NextNXGPF 85 Interest Coverage is 15.10 as of Jan. 2026, which is 35% above its 10-year median of 11.19. GuruFocus rates NXGPF with a GF Score™ of 85/100 and a GF Value™ of $173.87 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 828 Retail - Cyclical companies, Next ranks better than 61.71% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Next's
Operating Income
for the
six
months ended in Jan. 2026 was $985 Mil. Next's Interest Expense for the
six
months ended in Jan. 2026 was $-65 Mil.
Next's interest coverage for the quarter that ended in Jan. 2026 was 15.10.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Next's Interest Coverage or its related term are showing as below:
NXGPF'
s Interest Coverage Range Over the Past 10 Years
Min: 4.33 Med: 11.19 Max: 21.87
Current: 13.14
NXGPF's Interest Coverage is ranked better than 61.71% of 828
companies
in the Retail - Cyclical industry
Industry Median: 7.915
vs NXGPF: 13.14
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Next Interest Coverage Related Terms
Next Interest Coverage Historical Data
* Premium members only.
The historical data trend for Next's Interest Coverage 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.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
NXGPF vs TJX, ROST, BURL: Interest Coverage Comparison
For the Apparel Retail subindustry, Next's Interest Coverage, along with its competitors' market caps and Interest Coverage 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 Interest Coverage vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Next's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Next's Interest Coverage falls into.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* 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 (NXGPF) has a Interest Coverage of 15.10 as of Jan. 2026. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Next and its competitors. This is 35% above median its historical median of 11.19. Over the past decade, Next's Interest Coverage has ranged from 4.33 to 21.87. According to the industry distribution chart, Next ranks #317 out of 828 companies in the Retail - Cyclical industry, placing it in the top 38.3%.
Is Next's Interest Coverage too high?
Next's current Interest Coverage of 15.10 is 35% above median its 10-year median of 11.19. Over the past 10 years, this metric has ranged from a low of 4.33 to a high of 21.87. The Retail - Cyclical industry median Interest Coverage is 7.92. Next's value of 15.10 is 90.8% above this industry median. Based on the distribution chart, Next ranks #317 out of 828 companies in the Retail - Cyclical industry, which is above the industry midpoint. Overall, Next has a GF Score™ of 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Next's Interest Coverage compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Next ranks #317 out of 828 companies for Interest Coverage. This puts Next in the upper half of its industry. The industry median Interest Coverage is 7.92. Next's value of 15.10 is 90.8% above this benchmark. Historically, Next's own Interest Coverage has ranged from 4.33 to 21.87 over the past decade. While the company's 10-year median is 11.19 vs. the industry median of 7.92, 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 Interest Coverage for a Retail - Cyclical company?
The median Interest Coverage among Retail - Cyclical companies is 7.92, based on 828 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Next's current Interest Coverage of 15.10 is 90.8% 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 Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Next and its competitors. For the Retail - Cyclical industry, the median Interest Coverage is 7.92 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Next's current Interest Coverage is 15.10, which is 35% above median its own 10-year median of 11.19. 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 (NXGPF) is currently considered Modestly Overvalued. The stock's GF Value™ is $173.87, compared to a current price of $197.60 — trading 13.6% above its estimated fair value. The current Interest Coverage is 15.10, which is 35% above median its 10-year median of 11.19 and 90.8% above the Retail - Cyclical industry median of 7.92. Next's overall GF Score™ is 85/100 with 2 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Next (NXGPF), the current Interest Coverage is 15.10 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 (NXGPF) Overvalued in 2026?
Based on GuruFocus' analysis, Next stock appears to be overvalued.
The current stock price of $197.60 is trading 13.6% above its estimated GF Value™ of $173.87.
GuruFocus considers Next to be Modestly Overvalued.
Key valuation signals for NXGPF:
Interest Coverage: 15.10 (35% above median its 10-year median of 11.19)
GF Value™: $173.87 vs. price of $197.60 (13.6% above fair value)
Industry Position: 90.8% above the Retail - Cyclical median (#317 of 828)
No single metric tells the full story. See the NXGPF 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.
85GF Score
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