NXT:LSENext plc Analysis
Data as of 2026-06-14 - not real-time
£14,425.00
Latest Price
5/10Risk
Risk Level: Medium
Executive Summary
NEXT plc is trading at £14,425, exactly at its calculated resistance level, while remaining above the 20‑day, 50‑day and 200‑day SMAs (13,302.5, 13,189.9 and 13,170.7), confirming a bullish trend. The RSI of 75.3 signals an overbought condition and the decreasing volume trend adds a note of caution, suggesting a potential short‑term pull‑back.
Fundamentally, the company delivered a 15.3% revenue growth year‑over‑year, maintains a solid gross margin of 44% and an impressive ROE of 51%, supported by strong operating cash flow of £1.23 bn. The DCF‑derived fair value of £16,654 implies modest upside of roughly 2%, while the analyst consensus rates the stock as a Buy. Dividend sustainability looks sound with a 1.86% yield and a 33% payout ratio.
Fundamentally, the company delivered a 15.3% revenue growth year‑over‑year, maintains a solid gross margin of 44% and an impressive ROE of 51%, supported by strong operating cash flow of £1.23 bn. The DCF‑derived fair value of £16,654 implies modest upside of roughly 2%, while the analyst consensus rates the stock as a Buy. Dividend sustainability looks sound with a 1.86% yield and a 33% payout ratio.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- RSI in overbought territory (75.3)
- Price at resistance level (£14,425)
- Decreasing volume trend
Medium Term
1–3 yearsPositive
Model confidence: 8/10
Key Factors
- Strong revenue growth (15.3%) and high ROE (51%)
- DCF fair value suggests modest upside
- Analyst consensus of 20 analysts with a Buy rating
Long Term
> 3 yearsNeutral
Model confidence: 7/10
Key Factors
- Sustainable dividend yield (1.86%) with moderate payout
- High leverage (debt‑to‑equity ~102%) balancing valuation
- Low market beta (0.33) indicating defensive characteristics
Key Metrics & Analysis
Financial Health
Revenue Growth15.30%
Profit Margin12.87%
P/E Ratio19.3
ROE50.81%
ROA16.30%
Debt/Equity101.65
P/B Ratio10.1
Op. Cash Flow£1.2B
Free Cash Flow£829.1M
Technical Analysis
TrendBullish
RSI75.3
Support£12,355.00
Resistance£14,425.00
MA 20£13,302.50
MA 50£13,189.90
MA 200£13,170.68
MACDBullish
VolumeDecreasing
Fear & Greed Index89.86
Valuation
Fair Value£16,653.75
Target Price£14,699.50
Upside/Downside1.90%
GradeFair
TypeBlend
Dividend Yield1.86%
Risk Assessment
Beta0.33
Volatility25.65%
Sector RiskMedium
Reg. RiskLow
Geo RiskMedium
Currency RiskMedium
Liquidity RiskMedium
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.