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NXR Norcros Plc

183.00
-2.00 (-1.08%)
20 Feb 2024 - Closed
Delayed by 15 minutes
Share Name Share Symbol Market Type Share ISIN Share Description
Norcros Plc LSE:NXR London Ordinary Share GB00BYYJL418 ORD 10P
  Price Change % Change Share Price Shares Traded Last Trade
  -2.00 -1.08% 183.00 51,069 16:35:06
Bid Price Offer Price High Price Low Price Open Price
180.50 185.50 182.00 180.50 180.50
Industry Sector Turnover Profit EPS - Basic PE Ratio Market Cap
Ceramic Wall And Floor Tile 441M 16.8M 0.1882 9.62 161.59M
Last Trade Time Trade Type Trade Size Trade Price Currency
16:38:41 AT 5,000 183.00 GBX

Norcros (NXR) Latest News

Norcros (NXR) Discussions and Chat

Norcros Forums and Chat

Date Time Title Posts
01/2/202420:28Time to take a shower in Norcros shares.3,572
21/6/201618:19Norcros plc NXR144
27/2/200822:05Do they make RAIN showerheads ? !20

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Norcros (NXR) Most Recent Trades

Trade Time Trade Price Trade Size Trade Value Trade Type
2024-02-20 16:38:41183.005,0009,150.00AT
2024-02-20 16:36:06183.001,8863,451.38AT
2024-02-20 16:35:58183.00424775.92AT
2024-02-20 16:35:06183.0010,02618,347.58UT
2024-02-20 16:27:14181.005,0009,050.00AT

Norcros (NXR) Top Chat Posts

Top Posts
Posted at 20/2/2024 08:20 by Norcros Daily Update
Norcros Plc is listed in the Ceramic Wall And Floor Tile sector of the London Stock Exchange with ticker NXR. The last closing price for Norcros was 185p.
Norcros currently has 89,274,204 shares in issue. The market capitalisation of Norcros is £161,586,309.
Norcros has a price to earnings ratio (PE ratio) of 9.62.
This morning NXR shares opened at 180.50p
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 05/12/2023 14:35 by rmillaree
what i like here is that the forecasts lkook realistic and are warts and all. So many companies promise the earth then faily deliver. all nxr wants its to be valued at 7.4 * earnings - not much of an ask really is it? or is it ?
Posted at 05/12/2023 14:13 by pj84
Valuation suggests c 50% upside

Following the H124 results, we have essentially maintained our profit estimates and therefore our valuation of Norcros. Our P/E based valuation implies a value of 236p/share based on our diluted underlying FY24 EPS estimate of 31.5p/share, while our dividend discount model (DDM) implies a value of 255p/share, and if we take the average of the two, we arrive at 246p, implying c 50% upside. Norcros is trading at the lower end of its long-term consensus forward P/E range on 5.4x (Edison forecast P/E: 5.2x), suggesting that a lot of negativity is priced in. As and when we begin to see recovery in the UK and/or South Africa, the company may well attract a higher multiple.

Simple forward P/E multiple valuation implies 236p/share

The chart below details the progression of Norcros’s forward P/E over the last cycle. The range at the extremes is a low of 4x reached briefly post COVID-19 and again in 2022, and the high is c 12x at the end of 2013, before the Brexit hiatus. Over this period and outside the extreme ratings, the ‘real’ range has arguably been 6–9x and the average over the whole period is 7.4x.


If we apply the 7.4x forward P/E multiple to our estimate of FY24e diluted underlying EPS of 31.5p, we arrive at a value of 236p/share, implying c 45% upside to the share price. Arguably, this method gives little credit for future potential acquisitions, which are part of the company’s strategy and may be forthcoming.
Posted at 20/11/2023 09:34 by pj84
Norcros 1 of 5 shares in this morning's expert view update on


Norcros shares look cheap, says Peel Hunt

Bathroom supplier Norcros (NRX) has continued to deliver and the shares are cheap, says Peel Hunt.

Analyst Sam Cullen retained his ‘buy’ recommendation and target price of 220p on the Citywire Elite Companies A-rated stock, which was trading at 164p on Friday.

The group delivered a ‘solid set of interims’ with operating profit 3% lower than the previous year at £21.4m. Cullen kept expectations for full-year 2023 unchanged and reduced 2024 estimates by just 3%.

‘Norcros is delivering against its strategy in what are tough markets,’ he said.

‘The group’s UK brand continues to win share and has scope to grow further new product development and enhanced collaboration. The shares look cheap on just five times current year 2024 earnings, with a 10% free cashflow yield and 7% dividend.’
Posted at 17/11/2023 16:00 by rmillaree
I doubt it takes much to move the needle 10% here - certainly over on stokopedia no updates as of yet from paul scott or the others yet - albeit he has made note "cheap"next to company - they are a hard bunch to please over there at times as they have only given this an "amber rating" last 2 times the company has been looked at - perhaps if its Paul Scott updating this time he may be generous enough to give it a green mark.

perhaps the equity developments report has helped a little - company is clealry cheap so if enough peeps are slapped in theface with this fact then ......

In some resepects a lack of bad news on p/e of 5 is actually good news and the equity developmnet note confirms outlook is acceptable and debt coming down.

Personally i wish it was the comany buying back shares by the bucketload every time the price drops belopw 160p - 150-160p seems a natural bottom here even if it did overshoot below that briefly (withouty me noticing)
Posted at 17/11/2023 15:53 by edmonda
Fegger - no doubt many factors, but the link about 3 cms above your post appears to be one of them. NXR shares have been'overlooked and undervalued' far too long...
Posted at 10/8/2023 14:11 by edmundshaw
Valuing on a PE basis will never go out of fashion.

OK, as a crude "share price"/"basic EPS" it is hopelessly crude, but with appropriate adjustments for debt, assets, underlying diluted earnings and a few other bits and pieces, and checking future prospects, PE (or EV) is the simplest and best basic measure to start with.
Posted at 09/8/2023 10:32 by shbgetreal
Just the current market - cash generative company with good management hits top of market expectations in last results, prompting a steady downward slide in share price...
Posted at 13/4/2023 13:12 by kalai1
Norcros plc issued a trading update for the year ended 31 March 2023 this morning. Group revenue is expected to be approximately £440 million up 11.3% on a reported basis, underlying operating profit is expected to be at a record level and in line with current market expectations of around £45.9 million. Both UK and South African businesses continue to perform well. The Group remains in a strong financial position with net debt at 31 March 2023 expected to be circa £50 million. The outlook also appears healthy despite the fragile macro environment with management expecting to deliver further market share growth in the year ahead. Valuation also now looks very attractive, forward PE ratio at just 5.2x ranks NXR top 1 out of 29 names in the Homebuilding and Construction Supplies sector. PS ratio at 0.38x is top quartile. All that is missing from the investment case is some near term share price momentum following an 18-month correction, but with a dividend yield over 5% NXR is already worth owning. BUY...

...from WealthOracle
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’ pension, which despite having a net surplus has gross liabilities of £280m, greater than the group’s market cap.

‘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.
Norcros share price data is direct from the London Stock Exchange

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