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| Share Name | Share Symbol | Market | Stock Type |
|---|---|---|---|
| Norcros Plc | NXR | London | Ordinary Share |
| Price Change | Price Change % | Share Price | Last Trade
|
|
|---|---|---|---|---|
| -5.00 | -1.92% | 255.00 | 16:28:02 |
| Open Price | Low Price | High Price | Close Price | Previous Close |
|---|---|---|---|---|
| 258.00 | 255.00 | 258.00 | 255.00 | 260.00 |
| Industry Sector |
|---|
| CONSTRUCTION & MATERIALS |
| Top Posts |
|---|
Posted at 25/6/2024 17:04 by edmundshaw 260p is very measly. If you think this is just a construction firm then maybe that might wash (no pun intended), or if you thought the management was a right shower (no pun etc), but really as a well run services firm this should be up on a PE of 10-12, and investors at this level should eventually clean up here (no pun etc etc)... |
Posted at 14/6/2024 06:41 by spangle93 Norcros (NXR) is ‘underappreciaAnalyst Tom Fraine retained his ‘buy’ recommendation and ‘fair value’ target price of 400p on the Citywire Elite Companies A-rated bathroom supplies group, which rose 0.5% to 208p yesterday after full-year results showed profits were slightly ahead of target. Although the shares have rallied nearly 14% this year, Fraine said the valuation ‘fails to recognise Norcros’s resilient operating performance over recent years’. ‘The quality of the group’s offering, including its customer service, distribution, supplier relations and new product development, are continuing to help deliver market share gains,’ he said. ‘We are confident that the company can continue to deliver a resilient performance under uncertain market conditions, as it has consistently done in recent years.’ In particular, the South African business, which has delivered strong growth is ‘materially underappreciated by investors, despite recent temporary difficulties’. ‘We believe the market share gains and the higher returns and margin profile, enhanced by the acquisition of Grant Westfield and the recent disposal of Johnson Tiles UK, indicate the group is a higher quality business than it was previously, and worthy of a much higher valuation,’ said Fraine. |
Posted at 08/5/2024 16:47 by edmonda For those who missed yesterday morning's Webinar with the CEO and CFO, which was clearly very well received, you can now watch the full 1 hour recording.Covers the solid TU and the detailed Capital Markets Day - plus extensive audience Q&A - click here to watch: |
Posted at 22/4/2024 11:06 by shbgetreal Lol - of course, because you said it, it must be 'fact'.The negative EV currently applied to the S.A. business, and offloading the pension scheme, why would us value investors be bothered by any of that? |
Posted at 08/1/2024 09:14 by davebowler Zeus top ten 2024 pick -UK underappreciated, South Africa misunderstood Norcros was one of our top picks 2023 and whilst the shares did not get the rerating we argued it deserved they did perform relatively well due to the strength of the operational execution in what was a very difficult year. The company remains a top pick for 2024 due to its discount to peers, despite long term margin expansion within the UK, its ability to win market share and, hopefully, a gradually improving operating environment that will highlight the undervaluation of the South Africa business. The UK business reported 13% operating margin in H1 24 and the SA business consistently generates both profit and cash but both seem to be undervalued by the market. An improving economic backdrop in SA might focus attention on the margin expansion in the UK leading to investors placing a higher multiple on the Group as a result. The UK business continues to perform well: Over the last 10 years, Norcros has successfully grown revenue in its UK business in all but the two years during the pandemic. Impressively, over the last 5 years, UK revenue has grown at a 8.1% CAGR, whilst rising operating margins have magnified this result on its underlying EBIT, growing at a 5-year CAGR of 14.9%. During H1-24, the UK business also saw a 160bp improvement in its operating margin, growing to 13.0% from 11.4% a year earlier, despite a small drop in revenue. More importantly, this was somewhat driven by its recently acquired brand Grant Westfield (May 2022), highlighting the successful execution by management. If, as we expect, operating margin can get to mid teens over the next couple of years Norcros’ current multiple looks to materially undervalue the business relative to peers. A final point worth highlighting was the ability of its leading shower brand, Triton, to grow volumes during the first six months of the year, bucking the trend vs its peers and the wider RMI market. South African business misunderstood: Representing c. 33% of Group revenue in FY23, Norcros’ South African business has a strong track record of growth with a 11.0% revenue CAGR between FY13 - FY23 (constant currency) and robust profitability. During H1-24, the region suffered due to some of the worst electricity load-shedding seen in recent history coupled with a GBP/ZAR exchange rate at historic lows. Whilst FX has a clear impact on reported numbers, management recently confirmed the region remains cash generative with no additional cash needed to fund operations, making the region self-sufficient. We believe this is misunderstood by the market. We also have reason to believe recent developments in the South African electricity market will drive higher demand in the medium term. In mid2023, the South African Government approved a new law to open up the electricity market for private companies, allowing the establishment of a competitive market away from its lossmaking state-owned monopoly, Eskom. Not only should this improve manufacturing operations, but less frequent load shedding should drive demand higher as confidence in the economy grows. Valuation compelling: Based on consensus estimates, Norcros trades on a one-year-forward P/E of 6.2x and EV/EBITDA of only 4.8x, with a 5.4% dividend yield. The P/E ratio is more than a 50% discount to the average of its UK building products peers despite Norcros having forecasted average EBIT margins over the next three years in line with the peer average. At the current average FY1 UK peer EV/EBIT multiple (12.9x), the UK business alone would be worth c. 460p per share (adjusting for all of the Group’s net debt and leases and applying a UK EBIT margin of 12.5%), which is 140% more than the Group’s current share price. |
Posted at 19/6/2023 18:23 by s34icknote If the stocks getting tighter our 25k a pop investor might start pushing the price. Up !!!! |
Posted at 01/3/2023 10:47 by jeff h The pension membership has been falling by about 4.5% a year the last few years (2015 = 8,492 2022 = 6,002) can't be too long before a buyout takes place to remove it.Unrest and power cuts etc in S.Africa remain a concern. Norcros is undervalued, says SVM’s Veitch The share price of bathroom and kitchen products supplier Norcros (NXR) fails to reflect the quality of the business, says SVM’s Neil Veitch. Veitch holds the stock in his £165m SVM UK Opportunities fund, where it makes up 4.5% of assets, and in a recent update noted that the group has benefited from the ‘strong repair, maintenance and improvement market in the UK and positive longer-term trends for bathroom and plumbing products in South Africa’. Annual sales are up 20% versus pre-pandemic levels and Norcros has gained market share at the expense of competitors. ‘The company’s decentralised operating model allowed it to react nimbly to supply chain and logistical challenges, while it had sufficient scale to ensure it could meet the demands of both existing and new customers,’ said Veitch. He noted the ‘millstone&rsq ‘The scheme, however, is super mature with a rapidly reducing membership. Higher interest rates should afford the group greater opportunity to investigate buyout options,’ said Veitch. ‘This will, we believe, remove something that has been a significant barrier to investment for many investors and potential acquirers.’ Despite the near-term economic uncertainty, Veitch said the ‘share price fails to reflect either the quality of Norcros’ business or its long-term growth prospects.’ ‘Trading on an estimated March 2024 price/earnings of less than seven times and with a dividend yield of 5%, we believe that the stock is significantly undervalued,’ he said. |
Posted at 16/11/2022 18:14 by kipper7 Investors appear to have realized that this stock is too cheap. Big volume over the last few sessions have resulted in a move to 200p. I expect 350 p minimum over time and remain fully long and picking up nice dividend |
Posted at 25/10/2022 09:30 by jeff h NorcrosInvestors are unsure which number is larger — the total of people improving their homes rather than moving, or those postponing such projects in favour of heating and eating as the rise in prices outruns wage increases. Hence a renewed focus on the property sector and, in particular, the world of DIY. Norcros is best known for Triton and Merlyn showers, Croydex bathroom accessories, Abode taps and Johnson tiles. It estimates that sales for its half-year to October 2 were £220 million compared with £200.9 million in the same period last year and £181.2 million for the first half of 2019. The company cautiously predicts “no less than £21 million” in underlying operating profit, compared with £22 million a year ago. Within the sales total, those in Britain slowed by 3 per cent while they grew by 10 per cent in South Africa, the company’s other main territory. The group used to be in several other countries, including Nigeria, India and Australia, but during an eight-year absence from the stock market most of the other overseas interests were sold. Last year South Africa accounted for a third of total turnover and a quarter of operating profit. The UK has a far more fragmented home improvement market than South Africa and Norcros is constantly looking at taking advantage of this with takeovers. The group also wants to develop the international pipeline, which may add risk as well as reward, of course. This column last examined Norcros four years ago, which seems a world away. The shares were 214p then and recovered strongly from the Covid outbreak to breach the 300p watershed at the start of this year. But the Ukraine war and the cost of living crisis have dragged them down with the rest of the stock market. If there is only a modest increase in earnings per share to 40p for this year, the shares are trading on a 4.4 price-earnings ratio. An unchanged dividend would give a 5.6 per cent yield. We will know more when the company reports its full interim results on November 9. ADVICE Buy WHY Undervalued shares that more than take account of foreseeable downsides |
Posted at 01/10/2022 18:53 by debsdowner Persimon is an example of a low pe ratioPe ration of 5 !!! This is because the market doesn't think the near billion profits is sustaninable going forward. Now don't get me wrong I am not trying to trash the share price I am stating the obvious the reason for many stocks collapsing is investors now taking fright as we enter a recession. Thee worst case scenario is some companies will go bust Joules is looking like it may have to enter a CVA they have built debts up and consumer sentiment changed..well its been poor for months actually. |
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