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)

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Outperform 70 (OpenAI - 4o)
Rating:70Outperform
Price Target:
423.00p
▲(15.92% Upside)
Marks and Spencer's overall stock score reflects strong financial performance with robust revenue growth and cash flow management. However, the stock's valuation appears high, and technical indicators suggest mixed momentum. The earnings call provided a balanced view with positive growth in certain areas but highlighted significant challenges, particularly the impact of a cyber incident and declines in key segments.

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 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 sale of premium grocery items and ready-to-eat meals. The General Merchandise segment, which includes clothing and home products, also plays a crucial role in the company's profitability. MKS has developed a strong brand identity and customer loyalty, further enhancing its revenue potential. Key revenue streams include direct sales from stores and e-commerce platforms, while partnerships with suppliers and logistics companies help optimize operational efficiency and expand product offerings. Additionally, MKS has made strategic investments in sustainability and digital transformation, aiming to enhance customer experience and drive future growth.

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.
Q2-2026 Updates
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.
Food Business Resilience
M&S Food achieved 3 years of consecutive monthly volume growth, outperforming the market. Sales of value ranges are up 29%.
Store Expansion and Modernization
Opened 15 new or renewed stores in the first half and plan to open more than 20 in the second half. New food distribution center announced for 2029.
Technology and Supply Chain Investments
Investments in technology and supply chain modernization, including a new Fashion, Home and Beauty planning platform and a new automated food distribution center.
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.
Fashion, Home and Beauty Sales Decline
Sales in Fashion, Home and Beauty were down 16.4%, affected by paused online operations and supply chain disruptions.
International Sales Decline
International sales were down 11.6% due to offline international websites and shipment disruptions.
Consumer Environment Uncertainty
The consumer environment remains uncertain, with concerns about cost pressures such as national insurance contributions and packaging tax.
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
Marks and Spencer shows strong revenue growth and efficient cost management, though profitability is 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
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 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue13.82B13.82B13.04B11.93B10.89B9.16B
Gross Profit13.82B4.61B4.46B4.14B3.75B2.91B
EBITDA1.36B1.49B1.37B1.20B1.16B622.90M
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 Debt2.94B2.94B3.13B3.63B3.81B4.09B
Total Liabilities5.87B5.87B5.85B6.28B6.53B6.35B
Stockholders Equity2.94B2.94B2.83B2.81B2.91B2.28B
Cash Flow
Free Cash Flow904.60M806.10M872.40M619.60M1.12B664.20M
Operating Cash Flow1.31B1.31B1.30B1.03B1.38B870.90M
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
Negative
Last Price364.90
Price Trends
50DMA
375.62
Negative
100DMA
360.16
Positive
200DMA
360.28
Positive
Market Momentum
MACD
-1.02
Positive
RSI
35.03
Neutral
STOCH
15.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MKS, the sentiment is Negative. The current price of 364.9 is below the 20-day moving average (MA) of 394.39, below the 50-day MA of 375.62, and above the 200-day MA of 360.28, indicating a neutral trend. The MACD of -1.02 indicates Positive momentum. The RSI at 35.03 is Neutral, neither overbought nor oversold. The STOCH value of 15.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
£16.49B21.1451.86%1.64%9.74%0.92%
70
Outperform
£7.75B26.300.68%0.94%14.13%-96.12%
70
Outperform
£1.72B5.3942.93%18.29%1.59%-13.17%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
60
Neutral
£2.02B-207.50-0.31%-0.57%-104.08%
54
Neutral
£4.20B-55.67-7.28%-17.08%-128.46%
46
Neutral
£274.50M-0.93-62.59%-15.86%-18.46%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MKS
Marks and Spencer
364.90
0.86
0.24%
GB:ASC
ASOS plc
230.00
-135.60
-37.09%
GB:BME
B&M European Value Retail SA
164.00
-197.01
-54.57%
GB:VTY
Vistry Group
646.40
-68.10
-9.53%
GB:BRBY
Burberry
1,253.50
385.50
44.41%
GB:NXT
Next plc
14,205.00
4,872.95
52.22%

Marks and Spencer Corporate Events

DividendsFinancial Disclosures
Marks and Spencer Announces Interim Results and Dividend
Positive
Nov 5, 2025

Marks and Spencer Group PLC announced its interim results for the 26 weeks ended 27 September 2025, declaring an interim dividend of 1.2p per share payable on 9 January 2026. The announcement reflects the company’s ongoing commitment to shareholder returns and provides insights into its financial health and strategic direction, potentially impacting investor confidence and market positioning.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £397.00 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 Share Capital and Voting Rights Update
Neutral
Nov 3, 2025

Marks and Spencer Group PLC announced that its capital consists of 2,057,101,623 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, impacting how they manage their interests in the company.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £397.00 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 StrategyExecutive/Board Changes
Marks and Spencer Appoints Roger Burnley as Non-Executive Director
Positive
Oct 30, 2025

Marks and Spencer Group PLC has announced the appointment of Roger Burnley CBE as a Non-Executive Director, effective from December 1, 2025. With his extensive experience in the food retail industry and supply chain transformation, Burnley’s addition is seen as a strategic move to support M&S’s ongoing ‘Reshaping for Growth’ strategy. His role on the Board and its committees is expected to help the company capitalize on growth opportunities, enhancing its market position and operational effectiveness.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £397.00 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 Increase Shareholdings
Positive
Oct 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 the interests of management with those of shareholders, potentially impacting the company’s market positioning and stakeholder confidence positively.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £397.00 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 StrategyExecutive/Board Changes
Marks and Spencer Extends Chairman’s Tenure to Drive Growth Strategy
Positive
Oct 14, 2025

Marks and Spencer Group PLC has announced the extension of Archie Norman’s tenure as Chairman to support the next phase of its ‘Reshaping for Growth’ strategy. This decision, supported by shareholders and the board, aims to provide stability and strong leadership as the company continues its transformation. The extension will last for three years from September 2026, subject to annual reviews, and will be presented for shareholder approval at the AGM.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £445.00 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 Increase Shareholdings
Positive
Sep 30, 2025

Marks and Spencer Group PLC announced that directors and persons discharging managerial responsibilities have acquired additional shares through the company’s all-employee Share Incentive Plan. This transaction, involving Operations Director S Berendji and Managing Director of Food A Freudmann, reflects ongoing confidence in the company’s performance and future prospects, potentially strengthening stakeholder trust and aligning management interests with shareholder value.

The most recent analyst rating on (GB:MKS) stock is a Buy with a £397.00 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 Share Capital Structure
Neutral
Sep 1, 2025

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.

Business Operations and Strategy
Marks and Spencer Directors Acquire Shares Through Incentive Plan
Positive
Aug 28, 2025

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.

Business Operations and StrategyExecutive/Board Changes
Marks and Spencer Announces Departure of Non-Executive Director Justin King
Neutral
Aug 20, 2025

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.

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: Nov 05, 2025