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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)

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Outperform 72 (OpenAI - 4o)
Rating:72Outperform
Price Target:
397.00p
▲(8.92% Upside)
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 (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 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
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
EBITDA1.36B1.49B1.32B1.20B1.12B629.20M
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
Positive
Last Price364.50
Price Trends
50DMA
348.49
Positive
100DMA
352.66
Positive
200DMA
355.11
Positive
Market Momentum
MACD
3.71
Negative
RSI
60.15
Neutral
STOCH
75.90
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 364.5 is above the 20-day moving average (MA) of 350.79, above the 50-day MA of 348.49, and above the 200-day MA of 355.11, indicating a bullish trend. The MACD of 3.71 indicates Negative momentum. The RSI at 60.15 is Neutral, neither overbought nor oversold. The STOCH value of 75.90 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
76
Outperform
£2.60B8.1542.42%11.58%1.59%-13.17%
72
Outperform
£7.20B24.4110.25%0.99%5.96%-33.04%
72
Outperform
£14.32B18.3644.99%1.89%9.74%0.92%
60
Neutral
£2.07B-211.782.30%-0.57%-104.08%
46
Neutral
£349.69M-1.19-64.97%-15.86%-18.46%
46
Neutral
£4.19B-55.86-8.21%-17.08%-128.46%
61
Neutral
$18.38B12.79-2.54%3.03%1.52%-15.83%
* Consumer Cyclical Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:MKS
Marks and Spencer
364.50
-9.05
-2.42%
GB:ASC
ASOS plc
279.00
-150.20
-35.00%
GB:BME
B&M European Value Retail SA
261.70
-109.99
-29.59%
GB:VTY
Vistry Group
646.40
-678.60
-51.22%
GB:BRBY
Burberry
1,168.00
496.00
73.81%
GB:NXT
Next plc
12,375.00
2,666.77
27.47%

Marks and Spencer Corporate Events

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: Sep 19, 2025