Norcros Share Discussion Threads

[tomps2] 10/10/2022 11:30

Sell it to The City – October 2022

University undergraduates pitch their best UK small-cap stock pick to leading Fund Managers Andy Brough, Schroders, Judith MacKenzie, Downing, and Stephen English, Stellar Asset Management.

Rachel Lyu, Cutty Sark Investment Society, Clare College, Cambridge University pitches Norcros (NXR)

Watch the video here:

[kipper7] 03/10/2022 14:20

and as i said market has moved so fast simply PE ratios of a depression not a recession!!

[debsdowner] 03/10/2022 12:30

kipper

It is building and retail related however that is why I posted the pe ratio on Persimmon. What I was trying to say was both property and retail on surprising low pe ratios because of poor oulook.

[kipper7] 03/10/2022 10:25

while these responses are reasonable they imo are not and will not be correct. Norcros is not a property company! whilst it sells home product to both businesses and consumers it has a well diversified customer base. i am a holder and will continue to buy more on any further weakness. these prices represent a depression not recession in terms of earnings impact

[debsdowner] 03/10/2022 08:31

The pension schemes also dumping assets incluuding shares



There is more going on than lack of confidence in both retail and building sectors, pension schemes have been caught out due to all kinds of derivatives and leverage and having to increase cash.

We now have a GOV in chaos refusing to do a U turn on the top rate of tax only yesterday by Liz Truss and today before the market opened doing just that.

Liz Truss is losing credibility now along with her chancelllor she will be lucky to last whie Christmas.

[loganair] 02/10/2022 09:16

I agree with every thing debs posted and for the same reasons it seems to me reasonable to say NXR low for this cycle could easily be sub 100p.

[edmundshaw] 01/10/2022 22:48

Thank you for your comments debsdowner. It is always good to have someone that makes you re-evaluate and check your investments, even if - or perhaps especially when - they do not agree with you!

[debsdowner] 01/10/2022 19:53

Persimon is an example of a low pe ratio



Pe 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.

[debsdowner] 01/10/2022 19:17

Used to hold here so decided to havee a look at results which were fantastic.

But as I said above we are now entering a recession and things moved very fast in the last week alone.

If things were not bad enough with high energy costs and clothes and food inflation high interest rates are the killer for this type of business when we could see a property price crash.

We are entering one of the worst periods since the 2008 financial crash and it sin't just the UK suffering we are now seeing a global slowdown and market crash.

I don't hold here got no position but saw the share price fall the last few weeks so would give my opinion.

The prospective pe may look cheap but look at Currys and other retail business lately.

[debsdowner] 01/10/2022 18:56

kipper, have a look at lots of retailers many on a pe of 4 and the reason is the market is pricing a fall in profits going forward.

With the possibility of a house price crash few people will now be doing properties up with new kitchens and bathrooms.

Norcross been on a roll the last few years but it may be comming to an end. Theese vanity projects are quite costly now and even if the house market doesn't collapse with high interest rates and even rents because as high interest affects buy to lets as well it also pushes rents higher.

A perfect storm is developing now and that is why the share price has collapsed the last few weeks.

HSBC warneed the last day or two of a raft of repossesions as interest rates go up estate agents are seeing sales fall through.

Home improvements will come to a stop.

[kipper7] 01/10/2022 18:31

That would imply a p/e of circa2.5!Even if earnings halved it would be 5What justification do you have for such a price?

[loganair] 01/10/2022 14:11

I can easily see NXR falling sub 100p at their lowest for this cycle.

[kipper7] 01/10/2022 09:48

Post 3424 has proven to be accurate and maybe still applies. However the shares have now fallen sufficiently even in current market conditions to offer exceptional value both from dividend perspective and pe perspective. Could they go lower? ... in the current market it's possible but I maintain these are buying prices and I will be adding

[tole] 12/8/2022 06:31

https://citywire.com/funds-insider/news/expert-view-aviva-norcros-entain-videndum-and-hostelworld/Marlborough's Chand Lall taps 'dividend dynamo' NorcrosBathroom fittings and tile manufacturer Norcros (NXR) is a 'dividend dynamo', according to Marlborough fund manager Siddarth Chand Lall.Chand Lall holds the stock in his £768m Marlborough Multi Cap Income fund, and in his latest update he said, although the stock sold off heavily this year, 'we think there is an interesting self help story underway'.The group purchased waterproof wall panel maker Grant Westfield in May. The manager said this was a 'sensible acquisition' that complements its existing bathroom range, but Grant Westfield also has higher margins 'so it boosts the group's overall figures'.Norcros' strong trading is reflected in increasing dividends, with this year's final payment 23% higher than the pre-pandemic distribution.'The dividend yield is 4% and the stock is on a price/earnings multiple of just 6.5x forecast 2023 earnings,' he said.'Norcros is a good example of a business increasing earnings through self-help, despite a challenging macroeconomic backdrop. We believe the company offers attractive value given its long-term record, scale, and growth prospects.'Shares in Norcros closed up 2.9% at 215p on Thursday, having lost nearly a third of their value since the start the year.

[jeff h] 10/8/2022 09:14

Edison latest and a Citywire tip:-

[kipper7] 03/8/2022 21:59

This stock despite being very cheap is just not attracting any demand from shareholders. Price will continue to drift in the absence of any fresh substantial buying. There is a clearly someone selling stock on any uptick and until they are cleared little progress will be made in the short termI still expect the share price to be much higher over time and target 400p plus

[edmundshaw] 19/7/2022 08:42

Given a market cap of c.£200m it is a bit surprising there is so little trading here. Not fashionable for day traders it seems...

Strangely, though, I have never had any difficulty in buying or selling dozens of fairly modest quantities in the last 7 years - but I have never tried to buy or sell 10k plus shares in one go.

[kipper7] 19/7/2022 08:35

Totally illiquid share Very cheap but can't buyWas just offered 10k shares at 230!

[edmundshaw] 19/7/2022 08:33

Nice quiet board here!

Trading looks robust, flat against a strong comparator last year, but also that includes only a month of earnings (from a 3 month period) from the very big new acquisition (which seems to be trading fine). Given the share price drop, a recovery seems to be well deserved...

[edmundshaw] 15/7/2022 16:22

Looks like the recent great results and monster acquisition (mostly paid from own funds with only a modest number of new shares issued) are being forgotten as this share slides.

Suits me as, for the moment, I can add more cheaply! :))

I am aware there is economic uncertainty right now, but IMO whatever happens in terms of a downturn, this company is well run and will come out of any downturn making this share price look faintly ridiculous! I can wait for the medium term, especially with a near 5% yield (very well covered and with a progressive dividend policy).

[edmundshaw] 30/6/2022 16:06

It's a great company that has always exceeded my expectations in the six and a half years I have had shares with them (so I admit to a little luck here). I would add at current prices, but I have plenty already... I had barely noticed that the yield is back up over 4% though I spotted the PE of 8 (probably rather less on a future earnings basis). Happy to hold on especially after the last excellent looking acquisition. :))

[jeff h] 28/6/2022 13:17

One example is Norcros (NXR), a leading supplier of electric showers, bathroom fittings and tiles in the UK and South Africa. The stock sold off heavily this year, but we think there is an interesting self-help story under way.

In May, Norcros bought Grant Westfield, which makes waterproof bathroom wall panels. We believe this is a very sensible acquisition as its products complement Norcros’s existing bathroom range. Grant Westfield also has higher margins, so it boosts the group’s overall figures. After the deal, analysts upgraded earnings-per-share forecasts for Norcros by 10%. Looking ahead, we believe Norcros may make more acquisitions like this.

Strong trading is reflected in Norcros increasing dividends. This year’s final payment is 23% higher than the equivalent pre-pandemic dividend. The dividend yield is 4% and the stock is on a P/E multiple of just 6.5x forecast 2023 earnings.

Norcros is a good example of a business increasing earnings through self-help, despite a challenging macroeconomic backdrop. We believe the company offers attractive value, given its long-term record, scale and growth prospects.

[edmundshaw] 10/6/2022 09:08

Results were good but no better than the trading update. However 2 months of the new year have gone well, and the new acquisition looks a great earnings enhancer, I did expect some sustained rise - the problem may be the weak market over the last couple of days.

Value will out over time, patience required.