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NXT

NEXT LSE:NXT Stock Report

Last Price

UK£59.82

Market Cap

UK£7.5b

7D

0.8%

1Y

-24.3%

Updated

24 Jun, 2022

Data

Company Financials +
NXT fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health5/6
Dividends4/6

NXT Stock Overview

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.

NEXT Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for NEXT
Historical stock prices
Current Share PriceUK£59.82
52 Week HighUK£84.84
52 Week LowUK£55.78
Beta1.3
1 Month Change-2.38%
3 Month Change-4.78%
1 Year Change-24.28%
3 Year Change8.25%
5 Year Change55.14%
Change since IPO10,394.74%

Recent News & Updates

Jun 14
What Is NEXT plc's (LON:NXT) Share Price Doing?

What Is NEXT plc's (LON:NXT) Share Price Doing?

NEXT plc ( LON:NXT ), might not be a large cap stock, but it received a lot of attention from a substantial price...

Apr 22
NEXT (LON:NXT) Has A Rock Solid Balance Sheet

NEXT (LON:NXT) Has A Rock Solid Balance Sheet

Warren Buffett famously said, 'Volatility is far from synonymous with risk.' So it might be obvious that you need to...

Shareholder Returns

NXTGB Multiline RetailGB Market
7D0.8%1.2%2.3%
1Y-24.3%-39.4%-8.6%

Return vs Industry: NXT exceeded the UK Multiline Retail industry which returned -39.9% over the past year.

Return vs Market: NXT underperformed the UK Market which returned -10.4% over the past year.

Price Volatility

Is NXT's price volatile compared to industry and market?
NXT volatility
NXT Average Weekly Movement4.7%
Multiline Retail Industry Average Movement6.3%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

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

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

About the Company

FoundedEmployeesCEOWebsite
186426,836Simon Wolfsonhttps://www.nextplc.co.uk

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.

NEXT Fundamentals Summary

How do NEXT's earnings and revenue compare to its market cap?
NXT fundamental statistics
Market CapUK£7.46b
Earnings (TTM)UK£677.50m
Revenue (TTM)UK£4.63b

11.0x

P/E Ratio

1.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
NXT income statement (TTM)
RevenueUK£4.63b
Cost of RevenueUK£2.64b
Gross ProfitUK£1.98b
Other ExpensesUK£1.31b
EarningsUK£677.50m

Last Reported Earnings

Jan 29, 2022

Next Earnings Date

Sep 29, 2022

Earnings per share (EPS)5.43
Gross Margin42.90%
Net Profit Margin14.65%
Debt/Equity Ratio103.8%

How did NXT perform over the long term?

See historical performance and comparison

Dividends

2.1%

Current Dividend Yield

24%

Payout Ratio

Does NXT pay a reliable dividends?

See NXT dividend history and benchmarks
When do you need to buy NXT by to receive an upcoming dividend?
NEXT dividend dates
Ex Dividend DateJul 07 2022
Dividend Pay DateAug 01 2022
Days until Ex dividend12 days
Days until Dividend pay date37 days

Does NXT pay a reliable dividends?

See NXT dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is NXT undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

4/6

Valuation Score 4/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for NXT?

Other financial metrics that can be useful for relative valuation.

NXT key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue2x
Enterprise Value/EBITDA9.3x
PEG Ratio27.8x

Price to Earnings Ratio vs Peers

How does NXT's PE Ratio compare to its peers?

NXT PE Ratio vs Peers
The above table shows the PE ratio for NXT vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average13.5x

Price-To-Earnings vs Peers: NXT is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (13.5x).


Price to Earnings Ratio vs Industry

How does NXT's PE Ratio compare vs other companies in the Global Multiline Retail Industry?

Price-To-Earnings vs Industry: NXT is expensive based on its Price-To-Earnings Ratio (11x) compared to the European Multiline Retail industry average (10.1x)


Price to Earnings Ratio vs Fair Ratio

What is NXT's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

NXT PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio11x
Fair PE Ratio16.5x

Price-To-Earnings vs Fair Ratio: NXT is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (16.5x).


Share Price vs Fair Value

What is the Fair Price of NXT when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: NXT (£59.82) is trading below our estimate of fair value (£122.09)

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


Price to Earnings Growth Ratio

PEG Ratio: NXT is poor value based on its PEG Ratio (27.8x)


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Future Growth

How is NEXT forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


0.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NXT's forecast earnings growth (0.4% per year) is below the savings rate (0.9%).

Earnings vs Market: NXT's earnings (0.4% per year) are forecast to grow slower than the UK market (10.9% per year).

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

Revenue vs Market: NXT's revenue (4.1% per year) is forecast to grow slower than the UK market (4.1% per year).

High Growth Revenue: NXT's revenue (4.1% 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 (49.5%).


Discover growth companies

Past Performance

How has NEXT performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.2%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: NXT has high quality earnings.

Growing Profit Margin: NXT's current net profit margins (14.6%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: NXT's earnings have declined by 5.2% per year over the past 5 years.

Accelerating Growth: NXT's earnings growth over the past year (136.1%) exceeds its 5-year average (-5.2% per year).

Earnings vs Industry: NXT earnings growth over the past year (136.1%) exceeded the Multiline Retail industry 19.5%.


Return on Equity

High ROE: Whilst NXT's Return on Equity (67.08%) is outstanding, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

How is NEXT's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: NXT's short term assets (£2.4B) exceed its short term liabilities (£1.2B).

Long Term Liabilities: NXT's short term assets (£2.4B) exceed its long term liabilities (£1.8B).


Debt to Equity History and Analysis

Debt Level: NXT's net debt to equity ratio (61%) is considered high.

Reducing Debt: NXT's debt to equity ratio has reduced from 189.6% to 103.8% over the past 5 years.

Debt Coverage: NXT's debt is well covered by operating cash flow (92.6%).

Interest Coverage: NXT's interest payments on its debt are well covered by EBIT (10.7x coverage).


Balance Sheet


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Dividend

What is NEXT current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


2.12%

Current Dividend Yield

Upcoming Dividend Payment

TodayJun 25 2022Ex Dividend DateJul 07 2022Dividend Pay DateAug 01 202225 days from Ex DividendBuy in the next 12 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: NXT's dividend (2.12%) is higher than the bottom 25% of dividend payers in the UK market (1.92%).

High Dividend: NXT's dividend (2.12%) is low compared to the top 25% of dividend payers in the UK market (5.23%).


Stability and Growth of Payments

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

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


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (23.9%), NXT's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its low cash payout ratio (22.5%), NXT's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

9.8yrs

Average management tenure


CEO

Simon Wolfson (54 yo)

21.42yrs

Tenure

UK£4,381,000

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 ($USD5.38M) is above average for companies of similar size in the UK market ($USD3.25M).

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


Leadership Team

Experienced Management: NXT's management team is seasoned and experienced (9.8 years average tenure).


Board Members

Experienced Board: NXT's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: NXT 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

NEXT plc's employee growth, exchange listings and data sources


Key Information

  • Name: NEXT plc
  • Ticker: NXT
  • Exchange: LSE
  • Founded: 1864
  • Industry: Department Stores
  • Sector: Retail
  • Implied Market Cap: UK£7.464b
  • Shares outstanding: 124.78m
  • Website: https://www.nextplc.co.uk

Number of Employees


Location

  • NEXT plc
  • Desford Road
  • Enderby
  • Leicestershire
  • LE19 4AT
  • United Kingdom

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/24 00:00
End of Day Share Price2022/06/24 00:00
Earnings2022/01/29
Annual Earnings2022/01/29


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.