Norcros (NXR) AI Stock Analysis

• Market Cap: £296.83M
• Dividend Yield: 3.48%
• Average Volume (3M): 89.64K
• Price to Earnings (P/E): 23.5
• Beta (1Y): 0.76
• 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: £390.00
• Price Target Upside: 20.74% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 74 Outperform
• Price Target: 370.00p ▲(14.55% Upside)

Norcros's overall stock score is driven by strong corporate events and positive technical analysis. The company's strategic acquisitions and growth initiatives have been well-received, while the technical indicators suggest a bullish trend. However, financial performance is a concern due to profitability challenges and rising leverage, which slightly tempers the overall score.

Positive Factors

Brand portfolio & multi-channel sales

Norcros's leading brands across bathroom, shower and tile categories plus retail, wholesale and online distribution create durable demand diversification. This reduces customer concentration risk, supports steady revenue mix, and enables cross-selling and channel resilience over medium term.

High gross margin

A near-44% gross margin provides a structural buffer versus input cost volatility and supports reinvestment in brands and innovation. Sustained gross margin helps protect operating profitability even if top-line growth moderates, aiding long-term margin recovery and cash generation.

Healthy equity position

An equity ratio above 50% indicates conservative capital structure and financial flexibility. This foundation supports funding for strategic M&A, working capital needs and cyclical downturns without immediate refinancing pressure, sustaining operational stability over 2–6 months.

Negative Factors

Declining revenue trend

Negative and inconsistent revenue growth reduces scale and weakens fixed-cost absorption, making margin recovery harder. Without sustained top-line improvement, investment in brands and distribution may be constrained, pressuring medium-term profitability and competitive positioning.

Rising leverage

An increasing debt-to-equity ratio signals higher financial leverage that can limit strategic flexibility and increase interest burden if profitability falters. Elevated leverage reduces the margin for error and heightens refinancing and covenant risks over the medium term.

Weaker operating and free cash flow

Declining operating and free cash flow constrains the company's ability to fund capex, service debt and support acquisitions from internal resources. Persistent cash generation weakness would pressure liquidity and force reliance on external funding, affecting long-term execution.

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 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: 323.00
• 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 323 is above the 20-day moving average (MA) of 315.50, above the 50-day MA of 303.78, and above the 200-day MA of 272.22, indicating a bullish trend. The MACD of 6.50 indicates Negative momentum. The RSI at 56.17 is Neutral, neither overbought nor oversold. The STOCH value of 57.34 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
NXR	74 Outperform	£296.83M	23.45	10.01%	3.48%	-3.93%	41.83%
GEN	71 Outperform	£796.68M	16.23	7.68%	3.19%	5.88%	107.36%
ECEL	70 Neutral	£131.69M	17.83	7.23%	3.97%	5.51%	-33.75%
JHD	70 Neutral	£583.79M	14.27	22.36%	5.91%	-4.70%	-2.21%
ALU	66 Neutral	£88.54M	9.54	25.06%	4.63%	12.60%	6.64%
SRAD	65 Neutral	£169.38M	33.59	9.50%	4.39%	-3.51%	-67.38%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

Norcros Corporate Events

Norcros Non-Executive Director Increases Stake via Dividend Reinvestment

Norcros plc has disclosed that Non-Executive Director Stefan Allanson increased his holding in the company through the firm’s Dividend Re-Investment Plan, with his stake rising from 21,463 to 22,342 ordinary shares. The director share dealing, conducted on 14 January 2026 via the London Stock Exchange and notified under Market Abuse Regulation requirements, is a routine governance disclosure but signals continued alignment of board interests with shareholders through incremental reinvestment of dividends into Norcros equity.

The most recent analyst rating on (GB:NXR) stock is a Buy with a £333.00 price target. To see the full list of analyst forecasts on Norcros stock, see the GB:NXR Stock Forecast page.

Norcros Grants SAYE Share Options to Employees and CEO

Norcros has granted options over 199,985 ordinary shares under its all-employee Save As You Earn (SAYE) scheme at an exercise price of 258p per share, with Chief Executive Officer Thomas Willcocks receiving 7,073 options. The options can be exercised in 2029 at the end of the three-year savings period, reinforcing long-term employee and executive alignment with shareholders and supporting retention across the group’s global workforce, as participants fund any share purchases through their accumulated SAYE contributions and retain the flexibility to withdraw their savings before maturity.

The most recent analyst rating on (GB:NXR) stock is a Buy with a £333.00 price target. To see the full list of analyst forecasts on Norcros stock, see the GB:NXR Stock Forecast page.

Norcros Chair Increases Stake with Share Purchase

Norcros PLC announced a share dealing by its Chair and Non-Executive Director, Steve Good, who purchased 20,000 ordinary shares at 304 pence each, increasing his total shareholding to 80,000 shares. This transaction, conducted on the London Stock Exchange, reflects a vote of confidence in the company’s future prospects and may positively influence stakeholder perceptions.

The most recent analyst rating on (GB:NXR) stock is a Hold with a £321.00 price target. To see the full list of analyst forecasts on Norcros stock, see the GB:NXR Stock Forecast page.

Norcros Reports Strong Interim Results with Strategic Growth Initiatives

Norcros plc, the leading branded bathroom products business in the UK and Ireland, reported a strong financial performance for the 27 weeks ending 5 October 2025, with profits and margins improving significantly. The company achieved a 1.3% increase in revenue to £184.3m and a 7.4% rise in underlying operating profit to £21.9m. Strategic initiatives, including the acquisition of Fibo in Norway and the closure of Johnson Tiles SA, have positioned Norcros for further growth and market share gains. The company remains confident in achieving its medium-term targets, driven by its strong brand positioning and strategic execution.

The most recent analyst rating on (GB:NXR) stock is a Hold with a £321.00 price target. To see the full list of analyst forecasts on Norcros stock, see the GB:NXR Stock Forecast page.

Norcros Announces Investor Presentation Webinar for Interim Results

Norcros plc announced an Investor Presentation Webinar to discuss its Interim Results for the 27 weeks ending 5th October 2025. The event, led by CEO Thomas Willcocks and CFO James Eyre, is open to existing and potential shareholders, providing an opportunity to engage with the company’s leadership and gain insights into its financial performance and strategic direction.

The most recent analyst rating on (GB:NXR) stock is a Hold with a £321.00 price target. To see the full list of analyst forecasts on Norcros stock, see the GB:NXR Stock Forecast page.

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.