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Marks & Spencer
(OTC:MAKSY)
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Rating:61Neutral
Price Target:
$11.00
▲(20.75% Upside)
Action:Reiterated
Date:05/22/26
The score is driven primarily by improved but moderating fundamentals (growth and positive cash flow offset by margin compression, declining FCF, and leverage). Earnings-call commentary supports a medium-term improvement path via reinvestment and cost-out, but near-term category weakness (especially online fashion) and cost headwinds persist. Technicals and valuation are both middling, with mixed trend signals and a relatively high P/E versus a modest yield.
Positive Factors
Food segment outperformance
Consistent food growth and market‑share gains reflect durable structural strength: frequent-purchase category, higher margin ready-to-eat lines, and better customer retention. This supports more predictable revenue and margin resilience over the medium term and funds strategic reinvestment.
Negative Factors
Margin compression
Falling margins indicate rising cost pressures and weaker pricing power, limiting the company's ability to convert revenue gains into profits. Persistent headwinds (taxes, packaging, supplier inflation) and an online margin gap make margin restoration a multi-quarter challenge for sustainable returns.
Read all positive and negative factors
Positive Factors
Negative Factors
Food segment outperformance
Consistent food growth and market‑share gains reflect durable structural strength: frequent-purchase category, higher margin ready-to-eat lines, and better customer retention. This supports more predictable revenue and margin resilience over the medium term and funds strategic reinvestment.
Read all positive factors
Marks & Spencer Key Performance Indicators (KPIs)
Any
Revenue by Segment
Provides a breakdown of revenue across different business units, highlighting which areas are driving growth and which might need strategic focus or improvement.
Provides a breakdown of revenue across different business units, highlighting which areas are driving growth and which might need strategic focus or improvement.
Data provided by:
The Fly
The FlyMarks & Spencer (MAKSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$10.61B
Dividend Yield1.18%
Average Volume (3M)266.13K
Price to Earnings (P/E)31.1
Beta (1Y)0.28
Revenue Growth31.35%
EPS Growth-9.18%
CountryUS
Employees64,442
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)0.27
Shares Outstanding1,033,468,600
10 Day Avg. Volume0
30 Day Avg. Volume266,127
Financial Highlights & Ratios
PEG Ratio-3.71
Price to Book (P/B)2.30
Price to Sales (P/S)0.41
P/FCF Ratio15.24
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit>-0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.89
Revenue Forecast (FY)$25.23B
Marks & Spencer Business Overview & Revenue Model
Company Description
Marks and Spencer Group plc is a diverse retail enterprise, organized into five key segments: UK Clothing & Home, UK Food, International, Ocado, and All Other. Its extensive food division features fresh produce, protein deli items, dairy, in-store...
How the Company Makes Money
Marks & Spencer makes money mainly by selling goods to consumers across two core retail segments: Clothing & Home and Food. Revenue is generated at the point of sale in physical stores and through e-commerce, where the company sells its own-brand ...
Marks & Spencer Earnings Call Summary
Earnings Call Date:May 20, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call presented a recovery narrative with clear operational progress and substantive strategic investments (notably in food growth, supply chain capacity and D&T), record customer metrics and a return to profitability and positive operating cash flow. However, significant challenges remain: Fashion, Home & Beauty reported substantial revenue declines (especially online), international sales are down, and near-term margin pressure from taxes, new packaging costs and supplier inflation persists. Management is optimistic and has a credible multi-year reinvestment plan, but material benefits from distribution automation and some D&T investments are multi-year (FY'28 and beyond). Overall the positives around food outperformance, balance sheet resilience and clear reinvestment plans outweigh the near-term operational and macro lowlights.Positive Updates
Group Sales and Ex-Ocado Growth
Total group sales GBP 17.4bn (+20% YoY driven by Ocado consolidation). Excluding Ocado, sales were GBP 14.2bn, +1.9% YoY.
Negative Updates
Fashion, Home & Beauty Revenue Decline
FH&B sales declined 7.7% YoY; store sales down 2.3% and online sales down 18.4% for the year (though both returned to growth in Q4).
Read all updates
Q4-2026 Updates
Positive
Negative
Group Sales and Ex-Ocado Growth
Total group sales GBP 17.4bn (+20% YoY driven by Ocado consolidation). Excluding Ocado, sales were GBP 14.2bn, +1.9% YoY.
Read all positive updates
Company Guidance
M&S said it is “reinvesting for growth,” planning capital expenditure of GBP 650–750m net of disposals this year (maintenance CapEx ~£150m; property ~£200m; supply‑chain ~£200m; D&T ~£140m), running a GBP 120m cost‑out program and aiming for profit growth versus two years ago while growing the dividend over time; non‑like‑for‑like space is expected to add c.2–3ppt to sales. The group remains on a strong financial footing after FY sales of GBP 17.4bn (GBP 14.2bn ex‑Ocado) and adjusted PBT of GBP 671.4m (including GBP 100m cyber insurance) with operating free cash inflow of GBP 131.3m; food (sales +7%, volume +3.5%) is a priority to double in size (market share 4.1% standalone / 4.6% including Ocado, 800k more food customers, M&S on Ocado sales up 17% to £1bn), and food net gross margin guidance is around >4%. Key capacity/timing guidance: open ~18 bigger food stores this year (after 12 new +18 renewed last year), Lichfield 437,000 sq ft DC acquired for £67.5m (+ ~£20m automation) to deliver ~20% more stock points and ~80% more picking capacity with online margin benefits from FY28, Daventry/Avonmouth adding 1.7m sq ft to the network (supporting FY29), and a long‑run online ambition toward c.50% penetration (pre‑incident c.34%) while improving availability (stock cover ~15 weeks; availability now in the high‑80s).Marks & Spencer Financial Statement Overview
Summary
Income Statement
68
Positive
Balance Sheet
60
Neutral
Cash Flow
62
Positive
| Breakdown | Mar 2026 | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 17.27B | 13.82B | 13.04B | 11.93B | 10.89B |
| Gross Profit | 5.31B | 4.61B | 4.46B | 4.14B | 3.75B |
| EBITDA | 1.24B | 1.49B | 1.37B | 1.20B | 1.16B |
| Net Income | 259.40M | 295.70M | 431.20M | 363.40M | 306.60M |
Balance Sheet | |||||
| Total Assets | 10.12B | 8.82B | 8.68B | 9.10B | 9.44B |
| Cash, Cash Equivalents and Short-Term Investments | 1.01B | 1.15B | 1.03B | 1.08B | 1.22B |
| Total Debt | 3.42B | 2.94B | 3.13B | 3.63B | 3.81B |
| Total Liabilities | 6.89B | 5.87B | 5.85B | 6.28B | 6.53B |
| Stockholders Equity | 3.06B | 2.94B | 2.83B | 2.81B | 2.91B |
Cash Flow | |||||
| Free Cash Flow | 460.77M | 806.10M | 872.40M | 619.60M | 1.12B |
| Operating Cash Flow | 1.04B | 1.31B | 1.30B | 1.03B | 1.38B |
| Investing Cash Flow | -387.60M | -696.10M | -435.30M | -516.60M | -245.70M |
| Financing Cash Flow | -519.92M | -773.60M | -909.80M | -643.80M | -595.90M |
Marks & Spencer Technical Analysis
Positive
9.11
Price Trends
9.56
Positive
9.51
Positive
9.57
Positive
Market Momentum
0.14
Positive
61.59
Neutral
46.60
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAKSY, the sentiment is Positive. The current price of 9.11 is below the 20-day moving average (MA) of 9.96, below the 50-day MA of 9.56, and below the 200-day MA of 9.57, indicating a bullish trend. The MACD of 0.14 indicates Positive momentum. The RSI at 61.59 is Neutral, neither overbought nor oversold. The STOCH value of 46.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAKSY.
Marks & Spencer Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $6.46B | 14.26 | 17.64% | ― | 11.23% | 8.96% | |
75 Outperform | $8.51B | 12.95 | 33.85% | 3.99% | 0.62% | 16.26% | |
73 Outperform | $7.38B | 7.92 | 26.47% | 2.45% | 1.58% | 11.13% | |
70 Outperform | $6.34B | 9.76 | 14.44% | 3.23% | -0.35% | 25.21% | |
64 Neutral | $1.98B | 7.18 | 6.83% | 2.33% | -3.80% | 122.79% | |
61 Neutral | $10.61B | 31.13 | 8.86% | 1.18% | 31.35% | -9.18% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
MAKSY
Marks & Spencer
10.34
1.44
16.21%
DDS
Dillard's
544.92
103.19
23.36%
GAP
Gap Inc
20.50
0.77
3.89%
KSS
Kohl's
17.49
8.15
87.28%
M
Macy's
24.12
12.56
108.63%
URBN
Urban Outfitters
75.42
4.49
6.33%
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.