Market Cap
UK£10.1b
Last Updated
2021/08/01 17:55 UTC
Data Sources
Company Financials +
Executive Summary
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. More Details
Rewards
Risk Analysis
Snowflake Analysis
Excellent balance sheet with high growth potential.
Similar Companies
Share Price & News
How has NEXT's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: NXT is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: NXT's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
-2.6%
NXT
-3.1%
GB Multiline Retail
0.3%
GB Market
1 Year Return
44.6%
NXT
36.4%
GB Multiline Retail
22.5%
GB Market
Return vs Industry: NXT exceeded the UK Multiline Retail industry which returned 36.4% over the past year.
Return vs Market: NXT exceeded the UK Market which returned 22.5% over the past year.
Shareholder returns
| NXT | Industry | Market | |
|---|---|---|---|
| 7 Day | -2.6% | -3.1% | 0.3% |
| 30 Day | -0.8% | -1.0% | -0.8% |
| 90 Day | 1.0% | -1.3% | 1.5% |
| 1 Year | 44.6%44.6% | 42.3%36.4% | 27.8%22.5% |
| 3 Year | 44.9%39.2% | 23.5%11.2% | 13.3%0.9% |
| 5 Year | 75.3%51.0% | 44.0%18.8% | 39.6%13.2% |
Long-Term Price Volatility Vs. Market
How volatile is NEXT's share price compared to the market and industry in the last 5 years?
Simply Wall St News
9 hours ago | Simply Wall St
Insider Buying: The NEXT plc (LON:NXT) Independent Non-Executive Chairman Just Bought 8.6% More Shares2 weeks ago | Simply Wall St
Is NEXT plc (LON:NXT) A High Quality Stock To Own?3 weeks ago | Simply Wall St
Did NEXT's (LON:NXT) Share Price Deserve to Gain 64%?Valuation
Is NEXT undervalued compared to its fair value and its price relative to the market?
24.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: NXT (£78.82) is trading below our estimate of fair value (£104.92)
Significantly Below Fair Value: NXT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: NXT is poor value based on its PE Ratio (35.3x) compared to the European Multiline Retail industry average (18x).
PE vs Market: NXT is poor value based on its PE Ratio (35.3x) compared to the UK market (23.5x).
Price to Earnings Growth Ratio
PEG Ratio: NXT is poor value based on its PEG Ratio (1.6x)
Price to Book Ratio
PB vs Industry: NXT is overvalued based on its PB Ratio (15.3x) compared to the XE Multiline Retail industry average (2.2x).
Future Growth
How is NEXT forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?
22.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: NXT's forecast earnings growth (22.4% per year) is above the savings rate (0.9%).
Earnings vs Market: NXT's earnings (22.4% per year) are forecast to grow faster than the UK market (14.8% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: NXT's revenue (10.3% per year) is forecast to grow faster than the UK market (4.8% per year).
High Growth Revenue: NXT's revenue (10.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: NXT's Return on Equity is forecast to be very high in 3 years time (46.8%).
Past Performance
How has NEXT performed over the past 5 years?
-10.2%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: NXT has a large one-off gain of £95.1M impacting its January 30 2021 financial results.
Growing Profit Margin: NXT's current net profit margins (8.1%) are lower than last year (14.2%).
Past Earnings Growth Analysis
Earnings Trend: NXT's earnings have declined by 10.2% per year over the past 5 years.
Accelerating Growth: NXT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: NXT had negative earnings growth (-52.3%) over the past year, making it difficult to compare to the Multiline Retail industry average (-8.9%).
Return on Equity
High ROE: Whilst NXT's Return on Equity (43.38%) is outstanding, this metric is skewed due to their high level of debt.
Financial Health
How is NEXT's financial position?
Financial Position Analysis
Short Term Liabilities: NXT's short term assets (£2.3B) exceed its short term liabilities (£1.2B).
Long Term Liabilities: NXT's short term assets (£2.3B) exceed its long term liabilities (£1.9B).
Debt to Equity History and Analysis
Debt Level: NXT's debt to equity ratio (190.8%) is considered high.
Reducing Debt: NXT's debt to equity ratio has reduced from 300.3% to 190.8% over the past 5 years.
Debt Coverage: NXT's debt is well covered by operating cash flow (65.4%).
Interest Coverage: NXT's interest payments on its debt are well covered by EBIT (3.4x coverage).
Balance Sheet
Dividend
What is NEXT current dividend yield, its reliability and sustainability?
2.83%
Forecast Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: Unable to evaluate NXT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate NXT'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 NXT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if NXT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: NXT is not paying a notable dividend for the UK market.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of NXT'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?
8.9yrs
Average management tenure
CEO
Simon Wolfson (54 yo)
20.5yrs
Tenure
UK£3,393,000
Compensation
Lord Simon A. Wolfson has been the Chief Executive Officer of Next Plc since 2001. Lord Wolfson joined Next Plc in 1991, served as its Retail Sales Director since 1993 and became responsible for NEXT Direc...
CEO Compensation Analysis
Compensation vs Market: Simon's total compensation ($USD4.72M) is about average for companies of similar size in the UK market ($USD3.64M).
Compensation vs Earnings: Simon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
Experienced Management: NXT's management team is seasoned and experienced (8.9 years average tenure).
Board Members
Experienced Board: NXT's board of directors are considered experienced (3.9 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: NXT insiders have sold more shares than they have bought 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
NEXT plc's company bio, employee growth, exchange listings and data sources
Key Information
- Name: NEXT plc
- Ticker: NXT
- Exchange: LSE
- Founded: 1864
- Industry: Department Stores
- Sector: Retail
- Market Cap: UK£10.089b
- Shares outstanding: 128.00m
- Website: https://www.nextplc.co.uk
Number of Employees
Location
- NEXT plc
- Desford Road
- Enderby
- Leicestershire
- LE19 4AT
- United Kingdom
Listings
Biography
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 Onl...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/08/01 17:55 |
| End of Day Share Price | 2021/07/30 00:00 |
| Earnings | 2021/01/30 |
| Annual Earnings | 2021/01/30 |
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.