Marks & Spencer (MAKSY) AI Stock Analysis

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Marks & Spencer

(OTC:MAKSY)

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Neutral 59 (OpenAI - 5.2)

Rating:59Neutral

Price Target:

$10.50

▲(15.26% Upside)

Action:ReiteratedDate:11/19/25

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

Strong cash generation

Operating cash flow is consistently strong and free cash flow has grown, giving M&S durable internal funding for capex, store rotation and tech investment. Reliable cash generation supports strategic initiatives without over-reliance on external financing and preserves financial flexibility.

Food segment & Ocado Retail growth

Consolidation of Ocado Retail and resilient food sales provide recurring, high-frequency revenue. Food's volume growth and Ocado Retail's double-digit sales expansion diversify income away from fashion volatility, strengthening a dependable, margin-supporting core business over the medium term.

Store expansion & market share gains

Planned store openings and renewals plus recent gains in style and market share indicate improving customer engagement and physical footprint optimization. A coordinated store rotation strategy combined with traffic increases supports sustainable omnichannel sales growth and higher lifetime customer value.

Negative Factors

Material cyber incident impact

A ~GBP300m hit reveals material operational and IT vulnerability; remediation and resilience investments will be required. Even with insurance recovery, persistent elevated IT risk can raise ongoing costs, disrupt operations and depress profitability across multiple reporting periods.

Fashion, Home & Beauty weakness

A sharp decline in core non-food categories highlights structural challenges: supply chain fragility and digital channel dependence. Recovering market share and margins will require durable fixes to sourcing, online fulfillment and product assortments, pressuring near-term segment profitability.

International decline and rising costs

Falling international sales and incremental regulatory/tax-driven costs compress margins and reduce geographic diversification benefits. Persistent cost headwinds combined with overseas channel disruption could constrain margin recovery and limit the pace of reinvestment into growth initiatives.

Marks & Spencer (MAKSY) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$10.23B

Dividend Yield1.18%

Average Volume (3M)266.13K

Price to Earnings (P/E)301.8

Beta (1Y)0.26

Revenue Growth17.80%

EPS Growth-96.05%

CountryUS

Employees64,000

SectorConsumer Cyclical

Sector Strength84

IndustryDepartment Stores

Share Statistics

EPS (TTM)0.17

Shares Outstanding1,032,323,700

10 Day Avg. Volume0

30 Day Avg. Volume266,127

Financial Highlights & Ratios

PEG Ratio-0.75

Price to Book (P/B)2.51

Price to Sales (P/S)0.53

P/FCF Ratio9.16

Enterprise Value/Market Cap1.00

Enterprise Value/Revenue0.67

Enterprise Value/Gross Profit1.40

Enterprise Value/Ebitda10.29

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

EPS Forecast (FY)0.62

Revenue Forecast (FY)$23.53B

Marks & Spencer Business Overview & Revenue Model

Company DescriptionMarks & 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 MoneyMarks & 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 Key Performance Indicators (KPIs)

Any

Revenue by Segment

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.

Chart InsightsMarks & Spencer's UK Food segment shows robust growth, reflecting a strategic focus on food offerings, while UK Clothing & Home is recovering steadily post-pandemic. However, the International segment faces challenges, with a notable decline in recent quarters. This suggests potential headwinds in overseas markets, possibly due to geopolitical factors or competitive pressures. Investors should monitor international strategies as the company seeks to stabilize and grow this segment.

Data provided by:

The Fly

Marks & Spencer Earnings Call Summary

Earnings Call Date:Nov 05, 2025

(Q2-2026)

% Change Since: |

Next Earnings Date:May 27, 2026

Earnings Call Sentiment Neutral

The earnings call presented a mixed picture with significant challenges due to a cyber incident and supply chain disruptions, particularly affecting the Fashion, Home, and Beauty segments. However, there were strong performances in the food segment and growth opportunities highlighted with Ocado Retail and new store investments. The sentiment is neutral as the highlights and lowlights are balanced.

Q2-2026 Updates

Positive Updates

Consolidation of Ocado Retail

Marks and Spencer consolidated Ocado Retail into their numbers, leading to a reported 22% increase in group sales.

Food Business Resilience

Despite supply chain disruptions, food sales grew by 7.8% in the half, with M&S becoming the fastest-growing store-based retailer in volume over the last 4-week period.

New Store Openings and Investments

15 new or renewed stores opened in the first half, with more than 20 planned for the second half, including two flagship full-line stores.

Ocado Retail Growth

Ocado Retail sales grew by 14.9% over the half, driven by M&S products, which grew faster at 20%.

Market Share and Customer Engagement

M&S achieved #1 for style for the first time and was #1 in fashion market share in the last 12 weeks. Engagement metrics like traffic were significantly up, with September traffic increasing by 21%.

Negative Updates

Impact of Cyber Incident

The cyber incident had a material impact on group operating profit, estimated at GBP 300 million, partially mitigated by GBP 100 million of insurance.

Fashion, Home, and Beauty Challenges

Sales in Fashion, Home, and Beauty fell by 16.4% due to paused online operations, supply chain disruptions, and footfall impacts.

International Sales Decline

International sales were down 11.6% due to offline international websites and shipment disruption.

Increased Costs

The company faced a GBP 50 million increase in costs due to national insurance contributions and packaging tax, affecting profitability.

Company Guidance

During the Marks and Spencer Analyst Call, the company outlined its financial results and strategic objectives, focusing on regaining momentum, growth, and accelerating transformation. Group sales increased by 22%, primarily due to the consolidation of Ocado Retail, while M&S sales remained flat. The company faced a material impact on group operating profit estimated at GBP 300 million due to a significant incident, partially offset by GBP 100 million of insurance claims. Despite challenges, including a 16.4% decline in Fashion, Home, and Beauty sales and an 11.6% drop in international sales, M&S reported a group profit before tax and adjusting items of GBP 184 million. The company emphasized its commitment to store rotation, supply chain modernization, and technology transformation, with plans to open over 20 new stores in the second half. M&S also highlighted robust sales growth in its Food segment, reporting a 7.8% increase and a strong performance in Ocado Retail with a 14.9% sales growth. Looking ahead, M&S anticipates second-half profits at least in line with the prior year, acknowledging external headwinds but remaining confident in its long-term growth strategy.

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.

Income Statement

Positive

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

Positive

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

Positive

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	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	15.26B	13.82B	13.04B	11.93B	10.89B	9.16B
Gross Profit	7.34B	4.61B	4.46B	4.14B	3.75B	2.91B
EBITDA	996.41M	1.49B	1.37B	1.20B	1.16B	629.20M
Net Income	19.79M	295.70M	431.20M	363.40M	306.60M	-201.20M
Balance Sheet
Total Assets	10.07B	8.82B	8.68B	9.10B	9.44B	8.64B
Cash, Cash Equivalents and Short-Term Investments	849.22M	1.15B	1.03B	1.08B	1.22B	692.80M
Total Debt	3.40B	2.94B	3.13B	3.63B	3.81B	4.09B
Total Liabilities	7.10B	5.87B	5.85B	6.28B	6.53B	6.35B
Stockholders Equity	2.80B	2.94B	2.83B	2.81B	2.91B	2.28B
Cash Flow
Free Cash Flow	603.90M	806.10M	872.40M	619.60M	1.12B	664.20M
Operating Cash Flow	1.01B	1.31B	1.30B	1.03B	1.38B	870.90M
Investing Cash Flow	-281.07M	-696.10M	-435.30M	-516.60M	-245.70M	-192.60M
Financing Cash Flow	-579.20M	-773.60M	-909.80M	-643.80M	-595.90M	-244.00M

Marks & Spencer Technical Analysis

Technical Analysis Sentiment

Neutral

Last Price9.11

Price Trends

50DMA

9.89

Positive

100DMA

9.75

Positive

200DMA

9.64

Positive

Market Momentum

MACD

0.06

Positive

RSI

43.91

Neutral

STOCH

11.48

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAKSY, the sentiment is Neutral. The current price of 9.11 is below the 20-day moving average (MA) of 10.58, below the 50-day MA of 9.89, and below the 200-day MA of 9.64, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 43.91 is Neutral, neither overbought nor oversold. The STOCH value of 11.48 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for MAKSY.

Marks & 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
GAP	69 Neutral	$10.12B	12.79	25.10%	2.45%	0.29%	3.65%
URBN	68 Neutral	$5.88B	13.74	17.59%	―	11.09%	51.51%
M	67 Neutral	$5.10B	118.58	11.28%	3.23%	-2.83%	184.32%
DDS	65 Neutral	$9.69B	16.61	31.92%	3.99%	-1.07%	-5.22%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KSS	60 Neutral	$1.76B	56.95	5.02%	2.33%	-6.13%	-22.57%
MAKSY	59 Neutral	$10.23B	301.77	0.65%	1.18%	17.80%	-96.05%

* Consumer Cyclical Sector Average

Performance Comparison

MAKSY

Marks & Spencer

10.07

0.79

8.46%

DDS

Dillard's

620.57

275.56

79.87%

GAP

Gap Inc

27.20

8.31

43.98%

KSS

Kohl's

15.67

4.89

45.39%

Macy's

19.19

6.58

52.19%

URBN

Urban Outfitters

65.62

11.52

21.29%

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: Nov 19, 2025