Next plc (NXT) AI Stock Analysis

• Market Cap: £14.60B
• Dividend Yield: 1.86%
• Average Volume (3M): 315.40K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.66
• Revenue Growth: 9.74%
• EPS Growth: 0.92%
• Country: UK
• Employees: 32,931
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Apparel - Retail
• EPS (TTM): 3.30
• Shares Outstanding: 122,436,615
• 10 Day Avg. Volume: 307,304
• 30 Day Avg. Volume: 315,396
• PEG Ratio: -2.29
• 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: 4.76% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 9

• Rating: 72 Outperform
• Price Target: 13,370.00p ▲(6.92% Upside)

Next plc's overall stock score reflects strong financial performance and reasonable valuation. While technical indicators show mixed signals, the company's solid financial health and moderate valuation support a favorable outlook. The absence of earnings call data and corporate events does not impact the score.

Positive Factors

Revenue Growth

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

Cash Flow Strength

Strong cash flow growth supports operational stability and provides flexibility for future investments and debt management.

Operational Efficiency

Improved gross margins reflect efficient cost management, enhancing profitability and competitive positioning in the market.

Negative Factors

High Debt Levels

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

Net Profit Margin Decline

A decline in net profit margin suggests challenges in maintaining profitability, which could affect future earnings and shareholder returns.

Capital Expenditure

High capital expenditure needs may pressure cash flows, requiring careful management to ensure ongoing financial stability and growth.

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 company maintains a solid cash flow, supporting operations and potential growth investments. However, high debt levels require careful management.

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 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.77B	6.12B	5.49B	5.03B	4.63B	3.53B
Gross Profit	2.09B	2.64B	2.42B	2.21B	1.98B	1.24B
EBITDA	1.05B	1.39B	1.35B	1.15B	1.13B	700.30M
Net Income	586.10M	736.10M	802.30M	711.70M	677.50M	286.70M
Balance Sheet
Total Assets	5.29B	4.87B	4.72B	3.98B	3.98B	3.76B
Cash, Cash Equivalents and Short-Term Investments	441.10M	200.40M	188.30M	105.00M	468.50M	619.30M
Total Debt	1.99B	1.87B	1.92B	1.92B	2.11B	2.44B
Total Liabilities	3.47B	3.12B	3.09B	2.82B	2.97B	3.10B
Stockholders Equity	1.70B	1.64B	1.51B	1.16B	1.01B	660.90M
Cash Flow
Free Cash Flow	691.20M	976.40M	932.10M	494.30M	626.70M	560.70M
Operating Cash Flow	786.00M	1.13B	1.12B	740.40M	893.00M	723.70M
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: Positive
• Last Price: 12505.00
• 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 12505 is above the 20-day moving average (MA) of 12179.25, above the 50-day MA of 12084.20, and above the 200-day MA of 11292.32, indicating a bullish trend. The MACD of 126.96 indicates Negative momentum. The RSI at 62.03 is Neutral, neither overbought nor oversold. The STOCH value of 85.15 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	79 Outperform	£5.15B	10.32	19.64%	1.02%	14.60%	58.84%
NXT	72 Outperform	£14.60B	18.72	51.86%	1.86%	9.74%	0.92%
MKS	72 Outperform	£7.81B	26.48	10.25%	0.93%	5.96%	-33.04%
DNLM	70 Outperform	£2.26B	14.51	121.78%	3.70%	3.78%	3.44%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
ASC	46 Neutral	£306.72M	―	-62.59%	―	-15.86%	-18.46%
BRBY	46 Neutral	£4.54B	77.34	-7.28%	5.01%	-17.08%	-128.46%

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.