Marks and Spencer (GB:MKS)
LSE:MKS
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Marks and Spencer
(LSE:MKS)
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Rating:61Neutral
Price Target:
399.00 p
â–˛(12.74% Upside)
Action:ReiteratedDate:12/07/25
Marks and Spencer's overall stock score is driven by strong financial performance and positive corporate events. However, the high P/E ratio and bearish technical indicators weigh down the score. The earnings call provided a mixed outlook with growth in certain areas but challenges in others. The company's strategic initiatives and insider confidence are positive, but valuation concerns and technical weakness are significant risks.
Positive Factors
Strong cash generation
High cash conversion ratios demonstrate durable cash-generation capacity. With FCF well above net income and operating cash flows multiple times net income, M&S can fund store rollout, supply-chain modernization and technology upgrades internally while retaining flexibility for shareholder returns or debt reduction over the next 2–6 months.
Negative Factors
Fashion/Home/Beauty weakness
A substantial, sustained decline in non-food categories reduces diversification and depresses overall margin mix. Given these categories historically drive higher margins and brand value, prolonged underperformance risks longer recovery timelines, structural market-share loss online, and weaker profitability until assortment and online operations fully recover.
Read all positive and negative factors
Positive Factors
Negative Factors
Strong cash generation
High cash conversion ratios demonstrate durable cash-generation capacity. With FCF well above net income and operating cash flows multiple times net income, M&S can fund store rollout, supply-chain modernization and technology upgrades internally while retaining flexibility for shareholder returns or debt reduction over the next 2–6 months.
Read all positive factors
Marks and Spencer (MKS) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
ÂŁ7.17B
Dividend Yield1.18%
Average Volume (3M)6.70M
Price to Earnings (P/E)298.7
Beta (1Y)1.00
Revenue Growth14.13%
EPS Growth-96.12%
CountryUK
Employees64,000
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)0.06
Shares Outstanding2,065,508,500
10 Day Avg. Volume6,777,397
30 Day Avg. Volume6,695,167
Financial Highlights & Ratios
PEG Ratio-0.76
Price to Book (P/B)2.44
Price to Sales (P/S)0.52
P/FCF Ratio8.92
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
ÂŁ417.29Price Target Upside17.91% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering8
EPS Forecast (FY)0.34
Revenue Forecast (FY)ÂŁ18.80B
Marks and Spencer Business Overview & Revenue Model
Company Description
Marks and Spencer Group plc operates various retail stores. It operates through five segments: UK Clothing & Home, UK Food, International, Ocado, and All Other. The company offers protein deli and dairy; produce; ambient and in-store bakery; meals...
How the Company Makes Money
Marks and Spencer generates revenue primarily through its retail operations, which include both physical stores and online sales. The Food segment is a significant revenue driver, contributing a large portion of the company's earnings through the ...
Marks and Spencer Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q2-2026)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Neutral
The call highlighted significant growth in sales driven by the inclusion of Ocado Retail and resilience in the food sector, alongside strategic investments in store and technology. However, challenges remain with the impact of a cyber incident, declines in Fashion, Home and Beauty, and international sales, and an uncertain consumer environment.Positive Updates
Group Sales Growth
Group sales grew 22% versus last year, mainly driven by the consolidation of Ocado Retail. M&S Food sales grew 7.8% in the half.
Negative Updates
Impact of Cyber Incident
The material impact of the cyber incident on group operating profit is estimated at GBP 300 million for the financial year.
Read all updates
Q2-2026 Updates
Positive
Negative
Group Sales Growth
Group sales grew 22% versus last year, mainly driven by the consolidation of Ocado Retail. M&S Food sales grew 7.8% in the half.
Read all positive updates
Company Guidance
In the recent Marks and Spencer analyst call, the company provided guidance on several key metrics for its fiscal year 2026. Group sales grew by 22%, primarily due to the consolidation of Ocado Retail, while M&S sales remained flat compared to the previous year. The group reported a profit before tax and adjusting items of GBP 184 million and maintained a net funds position excluding lease liabilities. The call highlighted a material impact on group operating profit by around GBP 300 million due to a significant incident, partially mitigated by a GBP 100 million insurance claim. In terms of individual business segments, food sales grew by 7.8%, while fashion, home, and beauty sales declined by 16.4% due to online operation pauses, supply chain disruptions, and reduced footfall. The company also emphasized their transformation strategy, including investments in store rotation, supply chain modernization, and technology, with plans to open more than 20 new or renewed stores in the second half. Additionally, international sales were down by 11.6%, with recovery efforts underway, and Ocado Retail saw a 14.9% sales increase. The outlook for the second half anticipates profit at least in line with the previous year, with a focus on cost reduction to offset external headwinds, including GBP 50 million from national insurance contributions and packaging tax.Marks and Spencer Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
72
Positive
Cash Flow
80
Positive
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 15.28B | 13.82B | 13.04B | 11.93B | 10.89B | 9.16B |
| Gross Profit | 7.34B | 4.61B | 4.46B | 4.14B | 3.75B | 2.91B |
| EBITDA | 997.40M | 1.49B | 1.37B | 1.20B | 1.16B | 622.90M |
| Net Income | 19.80M | 295.70M | 431.20M | 363.40M | 306.60M | -198.00M |
Balance Sheet | ||||||
| Total Assets | 10.07B | 8.82B | 8.68B | 9.10B | 9.44B | 8.64B |
| Cash, Cash Equivalents and Short-Term Investments | 848.60M | 1.15B | 1.03B | 1.08B | 1.22B | 692.80M |
| Total Debt | 3.39B | 2.94B | 3.13B | 3.63B | 3.81B | 4.09B |
| Total Liabilities | 7.10B | 5.87B | 5.85B | 6.28B | 6.53B | 6.35B |
| Stockholders Equity | 2.80B | 2.94B | 2.83B | 2.81B | 2.91B | 2.28B |
Cash Flow | ||||||
| Free Cash Flow | 603.40M | 806.10M | 872.40M | 619.60M | 1.12B | 664.20M |
| Operating Cash Flow | 1.01B | 1.31B | 1.30B | 1.03B | 1.38B | 870.90M |
| Investing Cash Flow | -280.90M | -696.10M | -435.30M | -516.60M | -245.70M | -192.60M |
| Financing Cash Flow | -580.20M | -773.60M | -909.80M | -643.80M | -595.90M | -244.00M |
Marks and Spencer Technical Analysis
Neutral
353.90
Price Trends
369.81
Negative
354.26
Negative
356.44
Negative
Market Momentum
-8.68
Negative
50.73
Neutral
82.35
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MKS, the sentiment is Neutral. The current price of 353.9 is above the 20-day moving average (MA) of 346.68, below the 50-day MA of 369.81, and below the 200-day MA of 356.44, indicating a neutral trend. The MACD of -8.68 indicates Negative momentum. The RSI at 50.73 is Neutral, neither overbought nor oversold. The STOCH value of 82.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for GB:MKS.
Marks and Spencer Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | £2.78B | 2.38 | 21.64% | ― | -6.43% | 52.93% | |
71 Outperform | ÂŁ3.44B | 26.72 | 17.89% | 1.21% | 14.60% | 58.84% | |
70 Outperform | ÂŁ14.85B | 17.45 | 51.86% | 1.80% | 9.74% | 0.92% | |
65 Neutral | ÂŁ1.63B | 6.72 | 121.78% | 3.99% | 3.78% | 3.29% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
61 Neutral | ÂŁ7.17B | 298.74 | 0.69% | 1.18% | 14.13% | -96.12% | |
52 Neutral | £259.19M | -1.12 | -111.93% | ― | -14.89% | 12.08% |
* Consumer Cyclical Sector Average
GB:MKS
Marks and Spencer
353.90
-0.71
-0.20%
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Marks and Spencer Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
Marks and Spencer Executives Add Shares Through Employee Incentive Plan
Positive
Mar 2, 2026
Marks and Spencer has disclosed that two senior executives acquired small additional holdings in the company through its all-employee Share Incentive Plan. Operations Director S. Berendji and Managing Director of Food A. Freudmann each bought 38 o...
Business Operations and StrategyRegulatory Filings and Compliance
Marks and Spencer Updates Share Capital After SAYE Scheme Issuance
Neutral
Mar 2, 2026
Marks and Spencer Group has issued and allotted 7,507,025 new ordinary shares of 1p each under its Save As You Earn (SAYE) employee share scheme, with the shares admitted to trading on the London Stock Exchange’s Main Market under an existin...
Other
Marks and Spencer CEO Sells 150,000 Shares on London Market
Neutral
Feb 17, 2026
Marks and Spencer Group plc disclosed that its Chief Executive Officer, S Machin, has carried out a sale of company shares. The transaction involved the disposal of 150,000 ordinary 1p shares at a price of £4.04 per share on 17 February 2026....
Executive/Board Changes
M&S Director Evelyn Bourke Joins St. James’s Place Board as Independent Non-Executive
Positive
Feb 5, 2026
Marks and Spencer Group plc has announced that board member Evelyn Bourke will take on an additional external role as an independent non-executive director at St. James’s Place plc from 1 March 2026, where she will also serve on the audit an...
Regulatory Filings and Compliance
M&S Discloses Share Option Exercise and Sale by International MD
Neutral
Feb 3, 2026
Marks and Spencer Group plc disclosed that its Managing Director of International, identified as a person discharging managerial responsibilities, has exercised options over 8,800 ordinary 1p shares under the company’s Sharesave scheme at an...
Regulatory Filings and Compliance
Marks and Spencer Confirms Current Voting Share Capital
Neutral
Feb 2, 2026
Marks and Spencer Group PLC has reported that its issued share capital comprises 2,057,211,437 ordinary shares, all of which carry voting rights, and that it currently holds no shares in treasury. This updated share capital figure provides the ref...
Other
Marks and Spencer Executives Add Shares Through Incentive Plan
Positive
Jan 28, 2026
Marks and Spencer has disclosed that two senior executives, Operations Director Sacha Berendji and Managing Director of Food Alex Freudmann, have increased their holdings in the company by acquiring ordinary shares through its all-employee Share I...
DividendsRegulatory Filings and Compliance
Marks & Spencer Executives Add Shares via Dividend Reinvestment Plan
Neutral
Jan 12, 2026
Marks and Spencer Group plc has disclosed that senior executives have increased their shareholdings through the company’s Dividend Reinvestment Plan, with Operations Director Sacha Berendji acquiring 2,044 ordinary shares and Managing Direct...
Business Operations and StrategyFinancial Disclosures
M&S Delivers Strong Christmas in Food as Fashion Recovers and Ocado JV Accelerates Growth
Positive
Jan 8, 2026
Marks and Spencer reported a solid Christmas trading period for the 13 weeks to 27 December 2025, with group sales of £4.99bn and continued momentum in its reshaping strategy. Food remained the standout performer, with underlying sales up 6.6...
Regulatory Filings and Compliance
Marks and Spencer Confirms Current Voting Share Capital for Regulatory Disclosures
Neutral
Jan 2, 2026
Marks and Spencer Group PLC has confirmed that its issued share capital comprises 2,057,140,555 ordinary shares, all of which carry voting rights, with no shares currently held in treasury. This updated share capital figure provides the key denomi...
Other
Marks and Spencer Executives Add Shares via All-Employee Incentive Plan
Positive
Dec 30, 2025
Marks and Spencer Group plc has disclosed that senior executives Sacha Berendji, Operations Director, and Alex Freudmann, Managing Director of Food, have acquired additional ordinary shares in the company under its all-employee Share Incentive Pla...
Business Operations and StrategyFinancial Disclosures
Marks and Spencer Sets 2025 PSP Award Targets Amid Cyber Incident Delays
Neutral
Dec 11, 2025
Marks and Spencer Group PLC announced the targets for its 2025 Performance Share Plan (PSP) awards, which were delayed due to a cyber incident. The PSP aims to create sustainable value and align with shareholder interests, with awards vesting in 2...
Business Operations and StrategyExecutive/Board Changes
Marks and Spencer Announces Director Share Transaction
Neutral
Dec 10, 2025
Marks and Spencer Group plc announced a transaction involving the vesting and subsequent sale of shares by a director, A Freudmann, who is the Managing Director of Food. The transaction involved the vesting of 792,316 shares under the 2022/23 Perf...
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.