LSE:NXR

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Market Cap

UK£252.4m

Last Updated

2021/07/26 21:38 UTC

Data Sources

Company Financials +

Executive Summary

Norcros plc, together with its subsidiaries, designs, manufactures, and distributes bathroom and kitchen products in the United Kingdom and South Africa. More Details


Snowflake Analysis

Flawless balance sheet, undervalued and pays a dividend.

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

8.0%

NXR

5.3%

GB Building

2.9%

GB Market


1 Year Return

103.3%

NXR

67.6%

GB Building

19.1%

GB Market

Return vs Industry: NXR exceeded the UK Building industry which returned 65.6% over the past year.

Return vs Market: NXR exceeded the UK Market which returned 18.9% over the past year.


Shareholder returns

NXRIndustryMarket
7 Day8.0%5.3%2.9%
30 Day1.6%3.1%-0.8%
90 Day7.4%9.5%1.3%
1 Year108.9%103.3%70.5%67.6%24.5%19.1%
3 Year54.5%42.8%64.3%53.9%12.0%-0.8%
5 Year117.3%85.7%91.0%68.6%41.2%14.0%

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?

31.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NXR (£3.12) is trading below our estimate of fair value (£4.55)

Significantly Below Fair Value: NXR is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: NXR is good value based on its PE Ratio (16.8x) compared to the UK Building industry average (28.2x).

PE vs Market: NXR is good value based on its PE Ratio (16.8x) compared to the UK market (23.7x).


Price to Earnings Growth Ratio

PEG Ratio: NXR is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: NXR is good value based on its PB Ratio (1.7x) compared to the GB Building industry average (2.5x).


Future Growth

How is Norcros forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

13.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXR's forecast earnings growth (13.1% per year) is above the savings rate (0.9%).

Earnings vs Market: NXR's earnings (13.1% per year) are forecast to grow slower than the UK market (16.9% per year).

High Growth Earnings: NXR's earnings are forecast to grow, but not significantly.

Revenue vs Market: NXR's revenue (5.5% per year) is forecast to grow faster than the UK market (5.3% per year).

High Growth Revenue: NXR's revenue (5.5% 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 (22.3%)


Past Performance

How has Norcros performed over the past 5 years?

0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NXR has high quality earnings.

Growing Profit Margin: NXR's current net profit margins (4.6%) are higher than last year (3.2%).


Past Earnings Growth Analysis

Earnings Trend: NXR's earnings have grown by 0.2% per year over the past 5 years.

Accelerating Growth: NXR's earnings growth over the past year (37.6%) exceeds its 5-year average (0.2% per year).

Earnings vs Industry: NXR earnings growth over the past year (37.6%) exceeded the Building industry 14.2%.


Return on Equity

High ROE: NXR's Return on Equity (10.1%) is considered low.


Financial Health

How is Norcros's financial position?


Financial Position Analysis

Short Term Liabilities: NXR's short term assets (£171.0M) exceed its short term liabilities (£104.1M).

Long Term Liabilities: NXR's short term assets (£171.0M) exceed its long term liabilities (£59.7M).


Debt to Equity History and Analysis

Debt Level: NXR's debt to equity ratio (12%) is considered satisfactory.

Reducing Debt: NXR's debt to equity ratio has reduced from 122% to 12% over the past 5 years.

Debt Coverage: NXR's debt is well covered by operating cash flow (299.4%).

Interest Coverage: NXR's interest payments on its debt are well covered by EBIT (7x coverage).


Balance Sheet


Dividend

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

2.63%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: NXR's dividend (2.63%) is higher than the bottom 25% of dividend payers in the UK market (1.31%).

High Dividend: NXR's dividend (2.63%) is low compared to the top 25% of dividend payers in the UK market (4.03%).


Stability and Growth of Payments

Stable Dividend: NXR's dividend payments have been volatile in the past 10 years.

Growing Dividend: NXR's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (44%), NXR's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: NXR's dividends in 3 years are forecast to be well covered by earnings (26.7% payout ratio).


Next Steps

Management

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

9.2yrs

Average management tenure


CEO

Nick Kelsall (64 yo)

10.25yrs

Tenure

UK£815,581

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 and he also served as Group Finance Director of Norcros from October 1, 1996 to A...


CEO Compensation Analysis

Compensation vs Market: Nick's total compensation ($USD1.12M) is above average for companies of similar size in the UK market ($USD717.06K).

Compensation vs Earnings: Nick's compensation has increased by more than 20% in the past year.


Leadership Team

Experienced Management: NXR's management team is seasoned and experienced (9.2 years average tenure).


Board Members

Experienced Board: NXR's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


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£252.406m
  • Shares outstanding: 80.90m
  • Website: https://www.norcros.com

Number of Employees


Location

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

Listings


Biography

Norcros plc, together with its subsidiaries, designs, manufactures, and distributes bathroom and kitchen products in the United Kingdom and South Africa. The company manufactures and distributes electric, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/07/26 21:38
End of Day Share Price2021/07/26 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.