Marks and Spencer (MKS) AI Stock Analysis

• Market Cap: £8.11B
• Dividend Yield: 0.9%
• Average Volume (3M): 6.70M
• Price to Earnings (P/E): 27.5
• Beta (1Y): 0.66
• Revenue Growth: 5.96%
• EPS Growth: -33.04%
• Country: UK
• Employees: 64,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 0.17
• Shares Outstanding: 2,057,063,200
• 10 Day Avg. Volume: 6,777,397
• 30 Day Avg. Volume: 6,695,167
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: £430.83
• Price Target Upside: 8.17% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: 397.00p ▼(-0.33% Downside)

Marks and Spencer's overall stock score is driven primarily by strong financial performance, with robust revenue growth and healthy cash flow metrics. Technical analysis shows positive short-term momentum, though longer-term resistance is present. Valuation metrics suggest moderate pricing, with a relatively low dividend yield. The absence of earnings call and corporate events data did not impact the score.

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 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 Money

Marks 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 exhibits strong revenue growth and efficient cost management, although profitability is somewhat pressured by lower net profit margins. The balance sheet is stable with balanced leverage, and the company maintains healthy cash flow metrics. While operational efficiency is moderate, the strong cash flows and revenue trajectory provide a solid foundation for future growth.

Income Statement

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

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

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	13.82B	13.82B	13.04B	11.93B	10.89B	9.16B
Gross Profit	13.82B	4.61B	4.46B	4.14B	3.75B	2.91B
EBITDA	1.36B	1.49B	1.32B	1.20B	1.12B	629.20M
Net Income	295.70M	295.70M	431.20M	363.40M	306.60M	-198.00M
Balance Sheet
Total Assets	8.82B	8.82B	8.68B	9.10B	9.44B	8.64B
Cash, Cash Equivalents and Short-Term Investments	1.15B	1.15B	1.03B	1.08B	1.22B	692.80M
Total Debt	2.94B	2.94B	3.13B	3.63B	3.81B	4.09B
Total Liabilities	5.87B	5.87B	5.85B	6.28B	6.53B	6.35B
Stockholders Equity	2.94B	2.94B	2.83B	2.81B	2.91B	2.28B
Cash Flow
Free Cash Flow	904.60M	806.10M	872.40M	619.60M	1.12B	664.20M
Operating Cash Flow	1.31B	1.31B	1.30B	1.03B	1.38B	870.90M
Investing Cash Flow	-696.10M	-696.10M	-435.30M	-516.60M	-245.70M	-192.60M
Financing Cash Flow	-773.60M	-773.60M	-909.80M	-643.80M	-595.90M	-244.00M

Marks and Spencer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 398.30
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 398.3 is above the 20-day moving average (MA) of 380.21, above the 50-day MA of 361.46, and above the 200-day MA of 355.51, indicating a bullish trend. The MACD of 12.28 indicates Negative momentum. The RSI at 72.39 is Negative, neither overbought nor oversold. The STOCH value of 77.51 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MKS	72 Outperform	£8.11B	27.50	10.25%	0.90%	5.96%	-33.04%
NXT	72 Outperform	£15.37B	19.70	51.86%	1.80%	9.74%	0.92%
BME	71 Outperform	£2.18B	6.83	42.93%	17.44%	1.59%	-13.17%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
VTY	60 Neutral	£2.05B	28.23	-0.31%	―	-0.57%	-104.08%
BRBY	54 Neutral	£4.37B	77.34	-7.28%	―	-17.08%	-128.46%
ASC	46 Neutral	£294.19M	―	-62.59%	―	-15.86%	-18.46%

Marks and Spencer Corporate Events

Marks and Spencer Announces Share Capital Structure

Marks and Spencer Group PLC has announced that its capital is comprised of 2,057,033,141 ordinary shares with voting rights, with no shares held in Treasury. This disclosure is important 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 £387.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Marks and Spencer Directors Acquire Shares Through Incentive Plan

Marks and Spencer Group PLC announced that directors and persons discharging managerial responsibility have acquired additional shares in the company through its all-employee Share Incentive Plan. This acquisition reflects the company’s ongoing commitment to employee participation and investment in its future, potentially strengthening stakeholder confidence and aligning management interests with those of shareholders.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £4.35 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.

Marks and Spencer Announces Departure of Non-Executive Director Justin King

Marks and Spencer Group PLC announced that Justin King, a Non-Executive Director, will step down from the Board effective 10 September 2025. King’s departure marks the end of a significant era, as he has played a crucial role in the company’s strategic initiatives, particularly the ‘Reshaping for Growth’ strategy, which has refocused the company on customer service and operational transformation.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £388.00 price target. To see the full list of analyst forecasts on Marks and Spencer stock, see the GB:MKS Stock Forecast page.