NextNXGPF 85 Return-on-Tangible-Equity is 105.98% as of Jan. 2026, which is 14% above its 10-year median of 93.16. GuruFocus rates NXGPF with a GF Score™ of 85/100 and a GF Value™ of $166.60 (Modestly Overvalued). The stock has 2 warning signs investors should review. Among 1,055 Retail - Cyclical companies, Next ranks better than 92.23% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Next's annualized net income for the quarter that ended in Jan. 2026 was $1,378 Mil. Next's average shareholder tangible equity for the quarter that ended in Jan. 2026 was $1,300 Mil. Therefore, Next's annualized Return-on-Tangible-Equity for the quarter that ended in Jan. 2026 was 105.98%.
The historical rank and industry rank for Next's Return-on-Tangible-Equity or its related term are showing as below:
NXGPF'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 57.47 Med: 93.16 Max: 172.8
Current: 94.36
During the past 13 years, Next's highest Return-on-Tangible-Equity was 172.80%. The lowest was 57.47%. And the median was 93.16%.
NXGPF's Return-on-Tangible-Equity is ranked better than 92.23% of 1055
companies
in the Retail - Cyclical industry
Industry Median: 8.28
vs NXGPF: 94.36
Next (OTCPK:NXGPF) Return-on-Tangible-Equity Explanation
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Next Return-on-Tangible-Equity Related Terms
Next Return-on-Tangible-Equity Historical Data
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The historical data trend for Next's Return-on-Tangible-Equity 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.
NXGPF vs TJX, ROST, BURL: Return-on-Tangible-Equity Comparison
For the Apparel Retail subindustry, Next's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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 Return-on-Tangible-Equity vs Retail - Cyclical Industry
For the Retail - Cyclical industry and Consumer Cyclical sector, Next's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Next's Return-on-Tangible-Equity 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Jan. 2026) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 105.98% mean?
Next (NXGPF) has a Return-on-Tangible-Equity of 105.98% as of Jan. 2026. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Next and its competitors. This is 14% above median its historical median of 93.16. Over the past decade, Next's Return-on-Tangible-Equity has ranged from 57.47 to 172.80. According to the industry distribution chart, Next ranks #82 out of 1055 companies in the Retail - Cyclical industry, placing it in the top 7.8%.
Is Next's Return-on-Tangible-Equity too high?
Next's current Return-on-Tangible-Equity of 105.98% is 14% above median its 10-year median of 93.16. Over the past 10 years, this metric has ranged from a low of 57.47 to a high of 172.80. The Retail - Cyclical industry median Return-on-Tangible-Equity is 8.28. Next's value of 105.98% is 1180% above this industry median. Based on the distribution chart, Next ranks #82 out of 1055 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 85/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Next's Return-on-Tangible-Equity compare to TJX and ROST?
According to the Retail - Cyclical industry distribution chart, Next ranks #82 out of 1055 companies for Return-on-Tangible-Equity. This places Next in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 8.28. Next's value of 105.98% is 1180% above this benchmark. Historically, Next's own Return-on-Tangible-Equity has ranged from 57.47 to 172.80 over the past decade. While the company's 10-year median is 93.16 vs. the industry median of 8.28, 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 Return-on-Tangible-Equity for a Retail - Cyclical company?
The median Return-on-Tangible-Equity among Retail - Cyclical companies is 8.28, based on 1,055 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Next's current Return-on-Tangible-Equity of 105.98% is 1180% 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 Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Next and its competitors. For the Retail - Cyclical industry, the median Return-on-Tangible-Equity is 8.28 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Next's current Return-on-Tangible-Equity is 105.98%, which is 14% above median its own 10-year median of 93.16. 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 $166.60, compared to a current price of $197.60 — trading 18.6% above its estimated fair value. The current Return-on-Tangible-Equity is 105.98%, which is 14% above median its 10-year median of 93.16 and 1180% above the Retail - Cyclical industry median of 8.28. 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 Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Next (NXGPF), the current Return-on-Tangible-Equity is 105.98% 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 18.6% above its estimated GF Value™ of $166.60.
GuruFocus considers Next to be Modestly Overvalued.
Key valuation signals for NXGPF:
Return-on-Tangible-Equity: 105.98% (14% above median its 10-year median of 93.16)
GF Value™: $166.60 vs. price of $197.60 (18.6% above fair value)
Industry Position: 1180% above the Retail - Cyclical median (#82 of 1055)
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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