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MKS

Marks and Spencer Group LSE:MKS Stock Report

Last Price

UK£1.02

Market Cap

UK£1.9b

7D

0.1%

1Y

-44.8%

Updated

04 Oct, 2022

Data

Company Financials +
MKS fundamental analysis
Snowflake Score
Valuation5/6
Future Growth1/6
Past Performance1/6
Financial Health4/6
Dividends0/6

MKS Stock Overview

Marks and Spencer Group plc operates various retail stores.

Marks and Spencer Group Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Marks and Spencer Group
Historical stock prices
Current Share PriceUK£1.02
52 Week HighUK£2.63
52 Week LowUK£0.94
Beta1.57
1 Month Change-15.51%
3 Month Change-24.11%
1 Year Change-44.83%
3 Year Change-38.76%
5 Year Change-70.81%
Change since IPO-72.72%

Recent News & Updates

Aug 08
Why Marks and Spencer Group plc (LON:MKS) Could Be Worth Watching

Why Marks and Spencer Group plc (LON:MKS) Could Be Worth Watching

Marks and Spencer Group plc ( LON:MKS ), might not be a large cap stock, but it received a lot of attention from a...

Jul 21
Marks and Spencer Group plc's (LON:MKS) Intrinsic Value Is Potentially 53% Above Its Share Price

Marks and Spencer Group plc's (LON:MKS) Intrinsic Value Is Potentially 53% Above Its Share Price

How far off is Marks and Spencer Group plc ( LON:MKS ) from its intrinsic value? Using the most recent financial data...

Shareholder Returns

MKSGB Consumer RetailingGB Market
7D0.1%-6.3%-1.4%
1Y-44.8%-47.6%-14.4%

Return vs Industry: MKS exceeded the UK Consumer Retailing industry which returned -47.6% over the past year.

Return vs Market: MKS underperformed the UK Market which returned -14.4% over the past year.

Price Volatility

Is MKS's price volatile compared to industry and market?
MKS volatility
MKS Average Weekly Movement6.1%
Consumer Retailing Industry Average Movement6.2%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.9%

Stable Share Price: MKS is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: MKS's weekly volatility (6%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
188465,000Stuart Machinhttps://corporate.marksandspencer.com

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.

Marks and Spencer Group Fundamentals Summary

How do Marks and Spencer Group's earnings and revenue compare to its market cap?
MKS fundamental statistics
Market CapUK£1.95b
Earnings (TTM)UK£306.60m
Revenue (TTM)UK£10.89b

6.6x

P/E Ratio

0.2x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MKS income statement (TTM)
RevenueUK£10.89b
Cost of RevenueUK£7.27b
Gross ProfitUK£3.62b
Other ExpensesUK£3.31b
EarningsUK£306.60m

Last Reported Earnings

Apr 02, 2022

Next Earnings Date

Nov 09, 2022

Earnings per share (EPS)0.16
Gross Margin33.22%
Net Profit Margin2.82%
Debt/Equity Ratio52.4%

How did MKS perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is MKS undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for MKS?

Other financial metrics that can be useful for relative valuation.

MKS key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue0.4x
Enterprise Value/EBITDA4.8x
PEG Ratio1.2x

Price to Earnings Ratio vs Peers

How does MKS's PE Ratio compare to its peers?

MKS PE Ratio vs Peers
The above table shows the PE ratio for MKS vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average10.7x
FIVE X5 Retail Group
1.8x38.5%US$1.5b
SBRY J Sainsbury
6.2x-13.7%UK£4.2b
TSCO Tesco
10.2x2.7%UK£15.5b
WINE Naked Wines
26.5x-52.3%UK£63.2m
MKS Marks and Spencer Group
6.6x5.7%UK£2.0b

Price-To-Earnings vs Peers: MKS is good value based on its Price-To-Earnings Ratio (6.6x) compared to the peer average (11.2x).


Price to Earnings Ratio vs Industry

How does MKS's PE Ratio compare vs other companies in the European Consumer Retailing Industry?

Price-To-Earnings vs Industry: MKS is good value based on its Price-To-Earnings Ratio (6.6x) compared to the European Consumer Retailing industry average (11.8x)


Price to Earnings Ratio vs Fair Ratio

What is MKS's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

MKS PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.6x
Fair PE Ratio8.5x

Price-To-Earnings vs Fair Ratio: MKS is good value based on its Price-To-Earnings Ratio (6.6x) compared to the estimated Fair Price-To-Earnings Ratio (8.5x).


Share Price vs Fair Value

What is the Fair Price of MKS when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: MKS (£1.02) is trading below our estimate of fair value (£2.77)

Significantly Below Fair Value: MKS is trading below fair value by more than 20%.


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price, but analysts are not within a statistically confident range of agreement.


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Future Growth

How is Marks and Spencer Group forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


5.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKS's forecast earnings growth (5.7% per year) is above the savings rate (0.9%).

Earnings vs Market: MKS's earnings (5.7% per year) are forecast to grow slower than the UK market (8.6% per year).

High Growth Earnings: MKS's earnings are forecast to grow, but not significantly.

Revenue vs Market: MKS's revenue (1.5% per year) is forecast to grow slower than the UK market (4.4% per year).

High Growth Revenue: MKS's revenue (1.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: MKS's Return on Equity is forecast to be low in 3 years time (10.6%).


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Past Performance

How has Marks and Spencer Group performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-19.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: MKS has a large one-off loss of £133.3M impacting its April 2 2022 financial results.

Growing Profit Margin: MKS became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: MKS's earnings have declined by 19.3% per year over the past 5 years.

Accelerating Growth: MKS has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: MKS has become profitable in the last year, making it difficult to compare its past year earnings growth to the Consumer Retailing industry (87.5%).


Return on Equity

High ROE: MKS's Return on Equity (10.6%) is considered low.


Discover strong past performing companies

Financial Health

How is Marks and Spencer Group's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: MKS's short term assets (£2.2B) do not cover its short term liabilities (£2.4B).

Long Term Liabilities: MKS's short term assets (£2.2B) do not cover its long term liabilities (£4.2B).


Debt to Equity History and Analysis

Debt Level: MKS's net debt to equity ratio (11.1%) is considered satisfactory.

Reducing Debt: MKS's debt to equity ratio has reduced from 69.3% to 52.4% over the past 5 years.

Debt Coverage: MKS's debt is well covered by operating cash flow (90.1%).

Interest Coverage: MKS's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


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Dividend

What is Marks and Spencer Group current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


6.57%

Forecast Dividend Yield

Dividend Yield vs Market

Marks and Spencer Group Dividend Yield vs Market
How does Marks and Spencer Group dividend yield compare to the market?
SegmentDividend Yield
Company (Marks and Spencer Group)0%
Market Bottom 25% (GB)2.1%
Market Top 25% (GB)6.0%
Industry Average (Consumer Retailing)5.7%
Analyst forecast in 3 Years (Marks and Spencer Group)6.6%

Notable Dividend: Unable to evaluate MKS's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate MKS's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if MKS's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if MKS's dividend payments have been increasing.


Earnings Payout to Shareholders

Earnings Coverage: MKS is not paying a notable dividend for the UK market.


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as MKS has not reported any payouts.


Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.0yrs

Average management tenure


CEO

Stuart Machin (52 yo)

0.42yr

Tenure

Mr. Stuart B. Machin serves as Chief Executive and Director at Marks and Spencer Group plc since May 25, 2022. He served as Managing Director of Food at Marks and Spencer Group plc since April 30, 2018 unt...


Leadership Team

Experienced Management: MKS's management team is considered experienced (3 years average tenure).


Board Members

Experienced Board: MKS's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

What is the ownership structure of MKS?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders882,0180.04%
Public Companies2,370,2680.1%
Employee Share Scheme2,689,2580.1%
Private Companies62,644,4033.2%
General Public389,772,52219.8%
Institutions1,505,411,22676.7%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 59.14% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
8.01%
Columbia Management Investment Advisers, LLC
157,344,456£161.2m-3.24%0.05%
6.73%
RWC Partners Limited
132,257,860£135.5m9.5%1.48%
5.75%
Schroder Investment Management Limited
112,831,286£115.6m0.6%0.1%
4.44%
The Vanguard Group, Inc.
87,260,665£89.4m0.28%no data
3.94%
BlackRock, Inc.
77,394,764£79.3m-38.15%no data
3.38%
Baillie Gifford & Co.
66,317,254£67.9m-1.84%0.04%
3.17%
Marks & Spencer Group plc Shareview Client(s)
62,348,553£63.9m0.05%no data
2.65%
Fidelity International Ltd
51,996,268£53.3m30.96%0.03%
2.15%
Brandes Investment Partners, LP
42,229,732£43.3m7.36%0.55%
2.11%
Dimensional Fund Advisors LP
41,533,337£42.6m-4.08%0.01%
1.94%
Ruffer LLP
38,172,864£39.1m19.39%0.45%
1.73%
Legal & General Investment Management Limited
33,941,569£34.8m-3.96%0.01%
1.43%
UBS Asset Management
28,159,259£28.8m16.44%0.01%
1.24%
Norges Bank Investment Management
24,443,395£25.0m-4.7%no data
1.22%
Barclays Bank PLC, Securities Investments
24,045,244£24.6m8.86%0.08%
1.18%
HBOS Investment Fund Managers Limited
23,151,132£23.7m6.76%0.26%
1.16%
Polar Capital Holdings plc
22,736,255£23.3m41.35%0.14%
1.04%
HSBC Global Asset Management (UK) Limited
20,504,591£21.0m-20.09%0.02%
1.02%
State Street Global Advisors, Inc.
19,934,821£20.4m-2.64%no data
0.87%
J.P. Morgan Asset Management, Inc.
17,148,834£17.6m-29.71%no data
0.86%
Oberweis Asset Management, Inc.
16,969,697£17.4m-9.06%1.45%
0.82%
M&G Investment Management Limited
16,079,188£16.5m-53.17%0.04%
0.79%
Barclays Bank PLC, Wealth and Investment Management Division
15,417,343£15.8m11.67%0.19%
0.77%
abrdn plc
15,143,847£15.5m-27.05%0.02%
0.71%
Alfreton Capital Management Limited
14,000,000£14.3m0%16.92%

Company Information

Marks and Spencer Group plc's employee growth, exchange listings and data sources


Key Information

  • Name: Marks and Spencer Group plc
  • Ticker: MKS
  • Exchange: LSE
  • Founded: 1884
  • Industry: Food Retail
  • Sector: Consumer Retailing
  • Implied Market Cap: UK£1.947b
  • Shares outstanding: 1.96b
  • Website: https://corporate.marksandspencer.com

Number of Employees


Location

  • Marks and Spencer Group plc
  • Waterside House
  • 35 North Wharf Road
  • London
  • Greater London
  • W2 1NW
  • United Kingdom


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
MAKS.YOTCPK (Pink Sheets LLC)SPONSORED ADRUSUSDMar 2002
MAKS.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDMar 2002
MA6DB (Deutsche Boerse AG)YesOrdinary SharesDEEURMar 2002
MKSLSE (London Stock Exchange)YesOrdinary SharesGBGBPMar 2002
MKSLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMar 2002
MKS NBMV (Bolsa Mexicana de Valores)YesOrdinary SharesMXMXNMar 2002

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/04/02
Annual Earnings2022/04/02


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.