NEXT plc (NXT.L) stock analysis

In our weekly check, NEXT plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2.

About NEXT plc

NEXT plc is a Consumer Cyclical company (Apparel - Retail) based in the United Kingdom, listed on LSE as NXT.L.

What our checks show for NXT.L

Red flags

• The stock has fallen as much as 66% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 3.2 years.

Warning signs

• Net debt is 1.1x a year of EBITDA (debt/equity 1.3). That limits room in a downturn and raises refinancing risk.
• The net margin fell by 1.8 points over 5 years, to 12.9%: the company keeps less of each sale as profit.
• Thinly traded (about 341 thousand shares a day): buying and selling can move the price.

Strengths

• Operating profit covers interest 17.6 times over.
• The gross margin is 44.2% and has risen by 1.3 points: pricing power is holding.
• Operating cash flow is 1.28x net profit: the profit arrives as real cash.
• Free cash flow is 14.5% of revenue: cash for dividends, buybacks or growth.
• The dividend takes 24% of profit: there is a cushion.
• A large company: market value $22.71 billion.

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Questions

What grade does NEXT plc (NXT.L) have?

In our weekly check, NEXT plc is graded B (A to F). Of 25 checks on debt, profit, cash flow and trend: 20 pass, warnings: 3, red flags: 2. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of NXT.L stock?

This week's biggest flags for NEXT plc: Deep past fall, Slow recovery after falls, High debt. In total 5 of 25 checks show a warning or a red flag.

What does NEXT plc do?

NEXT plc is a Consumer Cyclical company (Apparel - Retail) based in the United Kingdom, listed on LSE as NXT.L.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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