Marks Electrical Group Plc (MRK) AI Stock Analysis

• Market Cap: £61.92M
• Dividend Yield: 1.02%
• Average Volume (3M): 39.77K
• Price to Earnings (P/E): ―
• Beta (1Y): >-0.01
• Revenue Growth: 9.57%
• EPS Growth: -129.76%
• Country: UK
• Employees: 250
• Sector: Consumer Cyclical
• Sector Strength: 59
• Industry: Specialty Retail
• EPS (TTM): N/A
• Shares Outstanding: 104,949,050
• 10 Day Avg. Volume: 88,755
• 30 Day Avg. Volume: 39,770
• PEG Ratio: 0.30
• Price to Book (P/B): 6.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 10.77
• 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: £73.00
• Price Target Upside: 23.73% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: ―

Marks Electrical Group Plc exhibits strong revenue growth and a stable financial position, but faces challenges with profitability margins and cash flow. The technical analysis shows moderate strength, yet caution is advised due to a negative P/E ratio. The company's strategic shifts and market share expansion are positive, but operational efficiency improvements are crucial for long-term success.

Marks Electrical Group Plc Business Overview & Revenue Model

Company Description

Marks Electrical Group Plc (MRK) is a UK-based company specializing in the retail of household electrical appliances. The company offers a wide range of products, including kitchen appliances, televisions, laundry machines, and other home electronics. Marks Electrical operates both an online platform and a physical showroom, aiming to provide customers with a seamless shopping experience that combines the convenience of e-commerce with personalized in-store service.

How the Company Makes Money

Marks Electrical Group Plc primarily generates revenue through the sale of electrical appliances to consumers. The company leverages its online platform to reach a broad customer base, offering an extensive selection of products at competitive prices. Additionally, the physical showroom supports sales by allowing customers to experience products first-hand before purchasing. Marks Electrical also engages in strategic partnerships with leading appliance brands, enabling them to offer exclusive deals and promotions. Delivery and installation services provide additional revenue streams, enhancing customer satisfaction and encouraging repeat business.

Marks Electrical Group Plc Financial Statement Overview

Summary

Marks Electrical Group Plc demonstrates robust revenue growth and maintains a strong balance sheet with low leverage. However, the decline in profitability margins and negative free cash flow signal potential operational and financial challenges. The company needs to focus on improving operational efficiency and managing capital expenditures to enhance profitability and cash flow.

Income Statement

Marks Electrical Group Plc has shown consistent revenue growth over the years, with the latest annual revenue reaching £114.26 million, a significant increase from previous years. The gross profit margin stands at 25.4%, which is relatively healthy for the retail industry, though there was a drop in net profit margin to 0.37% in the latest period, indicating operational challenges. The EBIT margin also fell to 0.43%, showing reduced operational efficiency. Despite these challenges, the company has maintained a positive EBITDA margin of 2.08%.

Balance Sheet

The balance sheet reveals a stable financial position with a debt-to-equity ratio of 0.08, indicating low financial leverage and a conservative approach to debt. The equity ratio is 39.9%, suggesting a good balance between debt and equity financing. However, the return on equity has declined to 3.11%, which might concern investors looking for higher returns. Overall, the company maintains a sound balance sheet with manageable liabilities.

Cash Flow

Cash flow metrics show a challenging period with a decrease in free cash flow, now at -£522,000, compared to the previous positive figures. The operating cash flow to net income ratio is 3.85, indicating strong cash generation relative to net income. However, the negative free cash flow to net income ratio reflects significant capital expenditures impacting cash reserves. This could raise concerns about the company's ability to finance growth without external funding.

Breakdown
TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
119.25M	114.26M	97.75M	80.48M	55.98M	31.50M
	Gross Profit
30.14M	29.03M	18.96M	15.89M	11.92M	5.12M
	EBIT
-1.61M	488.00K	5.90M	6.29M	6.82M	869.00K
	EBITDA
768.00K	2.37M	7.24M	7.17M	7.65M	1.50M
	Net Income Common Stockholders
-1.27M	427.00K	5.16M	3.29M	5.70M	718.00K
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
6.68M	7.82M	9.97M	3.87M	1.49M	179.00K
	Total Assets
41.65M	34.36M	32.85M	25.35M	23.31M	12.40M
	Total Debt
2.94M	1.16M	1.39M	2.26M	752.00K	2.81M
	Net Debt
-3.74M	-6.66M	-8.58M	-1.61M	-741.00K	2.63M
	Total Liabilities
29.49M	20.65M	19.02M	15.94M	12.94M	8.38M
	Stockholders Equity
12.16M	13.71M	13.82M	9.41M	10.37M	4.01M
Cash Flow		Free Cash Flow
-1.86M	-522.00K	8.11M	3.71M	2.58M	943.00K
	Operating Cash Flow
-847.00K	1.65M	9.19M	4.59M	2.80M	1.00M
	Investing Cash Flow
-1.07M	-1.93M	-1.04M	-822.00K	-190.00K	141.00K
	Financing Cash Flow
-2.39M	-1.88M	-2.05M	-1.39M	-567.00K	-1.23M

Marks Electrical Group Plc Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 59.00
• 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:MRK, the sentiment is Positive. The current price of 59 is above the 20-day moving average (MA) of 58.55, above the 50-day MA of 58.43, and above the 200-day MA of 56.55, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 70.69 is Negative, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
CURY	74 Outperform	£1.33B	6.90	2.95%	―	-10.46%	396.13%
JDW	73 Outperform	£790.17M	13.96	16.38%	0.55%	3.70%	57.10%
BME	70 Outperform	£2.67B	8.36	42.93%	3.99%	6.82%	-8.24%
MRK	65 Neutral	£61.92M	―	-9.63%	1.02%	9.57%	-129.76%
SAGA	65 Neutral	£227.07M	―	-127.10%	―	-20.62%	-44.96%
AO	63 Neutral	£534.22M	20.59	20.28%	―	-0.39%	2.68%
Sector *	63 Neutral	$6.98B	11.41	2.80%	4.24%	2.68%	-24.94%

Marks Electrical Group Plc Corporate Events

Marks Electrical Achieves Record Revenue Amid Strategic Shifts

Marks Electrical Group plc reported a record revenue of £117.2 million for the fiscal year ending March 31, 2025, marking a 2.6% growth from the previous year. The company maintained its gross margin and improved distribution efficiency, resulting in an adjusted EBITDA of approximately £4.2 million. Despite operational challenges due to the implementation of a new ERP system, the company expanded its market share in consumer electronics and maintained its position in major domestic appliances. The strategic changes, including a pivot back to a premium focus, are expected to enhance margin performance and provide capital flexibility, positioning the company for long-term success.

Spark’s Take on GB:MRK Stock

According to Spark, TipRanks’ AI Analyst, GB:MRK is a Neutral.

Marks Electrical Group Plc shows strong revenue growth and a stable balance sheet, but faces challenges with profitability margins and cash flow. Positive market momentum is offset by concerns of overvaluation due to negative earnings. Focus on improving operational efficiency is crucial to overcome these hurdles.

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

Frasers Group Increases Stake in Marks Electrical Group

Frasers Group Plc has increased its stake in Marks Electrical Group Plc, raising its voting rights from 8.08% to 10.47%. This acquisition signifies a strategic move by Frasers Group to strengthen its influence within the company, potentially affecting Marks Electrical’s market positioning and stakeholder dynamics.