NextLSE:NXT +2.27%90 FCF Margin % is 18.15% as of Jan. 2026, which is 16% above its 10-year median of 15.68. GuruFocus rates LSE:NXT with a GF Score™ of 90/100 and a GF Value™ of £122.95 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,125 Retail - Cyclical companies, Next ranks better than 86.31% on this metric.
FCF Margin % is calculated as Free Cash Flow divided by its Revenue. Next's Free Cash Flow for the
six
months ended in Jan. 2026 was £682 Mil. Next's Revenue for the
six
months ended in Jan. 2026 was £3,757 Mil. Therefore, Next's FCF Margin % for the quarter that ended in Jan. 2026 was 18.15%.
The historical rank and industry rank for Next's FCF Margin % or its related term are showing as below:
LSE:NXT'
s FCF Margin % Range Over the Past 10 Years
Min: 10.98 Med: 15.68 Max: 18.77
Current: 15.39
During the past 13 years, the highest FCF Margin % of Next was 18.77%. The lowest was 10.98%. And the median was 15.68%.
LSE:NXT's FCF Margin % is ranked better than 86.31% of 1125
companies
in the Retail - Cyclical industry
Industry Median: 3.02
vs LSE:NXT: 15.39
Next FCF Margin % Related Terms
Next FCF Margin % Historical Data
* Premium members only.
The historical data trend for Next's FCF Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LSE:NXT vs TJX, ROST, BURL: FCF Margin % Comparison
For the Apparel Retail subindustry, Next's FCF Margin %, along with its competitors' market caps and FCF Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Next FCF Margin % vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Next's FCF Margin % distribution charts can be found below:
* The bar in red indicates where Next's FCF Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Next (LSE:NXT) has a FCF Margin % of 18.15% as of Jan. 2026. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Next and its competitors. This is 16% above median its historical median of 15.68. Over the past decade, Next's FCF Margin % has ranged from 10.98 to 18.77. According to the industry distribution chart, Next ranks #154 out of 1125 companies in the Retail - Cyclical industry, placing it in the top 13.7%.
Is Next's FCF Margin % too high?
Next's current FCF Margin % of 18.15% is 16% above median its 10-year median of 15.68. Over the past 10 years, this metric has ranged from a low of 10.98 to a high of 18.77. The Retail - Cyclical industry median FCF Margin % is 3.02. Next's value of 18.15% is 501% above this industry median. Based on the distribution chart, Next ranks #154 out of 1125 companies in the Retail - Cyclical industry, which is in the top quartile — a strong position relative to peers. Overall, Next has a GF Score™ of 90/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Next's FCF Margin % compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Next ranks #154 out of 1125 companies for FCF Margin %. This places Next in the top 14% of its industry — outperforming the majority of peers. The industry median FCF Margin % is 3.02. Next's value of 18.15% is 501% above this benchmark. Historically, Next's own FCF Margin % has ranged from 10.98 to 18.77 over the past decade. While the company's 10-year median is 15.68 vs. the industry median of 3.02, Next has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good FCF Margin % for a Retail - Cyclical company?
The median FCF Margin % among Retail - Cyclical companies is 3.02, based on 1,125 companies in the industry. Companies in the top quartile (top 25%) have a FCF Margin % significantly above this median, while those in the bottom quartile fall well below. However, FCF Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Next's current FCF Margin % of 18.15% is 501% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high FCF Margin % mean?
A high FCF Margin % can signal that a stock is expensive relative to its fundamentals. Free cash flow margin is the ratio of total free cash flow to net sales. View historical data on Next and its competitors. For the Retail - Cyclical industry, the median FCF Margin % is 3.02 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Next's current FCF Margin % is 18.15%, which is 16% above median its own 10-year median of 15.68. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Next stock overvalued right now?
Based on GuruFocus' analysis, Next (LSE:NXT) is currently considered Modestly Overvalued. The stock's GF Value™ is £122.95, compared to a current price of £146.55 — trading 19.2% above its estimated fair value. The current FCF Margin % is 18.15%, which is 16% above median its 10-year median of 15.68 and 501% above the Retail - Cyclical industry median of 3.02. Next's overall GF Score™ is 90/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is FCF Margin % calculated?
FCF Margin % is calculated from a company's financial statements. For Next (LSE:NXT), the current FCF Margin % is 18.15% as of Jan. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Next (LSE:NXT) Overvalued in 2026?
Based on GuruFocus' analysis, Next stock appears to be overvalued.
The current stock price of £146.55 is trading 19.2% above its estimated GF Value™ of £122.95.
GuruFocus considers Next to be Modestly Overvalued.
Key valuation signals for LSE:NXT:
FCF Margin %: 18.15% (16% above median its 10-year median of 15.68)
GF Value™: £122.95 vs. price of £146.55 (19.2% above fair value)
Industry Position: 501% above the Retail - Cyclical median (#154 of 1125)
No single metric tells the full story. See the LSE:NXT stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Next PLC operates as a retailer, specializing in the sale of clothing, footwear, accessories, and home products. A portion of the company's product offerings comprises items bearing the Next brand. Additionally, the majority of the company's remaining sales occur through retail stores located outside the United Kingdom, which it franchises. The company's segments encompass NEXT Online, NEXT Finance, NEXT Retail, and Other Business Activities. A substantial portion of the company's revenue is derived from customers within the United Kingdom; however, its presence extends to regions such as the Rest of Europe, the Middle East, Asia, and the Rest of the World.
90GF Score
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