LSE:MKS

Stock Analysis Report

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Marks and Spencer Group

Executive Summary

Marks and Spencer Group plc operates various retail stores. More Details


Snowflake Analysis

Fair value with moderate growth potential.


Similar Companies

Share Price & News

How has Marks and Spencer Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: MKS's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

1.0%

MKS

-2.8%

GB Multiline Retail

-2.0%

GB Market


1 Year Return

-50.1%

MKS

-6.9%

GB Multiline Retail

-17.2%

GB Market

Return vs Industry: MKS underperformed the UK Multiline Retail industry which returned -4.8% over the past year.

Return vs Market: MKS underperformed the UK Market which returned -16.4% over the past year.


Shareholder returns

MKSIndustryMarket
7 Day1.0%-2.8%-2.0%
30 Day-0.6%1.3%-0.5%
90 Day-7.5%3.8%-4.4%
1 Year-49.0%-50.1%-4.3%-6.9%-14.1%-17.2%
3 Year-67.4%-72.8%-2.6%-13.9%-10.3%-21.4%
5 Year-75.9%-82.0%-26.0%-40.5%13.4%-12.1%

Price Volatility Vs. Market

How volatile is Marks and Spencer Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Marks and Spencer Group undervalued compared to its fair value and its price relative to the market?

40.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: MKS (£0.93) is trading below our estimate of fair value (£1.58)

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


Price To Earnings Ratio

PE vs Industry: MKS is poor value based on its PE Ratio (74.7x) compared to the XE Multiline Retail industry average (24.2x).

PE vs Market: MKS is poor value based on its PE Ratio (74.7x) compared to the UK market (18x).


Price to Earnings Growth Ratio

PEG Ratio: MKS is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: MKS is good value based on its PB Ratio (0.5x) compared to the XE Multiline Retail industry average (3.3x).


Next Steps

Future Growth

How is Marks and Spencer Group forecast to perform in the next 1 to 3 years based on estimates from 20 analysts?

36.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MKS's forecast earnings growth (36.8% per year) is above the savings rate (1.2%).

Earnings vs Market: MKS's earnings (36.8% per year) are forecast to grow faster than the UK market (24.1% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: MKS's revenue (0.4% per year) is forecast to grow slower than the UK market (6% per year).

High Growth Revenue: MKS's revenue (0.4% 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 (7.8%).


Next Steps

Past Performance

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

-54.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MKS has a large one-off loss of £319.1M impacting its March 28 2020 financial results.

Growing Profit Margin: MKS's current net profit margins (0.2%) are lower than last year (0.4%).


Past Earnings Growth Analysis

Earnings Trend: MKS's earnings have declined by 54.2% per year over the past 5 years.

Accelerating Growth: MKS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: MKS had negative earnings growth (-42.6%) over the past year, making it difficult to compare to the Multiline Retail industry average (-13.1%).


Return on Equity

High ROE: MKS's Return on Equity (0.7%) is considered low.


Next Steps

Financial Health

How is Marks and Spencer Group's financial position?


Financial Position Analysis

Short Term Liabilities: MKS's short term assets (£1.2B) do not cover its short term liabilities (£1.8B).

Long Term Liabilities: MKS's short term assets (£1.2B) do not cover its long term liabilities (£4.6B).


Debt to Equity History and Analysis

Debt Level: MKS's debt to equity ratio (43.7%) is considered high.

Reducing Debt: MKS's debt to equity ratio has reduced from 61.9% to 43.7% over the past 5 years.

Debt Coverage: MKS's debt is well covered by operating cash flow (60%).

Interest Coverage: MKS's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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

5.24%

Forecast Dividend Yield


Dividend Yield vs Market

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.


Current Payout to Shareholders

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


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of MKS's dividend in 3 years as they are not forecast to pay a notable one for the UK market.


Next Steps

Management

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

2.1yrs

Average management tenure


CEO

Steve Rowe (52 yo)

4.5yrs

Tenure

UK£1,211,000

Compensation

Mr. Steve Rowe has been the Chief Executive Officer of Marks and Spencer Group plc since April 2, 2016 and as its Executive Director since October 1, 2012. Mr. Rowe has extensive experience across all part ...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD1.58M) is about average for companies of similar size in the UK market ($USD1.73M).

Compensation vs Earnings: Steve's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steve Rowe
CEO & Executive Director4.5yrsUK£1.21m0.029%
£ 520.6k
Katie Bickerstaffe
Chief Strategy & Transformation Director2.25yrsUK£74.00k0.0013%
£ 23.2k
Eoin Tonge
CFO & Executive Director0.33yrno datano data
Sacha Berendji
Retail, Operations & Property Directorno datano datano data
Fraser Ramzan
Head of Investor Relations4.33yrsno datano data
Nick Folland
Group General Counsel & Company Secretary1.67yrsno datano data
James Munson
Managing Director of Indian Operaions3.42yrsno datano data
Stuart Machin
Managing Director of Food2.5yrsno datano data
Craig Taylor
Head of Operations for Food Supply Chain2.08yrsno datano data
Michelle Ojulah
Head of Kidswear Buying2.33yrsno datano data
Katharine Haenelt
First Head of Trading for Meat2.08yrsno datano data
David Stokes
Head of Sourcing1yrno datano data

2.1yrs

Average Tenure

52yo

Average Age

Experienced Management: MKS's management team is considered experienced (2.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Steve Rowe
CEO & Executive Director4.5yrsUK£1.21m0.029%
£ 520.6k
Katie Bickerstaffe
Chief Strategy & Transformation Director2.25yrsUK£74.00k0.0013%
£ 23.2k
Eoin Tonge
CFO & Executive Director0.33yrno datano data
Andrew Halford
Senior Independent Director2yrsUK£102.00k0.0013%
£ 23.5k
Archie Norman
Non-Executive Chairman3.08yrsUK£628.00k0.0076%
£ 138.8k
Tamara Ingram
Non Executive Director0.33yrno datano data
Justin King
Independent Non-Executive Director1.75yrsUK£71.00k0.0033%
£ 59.8k
Andrew Fisher
Independent Non-Executive Director4.83yrsUK£88.00k0.00022%
£ 4.0k
Phillipa McCrostie
Independent Non-Executive Director2.25yrsUK£71.00k0.00037%
£ 6.7k
Sapna Sood
Non Executive Director0.33yrno datano data

2.1yrs

Average Tenure

53yo

Average Age

Experienced Board: MKS's board of directors are not considered experienced ( 2.1 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Marks and Spencer Group plc
  • Ticker: MKS
  • Exchange: LSE
  • Founded: 1884
  • Industry: Department Stores
  • Sector: Retail
  • Market Cap: UK£1.824b
  • Shares outstanding: 1.95b
  • 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

Biography

Marks and Spencer Group plc operates various retail stores. The company offers protein deli and dairy; produce; ambient and in-store bakery; meals dessert and frozen; and hospitality and ‘Food on the Move’ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 22:11
End of Day Share Price2020/10/27 00:00
Earnings2020/03/28
Annual Earnings2020/03/28


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.