Norcros (NXR) AI Stock Analysis

• Market Cap: £278.84M
• Dividend Yield: 3.48%
• Average Volume (3M): 89.64K
• Price to Earnings (P/E): 118.0
• Beta (1Y): 0.94
• 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: £440.00
• Price Target Upside: 36.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 0.31
• Revenue Forecast (FY): £394.37M

• Rating: 74 Outperform
• Price Target: 377.00 p ▲(16.72% Upside)
• Action: Upgraded Date: 12/07/25
• Date: Action: Upgraded 12/07/25

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

Diversified product and channel mix

Norcros's mix of tiles, adhesives and bathroom fittings sold into both trade and retail channels across the UK and Southern Africa provides stable, diversified revenue streams. That breadth reduces single-market or product concentration risk and supports steady demand from both renovation and new-build cycles over months.

High gross margin

A gross margin near 43.5% indicates structural pricing power or efficient manufacturing/sourcing. This margin buffer helps absorb input cost volatility and supports recovery of bottom-line performance if volume or mix improves, giving management time to address operating cost pressures without immediate profitability collapse.

Strong cash conversion

Consistent conversion of earnings into operating and free cash flow supports liquidity and funds working capital, capex and debt servicing without relying solely on external financing. Over a 2-6 month horizon this cash generation underpins operational resilience and the ability to pursue strategic initiatives.

Negative Factors

Declining revenue trends

A recent decline in revenue and inconsistent top-line growth point to weakening end-market demand or competitive pressure. Sustained or repeated revenue contraction limits margin recovery, compresses cash generation and reduces headroom for investment or deleveraging over the coming months unless sales trends reverse.

Compressed profitability margins

A net margin near 1% and materially narrower operating margins remove the earnings cushion needed to absorb shocks. Low profitability constrains reinvestment, reduces sustainable returns to shareholders and increases the likelihood management must cut costs or raise prices, actions that can take months to restore healthier margins.

Rising leverage

An increasing debt-to-equity ratio, even from moderate levels, heightens financial risk when profitability is weak. Rising leverage reduces strategic flexibility, elevates interest and refinancing exposure, and can constrain capacity for acquisitions or capex over the medium term unless earnings and cash flow improve.

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 primarily by selling building and home-improvement products to trade customers (e.g., installers, contractors and distributors) and to retail channels (e.g., DIY and specialist retailers), with revenue recognized from product sales. Key revenue streams include (1) tile and surface materials (ceramic/porcelain tiles and related surface solutions), (2) installation and finishing consumables (including tile adhesives, grouts and other fixing/finishing materials), and (3) bathroom and plumbing-related products (bathroom fittings, accessories and related items). Earnings are driven by volume and mix of products sold, pricing and brand positioning, and the reach of its distribution network across its operating regions (notably the UK and Southern Africa). Additional profit is influenced by manufacturing efficiency (where products are manufactured in-house), sourcing costs for purchased goods, and demand cycles in residential repair-and-remodel and new-build construction markets. Specific information on significant partnerships: null.

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	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement
Total Revenue	364.00M	368.10M	392.10M	441.00M	396.30M	324.20M
Gross Profit	0.00	160.10M	165.00M	169.30M	140.80M	118.40M
EBITDA	48.00M	18.70M	55.30M	54.50M	48.80M	35.00M
Net Income	12.60M	3.50M	26.80M	16.80M	25.70M	15.00M
Balance Sheet
Total Assets	377.50M	388.00M	425.30M	446.20M	359.50M	312.20M
Cash, Cash Equivalents and Short-Term Investments	27.00M	22.70M	30.80M	29.00M	27.40M	28.30M
Total Debt	89.50M	80.10M	90.30M	103.60M	42.80M	42.00M
Total Liabilities	175.00M	180.10M	202.90M	235.80M	159.20M	163.80M
Stockholders Equity	202.50M	207.90M	222.40M	210.40M	200.30M	148.40M
Cash Flow
Free Cash Flow	21.70M	11.60M	29.30M	18.50M	9.20M	50.50M
Operating Cash Flow	26.90M	18.50M	36.60M	24.50M	14.60M	53.30M
Investing Cash Flow	2.80M	-3.40M	-7.30M	-84.30M	-5.40M	-2.80M
Financing Cash Flow	-24.10M	-23.40M	-26.00M	64.30M	-11.70M	-70.00M

Norcros Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 323.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 Negative. The current price of 323 is below the 20-day moving average (MA) of 336.80, below the 50-day MA of 341.73, and above the 200-day MA of 296.49, indicating a neutral trend. The MACD of -7.65 indicates Positive momentum. The RSI at 40.05 is Neutral, neither overbought nor oversold. The STOCH value of 23.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	£278.84M	117.95	6.14%	3.48%	-3.93%	41.83%
ECEL	70 Neutral	£110.62M	13.87	7.28%	3.97%	5.51%	-33.75%
JHD	70 Neutral	£484.66M	16.44	22.71%	5.91%	-4.70%	-2.21%
ALU	66 Neutral	£89.43M	7.45	18.04%	4.63%	12.60%	6.64%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
GEN	60 Neutral	£719.28M	18.00	7.59%	3.19%	5.88%	107.36%
SRAD	57 Neutral	£161.74M	212.00	1.61%	4.39%	-3.51%	-67.38%

Norcros Corporate Events

Norcros CEO Increases Shareholding After Option Exercise and Corrected Disclosure

Norcros plc disclosed that its chief executive officer, Thomas Willcocks, has exercised options over 11,180 ordinary shares under the company’s Savings Related Share Option Scheme at an option price of 161.0p, retaining all the resulting shares. Following the transaction, his direct shareholding increased from 90,001 to 101,180 shares, and the company also corrected a prior regulatory announcement to amend the spelling of his name while confirming that all other details of the director dealing remain unchanged.

The transaction was notified in accordance with Market Abuse Regulation requirements, providing transparency around dealings by persons discharging managerial responsibilities. The amendment and detailed disclosure underscore Norcros’s adherence to regulatory standards and corporate governance practices regarding director share dealings, offering reassurance to investors about the accuracy and completeness of its market communications.

The most recent analyst rating on (GB:NXR) stock is a Hold with a £363.00 price target. To see the full list of analyst forecasts on Norcros stock, see the GB:NXR Stock Forecast page.

Norcros CEO Increases Stake After Exercising Share Options

Norcros plc has disclosed that its chief executive officer, Thomas Willcocks, has exercised options over 11,180 ordinary 10 pence shares under the company’s Savings Related Share Option Scheme at an option price of 161p. Following the transaction, Willcocks retained all the shares acquired, increasing his direct holding from 90,001 to 101,180 shares, in a move that modestly strengthens his equity stake and may be read as a signal of confidence in the company’s prospects.

The transaction was notified in line with Market Abuse Regulation requirements, underscoring Norcros’s adherence to regulatory standards around director dealings and market transparency. While the dealing is relatively small in scale, it highlights ongoing use of share-based remuneration at the group and provides investors with updated information on executive shareholdings, a factor often monitored for governance and alignment with shareholder value.

The most recent analyst rating on (GB:NXR) stock is a Hold with a £346.00 price target. To see the full list of analyst forecasts on Norcros stock, see the GB:NXR Stock Forecast page.

Norcros Strengthens Capital Markets Support With Appointment of Joint Corporate Broker

Norcros plc, the UK and Ireland’s leading branded bathroom products group, has appointed Shore Capital Stockbrokers as a joint corporate broker alongside existing broker Berenberg, effective immediately. The move underlines the company’s ambitions to support its growth strategy in a large and fragmented market, potentially enhancing its access to capital and investor reach as it continues to pursue expansion through acquisitions, organic development and operational excellence.

The most recent analyst rating on (GB:NXR) stock is a Hold with a £370.00 price target. To see the full list of analyst forecasts on Norcros stock, see the GB:NXR Stock Forecast page.

Norcros Appoints Shore Capital as Joint Corporate Broker to Support Growth Strategy

Norcros plc, the UK and Ireland’s leading branded bathroom products group, has appointed Shore Capital Stockbrokers as joint corporate broker alongside existing broker Berenberg, effective immediately. The move underscores Norcros’s capital markets ambitions as it pursues further expansion in a large and fragmented bathroom and kitchen products market, where it aims to accelerate growth and capture additional market share through a mix of acquisitions, organic development, operational improvements and its sustainability-focused proposition.

The most recent analyst rating on (GB:NXR) stock is a Hold with a £370.00 price target. To see the full list of analyst forecasts on Norcros stock, see the GB:NXR Stock Forecast page.

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.