1.98%
4.97%
1.84%
9.87%
17.74%
32.97%
44.66%
AI Spotlight on NXT
Company Description
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.
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.
Market Data
| Last Price | 9970 |
| Change Percentage | 1.98% |
| Open | 9962 |
| Previous Close | 9776 |
| Market Cap ( Millions) | 11718 |
| Volume | 42645 |
| Year High | 11103.83 |
| Year Low | 8072 |
| M A 50 | 9682.34 |
| M A 200 | 9588.89 |
Financial Ratios
| FCF Yield | 6.87% |
| Dividend Yield | 2.17% |
| ROE | 55.99% |
| Debt / Equity | 76.08% |
| Net Debt / EBIDTA | 73.22% |
| Price To Book | 8.85 |
| Price Earnings Ratio | 14.95 |
| Price To FCF | 14.56 |
| Price To sales | 2.01 |
| EV / EBITDA | 10.49 |
News
- Jan -30 - NEXT plc's (LON:NXT) Recent Stock Performance Looks Decent- Can Strong Fundamentals Be the Reason?
- Jan -08 - Britain’s Retailers Brace for Hard Times
- Jan -07 - Next show how to overcome Budget concerns but 2025 could be ‘bloodbath’ for UK retail
- Dec -27 - Trending tickers: Netflix, Bitcoin, Next, Delivery Hero
- Dec -20 - Best paying FTSE 100 stocks of 2024
- Dec -06 - Is NEXT plc (LON:NXT) Potentially Undervalued?
- Nov -18 - Calculating The Intrinsic Value Of NEXT plc (LON:NXT)
- Nov -05 - Zalando to Boost Investment After Positive Start to Fall and Winter Season
- Oct -22 - Are Retail-Wholesale Stocks Lagging Brinker International (EAT) This Year?
- Oct -04 - Is Next (NXGPY) Outperforming Other Retail-Wholesale Stocks This Year?
- Sep -27 - Best Value Stocks to Buy for September 27th
- Sep -27 - Best Income Stocks to Buy for September 27th
- Sep -26 - NEXT's (LON:NXT) Dividend Will Be £0.75
- Sep -23 - NEXT First Half 2025 Earnings: EPS: UK£2.68 (vs UK£2.64 in 1H 2024)
- Sep -19 - Next PLC’s Fresh Guidance Lift, Overseas Plans Boost Shares
- Sep -13 - Top fund picks for self-invested pensions
- Sep -10 - Has Kingfisher (KGFHY) Outpaced Other Retail-Wholesale Stocks This Year?
- Sep -04 - Next (NXGPY) Upgraded to Buy: Here's Why
- Aug -29 - The top FTSE 100 winners and losers of 2024 so far
- Aug -23 - Is NEXT plc's (LON:NXT) Latest Stock Performance A Reflection Of Its Financial Health?
Business Breakdown
Expected Mid-Term Growth
Segment n°1 -> NEXT Brand
Expected Growth : 5 %
What the company do ?
NEXT Brand from NEXT plc offers high-quality, fashionable clothing, shoes, and accessories for men, women, and children, with a focus on quality, style, and affordability.
Why we expect these perspectives ?
NEXT's 5% growth is driven by its strong online presence, with e-commerce sales increasing by 13% in 2020. The brand's focus on quality, stylish, and affordable clothing resonates with customers. Effective inventory management, efficient supply chain, and strategic pricing also contribute to its growth. Additionally, NEXT's investment in digital marketing and loyalty programs helps to retain customers and attract new ones.
Segment n°2 -> Total Platform
Expected Growth : 7 %
What the company do ?
The Total Platform from NEXT plc is a unified commerce platform that integrates online and offline channels, providing a seamless customer experience across all touchpoints.
Why we expect these perspectives ?
NEXT plc's Total Platform growth of 7% is driven by increasing online sales, effective marketing strategies, and a strong brand reputation. Additionally, the company's focus on omnichannel retailing, investments in digital capabilities, and efficient supply chain management have contributed to its growth. Furthermore, NEXT's ability to adapt to changing consumer behavior and preferences has enabled it to stay ahead of the competition.
Segment n°3 -> Franchise, Sourcing and Other
Expected Growth : 4 %
What the company do ?
NEXT plc's Franchise segment includes international partners, Sourcing involves buying and selling of products, and Other includes property management and unallocated costs.
Why we expect these perspectives ?
{'Franchise': 'Strong brand recognition, strategic partnerships, and expansion into new markets drive growth.', 'Sourcing': 'Efficient supply chain management, cost savings from scale, and strategic sourcing initiatives contribute to growth.', 'Other': 'Investment in digital capabilities, effective inventory management, and focus on customer experience drive additional growth.'}
Segment n°4 -> Property Management
Expected Growth : 5 %
What the company do ?
Property Management from NEXT plc enables efficient management of retail spaces, ensuring optimal usage and maximizing sales through data-driven insights and strategic planning.
Why we expect these perspectives ?
NEXT plc's Property Management segment growth is driven by increasing demand for retail space, strategic partnerships with landlords, and effective cost management. Additionally, the company's focus on omnichannel integration, investment in digital platforms, and expansion into new markets contribute to its 5% growth.
Next Plc Products
| Product Range | What is it ? |
|---|---|
| Women's Clothing | NEXT plc offers a wide range of women's clothing, including dresses, tops, trousers, and outerwear. |
| Men's Clothing | NEXT plc provides a diverse range of men's clothing, including casual wear, formal wear, and accessories. |
| Children's Clothing | NEXT plc offers a wide range of clothing for children, including casual wear, formal wear, and accessories. |
| Home and Furniture | NEXT plc provides a wide range of home and furniture products, including sofas, beds, and decorative items. |
| Beauty and Fragrances | NEXT plc offers a range of beauty and fragrance products, including skincare, makeup, and perfumes. |
NEXT plc's Porter Forces
Threat Of Substitutes
NEXT plc operates in the retail industry, where substitutes are readily available. However, the company's strong brand reputation and high-quality products reduce the threat of substitutes.
Bargaining Power Of Customers
NEXT plc's customers have a high bargaining power due to the availability of substitutes and the ease of switching to competitors. The company's pricing strategy and customer loyalty programs help to mitigate this threat.
Bargaining Power Of Suppliers
NEXT plc has a diverse supplier base, which reduces the bargaining power of individual suppliers. The company's strong relationships with suppliers also help to mitigate this threat.
Threat Of New Entrants
The threat of new entrants in the retail industry is moderate, as it requires significant investment in infrastructure and marketing. NEXT plc's strong brand reputation and established supply chain provide a barrier to entry for new entrants.
Intensity Of Rivalry
The retail industry is highly competitive, with many established players competing for market share. NEXT plc's strong brand reputation, high-quality products, and efficient supply chain help the company to compete effectively in this environment.
Capital Structure
| Value | |
|---|---|
| Debt Weight | 55.90% |
| Debt Cost | 5.79% |
| Equity Weight | 44.10% |
| Equity Cost | 10.34% |
| WACC | 7.80% |
| Leverage | 126.77% |
NEXT plc : Quality Control
NEXT plc passed 6 out of 9 key points:
Historical Valuation
Price/Earnings Ratio
Margin Valuation
Peers Valuation
Competitors
| Company | Rational |
|---|---|
| BWY.L | Bellway p.l.c., together with its subsidiaries, engages in the home building business in the United Kingdom. The company builds and sells homes ranging from one-bedroom apartments to six-bedroom family homes, … |
| SMDS.L | DS Smith Plc provides packaging solutions, paper products, and recycling services worldwide. The company offers transit and transport, consumer, retail and shelf ready, online and e-retail, industrial, hazardous, multi-material, cushioning, … |
| TW.L | Taylor Wimpey plc operates a residential developer in the United Kingdom and Spain. It builds and delivers various homes and communities, including apartments to six-bedroom houses. Taylor Wimpey plc was … |
| ONON | On Holding AG develops and distributes sports products worldwide. It offers athletic footwear, apparel, and accessories. The company offers its products through independent retailers and distributors, online, and stores. On … |
| RDW.L | Redrow plc focuses on housebuilding activities in the United Kingdom. The company acquires land; and develops and sells residential housing properties. Redrow plc was founded in 1974 and is based … |
Peers Metrics
DCF BETA
Expected Cash-Flows
Scoring Insights
Peers Group Analysis
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Redrow
A-Score
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Taylor Wimpey
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1-Year Total Return ->
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NEXT
A-Score
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4
DS Smith
A-Score
1-Year Total Return ->
5
Bellway
A-Score
1-Year Total Return ->
6
