# NEXT plc (NXT.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Cyclical / Textiles, Apparel & Luxury Goods. Price 15315p, market value 17.5 billionp.

## Valuation
- **P/E (trailing): 20.6×** (5-yr avg 1460.0×, 3-yr avg 1571.1×). NEXT plc trades at 20.6× trailing earnings, well below its own five-year average of 1460.0×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 17.5×, lower than trailing, so analysts expect earnings to grow.
- **PEG: 0.76**. A PEG of 0.76 means the P/E is low relative to expected earnings growth: the market is not paying much for that growth.
- **Price / sales: 1.5×**. Each dollar of revenue is priced at 1.5×.
- **Price / book: 10.8×**. The shares trade at 10.8× book value; most of the value is in earnings power and intangibles rather than the balance sheet.
- **EV / EBITDA: 7.4×**. Enterprise value is 7.4× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 8.6%** (5-yr avg 0.1%). Free cash flow equals 8.6% of the market value, above its five-year average of 0.1%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 4.9%**. The inverse of the P/E: 4.9% of the price is earned each year.

## Profitability
- **Gross margin: 43.9%**. NEXT plc keeps 43.9% of revenue after the direct cost of what it sells.
- **Operating margin: 18.1%**. 18.1% of revenue is left after running the business, a healthy level in most sectors.
- **Net margin: 12.9%**. 12.9% of each dollar of sales reaches the bottom line.
- **Return on equity: 53.4%**. A 53.4% return on equity is extremely high; check whether buybacks or debt have shrunk the equity base, which flatters the ratio.
- **Return on invested capital: 46.1%**. Return on all capital, debt included, is 46.1%: comfortably above what that capital costs.
- **Return on assets: 28.8%**. Each dollar of assets produces 28.8% of profit.

## Growth
- **Revenue growth (1 yr): 12.8%** (3-yr 11.1%/yr, 5-yr 14.3%/yr). Revenue grew 12.8% over the last year, against 14.3% a year compounded over five years.
- **EPS growth (1 yr): 22.9%** (3-yr 9.3%/yr, 5-yr 27.4%/yr). Earnings per share rose 22.9%, faster than revenue, so margins expanded or the share count shrank.
- **Free-cash-flow growth (3 yr): 26.6%/yr**. Free cash flow has compounded at 26.6% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.09**. Debt is 1.09 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.7×**. It would take 0.7 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 10.7×**. Operating profit covers interest 10.7× over, a safe margin.
- **Current ratio: 1.76** (quick 1.15). Current assets cover the next year's liabilities 1.76 times.
- **Altman Z-score: 6.41**. A Z-score of 6.41 places the company in the safe zone for bankruptcy risk.
- **Piotroski F-score: 8/9**. 8 of 9 fundamental checks pass: strong and improving financials.

## Dividends
- **Dividend yield: 1.75%** (3p per share, trailing). NEXT plc yields 1.75%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 32%** (28% of free cash flow). 32% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 2**. 2 straight years of increases.
- **Shareholder yield: 4.5%**. Dividends plus net buybacks return 4.5% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (20 analysts). 20 analysts cover NEXT plc; the consensus is buy, with an average price target of 16224p (+6% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 25.6%** (YTD 12.0%, 3-mo 12.7%). The shares are up 25.6% over twelve months including dividends.
- **From 52-week high: -5.3%** (36.7% above the low). Trading 5% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 52**. An RSI of 52 is neutral.
- **Beta (1 yr): 0.92** (volatility 24%). Beta of 0.92 against the FTSE All-Share: the shares move roughly with the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=NXT.L · Page: https://foliofundamentals.com/stocks/nxt.l

Not investment advice.