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Next plc (GB:NXT)
LSE:NXT

Next plc (NXT) AI Stock Analysis

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GB:NXT

Next plc

(LSE:NXT)

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Outperform 76 (OpenAI - 4o)
Rating:76Outperform
Price Target:
15,905.00p
▲(18.96% Upside)
Next plc's strong financial performance and positive technical indicators are the primary drivers of its stock score. While the valuation is fair, recent corporate events provide a mixed impact, with positive actions like share acquisitions and land sales being offset by significant executive share sales.
Positive Factors
Revenue Growth
Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.
Cash Flow Strength
Strong cash flow generation enhances financial flexibility, enabling investment in growth opportunities and providing a buffer against economic downturns.
Operational Efficiency
Improved margins reflect efficient cost management and pricing power, contributing to sustained profitability and competitive advantage.
Negative Factors
High Debt Levels
High debt levels can limit financial flexibility and increase risk, particularly in volatile market conditions, potentially impacting long-term stability.
Net Profit Margin Decline
A decline in net profit margin suggests challenges in maintaining profitability, which could affect future earnings and shareholder returns if not addressed.
Leverage Monitoring
Ongoing attention to leverage and capital expenditures is crucial to maintain financial health and avoid potential liquidity issues.

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 primarily through its retail operations, which include both physical stores and online sales channels. The company's key revenue streams consist of sales from its Next Retail segment, where customers shop in-store, and from Next Directory, which accounts for a significant portion of online sales. Additionally, Next has a growing presence in the international market through its online platform. The company also benefits from its strong brand loyalty and frequent promotional events. Furthermore, Next has partnerships with various third-party brands, allowing it to diversify its product offerings and attract a wider customer base. The integration of physical and digital retail strategies enhances its profitability, as it adapts to changing consumer shopping behaviors.

Next plc Financial Statement Overview

Summary
Next plc exhibits strong financial health across income, balance sheet, and cash flow statements. The company showcases consistent revenue growth, robust margins, and efficient equity use, despite high debt levels. The cash flow remains strong, supporting operations and allowing for potential growth investments. Overall, Next plc is well-positioned in the Apparel - Retail industry, but must continue monitoring leverage and capital expenditures to ensure sustained financial stability.
Income Statement
85
Very Positive
Next plc shows a strong income statement with consistent revenue growth from 2020 to 2025. The gross profit margin improved from approximately 39.4% in 2020 to 43.2% in 2025, indicating efficiency in managing production costs. Net profit margin slightly decreased from 14.3% in 2024 to 12.0% in 2025, reflecting a small dip in net income. Revenue growth rate from 2024 to 2025 was healthy at 11.4%. The EBIT margin and EBITDA margin in 2025 were robust at 17.6% and 22.8%, respectively, demonstrating strong operational performance.
Balance Sheet
75
Positive
The balance sheet of Next plc indicates a solid financial position with a manageable debt-to-equity ratio of 1.14 in 2025. The return on equity (ROE) in 2025 was a commendable 45.0%, highlighting effective use of equity to generate profits. The equity ratio improved to 33.6% in 2025 from 30.1% in 2024, showing a growing equity base. However, the total debt remains high, which could pose a risk if not managed carefully.
Cash Flow
80
Positive
Next plc's cash flow statement is strong, with a free cash flow growth rate of 4.7% from 2024 to 2025, indicating healthy cash generation. The operating cash flow to net income ratio was robust at 1.54 in 2025, suggesting strong cash earnings. Free cash flow to net income ratio stood at 1.33, reflecting sustainable free cash generation relative to net income. Despite solid performance, continuous attention to capital expenditures is advised to maintain cash flow stability.
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue4.77B6.12B5.49B5.03B4.63B3.53B
Gross Profit2.09B2.64B2.42B2.21B1.98B1.24B
EBITDA1.05B1.39B1.35B1.17B1.13B700.30M
Net Income586.10M736.10M802.30M711.70M677.50M286.70M
Balance Sheet
Total Assets5.29B4.87B4.72B3.98B3.98B3.76B
Cash, Cash Equivalents and Short-Term Investments441.10M200.40M188.30M105.00M468.50M619.30M
Total Debt1.99B1.87B1.92B1.92B2.11B2.44B
Total Liabilities3.47B3.12B3.09B2.82B2.97B3.10B
Stockholders Equity1.70B1.64B1.51B1.16B1.01B660.90M
Cash Flow
Free Cash Flow691.20M976.40M932.10M494.30M626.70M560.70M
Operating Cash Flow786.00M1.13B1.12B740.40M893.00M723.70M
Investing Cash Flow-119.75M-181.20M-334.40M-271.40M-292.50M-130.90M
Financing Cash Flow-383.95M-939.60M-663.30M-727.10M-993.40M-231.70M

Next plc Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price13370.00
Price Trends
50DMA
13609.15
Negative
100DMA
12798.46
Positive
200DMA
12189.86
Positive
Market Momentum
MACD
-16.35
Positive
RSI
36.61
Neutral
STOCH
8.52
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NXT, the sentiment is Neutral. The current price of 13370 is below the 20-day moving average (MA) of 13852.42, below the 50-day MA of 13609.15, and above the 200-day MA of 12189.86, indicating a neutral trend. The MACD of -16.35 indicates Positive momentum. The RSI at 36.61 is Neutral, neither overbought nor oversold. The STOCH value of 8.52 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:NXT.

Next plc Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
76
Outperform
£16.49B21.1451.86%1.83%9.74%0.92%
75
Outperform
£2.33B14.98121.78%4.07%3.78%3.29%
71
Outperform
£4.30B8.6819.64%1.24%14.60%58.84%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
61
Neutral
£6.75B341.530.68%1.19%14.13%-96.12%
55
Neutral
£4.20B-55.67-3.00%-9.44%-170.53%
46
Neutral
£274.50M-0.93-81.34%-14.89%12.08%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:NXT
Next plc
13,370.00
3,705.06
38.34%
GB:ASC
ASOS plc
253.50
-147.10
-36.72%
GB:BRBY
Burberry
1,272.50
319.70
33.55%
GB:DNLM
Dunelm Group
1,094.00
83.51
8.26%
GB:MKS
Marks and Spencer
318.40
-75.11
-19.09%
GB:JD
JD Sports Fashion
80.86
-16.96
-17.34%

Next plc Corporate Events

Business Operations and Strategy
Next plc Announces Sharesave Plan Transactions by Key Directors
Positive
Dec 1, 2025

Next plc announced that share options were exercised under the 2020 Sharesave Plan by Jeremy Stakol, the Group Investments, Acquisitions and Third Party Brands Director, and Marcelle Stakol, the Lipsy Brand Director. This transaction, involving the acquisition of ordinary shares, reflects the company’s ongoing commitment to employee investment and engagement, potentially enhancing stakeholder confidence and aligning managerial interests with shareholder value.

DividendsBusiness Operations and Strategy
Next plc Boosts Shareholder Returns with Land Sale
Positive
Nov 25, 2025

Next plc announced the sale of non-operational land at Waltham Abbey, Essex, resulting in a net cash inflow of £54.1 million and an exceptional profit of £16.3 million. This transaction, which deviates from the company’s regular business activities, will enhance shareholder returns through a special dividend increase of 45p, reflecting Next’s strategic shift in its distribution network plans.

Shareholder MeetingsBusiness Operations and Strategy
Next plc’s AGM Results and Future Disclosures
Neutral
Nov 14, 2025

Next plc, a prominent player in the retail industry, focuses on offering a wide range of clothing, footwear, and home products. At its 2025 Annual General Meeting, a shareholder resolution proposed by ShareAction was decisively rejected, with over 73% voting against it. The company plans to enhance its disclosures on pay setting and shareholder engagement in its 2026 Annual Report, reflecting ongoing dialogue with shareholders.

Other
Next plc Executives Sell Significant Shares
Negative
Oct 30, 2025

Next plc has announced transactions involving the sale of shares by key managerial personnel. Richard Papp, Group Merchandise and Operations Director, sold 2,518 ordinary shares at a price of £140.44 each, totaling £353,627.92 on the London Stock Exchange. Additionally, Chief Executive Lord Wolfson of Aspley Guise sold 50,000 ordinary shares at £145.195142 each, amounting to £7,259,757.10, outside a trading venue. These transactions reflect significant share sales by top executives, potentially impacting investor perceptions and the company’s market positioning.

DividendsFinancial Disclosures
Next plc Surpasses Sales Expectations, Raises Profit Guidance
Positive
Oct 29, 2025

Next plc reported a robust performance in the third quarter, with full price sales increasing by 10.5% compared to the previous year, significantly surpassing their guidance. The company saw notable growth in both UK and international markets, with overseas sales rising by 38.8%. As a result of this strong performance, Next has raised its full-year profit guidance by £30 million to £1,135 million. The company also plans to distribute surplus cash through a special dividend, reflecting its strong cash generation and financial health.

Business Operations and Strategy
Next plc Grants Share Options Under 2020 Sharesave Plan
Neutral
Oct 17, 2025

Next plc has announced the granting of share options to certain individuals under its 2020 Sharesave Plan, with an exercise price of £95.28, in accordance with HMRC rules. This move reflects the company’s commitment to incentivizing its managerial team and closely associated persons, potentially impacting its operational dynamics by aligning the interests of key personnel with the company’s long-term performance goals.

Executive/Board ChangesBusiness Operations and Strategy
Next plc Announces Executive LTIP Awards
Neutral
Oct 3, 2025

Next plc has announced the granting of awards under its Long Term Incentive Plan (LTIP) to several executive directors and a person closely associated with them. These awards are conditional on performance targets and continued employment, with vesting occurring after three years. The awards are designed to align the interests of the executives with those of shareholders, as the vesting percentage is tied to the company’s relative Total Shareholder Return against a comparator group. This move is part of Next’s strategy to incentivize its leadership team and ensure sustained company performance.

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

Next plc has announced that as of 30 September 2025, its registered share capital comprises 122,436,612 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, impacting how they report their interests in the company.

Executive/Board ChangesBusiness Operations and Strategy
Next plc Executives Acquire Shares Under Long Term Incentive Plan
Positive
Sep 30, 2025

Next plc announced that key managerial personnel and a closely associated person acquired shares as part of the vesting of the company’s Long Term Incentive Plan (LTIP) for the period 2022-2025. This acquisition reflects the company’s commitment to aligning the interests of its executives with shareholders, potentially impacting its market positioning by reinforcing confidence in its leadership and strategic direction.

Stock BuybackBusiness Operations and Strategy
Next plc Executes Share Buyback to Optimize Capital Structure
Neutral
Sep 19, 2025

Next plc, a prominent retailer, has executed a share buyback by purchasing 57,000 of its ordinary shares at a price of 11,781.4309 pence each, for cancellation. This strategic move, facilitated by UBS AG London Branch, results in a reduced share capital of 122,436,612 shares, potentially impacting shareholder interests and market perception.

Other
Next plc Director Acquires Shares, Signaling Confidence
Positive
Sep 19, 2025

Next plc announced a transaction involving Amy Stirling, a Non-executive Director, who purchased 472 ordinary shares at a price of £116.33549 each, totaling £54,910.35128. This transaction, conducted outside a trading venue on 18 September 2025, reflects managerial confidence in the company’s prospects and could influence stakeholder perceptions positively.

Stock Buyback
Next plc Announces Share Buyback and Capital Reduction
Neutral
Sep 18, 2025

Next plc, a prominent player in the retail industry, has announced the repurchase of 51,000 of its ordinary shares at a price of 11,533.1988 pence per share, all of which are to be cancelled. This transaction, executed through UBS AG London Branch, reduces the company’s registered share capital to 122,493,612 shares, potentially impacting shareholder notifications under FCA rules.

DividendsFinancial Disclosures
Next plc Announces Half Year Results and Dividend Declaration
Positive
Sep 18, 2025

Next plc has released its Half Year Report for the period ending July 2025, which is now available for public inspection. The Board has declared an interim ordinary dividend of 87 pence per share, scheduled for payment on January 5, 2026, with shares trading ex-dividend from December 4, 2025. This announcement reflects the company’s ongoing commitment to returning value to shareholders and may influence investor sentiment positively.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Dec 07, 2025