Marks & Spencer (MAKSY) AI Stock Analysis

• Market Cap: $9.79B
• Dividend Yield: 1.18%
• Average Volume (3M): 266.13K
• Price to Earnings (P/E): 301.8
• Beta (1Y): 0.30
• 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: 1,032,323,700
• 10 Day Avg. Volume: 0
• 30 Day Avg. Volume: 266,127
• 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: 1.02
• Enterprise Value/Revenue: 0.65
• Enterprise Value/Gross Profit: 1.36
• Enterprise Value/Ebitda: 10.00
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 0.62
• Revenue Forecast (FY): $23.53B

• Rating: 59 Neutral
• Price Target: $10.00 ▲(9.77% Upside)
• Action: Reiterated Date: 11/19/25
• Date: Action: Reiterated 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 operating cash generation

Consistent strong operating cash flow and positive free cash flow give M&S durable financial flexibility to fund store refreshes, e-commerce and supply chain modernization without heavy reliance on external financing. That supports execution of multi‑year transformation plans and reduces refinancing risk.

Consolidation of Ocado Retail driving sales

Bringing Ocado Retail into group reporting materially scales M&S's online grocery exposure and broadens distribution. This structural expansion strengthens recurring revenue diversification, enhances digital grocery capability, and creates cross‑selling and procurement synergies that support mid‑term revenue resilience.

Food segment resilience and market share gains

Consistent food sales growth and market share gains reflect structural strengths: strong own-brand positioning, high frequency purchasing and resilience to discretionary cycles. Food's stable margins and repeat footfall support steady cash generation and offset volatility in seasonal clothing categories over the medium term.

Negative Factors

Large cyber incident profit hit

A GBP 300m operating profit impact exposes material operational and IT risk that can have lasting effects on customer trust, supply chain continuity and e‑commerce reliability. Remediation, insurance gaps and tougher controls will raise ongoing costs and could depress margins for multiple quarters.

Significant Fashion, Home & Beauty decline

A 16% decline signals structural weaknesses in apparel operations: inventory, digital availability and sourcing. Persistent underperformance here undermines diversification, reduces gross margin contribution, and requires significant investment in supply chain and online capabilities to restore customer loyalty and sales momentum.

Rising structural costs and international weakness

Higher statutory costs (national insurance, packaging tax) and an 11.6% international sales drop indicate margin pressure and execution gaps overseas. These factors can persist over multiple quarters, compressing operating leverage, slowing reinvestment capacity and complicating recovery outside the UK market.

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.

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	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: Negative
• Last Price: 9.11
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 10.54, below the 50-day MA of 9.91, and below the 200-day MA of 9.64, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 37.98 is Neutral, neither overbought nor oversold. The STOCH value of 11.64 is Positive, 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	68 Neutral	$5.74B	13.74	17.59%	―	11.09%	51.51%
M	67 Neutral	$4.86B	118.58	11.28%	3.23%	-2.83%	184.32%
DDS	65 Neutral	$9.20B	16.61	31.92%	3.99%	-1.07%	-5.22%
GAP	63 Neutral	$8.66B	12.79	23.10%	2.45%	0.29%	3.65%
Sector *	61 Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%
KSS	60 Neutral	$1.70B	56.95	5.02%	2.33%	-6.13%	-22.57%
MAKSY	59 Neutral	$9.79B	301.77	0.65%	1.18%	17.80%	-96.05%