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Marks and Spencer (GB:MKS)
LSE:MKS
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Marks and Spencer (MKS) AI Stock Analysis

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GB:MKS

Marks and Spencer

(LSE:MKS)

Rating:72Outperform
Price Target:
388.00p
▲(11.94% Upside)
Marks and Spencer's overall stock score is driven by strong financial performance and positive corporate events, indicating confidence in future growth. However, technical indicators suggest a neutral trend, and the valuation appears somewhat high, which tempers the overall score.

Marks and Spencer (MKS) vs. iShares MSCI United Kingdom ETF (EWC)

Marks and Spencer Business Overview & Revenue Model

Company DescriptionMarks 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 dessert and frozen; and hospitality and Food on the Move' products. The company also provides womenswear, menswear, lingerie, kids wear, and home products; financial services, including credit cards, payment solutions, insurances, savings, and loans; and renewable energy services. In addition, it invests in and develops real estate properties; operates international franchises; and provides its products online. The company also exports its products. It operates 1,487 stores in worldwide. The company was founded in 1884 and is headquartered in London, the United Kingdom.
How the Company Makes MoneyMarks and Spencer generates revenue through multiple channels, primarily from its food and clothing sectors. The food segment is a significant revenue driver, offering a wide array of fresh and packaged goods, including premium products and ready-to-eat meals, which appeal to a broad customer demographic. The clothing and home division contributes to earnings through seasonal collections, everyday wear, and home furnishings. M&S also benefits from its online retail platform, which has grown in importance, especially following the shift towards e-commerce. Additionally, the company engages in partnerships and collaborations, including food product offerings with third-party brands and exclusive lines that enhance its market presence. M&S's focus on quality and customer loyalty programs further supports its revenue generation by encouraging repeat purchases and maintaining a strong brand reputation.

Marks and Spencer Financial Statement Overview

Summary
Marks and Spencer demonstrates strong revenue growth and efficient cost management. The company's balance sheet is stable with balanced leverage, and there is healthy cash flow management. However, profitability is pressured by lower net profit margins, and operational efficiency is moderate.
Income Statement
78
Positive
Marks and Spencer has shown consistent revenue growth over the past years, with a notable revenue increase from 2024 to 2025. The Gross Profit Margin is strong at 33.4% for 2025, indicating effective cost management. However, the Net Profit Margin has decreased to 2.1% in 2025, signaling pressure on profitability. The EBIT margin of 4.5% reflects moderate operational efficiency, while the EBITDA margin of 10.8% in 2025 shows a solid core earnings capacity.
Balance Sheet
72
Positive
The company's balance sheet shows a moderate Debt-to-Equity Ratio of 1.0, indicating balanced leverage. The Return on Equity (ROE) is 10.1% for 2025, demonstrating decent profitability relative to equity. The Equity Ratio is 33.3%, reflecting a stable capital structure, though there's room for improvement in strengthening equity further.
Cash Flow
80
Positive
Cash flow analysis reveals robust Free Cash Flow growth, as seen in the positive Free Cash Flow to Net Income Ratio of 2.7 in 2025. The Operating Cash Flow to Net Income Ratio is 4.4 in 2025, indicating strong cash generation relative to net income. Overall, the company demonstrates healthy cash flow management.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue13.82B13.82B13.04B11.93B10.89B9.14B
Gross Profit13.56B4.61B4.46B3.57B3.22B2.39B
EBITDA1.33B1.49B1.42B1.29B1.20B559.10M
Net Income295.70M295.70M431.20M363.40M306.60M-198.00M
Balance Sheet
Total Assets8.82B8.82B8.68B9.10B9.44B8.64B
Cash, Cash Equivalents and Short-Term Investments1.15B1.15B1.03B1.08B1.22B692.80M
Total Debt2.94B2.94B3.13B3.59B3.76B4.05B
Total Liabilities5.87B5.87B5.85B6.28B6.53B6.35B
Stockholders Equity2.94B2.94B2.83B2.81B2.91B2.28B
Cash Flow
Free Cash Flow851.10M806.10M872.40M431.20M912.40M454.10M
Operating Cash Flow1.26B1.31B1.30B841.50M1.17B660.80M
Investing Cash Flow-720.90M-696.10M-435.30M-540.70M-254.10M-201.80M
Financing Cash Flow-695.30M-773.60M-909.80M-431.30M-379.30M-24.70M

Marks and Spencer Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price346.60
Price Trends
50DMA
348.52
Negative
100DMA
359.16
Negative
200DMA
359.18
Negative
Market Momentum
MACD
-0.18
Negative
RSI
51.58
Neutral
STOCH
83.87
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 346.6 is above the 20-day moving average (MA) of 345.01, below the 50-day MA of 348.52, and below the 200-day MA of 359.18, indicating a neutral trend. The MACD of -0.18 indicates Negative momentum. The RSI at 51.58 is Neutral, neither overbought nor oversold. The STOCH value of 83.87 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
£2.06B29.722.27%6.04%-66.96%
74
Outperform
£13.70B19.1246.76%1.98%11.42%-7.03%
72
Outperform
£7.04B23.8810.25%1.03%5.96%-33.04%
71
Outperform
£2.25B7.0542.93%13.43%1.59%-13.17%
65
Neutral
£3.94B77.34-7.28%5.01%-17.08%-128.46%
61
Neutral
$17.43B12.62-6.02%3.11%1.71%-15.47%
46
Neutral
£366.99M-62.59%-15.86%-18.46%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MKS
Marks and Spencer
346.60
25.05
7.79%
GB:ASC
ASOS plc
307.00
-51.00
-14.25%
GB:BME
B&M European Value Retail SA
223.40
-174.64
-43.87%
GB:VTY
Vistry Group
632.00
-726.00
-53.46%
GB:BRBY
Burberry
1,113.50
424.10
61.52%
GB:NXT
Next plc
11,780.00
2,067.85
21.29%

Marks and Spencer Corporate Events

Regulatory Filings and Compliance
Marks and Spencer Announces Share Capital and Voting Rights Update
Neutral
Aug 1, 2025

Marks and Spencer Group PLC has announced that its capital consists of 2,056,941,609 ordinary shares with voting rights, and currently holds no shares in Treasury. This information is crucial for shareholders as it serves as the denominator for calculating their interest in the company, in compliance with the FCA’s Disclosure and Transparency Rules.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £400.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Business Operations and Strategy
Marks and Spencer Directors Acquire Shares Under Incentive Plan
Positive
Jul 29, 2025

Marks and Spencer Group PLC announced that its directors and persons discharging managerial responsibilities have acquired additional shares in the company as part of its all-employee Share Incentive Plan. This acquisition, involving directors S Berendji and A Freudmann, reflects the company’s ongoing efforts to align the interests of its management with those of its shareholders, potentially strengthening stakeholder confidence and enhancing its market position.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £400.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Marks and Spencer Executives Engage in Share Transactions
Neutral
Jul 18, 2025

Marks and Spencer Group plc announced share transactions involving its top executives, including the CEO, CFO, and other directors. These transactions involved the vesting of shares awarded under various performance and deferred share bonus plans, followed by the sale of a portion of these shares to cover tax liabilities. The transactions reflect the company’s ongoing commitment to aligning executive compensation with performance outcomes, potentially impacting shareholder perceptions and market positioning.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £400.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Marks and Spencer Announces Share Awards Amid Cyber Incident Delays
Neutral
Jul 9, 2025

Marks and Spencer Group plc has announced several transactions involving the award of conditional shares to directors and persons discharging managerial responsibilities under various share plans. These include the Performance Share Plan, Deferred Share Bonus Plan, and a Restricted Share Plan for specific individuals. The announcement follows a delay in target setting for the 2025/26 awards due to a recent cyber incident, with targets expected to be disclosed by the end of the year. This move is part of the company’s strategy to align management incentives with shareholder interests and address compensation adjustments for key personnel.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £400.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

DividendsRegulatory Filings and Compliance
Marks and Spencer Directors Increase Shareholdings
Positive
Jul 7, 2025

Marks and Spencer Group plc announced that two of its directors, S Berendji and A Freudmann, have acquired additional shares through the company’s Dividend Reinvestment Plan. This acquisition reflects the directors’ continued confidence in the company’s performance and aligns with the regulatory requirements under the UK Market Abuse Regulation.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £400.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Shareholder Meetings
Marks and Spencer’s AGM: All Resolutions Passed Amid Shareholder Engagement
Neutral
Jul 1, 2025

Marks and Spencer Group PLC held its Annual General Meeting on July 1, 2025, where all 26 resolutions proposed were passed by shareholders. Notably, a shareholder-requisitioned resolution coordinated by ShareAction did not pass, receiving only 30.70% support. The company emphasized its commitment to fair employment practices and announced plans to further consult with shareholders on related topics, with updates to be provided in accordance with the UK Corporate Governance Code.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £4.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Regulatory Filings and Compliance
Marks and Spencer Announces Current Share Capital Structure
Neutral
Jul 1, 2025

Marks and Spencer Group PLC has announced that its capital structure consists of 2,056,392,699 ordinary shares with voting rights, and it currently holds no shares in Treasury. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules, reflecting the company’s commitment to transparency and regulatory compliance.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £400.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Business Operations and Strategy
Marks and Spencer Directors Acquire Additional Shares
Positive
Jun 30, 2025

Marks and Spencer Group plc announced that directors and persons discharging managerial responsibility (PDMRs) have acquired additional shares in the company through its all-employee Share Incentive Plan. This acquisition reflects the company’s commitment to aligning the interests of its management with shareholders, potentially enhancing stakeholder confidence and reinforcing its market position.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £400.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Executive/Board ChangesBusiness Operations and Strategy
Marks and Spencer Announces Director Share Sale
Neutral
Jun 23, 2025

Marks and Spencer Group PLC announced a transaction involving the sale of 300,000 ordinary shares by S Berendji, the Operations Director, at a price of £3.63238 per share. This transaction, conducted on June 20, 2025, at the London Stock Exchange, reflects internal shareholding changes which may influence stakeholder perceptions and the company’s market positioning.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £400.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Other
Marks and Spencer Director Acquires Shares, Signaling Confidence
Positive
Jun 6, 2025

Marks and Spencer Group plc announced a recent transaction involving the purchase of its Ordinary 1p shares by Fiona Dawson, a Non-Executive Director. The transaction, conducted on the London Stock Exchange, involved the acquisition of 6,572 shares at an aggregated price of £3.782 per share. This move indicates confidence in the company’s stock and could have implications for investor sentiment and market perception.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £4.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Shareholder MeetingsFinancial DisclosuresRegulatory Filings and Compliance
Marks and Spencer Releases 2025 Annual Report and Announces AGM Details
Neutral
Jun 2, 2025

Marks and Spencer Group PLC has submitted its Annual Report and Financial Statements for 2025 to the National Storage Mechanism, in compliance with UK Listing Rules. The company has also announced the details of its upcoming Annual General Meeting, scheduled for July 1, 2025, and introduced new employee share plans. These documents are available on the company’s corporate website, reflecting transparency and ongoing commitment to shareholder engagement.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £400.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Regulatory Filings and Compliance
Marks and Spencer Announces Current Share Capital Structure
Neutral
Jun 2, 2025

Marks and Spencer Group PLC announced that its capital consists of 2,056,226,735 ordinary shares with voting rights, and it currently holds no shares in Treasury. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £400.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Business Operations and Strategy
Marks and Spencer Executives Increase Shareholdings
Positive
May 28, 2025

Marks and Spencer Group plc announced that directors and persons discharging managerial responsibilities have acquired additional shares in the company through its all-employee Share Incentive Plan. This move, involving key figures such as Operations Director S Berendji and Managing Director of Food A Freudmann, reflects a commitment to align managerial interests with those of shareholders, potentially strengthening stakeholder confidence and enhancing the company’s market positioning.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £325.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Marks and Spencer Reports Strong Growth Amid Strategic Reshaping
Positive
May 21, 2025

Marks and Spencer Group PLC reported its third consecutive year of growth, with a 22.2% increase in profit before tax and adjusting items, reaching £875.5 million, the highest in over 15 years. The company is focused on reshaping its operations for sustained growth, despite a recent cyber incident that impacted operations. M&S plans to invest £600-£650 million in capital expenditure to enhance resilience and growth, while maintaining its strategy to improve market share and operating margins in both food and fashion, home, and beauty segments. The company remains confident in its long-term growth plans, aiming to emerge stronger from recent challenges.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £325.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

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.Date of analysis: Aug 16, 2025