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NextEnergy Solar Fund Limited
(LSE:NESF)
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Rating:57Neutral
Price Target:
52.00 p
â–²(5.05% Upside)
Action:Reiterated
Date:06/24/26
The score is held back primarily by weak financial performance on the income statement (multi-year losses and sharp revenue deterioration), despite meaningful offsets from strong and improving cash generation and an improved balance sheet with zero reported debt. Technical indicators add a modest drag due to weak price trend and subdued momentum, while valuation is supported by a very high dividend yield but tempered by negative earnings.
Positive Factors
Resilient cash generation
Positive and improving operating and free cash flow provides internal funding capacity even while reported earnings are weak. This supports ongoing asset operations and distributions, and gives the company greater resilience over the next several quarters if cash conversion remains durable.
Negative Factors
Sustained profitability deterioration
The shift from positive profitability in FY2021–FY2023 to increasingly large losses weakens earnings quality and makes future results harder to forecast. Persistent losses could reduce the company’s ability to sustain distributions and may constrain reinvestment if the trend continues.
Read all positive and negative factors
Positive Factors
Negative Factors
Resilient cash generation
Positive and improving operating and free cash flow provides internal funding capacity even while reported earnings are weak. This supports ongoing asset operations and distributions, and gives the company greater resilience over the next several quarters if cash conversion remains durable.
Read all positive factors
NextEnergy Solar Fund Limited (NESF) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£287.60M
Dividend Yield16.2%
Average Volume (3M)1.23M
Price to Earnings (P/E)―
Beta (1Y)0.43
Revenue GrowthN/A
EPS GrowthN/A
CountryUK
EmployeesN/A
SectorFinancial
Sector Strength70
IndustryAsset Management
Share Statistics
EPS (TTM)-0.11
Shares Outstanding575,200,100
10 Day Avg. Volume1,366,626
30 Day Avg. Volume1,229,183
Financial Highlights & Ratios
PEG Ratio-0.01
Price to Book (P/B)0.58
Price to Sales (P/S)-5.23
P/FCF Ratio3.19
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£53.50Price Target Upside8.08% Upside
Rating ConsensusModerate Sell
Number of Analyst Covering3
EPS Forecast (FY)0.06
Revenue Forecast (FY)£123.00M
NextEnergy Solar Fund Limited Business Overview & Revenue Model
Company Description
NextEnergy Solar Fund Limited concentrates its investments on operational solar photovoltaic (PV) facilities. While its primary objective is to acquire existing, revenue-generating solar projects, the fund also considers opportunities in assets un...
How the Company Makes Money
NESF makes money by owning solar PV projects that generate electricity and monetising the output and associated contractual and policy-linked cash flows. Its key revenue streams typically include: (1) Electricity sales: solar farms produce power t...
NextEnergy Solar Fund Limited Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
62
Positive
Cash Flow
76
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2023 | Mar 2022 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | -48.91M | 1.06M | 3.58M | 60.20M | 138.68M |
| Gross Profit | -48.91M | 1.06M | 3.58M | 54.37M | 133.63M |
| EBITDA | -60.90M | -10.72M | -8.22M | 57.95M | 137.14M |
| Net Income | -61.04M | -10.86M | -8.36M | 48.32M | 127.55M |
Balance Sheet | |||||
| Total Assets | 638.80M | 748.62M | 819.61M | 875.23M | 878.34M |
| Cash, Cash Equivalents and Short-Term Investments | 25.10M | 3.22M | 8.86M | 14.35M | 19.61M |
| Total Debt | 198.61M | 198.47M | 198.34M | 198.20M | 198.06M |
| Total Liabilities | 201.29M | 201.25M | 200.99M | 2.34M | 209.84M |
| Stockholders Equity | 437.51M | 547.37M | 618.62M | 674.42M | 668.50M |
Cash Flow | |||||
| Free Cash Flow | 80.20M | 64.24M | 51.46M | 46.44M | 58.14M |
| Operating Cash Flow | 80.20M | 64.24M | 51.46M | 46.44M | 58.14M |
| Investing Cash Flow | 0.00 | 0.00 | 0.00 | -26.10M | 6.86M |
| Financing Cash Flow | -58.33M | -69.89M | -56.94M | -51.90M | -49.34M |
NextEnergy Solar Fund Limited Technical Analysis
Positive
49.50
Price Trends
48.28
Positive
46.11
Positive
45.30
Positive
Market Momentum
0.44
Negative
64.95
Neutral
47.70
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:NESF, the sentiment is Positive. The current price of 49.5 is above the 20-day moving average (MA) of 49.27, above the 50-day MA of 48.28, and above the 200-day MA of 45.30, indicating a bullish trend. The MACD of 0.44 indicates Negative momentum. The RSI at 64.95 is Neutral, neither overbought nor oversold. The STOCH value of 47.70 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:NESF.
NextEnergy Solar Fund Limited Peers Comparison
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% |
* Financial Sector Average
Performance Comparison
NextEnergy Solar Fund Limited Corporate Events
Business Operations and StrategyStock BuybackDividendsShareholder Meetings
NextEnergy Solar Fund Investors Back Continuation and Strategy at AGM
Positive
Sep 4, 2026
NextEnergy Solar Fund’s shareholders strongly backed the board at the 4 September Annual General Meeting, approving all ordinary and special resolutions, including director elections, dividend mechanics, auditor reappointment and authorities...
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
NextEnergy Solar Fund Board Urges Support for Continuation and Expanded Storage Strategy at 2026 AGM
Positive
Aug 7, 2026
NextEnergy Solar Fund has published its circular and convened its annual general meeting for 4 September 2026 in Guernsey, offering shareholders both in-person and virtual participation, with AGM materials available via online channels and the UK ...
Business Operations and StrategyDividendsFinancial Disclosures
NextEnergy Solar Fund declares first interim dividend aligned with seasonal solar cash flows
Positive
Aug 6, 2026
NextEnergy Solar Fund has declared a first interim dividend of 1.77p per share for the quarter to 30 June 2026, in line with its policy of distributing 75% of operating cash flows to ordinary shareholders. The board highlighted that the payout ref...
Business Operations and StrategyM&A Transactions
NextEnergy Solar Fund launches formal sale process to close valuation gap
Neutral
Jul 15, 2026
NextEnergy Solar Fund Limited has launched a formal sale process after prolonged frustration with its stock market valuation, where its shares have traded at a persistent discount to net asset value despite solid portfolio performance. The board, ...
Business Operations and Strategy
NextEnergy Solar Fund Secures Natural Capital Status as It Publishes 2026 ESG Report
Positive
Jun 22, 2026
NextEnergy Solar Fund has published its 2026 standalone Sustainability and ESG Report, detailing how it integrates environmental, social and governance considerations into its strategy and operations. The report aligns with ISSB climate and genera...
Business Operations and StrategyDividendsFinancial DisclosuresShareholder Meetings
NextEnergy Solar Fund unveils strategic reset as NAV falls and sector discounts persist
Negative
Jun 22, 2026
NextEnergy Solar Fund has reported a sharp decline in net asset value, with NAV per share falling to 76.1p and gross asset value down to £922m, despite higher income and strong operational performance from its solar and storage portfolio. The...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.