Next plc (NXT) AI Stock Analysis

• Market Cap: £13.97B
• Dividend Yield: 2.01%
• Average Volume (3M): 292.48K
• Price to Earnings (P/E): 19.5
• Beta (1Y): 0.64
• Revenue Growth: 11.42%
• EPS Growth: -7.03%
• Country: UK
• Employees: 32,931
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 3.30
• Shares Outstanding: 122,493,614
• 10 Day Avg. Volume: 351,466
• 30 Day Avg. Volume: 292,475
• PEG Ratio: -2.61
• Price to Book (P/B): 7.33
• Price to Sales (P/S): 1.96
• P/FCF Ratio: 12.28
• 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: £13,100.00
• Price Target Upside: 13.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 68 Neutral
• Price Target: 13,053.00p ▲(12.77% Upside)

Next plc's strong financial performance is the primary driver of its stock score, supported by consistent revenue growth and robust margins. Technical analysis indicates a bearish trend, while valuation metrics suggest fair pricing. The absence of earnings call and corporate events data limits further insights.

Positive Factors

Revenue Growth

Consistent revenue growth indicates strong market demand and effective business strategies, supporting long-term expansion and competitiveness.

Margin Sustainability

Improved gross margins reflect efficient cost management and pricing power, enhancing profitability and financial resilience over time.

Cash Flow Generation

Strong cash flow generation supports operational needs and potential growth investments, ensuring financial stability and strategic flexibility.

Negative Factors

Rising Debt Levels

High debt levels can strain financial resources and limit strategic options, potentially impacting long-term financial health and growth capacity.

Net Profit Margin Decline

A decline in net profit margin may indicate rising costs or pricing pressures, affecting overall profitability and necessitating cost control measures.

Capital Expenditure Concerns

High capital expenditures can impact cash flow stability, requiring careful management to ensure ongoing financial health and investment capacity.

Next plc Business Overview & Revenue Model

Company Description

NEXT 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 Money

Next plc generates revenue primarily through its retail operations, which include both physical stores and its online shopping platform. The bulk of its sales comes from clothing and footwear, with a strong emphasis on women's fashion. Additionally, the company earns revenue from its home products segment, which includes furniture and home decor items. Next Directory, the company's online catalog service, provides another significant revenue stream, allowing customers to shop conveniently from home. The company's strategy includes a focus on high-quality products, competitive pricing, and efficient supply chain management. Furthermore, Next plc engages in partnerships with various brands and suppliers, enhancing its product offerings and expanding its market reach. The growth of its online sales, especially during the COVID-19 pandemic, has also contributed positively to its revenue model.

Next plc Financial Statement Overview

Summary

Next plc exhibits strong financial health with consistent revenue growth, robust margins, and efficient equity use. The income statement is strong with a high gross profit margin and healthy revenue growth. The balance sheet shows a solid financial position despite high debt levels. Cash flow is strong, supporting operations and potential growth investments.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2022	Dec 2021	Dec 2021
Income Statement
Total Revenue	4.49B	6.12B	5.49B	5.03B	3.53B	4.63B
Gross Profit	1.94B	2.64B	2.42B	2.21B	1.24B	1.98B
EBITDA	963.15M	1.39B	1.35B	1.15B	700.30M	1.13B
Net Income	529.50M	736.10M	802.30M	711.70M	286.70M	677.50M
Balance Sheet
Total Assets	4.87B	4.87B	4.72B	3.98B	3.76B	3.98B
Cash, Cash Equivalents and Short-Term Investments	200.40M	200.40M	188.30M	114.10M	619.30M	468.50M
Total Debt	1.87B	1.87B	1.92B	1.92B	2.44B	2.11B
Total Liabilities	3.12B	3.12B	3.09B	2.82B	3.10B	2.97B
Stockholders Equity	1.64B	1.64B	1.51B	1.16B	660.90M	1.01B
Cash Flow
Free Cash Flow	606.70M	976.40M	932.10M	494.30M	560.70M	626.70M
Operating Cash Flow	703.70M	1.13B	1.12B	740.40M	723.70M	893.00M
Investing Cash Flow	-141.25M	-181.20M	-334.40M	-286.70M	-159.30M	-292.50M
Financing Cash Flow	-576.85M	-939.60M	-663.30M	-653.40M	-102.20M	-915.00M

Next plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 11575.00
• 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:NXT, the sentiment is Negative. The current price of 11575 is below the 20-day moving average (MA) of 12016.25, below the 50-day MA of 12056.10, and above the 200-day MA of 11114.48, indicating a neutral trend. The MACD of -46.83 indicates Positive momentum. The RSI at 46.31 is Neutral, neither overbought nor oversold. The STOCH value of 40.23 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:NXT.

Next plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JD	78 Outperform	4.67B	9.72	16.77%	1.09%	8.69%	-9.09%
DNLM	73 Outperform	2.18B	14.02	0.00%	3.85%	3.78%	3.44%
MKS	72 Outperform	7.21B	24.47	10.06%	1.00%	5.96%	-33.04%
NXT	68 Neutral	£13.97B	19.51	51.86%	2.01%	11.42%	-7.03%
BRBY	53 Neutral	3.98B	-54.31	-8.21%	―	-17.08%	-128.46%
ASC	46 Neutral	341.93M	-1.16	-64.97%	―	-15.86%	-18.46%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

Next plc Corporate Events

Next plc Executes Share Buyback Program

Next plc, a prominent player in the retail sector, has executed a share buyback program, purchasing 57,000 of its ordinary shares for cancellation at an average price of 11,731.0956 pence per share. This move, facilitated by UBS AG London Branch, reduces the company’s share capital to 122,544,612 shares, potentially impacting shareholder notifications under FCA rules.

The most recent analyst rating on (GB:NXT) stock is a Buy with a £13464.00 price target. To see the full list of analyst forecasts on Next plc stock, see the GB:NXT Stock Forecast page.

Next plc Executes Share Buyback Program

Next plc has executed a share buyback program, purchasing 55,000 of its ordinary shares for cancellation at an average price of 11,714.0465 pence per share. This move is part of a previously announced non-discretionary program aimed at optimizing the company’s capital structure and potentially enhancing shareholder value. The transaction reflects Next plc’s strategic focus on maintaining financial health and delivering value to its stakeholders.

The most recent analyst rating on (GB:NXT) stock is a Buy with a £13464.00 price target. To see the full list of analyst forecasts on Next plc stock, see the GB:NXT Stock Forecast page.

Next plc Announces Share Capital Details

Next plc announced that as of August 29, 2025, its registered share capital comprises 122,656,612 ordinary shares, each with equal voting rights. This information is crucial for shareholders to assess their notification obligations under the FCA’s rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:NXT) stock is a Buy with a £13464.00 price target. To see the full list of analyst forecasts on Next plc stock, see the GB:NXT Stock Forecast page.

Next plc Updates Share Capital and Voting Rights

Next plc announced that as of 29 August 2025, its registered share capital consists of 122,656,612 ordinary shares, each with equal voting rights. This update is crucial for shareholders to determine their notification requirements under the FCA’s rules, impacting how they manage their investments and disclosures.

The most recent analyst rating on (GB:NXT) stock is a Buy with a £13464.00 price target. To see the full list of analyst forecasts on Next plc stock, see the GB:NXT Stock Forecast page.

Next plc Announces Share Buyback and Cancellation

Next plc announced the purchase and cancellation of 33,870 of its ordinary shares at an average price of 11,795.6881 pence per share, executed through UBS AG London Branch. This transaction reduces the company’s registered share capital to 122,656,612 shares, potentially impacting shareholder interests according to FCA’s rules, and reflects the company’s strategy to manage its capital structure effectively.

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.

Next plc Initiates Share Repurchase Programme

Next plc has announced the initiation of a non-discretionary share repurchase programme aimed at buying back its own shares for cancellation. This programme, set to begin on 19 August 2025 and conclude on 17 September 2025, will operate under pre-set parameters and comply with relevant UK laws and regulations. The announcement indicates a strategic move to manage the company’s capital structure and potentially enhance shareholder value during a closed period, reflecting confidence in its financial stability and market position.

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.

Next plc Executes Share Buyback to Optimize Capital Structure

Next plc has announced the repurchase of 42,046 of its ordinary shares for cancellation at a price of approximately 11,798.6144 pence per share. This transaction, executed through UBS AG London Branch, reduces the company’s registered share capital to 122,690,482 shares, potentially impacting shareholder notifications under the FCA’s Disclosure Guidance and Transparency Rules. The move is part of Next’s ongoing strategy to manage its share capital and could influence its market positioning by enhancing shareholder value.

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.

Next plc Announces Share Buyback and Cancellation

Next plc has repurchased 25,679 of its ordinary shares at an average price of 11,798.0856 pence per share for cancellation. This transaction, executed through UBS AG London Branch, reduces the company’s total share capital to 122,732,528 shares, potentially impacting shareholder interests and market dynamics by consolidating ownership and possibly enhancing shareholder value.

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.