Marks and Spencer Group MKS.L
Marks and Spencer Group plc is a British retailer of food, clothing, and home goods, with a strong own-brand portfolio and a network of physical stores and an online channel in the UK and internationally. Marks and Spencer shows exceptional growth (revenue +27.2%, earnings +1760%) and an attractive valuation (forward P/E 10.76, PEG 0.63), but its financial health is fragile (ND/EBITDA 3.0, liquidity 0.86) and its operating margin is very low (2.5%), making it vulnerable to a rising interest rate environment.
Detailed metrics
Market and fundamental data as of the analysis date.
Full AI report
Generated automatically from the metrics, the macro context and the company's news.
Marks and Spencer Group plc is a British retailer of food, clothing, and home goods, with a strong own-brand portfolio and a network of physical stores and an online channel in the UK and internationally. Marks and Spencer shows exceptional growth (revenue +27.2%, earnings +1760%) and an attractive valuation (forward P/E 10.76, PEG 0.63), but its financial health is fragile (ND/EBITDA 3.0, liquidity 0.86) and its operating margin is very low (2.5%), making it vulnerable to a rising interest rate environment.
Score by category
| Category | Score |
|---|---|
| Financial health | 3.3 |
| Quality / Moat | 3.9 |
| Valuation | 6.5 |
| Growth | 9.5 |
| Dividend | 4.4 |
| Momentum | 6.6 |
| Risk & Context | 6.3 |
OVERALL SCORE: 5.7/10
Context and risks
Moderate regulatory risk in the UK. The rise in interest rates in the macro environment affects M&S due to its net debt (ND/EBITDA 3.0) and its discretionary consumer business, but the effect is already partially reflected in the quantitative scores.
News considered in the analysis
- Energy Transition Update - Fashion Industry Joins Forces For Renewable Energy Revolution — Iniciativa del sector para energías renovables; puede reducir costes energéticos a largo plazo, pero es una colaboración sectorial temprana sin impacto financiero inmediato.
- Matalan brings in former M&S, F&F exec Price to advise on transformation — Movimiento de un competidor; sin información nueva sobre M&S.
- Levi’s, M&S Join Forces on Supplier Renewable Energy — Colaboración con Levi's para energía renovable en la cadena de suministro; potencial de ahorro de costes y mejora de sostenibilidad, aunque el impacto financiero es incierto.
- Supermarkets cash in on ‘protein-maxxing’ boom — Tendencia de consumo que puede impulsar las ventas de alimentos de M&S, un segmento clave; efecto positivo moderado.
- Environmental NGO Plans to Develop a Durability Standard for Clothing — Noticia sectorial sin impacto directo a corto plazo en los resultados de M&S.
Verdict: Hold; the growth potential and cheap valuation are offset by leverage and a weak operating margin.
Main risk: High leverage (ND/EBITDA 3.0) and a low operating margin (2.5%) make M&S vulnerable to a rising interest rate environment and any pressure on discretionary spending.
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