Marks & Spencer (MAKSY) AI Stock Analysis

• Market Cap: $10.22B
• Dividend Yield: 1.37%
• Average Volume (3M): 47.65K
• Price to Earnings (P/E): 27.2
• Beta (1Y): 0.17
• Revenue Growth: 10.48%
• EPS Growth: 26.57%
• Country: US
• Employees: 64,000
• Sector: Consumer Cyclical
• Sector Strength: 58
• Industry: Department Stores
• EPS (TTM): 0.46
• Shares Outstanding: 1,028,113,400
• 10 Day Avg. Volume: 4,012
• 30 Day Avg. Volume: 47,652
• PEG Ratio: 0.49
• Price to Book (P/B): 1.20
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 5.42
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 73 Outperform
• Price Target: ―

Marks & Spencer's strong financial performance, highlighted by significant revenue growth and excellent cash flow, is the primary driver of its stock score. While technical analysis shows a neutral short-term trend, the valuation indicates the stock is reasonably priced. The absence of earnings call and corporate events data focuses the analysis on these fundamental and technical factors.

Marks & Spencer Business Overview & Revenue Model

Company Description

Marks and Spencer Group plc operates various retail stores. It operates through five segments: UK Clothing & Home, UK Food, International, Ocado, and All Other. The company offers protein deli and dairy; produce; ambient and in-store bakery; meals dessert and frozen; and hospitality and 'Food on the Move' products. The company also provides womenswear, menswear, lingerie, kids wear, and home products; financial services, including credit cards, payment solutions, insurances, savings, and loans; and renewable energy services. In addition, it invests in and develops real estate properties; operates international franchises; and provides its products online. The company also exports its products. It operates 1,487 stores in worldwide. The company was founded in 1884 and is headquartered in London, the United Kingdom.

How the Company Makes Money

Marks & Spencer generates revenue primarily through its retail operations, which are divided into two main segments: Clothing & Home and Food. The Clothing & Home segment includes sales of apparel, beauty products, and home goods, while the Food segment offers a range of food products, including ready meals, fresh produce, and grocery items. The company operates both physical stores and an online platform, allowing it to reach a wide customer base. Marks & Spencer also engages in partnerships and joint ventures, such as its collaboration with Ocado for online grocery sales, which enhances its distribution capabilities and market reach. Additionally, the company focuses on its own-label products, which help differentiate its offerings and often carry higher profit margins than third-party brands.

Marks & Spencer Financial Statement Overview

Summary

Marks & Spencer has shown strong financial performance with robust revenue growth and improved profitability margins. The balance sheet indicates a stable capital structure, though leverage is a point to monitor. Cash flow is a significant strength, illustrating excellent cash management and operational efficiency.

Income Statement

Marks & Spencer demonstrated strong revenue growth of 9.3% from the previous year, with a consistent upward trajectory in recent years. The gross profit margin stands at 34.2%, reflecting solid profitability in its operations. Net profit margin improved to 3.3%, indicating better cost management and profitability. The EBIT and EBITDA margins at 5.5% and 10.1%, respectively, show steady operational performance with room for further improvement.

Balance Sheet

The company has a moderate debt-to-equity ratio of 1.11, signifying a balanced approach to leveraging. Return on equity (ROE) is at 15.2%, which is a positive indicator of efficient use of equity. The equity ratio of 32.6% suggests a stable financial structure, though there is potential risk with the level of liabilities relative to assets.

Cash Flow

Marks & Spencer's free cash flow increased by 40.8%, indicating strong cash generation capabilities. The operating cash flow to net income ratio is robust at 3.02, reflecting high-quality earnings. Additionally, the free cash flow to net income ratio of 2.02 further supports the company's solid cash flow position.

Breakdown
Mar 2024	Mar 2023	Mar 2022	Mar 2021	Mar 2020
Income Statement		Total Revenue
13.04B	11.93B	10.89B	9.16B	10.18B
	Gross Profit
4.46B	4.14B	3.75B	2.91B	3.59B
	EBIT
714.20M	515.10M	572.20M	26.10M	254.80M
	EBITDA
1.32B	1.20B	1.12B	629.20M	1.07B
	Net Income Common Stockholders
431.20M	363.40M	306.60M	-201.20M	23.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
1.03B	1.08B	1.22B	692.80M	260.10M
	Total Assets
8.68B	9.10B	9.44B	8.64B	10.18B
	Total Debt
3.13B	3.63B	3.81B	4.09B	4.18B
	Net Debt
2.11B	2.56B	2.61B	3.42B	3.93B
	Total Liabilities
5.85B	6.28B	6.53B	6.35B	6.48B
	Stockholders Equity
2.83B	2.81B	2.91B	2.28B	3.70B
Cash Flow		Free Cash Flow
872.40M	619.60M	1.12B	664.20M	644.50M
	Operating Cash Flow
1.30B	1.03B	1.38B	870.90M	973.10M
	Investing Cash Flow
-435.30M	-516.60M	-245.70M	-192.60M	-765.70M
	Financing Cash Flow
-909.80M	-643.80M	-595.90M	-244.00M	-256.90M

Marks & Spencer Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 10.16 is above the 20-day moving average (MA) of 9.99, above the 50-day MA of 9.94, and above the 200-day MA of 9.42, indicating a bullish trend. The MACD of 0.07 indicates Negative momentum. The RSI at 55.32 is Neutral, neither overbought nor oversold. The STOCH value of 64.88 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DDS	78 Outperform	$6.25B	11.05	30.93%	0.25%	-3.94%	-17.78%
MAKSY	73 Outperform	$10.22B	27.24	10.27%	1.37%	10.48%	26.57%
M	73 Outperform	$3.05B	5.68	12.92%	6.49%	-3.77%	4607.98%
GAP	72 Outperform	$7.78B	9.09	29.16%	3.16%	1.07%	28.03%
Sector *	62 Neutral	$6.82B	11.05	2.80%	4.32%	2.67%	-24.92%
JWN	60 Neutral	$4.12B	14.17	29.58%	3.08%	2.20%	120.00%
KSS	59 Neutral	$909.78M	7.52	3.19%	6.16%	-7.03%	-56.59%