Marks & Spencer (MAKSY) AI Stock Analysis

• Market Cap: $9.01B
• Dividend Yield: 1.15%
• Average Volume (3M): 302.72K
• Price to Earnings (P/E): 353.0
• Beta (1Y): 0.20
• Revenue Growth: 17.80%
• EPS Growth: -96.05%
• Country: US
• Employees: 64,000
• Sector: Consumer Cyclical
• Sector Strength: 84
• Industry: Department Stores
• EPS (TTM): 0.17
• Shares Outstanding: 1,028,562,600
• 10 Day Avg. Volume: 613,529
• 30 Day Avg. Volume: 302,723
• PEG Ratio: -0.75
• Price to Book (P/B): 2.51
• Price to Sales (P/S): 0.53
• P/FCF Ratio: 9.16
• Enterprise Value/Market Cap: 1.53
• Enterprise Value/Revenue: 1.00
• Enterprise Value/Gross Profit: 1.00
• Enterprise Value/Ebitda: 10.16
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $9.50 ▲(4.28% Upside)

The overall stock score reflects a combination of solid financial performance and significant challenges in technical analysis and valuation. The high P/E ratio and bearish technical indicators weigh heavily on the score. Despite some positive aspects from the earnings call, such as growth in the food segment and Ocado Retail, the stock faces considerable headwinds.

Positive Factors

Food Business Resilience

The growth in the food segment showcases M&S's ability to adapt and thrive despite supply chain disruptions, reinforcing its market position and contributing to stable revenue streams.

Ocado Retail Growth

The strong performance of Ocado Retail, particularly with M&S products, highlights successful strategic partnerships and digital expansion, enhancing long-term growth prospects.

New Store Openings and Investments

The investment in new stores indicates a commitment to expanding physical presence and enhancing customer experience, supporting sustained market growth and brand strength.

Negative Factors

Impact of Cyber Incident

The cyber incident underscores vulnerabilities in IT infrastructure, potentially affecting operational efficiency and increasing future security costs.

Fashion, Home, and Beauty Challenges

The decline in these segments highlights operational challenges and competitive pressures, which could hinder profitability and market share if not addressed.

Increased Costs

Rising costs from regulatory changes and taxes could pressure margins and reduce financial flexibility, impacting long-term profitability.

Marks & Spencer Business Overview & Revenue Model

Company Description

Marks & Spencer (MAKSY) is a British multinational retailer known for its high-quality food, clothing, and home products. Established in 1884, the company operates primarily in the retail sector, offering a range of products that include premium food items, stylish clothing for men, women, and children, as well as home goods. Marks & Spencer has a strong brand reputation, focusing on quality and sustainability, and operates both physical stores and an online shopping platform.

How the Company Makes Money

Marks & Spencer generates revenue through several key streams. Primarily, the company earns money from its Food segment, which offers a wide variety of ready-to-eat meals, fresh produce, and gourmet snacks, appealing to consumers looking for quality and convenience. The Clothing & Home segment also significantly contributes to revenue, selling apparel, footwear, and home furnishings. M&S has made strides in its online retail presence, which has become increasingly important, especially in recent years. Additionally, the company engages in partnerships, such as collaborations with other brands and suppliers, to enhance its product offerings and expand its market reach. Other revenue sources include its loyalty program, which encourages repeat purchases and customer retention, along with private label products that drive higher margins.

Marks & Spencer Financial Statement Overview

Summary

Marks & Spencer demonstrates solid financial performance with steady revenue growth and healthy cash flow generation. While profitability margins have some room for improvement, the balance sheet remains robust with manageable leverage levels. The company's financial health is suitable for sustaining operations and supporting future growth initiatives.

Income Statement

Marks & Spencer has shown consistent revenue growth over the years, with a notable increase from 2021 to 2025. Gross profit and EBITDA margins have been stable, indicating efficient cost management. However, the decline in EBIT margin and fluctuating net profit margin suggest some challenges in operational efficiencies or increased costs.

Balance Sheet

The company's debt-to-equity ratio indicates moderate leverage, which is typical for the industry. The equity ratio is stable, showing a balanced asset base. Return on equity has been positive, reflecting profitable utilization of shareholder equity, although it has fluctuated over the years.

Cash Flow

Cash flow statements reveal strong operating cash flow, consistently supporting capital expenditures and leaving positive free cash flow. The operating cash flow to net income ratio is favorable, indicating good cash generation relative to reported profits. Free cash flow growth shows positive trends, supporting the company's financial flexibility.

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	1.37B	1.20B	1.16B	629.20M
Net Income	295.70M	295.70M	431.20M	363.40M	306.60M	-201.20M
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 & Spencer Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 9.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAKSY, the sentiment is Negative. The current price of 9.11 is below the 20-day moving average (MA) of 9.15, below the 50-day MA of 9.86, and below the 200-day MA of 9.55, indicating a bearish trend. The MACD of -0.28 indicates Negative momentum. The RSI at 39.96 is Neutral, neither overbought nor oversold. The STOCH value of 63.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for MAKSY.

Marks & Spencer Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	79 Outperform	$6.79B	14.30	19.34%	―	11.09%	51.51%
GAP	76 Outperform	$9.88B	11.90	25.10%	2.43%	0.29%	3.65%
DDS	76 Outperform	$10.90B	18.95	28.98%	3.73%	-1.07%	-5.22%
M	74 Outperform	$6.14B	13.43	11.28%	3.16%	-2.83%	184.32%
KSS	69 Neutral	$2.59B	13.52	5.02%	3.80%	-6.13%	-22.57%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
MAKSY	59 Neutral	$9.01B	353.04	0.65%	1.15%	17.80%	-96.05%