This is an updated version of the report published on April 27, 2026, at 09:11 AM GMT+1

NIOX Group PLC 

NIOX Group PLC (LSE: NIOX), is an FTSE AIM UK 50 index listed medical device company. The Company focuses on point of care asthma diagnosis, monitoring and management. 

Key Recommendation Rationale - Sell at GBX 69.00 

• Gross Margin Contraction: Gross margin declined from 72% to 69% despite revenue growth. This compression is driven by a higher mix of device-heavy research sales, which are less profitable than high-margin recurring clinical consumables, potentially pressuring long-term profitability.
• Slowing Clinical Core Growth: Clinical revenue, which comprises over 90% of recurring sales, grew only 7% (6% constant currency). This significantly lags total group growth of 17%, indicating the core clinical business is maturing and reliant on volatile, lower-margin research revenue for headline expansion.
• Intensifying US Competitive Pressure: US sales grew only 8% despite strategic investments, hampered by increased competitive activity and the absence of a contract sales force for much of 2025. The new direct sales team will not be fully operational until mid-2026, delaying market share capture.
• High Tax Rate on Foreign Profits: The effective tax expense remained high at £4.2 million, primarily due to deferred tax charges on Swedish profits. With UK tax losses of £197.2 million restricted to 50% of profits above £5 million, future cash tax leakage will constrain net income growth.

Valuation Methodology: Price/ Earnings Approach

Share Price Chart  

Conclusion

NIOX faces a challenging mix of margin compression and slowing clinical core growth. While headline revenue rises, reliance on volatile research sales, high R&D cash burn without immediate return, and persistent tax leakage pressure bottom-line earnings. US competitive risks and inventory build-up further temper the otherwise Good operational narrative.

NIOX Group PLC, appears overvalued. For conducting the valuation, the following peers have been considered: Advanced Medical Solutions Group PLC (LSE:AMS), Tristel PLC (LSE:TSTL), etc

Given its current trading levels, the recent strategic investments and partnerships, relative valuation, and associated risks, it is prudent to exit the stock at the current levels.

Hence, a ‘Sell’ recommendation is given on the stock at the Current Market Price of GBX 69.00 as of 27 April 2026, at 08:18 AM GMT+1.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 27 April 2026. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Target Price refers to a price level which the stock is expected to reach as per the relative valuation method and/or technical analysis taking into consideration both short-term and long-term scenario.

Note 5: ‘Kalkine reports are prepared based on the stock prices captured either from the London Stock Exchange (LSE) and or REFINITIV. Typically, both sources (LSE and or REFINITIV) may reflect stock prices with a delay which could be a lag of 15-20 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.’