olivLaw · European equity research
Marks and Spencer Group plc MKS.L
United Kingdom · London Stock Exchange · ISIN GB0031274896 · Vertical: Listed companies from United Kingdom
Marks and Spencer is a British retailer operating in food, fashion, home and beauty, together with an international business and digital channels. In fiscal 2025/26 Food grew while Fashion, Home & Beauty declined after a cyber-security incident, and the company is pursuing a broad transformation programme that could shape its future profitability. Food sales reached £9.7bn, while Fashion, Home & Beauty sales fell by 7.7%.
At the close of 05 Nov 2026, Marks and Spencer Group plc (MKS.L) stock was 4.44 GBP (+0.79% on the day), with market capitalisation 9.1 bn GBP, P/E 36.1 on diluted EPS of 0.12 GBP over the last 12 months, dividend yield 0.85%, beta 0.45, 52-week range 3.09–4.44 GBP.
Data as of · AI analysis dated · Source: ESEF annual reports and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 72.6
- overbought (≥ 70)
- Bollinger (20, 2)
- 3.93 – 4.38
- above the upper band · %B 1.14 · band width 10.8%
- SMA 50 / 200
- 3.94 / 3.74
- uptrend (price > SMA50 > SMA200)
- MACD (12, 26, 9)
- 0.10 / 0.08
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | EURO STOXX 50 | vs EURO STOXX 50 | Vertical median | |
|---|---|---|---|---|
| 1 month | +15.1% | −0.6% | +15.8 pp | — |
| 3 months | +9.3% | −4.2% | +13.5 pp | — |
| 6 months | +34.0% | +4.3% | +29.7 pp | — |
| Year to date | +34.6% | +7.5% | +27.1 pp | — |
| 1 year | +15.4% | +9.9% | +5.5 pp | +5.8% |
| 3 years | +102.8% | +49.8% | +53.0 pp | +26.3% |
| 5 years | +129.1% | +42.8% | +86.3 pp | — |
Price returns, dividends excluded.
Quarterly results
ESEF annual reports carry no quarters: the results are annual (below).
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 100 percentile of its own 3-quarter history (min 12.7, median 25.3, max 26.5; quarters with earnings only).
Fiscal years
| Fiscal year | 2024 | 2025 | 2026 |
|---|---|---|---|
| Revenue | 13.0 bn | 13.8 bn | 17.3 bn |
| Revenue YoY | unavailable | +6.0% | +25.0% |
| Net income | 431.2 m | 295.7 m | 259.4 m |
| Net income YoY | unavailable | −31.4% | −12.3% |
| Diluted EPS | 0.21 | 0.14 | 0.12 |
| Diluted EPS YoY | unavailable | −32.7% | −12.1% |
| net % | 3.3% | 2.1% | 1.5% |
| Free cash flow | 942.2 m | 904.6 m | 601.2 m |
Balance sheet & financial health
Fiscal year 2026 · 28 Mar 2026
- Cash
- 997.2 m GBP
- Financial debt
- unavailable GBP
- Net debt
- unavailable GBP
- Equity
- 3.2 bn GBP
- Total assets
- 10.1 bn GBP
- Debt / equity
- unavailable
- Current ratio
- 0.86x
- ROE
- 8.6%
- ROA
- 2.7%
- FCF margin
- 3.5%
Financial statements (source on every figure)
Revenue and net income (GBP)
Margins
Income statement · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Revenue | 13.0 bn | 13.8 bn | 17.3 bn | esef· 02 Jun 2026verified |
| Operating income | 714.2 m | 624.3 m | 536.7 m | esef· 02 Jun 2026verified |
| Interest expense | 188.4 m | 177.2 m | 217.1 m | esef· 02 Jun 2026verified |
| Pre-tax income | 672.5 m | 511.8 m | 364.6 m | esef· 02 Jun 2026verified |
| Income tax | 247.3 m | 219.9 m | 128.4 m | esef· 02 Jun 2026verified |
| Net income | 431.2 m | 295.7 m | 259.4 m | esef· 02 Jun 2026verified |
| Diluted EPS | 0.21 | 0.14 | 0.12 | esef· 02 Jun 2026verified |
| Dividend per share | 0.01 | 0.03 | 0.04 | esef· 02 Jun 2026derived |
Balance sheet · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Cash | 1.0 bn | 864.5 m | 997.2 m | esef· 02 Jun 2026verified |
| Receivables | 302.0 m | 327.5 m | 526.7 m | esef· 02 Jun 2026verified |
| Inventories | 776.9 m | 843.9 m | 981.4 m | esef· 02 Jun 2026verified |
| Current assets | 2.2 bn | 2.4 bn | 2.6 bn | esef· 02 Jun 2026verified |
| Property, plant & equipment, net | 5.2 bn | 5.4 bn | 6.4 bn | esef· 02 Jun 2026verified |
| Total assets | 8.7 bn | 8.8 bn | 10.1 bn | esef· 02 Jun 2026verified |
| Accounts payable | 2.1 bn | 2.4 bn | 2.6 bn | esef· 02 Jun 2026verified |
| Current liabilities | 2.5 bn | 2.8 bn | 3.0 bn | esef· 02 Jun 2026verified |
| Total liabilities | 6.0 bn | 6.0 bn | 6.9 bn | esef· 02 Jun 2026verified |
| Equity | 2.7 bn | 2.8 bn | 3.2 bn | esef· 02 Jun 2026verified |
| Shares outstanding at year end | 2.0 bn | 2.0 bn | 2.0 bn | esef· 02 Jun 2026derived |
Cash flow · GBP
| Line | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|
| Operating cash flow | 1.3 bn | 1.3 bn | 1.2 bn | esef· 02 Jun 2026verified |
| Capex | 359.5 m | 408.4 m | 574.8 m | esef· 02 Jun 2026verified |
| Free cash flow | 942.2 m ≈ | 904.6 m ≈ | 601.2 m ≈ | esef· 02 Jun 2026derived |
| Investing cash flow | -435.3 m | -696.1 m | -336.7 m | esef· 02 Jun 2026verified |
| Financing cash flow | -909.8 m | -773.6 m | -704.1 m | esef· 02 Jun 2026verified |
| Dividends paid | 19.6 m | 60.5 m | 77.0 m | esef· 02 Jun 2026verified |
| Share repurchases | 83.1 m | 81.3 m | 21.1 m | esef· 02 Jun 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- score weight coverage: 52.1% of at least 60%
A scoring methodology on indicators and valuation, not investment advice.
Closing price
05 Nov 2026Source: olivLaw, closing series
Market cap: 9.1 bn GBP
Key indicators
Coverage and freshness
Score by group
52% · Insufficient data
Estimated value range
unavailable — no valuation assumptions for the reporting currency
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
Assumptions (illustrative, editorial)
- Risk-free rate
- 6.5%
- Equity risk premium
- 6.0%
- Beta (default)
- 1.00
- Cost of equity
- 12.5%
- Terminal growth
- 3.0%
Factor scorecard
Insufficient data
Minimum-evidence gate: score weight coverage: 52.1% of at least 60%
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 1.5% | 26 (vs peers) | 12% |
| FCF conversion · Quality | 231.8% | 100 (on a fixed band) | 12% |
| Revenue CAGR 3Y · Growth | unavailable | unavailable | — |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | 2.5x | 15 (on a fixed band) | 12% |
| Current ratio · Balance sheet | 0.9x | 5 (on a fixed band) | 8% |
| P/E (TTM) · Valuation | 36.1x | 6 (vs peers) | 20% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 6.6% | 83 (on a fixed band) | 16% |
| Shareholder yield (distributions) · Returns | 1.1% | 15 (on a fixed band) | 12% |
| Payout ratio (FCF) · Returns | 12.8% | 100 (on a fixed band) | 8% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet11/100 · 2/3 factors with a value
- Growth· partialunavailable · 0/2 factors with a value
- Quality63/100 · 2/3 factors with a value
- Returns49/100 · 2/2 factors with a value
- Valuation40/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
MARKS AND SPENCER GROUP P.L.C. (MKS.L). Latest full fiscal year: 2026; data up to 2026-03-28.
Figures computed from the financial statements: revenue 17.3 bn GBP in 2026; YoY growth 25.0%; net margin 1.5%; ROE 8.8%.
The estimated value range is 0.88–1.30 GBP per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 1.09 GBP, the price of 4.44 GBP leaves a potential of -75.4% (value / price − 1) and a margin of safety of -306.9% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
Insufficient data for a verdict (score weight coverage: 52.1% of at least 60%).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- FCF conversion: 231.8%
- FCF yield: 6.6%
- Payout ratio (FCF): 12.8%
What contradicts it
- Net margin: 1.5%
- Interest coverage: 2.5x
- Current ratio: 0.9x
- P/E (TTM): 36.1x
- Shareholder yield (distributions): 1.1%
- The price is above the estimated value range
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Revenue CAGR 3Y, EPS CAGR 3Y, Net debt / EBITDA, EV/EBITDA.
Versus the vertical median
Listed companies from United Kingdom · same country · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| BATS.LBritish American Tobacco P.L.C. | 104.3 bn | 13.5 | 16.5% | 30.3% | −1.0% | +7% / +88% |
| ABF.LAssociated British Foods PLC | 14.7 bn | 14.3 | 9.2% | 5.3% | −3.1% | −5% / −15% |
| MKS.LMarks And Spencer Group P.L.C. | 9.1 bn | 36.1 | 8.8% | 1.5% | +25.0% | +28% / +77% |
| 0EV1.LCarnival PLC | 5.5 bn | 4.1 | 46.7% | 13.4% | +6.4% | unavailable / unavailable |
| BAB.LBabcock International Group PLC | 5.1 bn | 24.7 | 34.7% | 4.1% | +7.2% | −10% / +158% |
| AUTO.LAutotrader Group PLC | 4.8 bn | 16.4 | 60.2% | 47.1% | +3.9% | −13% / −23% |
| BBY.LBalfour Beatty PLC | 4.2 bn | 16.3 | 23.2% | 2.8% | +15.2% | +20% / +160% |
| ABDN.LAberdeen Group PLC | 4.1 bn | 10.8 | 8.0% | 28.9% | −2.1% | +11% / +41% |
| BKG.LThe Berkeley Group Holdings PLC | 3.6 bn | 11.3 | 8.8% | 13.4% | −4.2% | −0% / −22% |
| BME.LB&M European Value Retail PLC | 2.9 bn | 17.4 | 21.2% | 2.8% | +3.7% | +68% / −51% |
| AJB.LAj Bell PLC | 2.4 bn | 22.8 | 49.9% | 33.1% | +18.0% | +8% / +128% |
| ASHM.LAshmore Group PLC | 1.4 bn | 13.9 | 13.1% | 71.6% | −0.1% | +28% / +18% |
| BCG.LBaltic Classifieds Group PLC | 1.2 bn | 23.2 | 15.8% | 57.6% | +6.9% | −99% / −99% |
| APN.LApplied Nutrition PLC | 763.6 m | 36.2 | 41.2% | 19.7% | +24.2% | +71% / unavailable |
| BAG.LA.G. Barr P.L.C. | 671.9 m | 14.4 | 14.4% | 10.8% | +4.0% | −7% / +26% |
| ASC.LAsos PLC | 494.5 m | — | -81.3% | -12.0% | −14.7% | +71% / +8% |
| ALFA.LAlfa Financial Software Holdings PLC | 486.8 m | 16.3 | 61.5% | 23.8% | +15.3% | −28% / +10% |
| AML.LAston Martin Lagonda Global Holdings PLC | 344.3 m | — | -93.4% | -39.2% | −20.6% | −45% / −85% |
| APTD.LAptitude Software Group PLC | 111.3 m | 28.5 | 7.2% | 6.2% | −7.3% | −30% / −23% |
| AMGO.LAmigo Holdings PLC | 9.9 m | — | — | — | −81.9% | +325% / +844% |
| ASBE.LAssociated British Engineering PLC | 605.3 k | — | -19.1% | — | unavailable | unavailable / unavailable |
| AMIF.LAmicorp Fs (uk) PLC | 221.6 k | 0.1 | 27.5% | 9.1% | +8.1% | unavailable / unavailable |
| AAF.LAirtel Africa PLC | — | — | 24.1% | 10.6% | +29.5% | −7% / +164% |
| AAL.LAnglo American PLC | — | — | -19.3% | -20.2% | +4.5% | +30% / +76% |
| ACG.LAcg Metals Limited | — | — | -80.3% | -32.0% | +134.8% | +60% / +63% |
1- and 3-year price returns: for MKS.L from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (GBP)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 3.00 Total return -32% · Per year -32% | 5.27 Total return 20% · Per year 20% | 7.91 Total return 79% · Per year 79% |
| 3 years | 3.56 Total return -17% · Per year -6% | 6.98 Total return 61% · Per year 17% | 11.39 Total return 161% · Per year 38% |
| 5 years | 4.22 Total return -1% · Per year -0% | 9.22 Total return 114% · Per year 16% | 16.41 Total return 278% · Per year 30% |
- Exit P/E± 1.74
- Net margin± 1.22
- Annual revenue growth± 0.91
- Annual dilution± 0.10
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Marks and Spencer is a British retailer operating in food, fashion, home and beauty, together with an international business and digital channels. In fiscal 2025/26 Food grew while Fashion, Home & Beauty declined after a cyber-security incident, and the company is pursuing a broad transformation programme that could shape its future profitability. Food sales reached £9.7bn 1, while Fashion, Home & Beauty sales fell by 7.7% 1.
SWOT
Strengths
- The company has a solid balance sheet and a large store and channel network, giving it flexibility to invest. The Food segment has grown consistently and has expanded its market share.
- Contractual relationships with British suppliers and investment in dedicated factories support product quality and supply continuity.
- The board and executive team bring retail experience, and governance is structured around specialised committees.
Weaknesses
- The Fashion, Home & Beauty segment saw a substantial fall in sales and profit, partly linked to the cyber-security incident.
- The online channel is still under pressure, and the e-commerce platform needs modernisation to speed up change.
- Supply chain costs and temporary warehousing add pressure on margins during the transition period.
Opportunities
- Expanding the Food store estate and growing volumes could add further growth if demand remains solid.
- Developing healthier and nutrient-dense ranges can attract new customers and strengthen the brand.
- Modernising the supply chain and automating warehouses could reduce unit costs over time.
Threats
- Rising energy, fuel and government tax costs could weigh on the company's margins.
- Cyber-security incidents and growing threats in retail can affect operations and customer confidence.
- Geopolitical tensions and supply disruptions can affect product availability and input costs.
Risks
- Cyber-security incidenthigh
An incident at the start of the year led to unauthorised access to parts of the technology environment, with effects on product availability and sales 1. The company set up a security enhancement programme, but the risk remains a principal one 1.
- Supply disruptionmedium
Geopolitical tensions, trade tariffs and extreme weather can interrupt deliveries of materials and products 1. These could have immediate operational and financial consequences 1.
- Cost and margin pressuremedium
Rising energy and fuel prices, borrowing costs and government levies could reduce margins 1. The company is trying to offset this through reinvestment in value and structural savings 1.
- Transformation executionmedium
The transformation programme requires careful allocation of capital, and delays or extra costs could affect growth targets 1. Running several complex projects at once raises execution risk 1.
- Regulation and consumer behaviourlow
Rules on packaging, recycling and food safety raise costs, and changes in consumer behaviour can shift demand 1. The company monitors these developments 1.
Investment thesis
What would need to be true (bull case)
- If the Food segment keeps expanding its market share and store estate, profit growth could return sooner than the market expects.
- If Fashion, Home & Beauty recovers product availability and attracts customers with more appealing ranges, the segment could reduce its earlier losses.
- A strengthened balance sheet and supply chain investments could lower long-term costs and support dividends.
What would break the thesis
- If the cyber-security incident keeps weighing on online sales and reputation, recovery of the Fashion, Home & Beauty segment could take longer.
- Higher energy, freight and tax costs could squeeze margins and force the company to cut back on investment.
- If the transformation falls behind or costs exceed plan, the expected benefits of modernisation could be delayed.
What to watch
- Trajectory of adjusted operating profit in Food and Fashion, Home & Beauty2026/27
- Progress of new Food store openings against the plan of 380 stores2027/28
- Recovery of online sales and modernisation of the e-commerce platformnext 10-K
- Impact of energy, freight and tax costs on margins2026/27
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Marks and Spencer Group plc is organised into business units overseen by executive boards: Food, Fashion, Home & Beauty, International, Digital & Technology, Stores and Property & Renewal 1. The company has a formal governance structure with a board and audit and risk, ESG, nomination and remuneration committees 1.
The current strategy, named Reshaping for Growth, aims to double the size of the Food business through investment in stores, technology and supply chain capacity 1. In parallel, Fashion, Home & Beauty aims to double online sales and narrow its estate to a focused group of full-line stores 1.
The outlook for fiscal 2026/27 points to profit growth versus 2024/25, though the company flags higher fuel, freight and input costs along with continued government tax levies 1. The board also approved a £300m issue of longer-term bonds to strengthen the balance sheet 1.
Segments
Market context
Trends
- Rising operating costsheadwind
Fuel, freight and input costs, together with government taxes and regulation, add pressure on margins 1. The company is seeking to offset these through improved buying and a structural cost reduction programme 1.
- Health-focused consumerstailwind
Consumers increasingly want healthier food and circular clothing, and new disruptors are changing the market 1. The company responds with healthier ranges and nutrient-dense products, which could support Food demand 1.
- Digitalisation and omnichannelmixed
Online and omnichannel are priorities, but online recovery has been modest after the incident and the e-commerce platform needs modernisation 1. If the pace of modernisation picks up, online growth potential could be captured more fully 1.
- Regulation and geopoliticsheadwind
Rules on recycling, packaging and food safety raise compliance costs, while geopolitical tensions can disrupt supply 1. Both developments are identified as principal risks by the company 1.
Competitive position
The supplied sources do not name specific direct competitors, so the comparison stays limited to factors the company itself highlights, such as price, quality and product health 1. The company considers sustainability and its British supply base to be differentiators 1.
The company stresses that it maintains its brand through ongoing investment in value and product innovation 1. Competitive pressure could rise if new players in health or fashion expand their offer, which the company identifies as a risk factor 1.
- Other British grocery retailers
The source refers to general competition in British grocery retail without naming specific companies.
- Fashion and home retailers
The source mentions the emergence of new disruptors in fashion without naming them.
- Online fashion platforms
Online competition is cited as a pressure without naming companies in the supplied sources.
- New health and nutrition players
The company mentions new disruptors entering the market as demand for healthier products grows.
News & filings
In the press
No news in our archive over the last 180 days.
Annual reports (ESEF)
- Annual report 202602 Jun 2026
- Annual report 202503 Jun 2025
Sources
- [1] Annual report, fiscal year ended 2026-03-28 (ESEF) · SEC / Marks and Spencer Group plc · 28 Mar 2026
Figures computed by olivLaw from ESEF annual reports and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.