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Marks and Spencer Group Plc (MAKSY)
OTHER OTC:MAKSY
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Marks & Spencer
(OTC:MAKSY)
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Select Model
Rating:59Neutral
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 (MAKSY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$8.75B
Dividend Yield1.18%
Average Volume (3M)266.13K
Price to Earnings (P/E)342.8
Beta (1Y)0.20
Revenue Growth17.80%
EPS Growth-96.05%
CountryUS
Employees64,000
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)0.17
Shares Outstanding1,028,562,600
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 Cap1.55
Enterprise Value/Revenue0.75
Enterprise Value/Gross Profit1.85
Enterprise Value/Ebitda11.90
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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
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 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
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.75
Positive
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.70
Positive
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.80
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 18.00B | 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 | 1.14B | 1.49B | 1.37B | 1.20B | 1.16B | 629.20M |
| Net Income | 21.92M | 295.70M | 431.20M | 363.40M | 306.60M | -201.20M |
Balance Sheet | ||||||
| Total Assets | 13.55B | 8.82B | 8.68B | 9.10B | 9.44B | 8.64B |
| Cash, Cash Equivalents and Short-Term Investments | 1.14B | 1.15B | 1.03B | 1.08B | 1.22B | 692.80M |
| Total Debt | 4.57B | 2.94B | 3.13B | 3.63B | 3.81B | 4.09B |
| Total Liabilities | 9.55B | 5.87B | 5.85B | 6.28B | 6.53B | 6.35B |
| Stockholders Equity | 3.77B | 2.94B | 2.83B | 2.81B | 2.91B | 2.28B |
Cash Flow | ||||||
| Free Cash Flow | 579.28M | 806.10M | 872.40M | 619.60M | 1.12B | 664.20M |
| Operating Cash Flow | 1.05B | 1.31B | 1.30B | 1.03B | 1.38B | 870.90M |
| Investing Cash Flow | -255.48M | -696.10M | -435.30M | -516.60M | -245.70M | -192.60M |
| Financing Cash Flow | -670.51M | -773.60M | -909.80M | -643.80M | -595.90M | -244.00M |
Marks & Spencer Technical Analysis
Negative
9.11
Price Trends
9.46
Negative
9.52
Negative
9.53
Negative
Market Momentum
-0.17
Negative
40.91
Neutral
28.78
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 above the 20-day moving average (MA) of 8.79, below the 50-day MA of 9.46, and below the 200-day MA of 9.53, indicating a bearish trend. The MACD of -0.17 indicates Negative momentum. The RSI at 40.91 is Neutral, neither overbought nor oversold. The STOCH value of 28.78 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
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $6.91B | 14.57 | 19.34% | ― | 11.09% | 51.51% | |
76 Outperform | $9.74B | 11.73 | 25.10% | 2.45% | 0.29% | 3.65% | |
76 Outperform | $9.84B | 17.10 | 28.98% | 3.99% | -1.07% | -5.22% | |
74 Outperform | $5.97B | 13.21 | 11.28% | 3.23% | -2.83% | 184.32% | |
68 Neutral | $2.42B | 12.65 | 5.02% | 2.33% | -6.13% | -22.57% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
59 Neutral | $8.75B | 342.77 | 0.65% | 1.18% | 17.80% | -96.05% |
* Consumer Cyclical Sector Average
MAKSY
Marks & Spencer
8.67
-0.67
-7.17%
DDS
Dillard's
630.08
209.13
49.68%
GAP
Gap Inc
26.18
3.35
14.67%
KSS
Kohl's
21.57
8.27
62.18%
M
Macy's
22.47
6.47
40.44%
URBN
Urban Outfitters
77.05
21.87
39.63%
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.