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Next plc (GB:NXT)
LSE:NXT

Next plc (NXT) AI Stock Analysis

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GB

Next plc

(LSE:NXT)

Rating:76Outperform
Price Target:
13,814.00p
â–²(7.00%Upside)
Next plc demonstrates strong financial performance and positive market momentum, supported by strategic corporate activities like share buybacks. Valuation is fair, and the company is well-positioned within the Apparel - Retail industry. Key strengths include consistent income growth and strategic capital management, though high debt levels and executive share sales warrant monitoring.
Positive Factors
Financial Performance
High frequency data indicates a strong pick up in UK retail sales, with Next outperforming.
International Expansion
Strong international growth and UK market outperformance drive ongoing momentum for Next Plc.
Management Quality
Next's management team is well regarded and perceived as one of the best-quality teams in the industry, with a multi-year track record of generating value for shareholders.
Negative Factors
Consumer Market Challenges
Consensus forecasts for Next already adequately embed caution on the UK consumer, with offsets from Next's online growth initiatives.
Currency and Cost Pressures
Next is well positioned to manage profitability amid a potentially strengthening USD and ongoing cost headwinds, with cost pressures offset by pricing/price-mix and ongoing cost efficiencies.

Next plc (NXT) vs. iShares MSCI United Kingdom ETF (EWC)

Next plc Business Overview & Revenue Model

Company DescriptionNEXT plc engages in the retail of clothing, footwear, and home products in the United Kingdom, rest of Europe, the Middle East, Asia, and internationally. The company operates through NEXT Retail, NEXT Online, NEXT Finance, NEXT International Retail, NEXT Sourcing, Lipsy, NENA, and Property Management segments. It operates retail stores; an online retail platform; and 199 franchise stores in 35 countries. The company also offers consumer credit; NEXT branded products; and women's, men's, children's, homeware, and beauty products under the LABEL and Lipsy's own brand, and other third-party brands. In addition, it provides property management services, including holding and lease of properties. The company was formerly known as J Hepworth & Son and changed its name to NEXT plc in 1986. NEXT plc was founded in 1864 and is headquartered in Enderby, the United Kingdom.
How the Company Makes MoneyNext plc generates revenue through a multi-channel retail approach, combining physical store sales with a robust online presence. The company capitalizes on its extensive retail network and strong brand reputation to drive traffic and sales in its stores. A significant portion of revenue comes from online sales, leveraging its well-established e-commerce platform to reach a broader customer base. Next also offers a range of financial services, including credit offerings through the NextPay credit account, which provides an additional revenue stream. Furthermore, the company benefits from collaborations with third-party brands and partners, expanding its product range and enhancing its customer appeal.

Next plc Financial Statement Overview

Summary
Next plc displays strong financial performance with consistent revenue and profit growth, a stable balance sheet, and robust cash flow management. Income statement scores highly due to efficient cost management and strong sales performance. The balance sheet is stable but carries moderate leverage, while cash flow is healthy with strong cash earnings.
Income Statement
87
Very Positive
Next plc has demonstrated strong financial performance with consistent growth in revenue and profit margins. The gross profit margin has improved to 44.07% from the previous year's 43.82%, reflecting efficient cost management. The net profit margin has also increased to 14.62% from 14.13%, indicating enhanced profitability. Revenue growth remains robust at 9.08%, underlining strong sales performance in the retail sector. The EBIT and EBITDA margins have improved, showcasing operational efficiency. Overall, the income statement metrics highlight a well-managed and profitable growth trajectory.
Balance Sheet
75
Positive
The balance sheet of Next plc indicates a stable financial position, with a debt-to-equity ratio of 1.27, suggesting moderate leverage. The return on equity (ROE) is strong at 53.06%, highlighting effective use of shareholder funds to generate earnings. Equity ratio stands at 31.99%, indicating a solid equity base relative to total assets. While the company maintains a reasonable level of debt, which supports growth, it also poses potential risks if not managed carefully. Overall, the balance sheet reflects a stable financial foundation with good equity utilization.
Cash Flow
82
Very Positive
Next plc's cash flow statement reveals healthy cash generation, with a significant increase in free cash flow to £932.1 million, marking an 88.64% growth from the previous year. The operating cash flow to net income ratio is 1.40, indicating strong cash earnings. The free cash flow to net income ratio is robust at 1.16, signifying efficient conversion of earnings into free cash. These metrics underscore the company's strong cash flow management, supporting its operational and strategic initiatives.
Breakdown
TTMMar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
5.83B5.49B5.03B4.63B3.53B4.27B
Gross Profit
2.58B2.42B2.21B1.98B1.24B1.68B
EBIT
1.01B987.90M878.30M860.30M427.10M855.30M
EBITDA
1.20B1.35B1.15B1.13B700.30M1.11B
Net Income Common Stockholders
803.40M802.30M711.70M677.50M286.70M610.20M
Balance SheetCash, Cash Equivalents and Short-Term Investments
156.30M188.30M114.10M468.50M619.30M88.30M
Total Assets
3.74B4.72B3.98B3.98B3.76B3.67B
Total Debt
1.28B1.92B1.92B2.11B2.44B2.49B
Net Debt
1.13B1.73B1.81B1.67B1.83B2.40B
Total Liabilities
3.38B3.09B2.82B2.97B3.10B3.23B
Stockholders Equity
366.20M1.51B1.16B1.01B660.90M441.50M
Cash FlowFree Cash Flow
804.60M932.10M494.30M626.70M560.70M687.70M
Operating Cash Flow
936.10M1.12B740.40M893.00M723.70M826.50M
Investing Cash Flow
-342.80M-334.40M-286.70M-292.50M-159.30M-139.10M
Financing Cash Flow
-604.80M-663.30M-653.40M-915.00M-102.20M-668.50M

Next plc Technical Analysis

Technical Analysis Sentiment
Positive
Last Price12910.00
Price Trends
50DMA
12028.34
Positive
100DMA
10896.18
Positive
200DMA
10386.71
Positive
Market Momentum
MACD
268.27
Positive
RSI
66.45
Neutral
STOCH
55.16
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NXT, the sentiment is Positive. The current price of 12910 is above the 20-day moving average (MA) of 12705.25, above the 50-day MA of 12028.34, and above the 200-day MA of 10386.71, indicating a bullish trend. The MACD of 268.27 indicates Positive momentum. The RSI at 66.45 is Neutral, neither overbought nor oversold. The STOCH value of 55.16 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:NXT.

Next plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
GBJD
77
Outperform
£4.14B8.4918.22%1.15%2.85%61.98%
GBNXT
76
Outperform
£15.04B21.0346.76%1.68%11.42%-7.03%
76
Outperform
£2.41B16.0484.81%6.60%3.07%1.42%
GBMKS
71
Outperform
£7.42B24.8410.25%0.99%6.87%22.36%
62
Neutral
$6.94B11.292.95%3.87%2.70%-24.49%
56
Neutral
£3.91B77.34-7.28%5.50%-15.48%-91.10%
GBASC
49
Neutral
£375.15M―-62.59%―-15.86%-18.46%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:NXT
Next plc
12,910.00
3,873.33
42.86%
GB:ASC
ASOS plc
318.00
-58.40
-15.52%
GB:BRBY
Burberry
1,077.50
91.32
9.26%
GB:DNLM
Dunelm Group
1,193.00
195.10
19.55%
GB:MKS
Marks and Spencer
366.70
60.31
19.68%
GB:JD
JD Sports Fashion
80.56
-44.00
-35.32%

Next plc Corporate Events

Shareholder MeetingsBusiness Operations and Strategy
Next plc AGM 2025: Key Resolutions Passed with Focus on Transparency
Positive
May 15, 2025

Next plc announced the results of its 2025 Annual General Meeting, where all resolutions except one were passed. The Board did not support Resolution 26, which was defeated by a significant margin. Despite this, the company acknowledged the importance of transparency in wage-setting practices and committed to enhancing disclosures in future reports. This decision reflects Next’s ongoing commitment to corporate governance and shareholder engagement, potentially impacting its reputation positively among stakeholders.

The most recent analyst rating on (GB:NXT) stock is a Buy with a £10800.00 price target. To see the full list of analyst forecasts on Next plc stock, see the GB:NXT Stock Forecast page.

Other
Next plc CEO Disposes Significant Shareholding
Negative
May 9, 2025

Next plc announced a significant transaction involving its Chief Executive, Lord Wolfson of Aspley Guise, who disposed of 100,000 ordinary shares at a price of £123.624854 per share, totaling £12,362,485.40. This transaction, conducted outside a trading venue, may influence the company’s market perception and stakeholder confidence, given the high-profile nature of the executive involved.

Business Operations and StrategyFinancial Disclosures
Next plc Reports Strong Q1 Sales, Revises Profit Guidance Upwards
Positive
May 8, 2025

Next plc reported a strong performance in the first quarter of 2025, with full price sales increasing by 11.4%, surpassing their forecast. The company attributed this success to favorable weather conditions boosting summer clothing sales. Despite the positive results, Next plc has maintained its sales guidance for the rest of the year, anticipating that some sales were pulled forward from the second quarter. The company has revised its full-year profit guidance upward by £14 million to £1,080 million. The update reflects cautious optimism, considering potential economic impacts such as National Insurance increases and strong comparative figures from the previous year.

Regulatory Filings and Compliance
Next plc Updates on Share Capital and Voting Rights
Neutral
May 1, 2025

Next plc announced that as of April 30, 2025, its registered share capital comprises 122,860,303 ordinary shares, each with equal voting rights. This information is crucial for shareholders to assess their obligations under the FCA’s Disclosure Guidance and Transparency Rules, potentially impacting their investment decisions and company transparency.

Executive/Board Changes
Next plc Grants Conditional Share Awards to Executives
Positive
Apr 25, 2025

Next plc announced the granting of conditional share awards to its executive directors under the Deferred Share Bonus Plan. The awards, based on the company’s remuneration policy, are part of the directors’ annual bonuses, which exceeded 100% of their base salaries for the year ended January 2025. These shares are deferred for two years and are intended to align the interests of the directors with those of the shareholders, potentially impacting the company’s governance and stakeholder relations positively.

Business Operations and Strategy
Next plc Announces Managerial Share Transactions
Neutral
Apr 24, 2025

Next plc announced a transaction involving Marcelle Stakol, a Brand Director, and Jeremy Stakol, a Group Investments, Acquisitions and Third Party Brands Director, who are involved in the acquisition of 270 ordinary shares at £118.55 each. This transaction, conducted on the London Stock Exchange, is part of the company’s ongoing share management strategy, which could impact its market positioning and shareholder value.

Business Operations and StrategyRegulatory Filings and Compliance
Next plc Receives Notification of Increased Voting Rights by The Capital Group
Neutral
Apr 17, 2025

Next plc, a UK-based company, has received a notification from The Capital Group Companies, Inc. regarding an acquisition or disposal of voting rights. The notification indicates that The Capital Group Companies, Inc. has increased its voting rights in Next plc to 5.152820%, up from a previous position of 4.937579%. This change reflects a strategic move by The Capital Group Companies, Inc., a prominent investment management firm, which may influence Next plc’s stakeholder dynamics and market positioning.

Stock BuybackBusiness Operations and Strategy
Next plc Executes Share Buyback to Optimize Capital Structure
Neutral
Apr 9, 2025

Next plc has repurchased 52,329 of its ordinary shares at a price of 10,972.8305 pence per share for cancellation, as part of its ongoing strategy to manage its share capital. This transaction, executed through UBS AG London Branch, reduces the company’s share capital to 122,860,303 shares, potentially impacting shareholder interests and market dynamics.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Next plc Releases Annual Report and Announces AGM
Neutral
Apr 9, 2025

Next plc has released its Annual Report and Accounts for the year ending January 2025, which includes the Notice of its Annual General Meeting (AGM) scheduled for May 15, 2025. The report is available to shareholders and has been published on the company’s website, as well as uploaded to the National Storage Mechanism. This announcement ensures transparency and regulatory compliance, reinforcing Next plc’s commitment to its shareholders and stakeholders.

Stock BuybackBusiness Operations and Strategy
Next plc Executes Share Buyback to Enhance Shareholder Value
Positive
Apr 8, 2025

Next plc announced the purchase and cancellation of 41,363 of its ordinary shares at a price of 10,859.0303 pence per share. This transaction, facilitated by UBS AG London Branch, is part of the company’s strategy to manage its share capital effectively. The move reduces the total number of shares in circulation, potentially increasing the value of remaining shares and reflecting the company’s confidence in its financial position. Stakeholders may view this as a positive signal of the company’s robust market standing and commitment to enhancing shareholder value.

Stock Buyback
Next plc Announces Share Buyback and Cancellation
Neutral
Apr 7, 2025

Next plc, a prominent player in the retail industry, has announced the purchase and cancellation of 90,000 of its ordinary shares at an average price of 10,824.7733 pence per share. This move, executed through UBS AG London Branch, reduces the company’s share capital to 122,953,995 shares, potentially impacting shareholder notifications under FCA rules.

Stock BuybackBusiness Operations and Strategy
Next plc Announces Share Repurchase for Capital Management
Neutral
Apr 2, 2025

Next plc announced the repurchase of 35,766 of its ordinary shares for cancellation, with prices ranging from 11,100p to 11,260p per share. This transaction, conducted through UBS AG London Branch, reflects the company’s strategic decision to manage its share capital, potentially impacting shareholder value and market perception.

Stock Buyback
Next plc Announces Share Buyback and Cancellation
Neutral
Apr 1, 2025

Next plc, a prominent player in the retail industry, announced the purchase and cancellation of 35,928 of its ordinary shares at a price of 11,119.8608 pence per share. This transaction, facilitated by UBS AG London Branch, reduces the company’s registered share capital to 123,079,761 shares, potentially impacting shareholder notifications under FCA rules.

Executive/Board ChangesBusiness Operations and Strategy
Next plc Announces LTIP Awards for Executives
Neutral
Apr 1, 2025

Next plc has announced the granting of Long Term Incentive Plan (LTIP) awards to several executive directors and a person closely associated with them. The awards, which are conditional on performance targets and continued employment, will vest after three years, with the potential for varying percentages of shares to vest based on the company’s relative Total Shareholder Return. This strategic move aims to align the interests of the executives with those of the shareholders, potentially impacting the company’s operational focus and market positioning.

Other
Next plc Executives Acquire Shares Under LTIP
Positive
Apr 1, 2025

Next plc announced that key managerial personnel, including Chief Executive Lord Wolfson, acquired shares as part of the company’s Long Term Incentive Plan. The shares, acquired at no cost, are to be held for a minimum of two years, reflecting confidence in the company’s future performance. Additionally, Jane Shields, a Group Director, transferred shares to her spouse, highlighting internal shareholding adjustments.

Other
Next plc Executives Announce Significant Share Sales
Negative
Apr 1, 2025

Next plc announced the sale of shares by key managerial personnel and their associates, including Richard Papp, Group Merchandise and Operations Director, and Jane Shields, Group Sales, Marketing and HR Director. These transactions, conducted on the London Stock Exchange, reflect significant share sales by these executives, potentially impacting stakeholder perceptions and the company’s market positioning.

Regulatory Filings and Compliance
Next plc Announces Total Voting Rights Update
Neutral
Apr 1, 2025

Next plc announced that as of March 31, 2025, its registered share capital consists of 123,115,689 ordinary shares, each with equal voting rights. This information is crucial for shareholders to determine their interest or any changes in their interest in the company under the FCA’s Disclosure Guidance and Transparency Rules.

Stock Buyback
Next plc Announces Share Repurchase and Capital Adjustment
Neutral
Mar 31, 2025

Next plc has repurchased 36,276 of its ordinary shares for cancellation at a price of 11,013.7670 pence per share, with the highest and lowest prices being 11,080p and 10,930p respectively. This transaction, executed through UBS AG London Branch, results in a new registered share capital of 123,115,689 shares, which may affect shareholder notifications under the FCA’s rules.

Stock Buyback
Next plc Announces Share Buyback and Capital Reduction
Neutral
Mar 28, 2025

Next plc, a prominent player in the retail industry, announced the repurchase of 36,317 of its ordinary shares, each valued at 10p, for cancellation at an average price of 11,000.8928 pence per share. This move, facilitated by UBS AG London Branch, reduces the company’s share capital to 123,151,965 shares, potentially impacting shareholder interest notifications under FCA regulations.

Regulatory Filings and Compliance
Next plc Announces Change in Major Holdings
Neutral
Mar 27, 2025

Next plc has announced a change in its major holdings, with Computershare Trustees (Jersey) Limited reducing its voting rights from 5.0023% to 4.9982%. This adjustment in holdings reflects a slight decrease in influence over the company’s voting decisions, which may impact stakeholder dynamics and the company’s governance structure.

DividendsFinancial Disclosures
Next plc Announces 2025 Financial Results and Dividend Proposal
Positive
Mar 27, 2025

Next plc has announced its preliminary financial results for the year ending January 2025, highlighting a recommended final ordinary dividend of 158p per share, subject to shareholder approval at the upcoming Annual General Meeting. This decision reflects the company’s continued commitment to returning value to its shareholders, with the total ordinary dividends for the year reaching 233p per share, indicating a stable financial performance.

Stock BuybackBusiness Operations and Strategy
Next plc Completes Share Buyback Program
Positive
Mar 26, 2025

Next plc has completed its share buyback program, purchasing 10,062 ordinary shares for cancellation at an average price of 9926.4949 pence per share. This transaction, executed through UBS AG London Branch, reduces the company’s share capital to 123,188,282 shares, potentially impacting shareholder interests and reflecting Next plc’s strategy to enhance shareholder value.

Stock BuybackBusiness Operations and Strategy
Next plc Executes Share Buyback to Enhance Shareholder Value
Positive
Mar 25, 2025

Next plc, a prominent player in the retail sector, has announced the repurchase of 11,203 of its ordinary shares, as part of a previously declared share buyback program. This transaction, executed through UBS AG London Branch, reflects the company’s strategic move to enhance shareholder value by reducing the number of shares in circulation, potentially increasing earnings per share and consolidating its market position.

Stock Buyback
Next plc Executes Share Buyback Program to Enhance Shareholder Value
Positive
Mar 21, 2025

Next plc has executed a share buyback program, purchasing 11,244 of its ordinary shares for cancellation at an average price of 9771.5023 pence per share. This move is part of a previously announced program aimed at reducing the company’s share capital, potentially increasing shareholder value and improving earnings per share. The transaction was facilitated by UBS AG London Branch, and following this purchase, the company’s registered share capital now consists of 123,220,810 shares, all with equal voting rights.

Stock Buyback
Next plc Executes Share Buyback to Enhance Shareholder Value
Positive
Mar 20, 2025

Next plc has executed a share buyback program, purchasing 11,171 of its ordinary shares for cancellation at an average price of 9839.1598 pence per share. This move is part of a previously announced program and reflects the company’s ongoing efforts to manage its capital structure, potentially enhancing shareholder value by reducing the number of shares in circulation.

Stock Buyback
Next plc Executes Share Buyback to Enhance Shareholder Value
Positive
Mar 19, 2025

Next plc has executed a share buyback program, purchasing 11,291 of its ordinary shares for cancellation at an average price of 9729.7224 pence per share. This move is part of a previously announced plan to reduce share capital, potentially enhancing shareholder value and reflecting confidence in the company’s financial health.

Stock BuybackBusiness Operations and Strategy
Next plc Executes Share Buyback to Enhance Shareholder Value
Positive
Mar 18, 2025

Next plc has announced the purchase of 11,256 of its ordinary shares for cancellation as part of a previously announced share buyback program. This move, executed through UBS AG London Branch, is part of the company’s strategy to manage its share capital and potentially enhance shareholder value. Following this transaction, the company’s registered share capital now consists of 123,254,516 shares, all with equal voting rights, which may impact shareholder notifications under regulatory guidelines.

Stock Buyback
Next plc Executes Share Buyback Program
Neutral
Mar 17, 2025

Next plc, a prominent player in the retail industry, has executed a share buyback program, purchasing 11,415 of its ordinary shares for cancellation at a price of 9624.0620 pence per share. This move, facilitated by UBS AG London Branch, reduces the company’s share capital to 123,265,772 shares, potentially impacting shareholder interests and market perceptions.

Stock Buyback
Next plc Executes Share Buyback to Enhance Shareholder Value
Positive
Mar 14, 2025

Next plc has executed a share buyback program, purchasing 11,329 of its ordinary shares for cancellation at an average price of 9697.3097 pence per share. This move is part of a previously announced program to enhance shareholder value and adjust the company’s capital structure. Following this transaction, the company’s registered share capital now consists of 123,277,187 shares, which stakeholders can use to assess their holdings under regulatory guidelines.

Stock BuybackBusiness Operations and Strategy
Next plc Executes Share Buyback to Enhance Shareholder Value
Positive
Mar 13, 2025

Next plc has executed a share buyback program, purchasing 11,340 of its ordinary shares for cancellation at an average price of 9687.7873 pence per share. This move is part of a previously announced strategy to enhance shareholder value by reducing the number of shares in circulation, potentially increasing earnings per share and providing a more favorable market position. The transaction was facilitated by UBS AG London Branch, and following this purchase, the company’s registered share capital now consists of 123,288,516 shares, all with equal voting rights.

Stock BuybackBusiness Operations and Strategy
Next plc Executes Share Buyback to Optimize Capital Structure
Neutral
Mar 12, 2025

Next plc, a prominent player in the retail industry, has announced the purchase and cancellation of 11,364 ordinary shares as part of its ongoing share buyback program. This transaction, executed through UBS AG London Branch, reflects the company’s strategy to manage its share capital and potentially enhance shareholder value. Following this purchase, the company’s registered share capital now consists of 123,299,856 shares, which stakeholders can use to assess their interests under regulatory guidelines.

Stock Buyback
Next plc Executes Share Buyback Program
Neutral
Mar 11, 2025

Next plc, a prominent retail company, has executed a share buyback program, purchasing 11,150 of its ordinary shares for cancellation at an average price of 9853.4291 pence per share. This move, conducted through UBS AG London Branch, reduces the company’s share capital to 123,311,220 shares, potentially impacting shareholder notifications under FCA rules.

Stock Buyback
Next plc Executes Share Buyback Program
Positive
Mar 10, 2025

Next plc has executed a share buyback program, purchasing 10,983 of its ordinary shares for cancellation at an average price of 10,003.0333 pence per share. This move is part of a previously announced program aimed at reducing the company’s share capital, potentially enhancing shareholder value and reflecting confidence in the company’s financial health.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.