Marks Electrical Group Plc (MRK) AI Stock Analysis

• Market Cap: £51.95M
• Dividend Yield: 2.13%
• Average Volume (3M): 182.85K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.05
• Revenue Growth: -5.97%
• EPS Growth: 14.75%
• Country: UK
• Employees: 250
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Specialty Retail
• EPS (TTM): >-0.01
• Shares Outstanding: 104,949,050
• 10 Day Avg. Volume: 8,616
• 30 Day Avg. Volume: 182,850
• PEG Ratio: 0.10
• Price to Book (P/B): 5.42
• Price to Sales (P/S): 0.52
• P/FCF Ratio: 18.75
• 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: £50.50
• Price Target Upside: 12.22% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: 47.00p ▲(4.44% Upside)

Marks Electrical Group Plc's overall stock score is primarily influenced by its solid financial performance, despite recent profitability challenges. The technical analysis indicates bearish momentum, which negatively impacts the score. Valuation concerns due to a negative P/E ratio are somewhat offset by a modest dividend yield. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth

Consistent revenue growth reflects strong market demand and effective sales strategies, supporting long-term business expansion.

Cash Flow Generation

Strong cash flow generation enhances financial flexibility, enabling reinvestment in growth opportunities and debt reduction.

Low Leverage

Low leverage reduces financial risk and interest costs, providing stability and capacity to invest in future growth.

Negative Factors

Profitability Challenges

Declining profitability can strain resources and limit reinvestment, potentially impacting long-term competitiveness.

Declining Equity

Reduced equity weakens the financial foundation, potentially affecting creditworthiness and investment capacity.

Rising Operating Costs

Increasing operating costs can erode margins, reducing profitability and competitiveness in the long term.

Marks Electrical Group Plc Business Overview & Revenue Model

Company Description

Marks Electrical Group PLC operates as an online electrical retailer in the United Kingdom. It sells, delivers, and installs domestic electrical appliances and consumer electronics. The company was formerly known as Marks Electrical Holding Limited and changed its name to Marks Electrical Group PLC in October 2021. The company was founded in 1987 and is based in Leicester, United Kingdom.

How the Company Makes Money

Marks Electrical Group generates revenue primarily through the direct sale of electrical appliances and consumer electronics to both individual consumers and businesses. The company operates an online platform, which allows it to reach a broader market. Key revenue streams include product sales from the retail website, delivery services for large appliances, and potential extended warranty offerings. Additionally, strategic partnerships with major manufacturers enable the company to secure favorable pricing and exclusive product offerings, which can enhance profitability. Seasonal promotions and marketing campaigns also play a significant role in driving sales during peak shopping periods.

Marks Electrical Group Plc Financial Statement Overview

Summary

Marks Electrical Group Plc demonstrates solid growth in revenue and cash flow generation, driven by efficient operations and low leverage. However, recent challenges in profitability and declining equity indicate potential risks. Continued focus on operational efficiencies and profitability improvements could strengthen the overall financial health.

Income Statement

The company has shown a consistent revenue growth trajectory over the years, with a significant jump from 2021 to 2022. However, the latest year has seen a decline in profitability as reflected in the negative EBIT and Net Income. Gross Profit Margin remains healthy, indicating strong core operations. The decline in EBITDA Margin suggests rising operating costs or inefficiencies.

Balance Sheet

The balance sheet shows a stable financial position with a relatively low debt-to-equity ratio, reflecting conservative leverage practices. Stockholders' equity has improved over time, enhancing the equity ratio. However, the decline in equity in the latest year due to negative earnings is a concern for future stability.

Cash Flow

Operating cash flow has improved significantly, indicating strong cash generation capabilities. The transition from negative to positive free cash flow is a positive sign, suggesting effective cost control and capital management. The free cash flow to net income ratio suggests operational efficiency despite recent net income challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	117.58M	117.18M	114.26M	97.75M	80.48M	55.98M
Gross Profit	28.62M	28.62M	29.03M	18.96M	15.89M	11.92M
EBITDA	1.64M	555.00K	2.37M	7.77M	4.71M	7.49M
Net Income	-1.44M	-1.44M	427.00K	5.16M	3.29M	5.70M
Balance Sheet
Total Assets	37.88M	37.88M	34.36M	32.85M	25.35M	23.31M
Cash, Cash Equivalents and Short-Term Investments	8.81M	8.81M	7.82M	9.97M	3.87M	1.49M
Total Debt	2.45M	2.45M	1.16M	1.39M	2.26M	752.00K
Total Liabilities	26.62M	26.62M	20.65M	19.02M	15.94M	12.94M
Stockholders Equity	11.26M	11.26M	13.71M	13.82M	9.41M	10.37M
Cash Flow
Free Cash Flow	3.39M	3.25M	-522.00K	8.11M	3.71M	2.58M
Operating Cash Flow	3.83M	3.84M	1.65M	9.19M	4.59M	2.80M
Investing Cash Flow	-267.00K	-223.00K	-1.93M	-1.04M	-822.00K	-190.00K
Financing Cash Flow	-2.57M	-2.63M	-1.88M	-2.05M	-1.39M	-567.00K

Marks Electrical Group Plc Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 45.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:MRK, the sentiment is Negative. The current price of 45 is below the 20-day moving average (MA) of 46.20, below the 50-day MA of 48.83, and below the 200-day MA of 56.20, indicating a bearish trend. The MACD of -1.49 indicates Negative momentum. The RSI at 25.89 is Positive, neither overbought nor oversold. The STOCH value of 26.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:MRK.

Marks Electrical Group Plc Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ANG	66 Neutral	£39.06M	21.31	4.56%	―	17.79%	18.96%
PROC	64 Neutral	£37.05M	36.96	11.06%	―	11.04%	64.29%
AO	63 Neutral	£577.26M	55.74	7.52%	―	13.21%	-54.35%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
G4M	60 Neutral	£59.99M	72.04	10.36%	―	15.50%	314.96%
CURY	60 Neutral	£1.39B	13.21	5.01%	1.14%	2.71%	-34.19%
MRK	54 Neutral	£51.95M	-35.87	-9.68%	2.13%	-5.97%	14.75%

Marks Electrical Group Plc Corporate Events

Marks Electrical Group Reports Challenging H1 FY26 Amid Strategic Realignment

Marks Electrical Group Plc reported a challenging first half of FY26, with a 9.9% year-over-year revenue decline to £53.0 million, amid a contracting market and strategic inventory realignment. Despite initial setbacks from the implementation of a new ERP system, the company has returned to revenue growth and improved profitability in October. The transition to Microsoft Dynamics 365 is expected to enhance operational efficiencies and support future growth. The company remains focused on sustainable, profitable growth, leveraging its strong market position and customer service excellence to capture market share as conditions improve.

The most recent analyst rating on (GB:MRK) stock is a Hold with a £54.00 price target. To see the full list of analyst forecasts on Marks Electrical Group Plc stock, see the GB:MRK Stock Forecast page.

Marks Electrical Faces Revenue Challenges, Optimistic for H2 Recovery

Marks Electrical Group plc has reported continued revenue challenges in Q2-FY26, attributed to a decline in the Major Domestic Appliances and Consumer Electronics markets and increased consumer price sensitivity. Despite these hurdles, the company remains committed to maintaining high customer service levels and is optimistic about a stronger performance in the second half of the year, driven by strategic stock investments and a balanced product mix. However, the weaker first-half performance is expected to impact full-year profit guidance, with adjusted EBITDA projected at approximately £1.7 million. The company has also decided to delay any interim dividend decisions until the full-year results are reviewed.

The most recent analyst rating on (GB:MRK) stock is a Hold with a £63.00 price target. To see the full list of analyst forecasts on Marks Electrical Group Plc stock, see the GB:MRK Stock Forecast page.