Next plc (NXT) AI Stock Analysis

• Market Cap: £14.22B
• Dividend Yield: 1.91%
• Average Volume (3M): 274.33K
• Price to Earnings (P/E): 19.9
• Beta (1Y): 0.63
• Revenue Growth: 11.42%
• EPS Growth: -7.03%
• Country: UK
• Employees: 32,931
• Sector: Consumer Cyclical
• Sector Strength: 81
• Industry: Apparel - Retail
• EPS (TTM): 3.57
• Shares Outstanding: 122,656,610
• 10 Day Avg. Volume: 272,246
• 30 Day Avg. Volume: 274,327
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £13,366.67
• Price Target Upside: 9.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 72 Outperform
• Price Target: 13,464.00p ▲(10.32% Upside)

Next plc's overall stock score is driven by strong financial performance and a balanced valuation. The company's robust financial health and fair valuation are key strengths, while mixed technical signals suggest some caution in the short term. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Defensive Positioning

Next is seen as a port in a storm, recommended for defensive or high-quality plays with strong track records amid the uncertain UK backdrop.

International Growth

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

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 Business Overview & Revenue Model

Company Description

Next plc is a British multinational clothing, footwear, and home products retailer headquartered in Enderby, Leicestershire. The company operates through various segments, including Next Retail, which sells clothing and home products through physical stores and online, and Next Directory, an online catalog shopping service. Next plc is known for its wide range of fashionable apparel, accessories, and home furnishings, catering to diverse customer demographics.

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, despite high debt levels. The cash flow remains strong, supporting operations and allowing for 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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	6.12B	5.49B	5.03B	4.63B	3.53B
Gross Profit	2.64B	2.42B	2.21B	1.98B	1.24B
EBITDA	1.39B	1.35B	1.15B	1.13B	700.30M
Net Income	736.10M	802.30M	711.70M	677.50M	286.70M
Balance Sheet
Total Assets	4.87B	4.72B	3.98B	3.98B	3.76B
Cash, Cash Equivalents and Short-Term Investments	200.40M	188.30M	114.10M	468.50M	619.30M
Total Debt	1.87B	1.92B	1.92B	2.11B	2.44B
Total Liabilities	3.12B	3.09B	2.82B	2.97B	3.10B
Stockholders Equity	1.64B	1.51B	1.16B	1.01B	660.90M
Cash Flow
Free Cash Flow	976.40M	932.10M	494.30M	626.70M	560.70M
Operating Cash Flow	1.13B	1.12B	740.40M	893.00M	723.70M
Investing Cash Flow	-181.20M	-334.40M	-286.70M	-292.50M	-159.30M
Financing Cash Flow	-939.60M	-663.30M	-653.40M	-915.00M	-102.20M

Next plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 12205.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

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 12205 is above the 20-day moving average (MA) of 12037.50, above the 50-day MA of 12138.31, and above the 200-day MA of 10894.80, indicating a bullish trend. The MACD of -4.64 indicates Negative momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 82.14 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	£4.76B	9.82	18.22%	1.06%	8.69%	-9.09%
DNLM	73 Outperform	£2.47B	16.34	84.81%	3.36%	3.07%	1.42%
NXT	72 Outperform	£14.22B	19.89	46.76%	1.91%	11.42%	-7.03%
MKS	72 Outperform	£7.23B	24.51	10.25%	1.01%	5.96%	-33.04%
BRBY	65 Neutral	£4.52B	77.34	-7.28%	5.01%	-17.08%	-128.46%
Sector *	61 Neutral	$17.75B	12.51	-5.49%	3.06%	1.43%	-14.10%
ASC	46 Neutral	£360.43M	―	-62.59%	―	-15.86%	-18.46%

Next plc Corporate Events

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.

Next plc Announces Share Buyback and Cancellation

Next plc announced the purchase and cancellation of 33,943 of its ordinary shares at a price of 11,770.1220 pence per share. This transaction, executed through UBS AG London Branch, reduces the company’s registered share capital to 122,758,207 shares, impacting shareholder interests as per FCA’s Disclosure Guidance and Transparency Rules.

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 Repurchase and Cancellation

Next plc, a prominent player in the retail sector, has announced the repurchase of 34,106 of its ordinary shares, which will be canceled. The shares were bought at a price of 11,714.1499 pence each, with the highest price at 11,800 pence and the lowest at 11,615 pence. This transaction, executed through UBS AG London Branch, reduces the company’s registered share capital to 122,792,150 shares. This move could impact shareholder interests and the company’s market positioning by potentially increasing the value of remaining shares.

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, Reducing Capital

Next plc has repurchased 34,047 of its ordinary shares for cancellation at an average price of 11,734.2776 pence per share. This transaction, executed through UBS AG London Branch, reduces the company’s registered share capital to 122,826,256 shares, potentially impacting shareholder interests and market dynamics.

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 KPMG as New Auditor from 2028

NEXT plc has announced its intention to appoint KPMG LLP as its external auditor starting from the financial year ending January 2028, following a formal tender process. This change, subject to shareholder approval, comes as part of the requirement for public interest entities to conduct an audit tender every ten years, with PwC continuing as the auditor until January 2027. The decision reflects a strategic move by NEXT to ensure compliance and possibly enhance its audit practices, with further details to be disclosed in the 2026 Annual Report.

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 Total Voting Rights Update

NEXT plc, a prominent player in the retail industry, has announced its total voting rights as of July 31, 2025. The company reported a registered share capital of 122,860,303 ordinary shares, each with equal voting rights, which shareholders can use to assess their interest in the company under FCA regulations.

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 Reports Strong Q2 Sales and Raises Profit Guidance

Next plc reported a strong performance in the second quarter, with full price sales increasing by 10.5% compared to the previous year, surpassing their guidance by £49 million. This growth was attributed to favorable weather conditions in the UK and effective digital marketing internationally. Consequently, the company has raised its full-year profit guidance by £25 million to £1,105 million. Despite this positive performance, Next remains cautious about the second half, expecting a slower growth rate in the UK due to economic factors and strong comparative figures from the previous year. However, international online sales are expected to continue growing robustly, with guidance upgraded from 13.1% to 19.4%.

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 Enhances Financial Structure with New Note Issuance and Increased Credit Facility

Next plc has announced the issuance of £300 million in 5.000% notes due in 2031, guaranteed by the company under its £3 billion Euro Medium Term Note Programme. The proceeds from this issuance were partially used to repurchase £136.43 million of its 4.375% bonds due in 2026, enhancing its debt structure. Additionally, the company increased its revolving credit facility by £100 million, bringing the total available commitments to £1,488.57 million. This strategic financial maneuvering positions Next plc to maintain robust liquidity and flexibility, potentially strengthening its market position and offering reassurance to stakeholders regarding its financial stability.

The most recent analyst rating on (GB:NXT) stock is a Hold with a £122.00 price target. To see the full list of analyst forecasts on Next plc stock, see the GB:NXT Stock Forecast page.

Next plc Announces Total Voting Rights Update

Next plc announced that as of June 30, 2025, its registered share capital consists of 122,860,303 ordinary shares, each with equal voting rights. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure Guidance and Transparency Rules, impacting how they manage their shares and interests in the company.

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.