tiprankstipranks
Trending News
More News >
Marks and Spencer (GB:MKS)
LSE:MKS

Marks and Spencer (MKS) AI Stock Analysis

Compare
593 Followers

Top Page

GB

Marks and Spencer

(LSE:MKS)

71Outperform
Marks and Spencer's stock demonstrates a strong overall performance, driven primarily by robust financial growth and stable market momentum. While technical indicators and valuation reveal a well-positioned stock in the market, recent corporate events, particularly the cyber incident, introduce some risks. Nonetheless, the acquisition of shares by directors indicates confidence in long-term growth, balancing the risk-reward profile.

Marks and Spencer (MKS) vs. S&P 500 (SPY)

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 a diversified model focusing primarily on retail sales of clothing, home goods, and food products. The company operates a wide network of physical stores in the UK and internationally, while also leveraging its e-commerce platform to reach online shoppers. Clothing and home products are significant contributors to its revenue, with M&S offering a range of fashion and household items that appeal to various consumer demographics. The food segment is another key revenue stream, with M&S Food known for its premium quality and innovative product range. Additionally, strategic partnerships and collaborations with other brands and designers help M&S enhance its product offerings and drive sales. The company's revenue is further supported by its focus on enhancing customer experience, operational efficiency, and sustainable business practices.

Marks and Spencer Financial Statement Overview

Summary
Marks and Spencer demonstrates a solid financial performance with strong revenue and cash flow growth. While profitability metrics are improving, there is room for enhancing operational efficiency further. The balance sheet remains reasonably strong with controlled leverage. The company is well-positioned to capitalize on its cash flow strength for strategic investments or debt reduction.
Income Statement
75
Positive
Marks and Spencer's income statement reflects strong revenue growth, with a 9.3% increase from 2023 to 2024. The gross profit margin improved to 34.2%, indicating efficient cost management. Net profit margin increased to 3.3%, though still moderate, showing improved profitability. The EBITDA margin also rose to 10.9%, highlighting better operational efficiency. However, the EBIT margin is still at a modest 6.1%, suggesting potential areas for operational improvement.
Balance Sheet
70
Positive
The balance sheet shows a manageable debt-to-equity ratio of 1.11, reflecting a stable financial structure. Return on equity (ROE) improved to 15.2%, indicating effective use of equity to generate profits. The equity ratio is 32.6%, signifying decent equity financing, but there is room for strengthening equity further to reduce financial risk.
Cash Flow
80
Positive
The cash flow statement is strong, with a significant 102.3% growth in free cash flow from 2023 to 2024, indicating robust cash generation. The operating cash flow to net income ratio is 3.02, suggesting healthy cash flow relative to earnings. Free cash flow to net income ratio is also strong at 2.02, demonstrating good cash management and potential for reinvestment or debt reduction.
Breakdown
Mar 2024Mar 2023Mar 2022Mar 2021Mar 2020
Income StatementTotal Revenue
13.04B11.93B10.89B9.14B10.18B
Gross Profit
4.46B3.57B3.22B2.39B2.92B
EBIT
794.10M533.50M666.20M303.50M588.60M
EBITDA
1.42B1.29B1.20B559.10M986.60M
Net Income Common Stockholders
431.20M363.40M306.60M-198.00M23.70M
Balance SheetCash, Cash Equivalents and Short-Term Investments
1.03B1.08B1.22B692.80M265.90M
Total Assets
8.68B9.10B9.44B8.64B10.19B
Total Debt
3.13B3.59B3.76B4.05B4.08B
Net Debt
2.11B2.52B2.55B3.36B3.82B
Total Liabilities
5.85B6.28B6.53B6.35B6.48B
Stockholders Equity
2.83B2.81B2.91B2.28B3.70B
Cash FlowFree Cash Flow
872.40M431.20M912.40M454.10M411.40M
Operating Cash Flow
1.30B841.50M1.17B660.80M740.00M
Investing Cash Flow
-435.30M-540.70M-254.10M-201.80M-776.10M
Financing Cash Flow
-909.80M-431.30M-379.30M-24.70M-32.70M

Marks and Spencer Technical Analysis

Technical Analysis Sentiment
Positive
Last Price380.70
Price Trends
50DMA
363.00
Positive
100DMA
361.30
Positive
200DMA
359.63
Positive
Market Momentum
MACD
8.51
Positive
RSI
51.80
Neutral
STOCH
33.09
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MKS, the sentiment is Positive. The current price of 380.7 is below the 20-day moving average (MA) of 383.94, above the 50-day MA of 363.00, and above the 200-day MA of 359.63, indicating a neutral trend. The MACD of 8.51 indicates Positive momentum. The RSI at 51.80 is Neutral, neither overbought nor oversold. The STOCH value of 33.09 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
GBJD
77
Outperform
£4.12B12.8214.67%1.18%2.85%61.98%
77
Outperform
£22.52B14.1410.18%3.37%
72
Outperform
£6.15B17.876.21%4.91%0.34%150.85%
72
Outperform
£2.75B9.3716.46%-6.82%-37.46%
GBMKS
71
Outperform
£7.87B15.4217.19%0.77%6.87%22.36%
GBBWY
64
Neutral
£3.27B22.234.22%2.01%-11.63%-31.81%
61
Neutral
$6.55B11.723.07%4.01%2.66%-21.27%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MKS
Marks and Spencer
380.70
124.77
48.75%
GB:BWY
Bellway
2,752.00
196.46
7.69%
GB:SBRY
J Sainsbury plc
268.00
15.62
6.19%
GB:FRAS
Frasers Group
667.50
-150.00
-18.35%
GB:TSCO
Tesco plc
372.50
85.51
29.80%
GB:JD
JD Sports Fashion
79.76
-35.07
-30.54%

Marks and Spencer Corporate Events

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

Marks and Spencer Group PLC has announced that its capital comprises 2,055,978,755 ordinary shares with voting rights, with no shares held in Treasury. This information is crucial for shareholders to determine their notification requirements under the FCA’s Disclosure and Transparency Rules, potentially impacting shareholder engagement and compliance.

Spark’s Take on GB:MKS Stock

According to Spark, TipRanks’ AI Analyst, GB:MKS is a Outperform.

Marks and Spencer’s stock demonstrates a strong overall performance, driven primarily by robust financial growth and stable market momentum. While technical indicators and valuation reveal a well-positioned stock in the market, recent corporate events, particularly the cyber incident, introduce some risks. Nonetheless, the acquisition of shares by directors indicates confidence in long-term growth, balancing the risk-reward profile.

To see Spark’s full report on GB:MKS stock, click here.

Business Operations and Strategy
Marks and Spencer Executives Acquire Additional Shares
Positive
Apr 29, 2025

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

Spark’s Take on GB:MKS Stock

According to Spark, TipRanks’ AI Analyst, GB:MKS is a Outperform.

Marks and Spencer’s stock is supported by a solid financial performance with strong revenue and cash flow growth. Technical analysis indicates stable momentum, while valuation metrics suggest fair pricing relative to peers. Corporate events, such as director share acquisitions, reflect confidence in the company’s future, although the recent cyber incident poses a short-term risk. Overall, the stock presents a balanced risk-reward profile.

To see Spark’s full report on GB:MKS stock, click here.

Business Operations and Strategy
Marks and Spencer Temporarily Halts Online Orders Amid Cyber Incident
Negative
Apr 25, 2025

Marks and Spencer has temporarily paused online orders on its UK, Ireland, and some international websites due to a cyber incident. The company is actively managing the situation with the help of experts to restore online operations while ensuring that customers can still browse products online and shop in stores.

Spark’s Take on GB:MKS Stock

According to Spark, TipRanks’ AI Analyst, GB:MKS is a Outperform.

Marks and Spencer receives a strong overall score of 72, driven by solid financial performance and positive corporate events. The company benefits from strong revenue and cash flow growth, which supports its strategic investments and debt reduction. Technical indicators suggest a stable market trend, while valuation metrics indicate a fair pricing relative to peers. Recent corporate events further bolster shareholder confidence, contributing positively to the stock’s outlook.

To see Spark’s full report on GB:MKS stock, click here.

Business Operations and StrategyRegulatory Filings and Compliance
Marks and Spencer Addresses Cyber Incident with Continued Operations
Neutral
Apr 22, 2025

Marks and Spencer Group PLC recently experienced a cyber incident, prompting minor temporary changes in store operations to safeguard customers and business integrity. Despite the incident, stores, website, and app continue to function normally. The company has enlisted external cybersecurity experts to manage the situation and reported the incident to relevant authorities, emphasizing their commitment to customer trust.

Spark’s Take on GB:MKS Stock

According to Spark, TipRanks’ AI Analyst, GB:MKS is a Outperform.

Marks and Spencer receives a strong overall score of 72, driven by solid financial performance and positive corporate events. The company benefits from strong revenue and cash flow growth, which supports its strategic investments and debt reduction. Technical indicators suggest a stable market trend, while valuation metrics indicate a fair pricing relative to peers. Recent corporate events further bolster shareholder confidence, contributing positively to the stock’s outlook.

To see Spark’s full report on GB:MKS stock, click here.

Regulatory Filings and Compliance
Marks and Spencer Announces Share Capital Details
Neutral
Apr 1, 2025

Marks and Spencer Group PLC has announced that its capital consists of 2,055,200,170 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.

Business Operations and Strategy
Marks and Spencer Directors Acquire Additional Shares
Positive
Mar 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 acquisition reflects the company’s ongoing commitment to align the interests of its management with those of its shareholders, potentially strengthening its market position and enhancing stakeholder confidence.

Executive/Board ChangesBusiness Operations and Strategy
Marks and Spencer Announces Share Awards for New CFO
Neutral
Mar 25, 2025

Marks and Spencer Group plc announced a series of conditional share awards to Alison Dolan, the incoming Chief Financial Officer, under the company’s Restricted Share Plan. These awards, totaling 637,309 shares, are designed to compensate Dolan for forfeited awards from her previous role at Rightmove plc. The shares are set to vest on specific dates between 2025 and 2027, with the requirement for Dolan to maintain an equity position equivalent to 200% of her salary within five years. This move is part of the company’s strategic efforts to secure top talent and align executive interests with shareholder value.

Regulatory Filings and Compliance
Marks and Spencer Announces Current Share Capital and Voting Rights
Neutral
Mar 3, 2025

Marks and Spencer Group PLC has announced that its capital consists of 2,054,375,759 ordinary shares with voting rights, and it currently holds no shares in Treasury. This information is crucial for shareholders to determine their interest in the company according to the FCA’s Disclosure and Transparency Rules, impacting how they notify changes in their shareholding.

Business Operations and StrategyRegulatory Filings and Compliance
Marks and Spencer Directors Acquire Additional Shares
Positive
Feb 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 acquisition, involving Operations Director S Berendji and Managing Director of Food A Freudmann, reflects continued confidence in the company’s performance and aligns with regulatory requirements under the UK Market Abuse Regulation.

Regulatory Filings and Compliance
Marks and Spencer Discloses Share Capital and Voting Rights
Neutral
Feb 3, 2025

Marks and Spencer Group PLC has announced that its capital comprises 2,051,666,377 ordinary shares with voting rights, and currently, the company does not hold any shares in Treasury. This disclosure is crucial for shareholders as it provides the necessary denominator for calculating shareholding interests under the FCA’s Disclosure and Transparency Rules, impacting how investors manage and report their ownership stakes.

Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

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.