NEXT plc
NEXT plc Fundamental Analysis
NEXT plc (NXGPY) shows moderate financial fundamentals with a PE ratio of 19.76, profit margin of 12.38%, and ROE of 47.53%. The company generates $6.3B in annual revenue with moderate year-over-year growth of 9.08%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.0/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze NXGPY's fundamental strength across five key dimensions:
Efficiency Score
ExcellentNXGPY demonstrates superior asset utilization.
Valuation Score
ModerateNXGPY shows balanced valuation metrics.
Growth Score
ExcellentNXGPY delivers strong and consistent growth momentum.
Financial Health Score
ModerateNXGPY shows balanced financial health with some risks.
Profitability Score
ModerateNXGPY maintains healthy but balanced margins.
Key Financial Metrics
Is NXGPY Expensive or Cheap?
P/E Ratio
NXGPY trades at 19.76 times earnings. This indicates a fair valuation.
PEG Ratio
When adjusting for growth, NXGPY's PEG of 2.67 indicates potential overvaluation.
Price to Book
The market values NEXT plc at 9.22 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 9.62 times EBITDA. This is generally considered low.
How Well Does NXGPY Make Money?
Net Profit Margin
For every $100 in sales, NEXT plc keeps $12.38 as profit after all expenses.
Operating Margin
Core operations generate 18.00 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $47.53 in profit for every $100 of shareholder equity.
ROA
NEXT plc generates $15.00 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
NEXT plc produces operating cash flow of $1.20B, showing steady but balanced cash generation.
Free Cash Flow
NEXT plc generates strong free cash flow of $1.04B, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $4.46 in free cash annually.
FCF Yield
NXGPY converts 6.84% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
19.76
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
2.67
vs 25 benchmark
P/B Ratio
Price to book value ratio
9.22
vs 25 benchmark
P/S Ratio
Price to sales ratio
2.43
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.17
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.74
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.48
vs 25 benchmark
ROA
Return on assets percentage
0.15
vs 25 benchmark
ROCE
Return on capital employed
0.33
vs 25 benchmark
How NXGPY Stacks Against Its Sector Peers
| Metric | NXGPY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 19.76 | 23.49 | Better (Cheaper) |
| ROE | 47.53% | 1160.00% | Weak |
| Net Margin | 12.38% | 672.00% | Weak |
| Debt/Equity | 1.17 | 0.73 | Weak (High Leverage) |
| Current Ratio | 1.74 | 2.56 | Neutral |
| ROA | 15.00% | -8277.00% (disorted) | Strong |
NXGPY outperforms its industry in 2 out of 6 key metrics, particularly excelling in ROA, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews NEXT plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.07%
Industry Style: Cyclical, Growth, Discretionary
High GrowthEPS CAGR
50.64%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
42.95%
Industry Style: Cyclical, Growth, Discretionary
High Growth