive developments in corporate events provide additional confidence in the company’s future prospects.

To see Spark’s full report on GB:NXR stock, click here.

Norcros Updates Share Capital and Voting Rights

Norcros plc has announced an update on its share capital and voting rights as of March 31, 2025. The company has issued 89,818,983 ordinary shares, each carrying one vote, with no shares held in treasury. This update is significant for shareholders and others with notification obligations, as it provides the denominator for calculating changes in their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

Norcros Announces Positive Pension Scheme Valuation Outcome

Norcros plc has successfully concluded negotiations with the Trustee of its legacy defined benefit pension scheme, resulting in a reduced actuarial deficit and a decrease in cash contributions from 2027. The valuation, agreed upon in April 2024, updates the previous deficit of £36.0m to £11.7m, with a funding level of 96%. This agreement will direct future contributions to an escrow arrangement once the scheme is in surplus, minimizing the risk of overfunding. The positive outcome reflects the strong relationship between the company and the Trustee, ensuring the scheme remains healthy and financially stable.

Norcros Director Increases Stake with Share Purchase

Norcros has announced a share dealing notification involving Stefan Allanson, the Non-Executive Director, who purchased 10,158 ordinary shares at 235 pence each on February 5, 2025, on the London Stock Exchange. This transaction has increased Allanson’s total shareholding in the company from 11,305 to 21,463 shares, reflecting a significant increase in his investment and indicating confidence in the company’s future prospects.