These Fundamentals Make NEXT plc (LON:NXT) Truly Worth Looking At
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Building up an investment case requires looking at a stock holistically. Today I've chosen to put the spotlight on NEXT plc (LON:NXT) due to its excellent fundamentals in more than one area. NXT is a well-regarded dividend-paying company that has been able to sustain great financial health over the past. Below, I've touched on some key aspects you should know on a high level. For those interested in digger a bit deeper into my commentary, read the full report on NEXT here.
Excellent balance sheet average dividend payer
NXT's strong financial health means that all of its upcoming liability payments are able to be met by its current cash and short-term investment holdings. This indicates that NXT has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. NXT appears to have made good use of debt, producing operating cash levels of 0.51x total debt in the prior year. This is a strong indication that debt is reasonably met with cash generated.
For those seeking income streams from their portfolio, NXT is a robust dividend payer as well. Over the past decade, the company has consistently increased its dividend payout, reaching a yield of 3.0%.
Next Steps:
For NEXT, I've compiled three essential factors you should further research:
Future Outlook: What are well-informed industry analysts predicting for NXT’s future growth? Take a look at our free research report of analyst consensus for NXT’s outlook.
Historical Performance: What has NXT's returns been like over the past? Go into more detail in the past track record analysis and take a look at the free visual representations of our analysis for more clarity.
Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of NXT? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
