Next plc (NXT) AI Stock Analysis

• Market Cap: £14.22B
• Dividend Yield: 2.59%
• Average Volume (3M): 259.04K
• Price to Earnings (P/E): 19.8
• Beta (1Y): 0.65
• Revenue Growth: 11.42%
• EPS Growth: -7.03%
• Country: UK
• Employees: 32,931
• Sector: Consumer Cyclical
• Sector Strength: 65
• Industry: Apparel - Retail
• EPS (TTM): 3.57
• Shares Outstanding: 122,860,306
• 10 Day Avg. Volume: 317,934
• 30 Day Avg. Volume: 259,037
• PEG Ratio: -2.62
• Price to Book (P/B): 8.85
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.57
• 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: £12,300.00
• Price Target Upside: 1.03% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 75 Outperform
• Price Target: 13,686.00p ▲(12.41%Upside)

Next plc's strong financial performance and positive corporate events are the primary drivers of its score, supported by a stable cash flow and increased profit guidance. However, high valuation concerns and mixed technical indicators moderate the overall assessment.

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, United Kingdom. The company operates a chain of over 500 retail stores in the UK and Ireland, and around 200 stores in 40 countries overseas. Next is known for its stylish and affordable fashion and homeware offerings, appealing to a wide range of customers. The company's core sectors include retail, online shopping, and homeware, providing a comprehensive shopping experience both in-store and through its e-commerce platforms.

How the Company Makes Money

Next 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 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: Negative
• Last Price: 12175.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 12175 is below the 20-day moving average (MA) of 12202.46, below the 50-day MA of 12376.39, and above the 200-day MA of 10592.71, indicating a neutral trend. The MACD of -37.66 indicates Negative momentum. The RSI at 47.11 is Neutral, neither overbought nor oversold. The STOCH value of 49.76 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	81 Outperform	£4.20B	8.89	18.22%	1.62%	8.69%	-9.09%
NXT	75 Outperform	£14.22B	19.80	46.76%	2.59%	11.42%	-7.03%
DNLM	73 Outperform	£2.30B	15.80	84.81%	1.79%	3.07%	1.42%
MKS	66 Neutral	£6.66B	22.61	10.25%	1.57%	5.96%	-33.04%
BRBY	65 Neutral	£4.42B	77.34	-7.28%	5.01%	-17.08%	-128.46%
Sector *	56 Neutral	HK$25.22B	4.10	-2.03%	6.15%	-0.31%	-67.64%
ASC	51 Neutral	£384.89M	―	-62.59%	―	-15.86%	-18.46%

Next plc Corporate Events

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.

Next plc AGM 2025: Key Resolutions Passed with Focus on Transparency

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.

Next plc CEO Disposes Significant Shareholding

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.

Next plc Reports Strong Q1 Sales, Revises Profit Guidance Upwards

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.

Next plc Updates on Share Capital and Voting Rights

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.

Next plc Grants Conditional Share Awards to Executives

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.

Next plc Announces Managerial Share Transactions

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.