Norcros (NXR) AI Stock Analysis

• Market Cap: £269.84M
• Dividend Yield: 3.62%
• Average Volume (3M): 89.64K
• Price to Earnings (P/E): 76.7
• Beta (1Y): 1.14
• Revenue Growth: -6.12%
• EPS Growth: -86.98%
• Country: UK
• Employees: 2,100
• Sector: Industrials
• Sector Strength: 72
• Industry: Construction
• EPS (TTM): 0.18
• 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: 30.66% 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 ▲(11.85% 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.

Norcros Business Overview & Revenue Model

Company Description

Norcros (NXR) is a UK-based manufacturer and supplier of innovative bathroom and kitchen products. Operating primarily in the home improvement and construction sectors, the company specializes in tiles, adhesives, and bathroom fixtures. Norcros serves both residential and commercial markets, offering a diverse range of products designed to meet the needs of various customer segments. The company's portfolio includes well-known brands such as Triton Showers, Johnson Tiles, and Abacus Bathrooms, which are recognized for their quality and design.

How the Company Makes Money

Norcros generates revenue through multiple streams, primarily from the sale of its products in the bathroom, kitchen, and tile sectors. The company operates through various channels, including direct sales to contractors and tradespeople, as well as retail sales through home improvement stores and distributors. Key revenue streams include the sale of tiles, bathroom suites, and associated installation products, such as adhesives and grouts. Additionally, Norcros benefits from strategic partnerships with retailers and builders, which enhance its market reach and distribution capabilities. The company also engages in exporting its products to international markets, further diversifying its revenue sources. Economic factors such as housing market trends and construction activity significantly influence its earnings, making the company sensitive to fluctuations in the broader economy.

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: Neutral
• Last Price: 287.00
• 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 Neutral. The current price of 287 is below the 20-day moving average (MA) of 294.00, above the 50-day MA of 275.68, and above the 200-day MA of 255.25, indicating a neutral trend. The MACD of 5.05 indicates Positive momentum. The RSI at 48.93 is Neutral, neither overbought nor oversold. The STOCH value of 7.53 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
ECEL	66 Neutral	£125.71M	16.82	7.23%	4.04%	5.51%	-33.75%
ALU	65 Neutral	£91.22M	9.59	―	4.23%	19.86%	19.09%
SRAD	65 Neutral	£215.23M	42.68	9.50%	3.95%	-3.51%	-67.38%
NXR	64 Neutral	£269.84M	76.73	1.63%	3.62%	-6.12%	-86.98%
JHD	64 Neutral	£585.89M	14.32	22.36%	4.57%	-4.70%	-2.21%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%

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.