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Next Plc (GB:NXT)
:NXT
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Next plc (NXT) AI Stock Analysis

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GB:NXT

Next plc

(LSE:NXT)

Rating:72Outperform
Price Target:
13,472.00p
▲(11.20% Upside)
Next plc's overall score is driven by its strong financial performance and positive corporate events, tempered by neutral technical indicators and a fair valuation. The company's high debt levels and CEO share disposal warrant caution.
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 (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 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
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.
BreakdownMar 2025Mar 2024Mar 2023Mar 2022Mar 2021
Income Statement
Total Revenue6.12B5.49B5.03B4.63B3.53B
Gross Profit2.64B2.42B2.21B1.98B1.24B
EBITDA1.39B1.35B1.15B1.13B700.30M
Net Income736.10M802.30M711.70M677.50M286.70M
Balance Sheet
Total Assets4.87B4.72B3.98B3.98B3.76B
Cash, Cash Equivalents and Short-Term Investments200.40M188.30M114.10M468.50M619.30M
Total Debt1.87B1.92B1.92B2.11B2.44B
Total Liabilities3.12B3.09B2.82B2.97B3.10B
Stockholders Equity1.64B1.51B1.16B1.01B660.90M
Cash Flow
Free Cash Flow976.40M932.10M494.30M626.70M560.70M
Operating Cash Flow1.13B1.12B740.40M893.00M723.70M
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 Price12115.00
Price Trends
50DMA
12324.25
Negative
100DMA
11848.07
Positive
200DMA
10743.70
Positive
Market Momentum
MACD
-6.65
Negative
RSI
51.22
Neutral
STOCH
39.94
Neutral
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 12115 is below the 20-day moving average (MA) of 12201.75, below the 50-day MA of 12324.25, and above the 200-day MA of 10743.70, indicating a neutral trend. The MACD of -6.65 indicates Negative momentum. The RSI at 51.22 is Neutral, neither overbought nor oversold. The STOCH value of 39.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
80
Outperform
£4.32B8.9918.22%1.18%8.69%-9.09%
73
Outperform
£2.45B16.2284.81%3.44%3.07%1.42%
72
Outperform
£14.30B19.7046.76%1.89%11.42%-7.03%
67
Neutral
£6.90B23.4110.25%1.05%5.96%-33.04%
65
Neutral
£4.58B77.34-7.28%5.01%-17.08%-128.46%
61
Neutral
$16.48B10.03-9.00%3.34%1.42%-22.40%
51
Neutral
£364.61M-62.59%-15.86%-18.46%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:NXT
Next plc
12,250.00
2,966.93
31.96%
GB:ASC
ASOS plc
310.50
-38.90
-11.13%
GB:BRBY
Burberry
1,278.50
586.50
84.75%
GB:DNLM
Dunelm Group
1,218.00
135.01
12.47%
GB:MKS
Marks and Spencer
345.40
27.92
8.79%
GB:JD
JD Sports Fashion
85.38
-39.18
-31.45%

Next plc Corporate Events

Business Operations and StrategyRegulatory Filings and Compliance
NEXT plc Announces KPMG as New Auditor from 2028
Neutral
Aug 4, 2025

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.

Regulatory Filings and Compliance
NEXT plc Announces Total Voting Rights Update
Neutral
Aug 1, 2025

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.

Business Operations and StrategyFinancial Disclosures
Next plc Reports Strong Q2 Sales and Raises Profit Guidance
Positive
Jul 31, 2025

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.

Private Placements and FinancingBusiness Operations and Strategy
Next plc Enhances Financial Structure with New Note Issuance and Increased Credit Facility
Positive
Jul 18, 2025

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.

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

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.

Shareholder MeetingsBusiness Operations and Strategy
Next plc AGM 2025: Key Resolutions Passed with Focus on Transparency
Positive
May 15, 2025

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.

Other
Next plc CEO Disposes Significant Shareholding
Negative
May 9, 2025

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.

Business Operations and StrategyFinancial Disclosures
Next plc Reports Strong Q1 Sales, Revises Profit Guidance Upwards
Positive
May 8, 2025

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.

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: Aug 05, 2025