LSE:NXR

Stock Analysis Report

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Executive Summary

Norcros plc, together with its subsidiaries, engages in the development, manufacture, and marketing of bathroom and kitchen products in the United Kingdom and South Africa. More Details


Snowflake Analysis

Flawless balance sheet with high growth potential.

Share Price & News

How has Norcros's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: NXR is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: NXR's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

6.9%

NXR

1.1%

GB Building

0.3%

GB Market


1 Year Return

15.5%

NXR

11.6%

GB Building

0.8%

GB Market

Return vs Industry: NXR exceeded the UK Building industry which returned 8.2% over the past year.

Return vs Market: NXR exceeded the UK Market which returned 1.1% over the past year.


Shareholder returns

NXRIndustryMarket
7 Day6.9%1.1%0.3%
30 Day21.5%4.6%3.2%
90 Day29.6%9.5%4.5%
1 Year15.5%15.5%12.5%11.6%6.7%0.8%
3 Year40.4%30.3%32.9%23.5%11.5%-1.9%
5 Year79.9%54.4%43.1%24.7%41.8%14.5%

Long-Term Price Volatility Vs. Market

How volatile is Norcros's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Norcros undervalued compared to its fair value and its price relative to the market?

63.8x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: NXR (£2.6) is trading above our estimate of fair value (£1.98)

Significantly Below Fair Value: NXR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: NXR is poor value based on its PE Ratio (65.3x) compared to the GB Building industry average (44.8x).

PE vs Market: NXR is poor value based on its PE Ratio (65.3x) compared to the UK market (24.3x).


Price to Earnings Growth Ratio

PEG Ratio: NXR is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: NXR's PB Ratio (1.9x) is in line with the GB Building industry average.


Next Steps

Future Growth

How is Norcros forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

46.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXR's forecast earnings growth (46% per year) is above the savings rate (1%).

Earnings vs Market: NXR's earnings (46% per year) are forecast to grow faster than the UK market (22.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NXR's revenue (9.2% per year) is forecast to grow faster than the UK market (7.3% per year).

High Growth Revenue: NXR's revenue (9.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: NXR's Return on Equity is forecast to be high in 3 years time (26.2%)


Next Steps

Past Performance

How has Norcros performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NXR has a large one-off loss of £2.3M impacting its September 30 2020 financial results.

Growing Profit Margin: NXR's current net profit margins (1.1%) are lower than last year (5%).


Past Earnings Growth Analysis

Earnings Trend: NXR's earnings have grown by 2.3% per year over the past 5 years.

Accelerating Growth: NXR's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: NXR had negative earnings growth (-81.8%) over the past year, making it difficult to compare to the Building industry average (-47%).


Return on Equity

High ROE: NXR's Return on Equity (2.9%) is considered low.


Next Steps

Financial Health

How is Norcros's financial position?


Financial Position Analysis

Short Term Liabilities: NXR's short term assets (£166.7M) exceed its short term liabilities (£93.8M).

Long Term Liabilities: NXR's short term assets (£166.7M) exceed its long term liabilities (£112.1M).


Debt to Equity History and Analysis

Debt Level: NXR's debt to equity ratio (34.1%) is considered satisfactory.

Reducing Debt: NXR's debt to equity ratio has reduced from 68.7% to 34.1% over the past 5 years.

Debt Coverage: NXR's debt is well covered by operating cash flow (116.7%).

Interest Coverage: NXR's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Next Steps

Dividend

What is Norcros's current dividend yield, its reliability and sustainability?

2.49%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate NXR's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate NXR's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if NXR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if NXR's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: NXR is not paying a notable dividend for the UK market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of NXR's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

9.9yrs

Average management tenure


CEO

Nick Kelsall (63 yo)

9.92yrs

Tenure

UK£591,514

Compensation

Mr. Nicholas P. Kelsall, also known as Nick, A.C.A, has been the Chief Executive Officer at Norcros plc since April 1, 2011. Mr. Kelsall served as Group Finance Director of Norcros from October 1, 1996 to ...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD827.38K) is above average for companies of similar size in the UK market ($USD574.45K).

Compensation vs Earnings: Nick's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nicholas Kelsall
Group CEO & Director9.92yrsUK£591.51k2.06%
£ 4.3m
Shaun Smith
Group Finance Director & Director4.92yrsUK£399.70k0.28%
£ 584.3k
Richard Collins
Group Counsel & Company Secretary7.75yrsno datano data
Stephen Dixon
Managing Director of Johnson Tiles13.17yrsno datano data
Thomas Willcocks
Managing Director of Norcros SA (Pty) Ltd12.17yrsno datano data
Richard Wallis
Managing Director of Norcros Adhesives20.17yrsno datano data
David Tutton
Managing Director of Triton5.67yrsno datano data
Nick McGrellis
Managing Director of Croydex14.17yrsno datano data
Charlie Soden
Managing Director of Merlyn11.17yrsno datano data
Matthew Pitt
Managing Director of Abode1.17yrsno datano data
Iain Gibson
Interim Managing Director of Vado0.92yrno datano data

9.9yrs

Average Tenure

59yo

Average Age

Experienced Management: NXR's management team is seasoned and experienced (9.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nicholas Kelsall
Group CEO & Director9.92yrsUK£591.51k2.06%
£ 4.3m
Shaun Smith
Group Finance Director & Director4.92yrsUK£399.70k0.28%
£ 584.3k
Mark Allen
Independent Non-Executive Chairman0.67yrno data0.062%
£ 130.1k
David McKeith
Senior Independent Director7.67yrsUK£46.00k0.022%
£ 46.7k
Alison Littley
Independent Non-Executive Director1.83yrsUK£46.00kno data

4.9yrs

Average Tenure

61yo

Average Age

Experienced Board: NXR's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Norcros plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Norcros plc
  • Ticker: NXR
  • Exchange: LSE
  • Founded: 1999
  • Industry: Building Products
  • Sector: Capital Goods
  • Market Cap: UK£210.004m
  • Shares outstanding: 80.77m
  • Website: https://www.norcros.com

Number of Employees


Location

  • Norcros plc
  • Ladyfield House
  • Station Road
  • Wilmslow
  • Cheshire
  • SK9 1BU
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NXRLSE (London Stock Exchange)YesOrdinary SharesGBGBPJul 2007
NXRlBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJul 2007

Biography

Norcros plc, together with its subsidiaries, engages in the development, manufacture, and marketing of bathroom and kitchen products in the United Kingdom and South Africa. The company manufactures and dis...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 18:45
End of Day Share Price2021/03/04 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.