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Marks & Spencer Group PLC MKS

Morningstar Rating
GBX 325.60 +5.60 (1.75%)
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Company Report

Marks & Spencer Restructuring Bears Fruit With Food Leading the Way

In a fiercely competitive United Kingdom retail marketplace Marks & Spencer Group's underperformance is yet another sign of the difficulty in developing competitive advantages in the retail sector, leaving it exposed to disruption from new players such as price-led discounters and online retailers. When new management took over in 2016, a fresh transformational plan was implemented. Although slow at the beginning, progress has been material postcoronavirus, with the company aggressively slashing costs at a rapid pace in light of strong headwinds for its nonfood business caused by pandemic-driven lockdowns.

Price vs Fair Value

MKS is trading within a range we consider fairly valued.
Price
GBX 320.00
Fair Value
GBX 464.00
Uncertainty
High
1-Star Price
GBX 647.70
5-Star Price
GBX 212.00
Economic Moat
Jzxc
Capital Allocation
Mffpzpsq

Bulls Say, Bears Say

Bulls

Its joint venture with Ocado presents an opportunity for M&S to expand efficiently in one of the fastest growing channels in the U.K. grocery market and extend its product range beyond fresh and prepared meals.

Bears

M&S in in need of a radical and urgent business model reset, which will take time to complete.

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News

Trading Information

Previous Close Price
GBX 320.00
Day Range
GBX 315.80325.60
52-Week Range
GBX 198.75325.60
Bid/Ask
GBX 310.00 / GBX 330.00
Market Cap
GBX 656.69 Bil
Volume/Avg
29.1 Mil / 11.9 Mil

Key Statistics

Price/Earnings (Normalized)
12.61
Price/Sales
0.51
Dividend Yield (Trailing)
0.94%
Dividend Yield (Forward)
0.94%
Total Yield
2.23%

Company Profile

M&S is a British multichannel retailer with stores across Europe, Asia, and the Middle East. The company sells into more than 60 countries from thousands of stores and several websites around the world and offers predominantly own-brand luxury food, clothing, and home products with the majority of sales coming from its U.K. operations. Marks & Spencer operates three business models—owned, franchise, and joint venture—in the U.K. and internationally. The online business globally is delivered through localized owned and franchised websites and partnerships. The food segment includes value products, convenient ready-made meals, and healthy items. The clothing and home division sells own-brand and high-quality womenswear, lingerie, menswear, kidswear, beauty, and home products.
Sector
Consumer Cyclical
Industry
Department Stores
Stock Style Box
Mid Growth
Total Number of Employees
65,848

Competitors

Valuation

Metric
MKS
ABF
TSCO
Price/Earnings (Normalized)
12.6114.5713.69
Price/Book Value
2.271.691.95
Price/Sales
0.510.950.34
Price/Cash Flow
6.399.066.55
Price/Earnings
MKS
ABF
TSCO

Financial Strength

Metric
MKS
ABF
TSCO
Quick Ratio
0.500.850.30
Current Ratio
0.861.790.81
Interest Coverage
4.406.263.47
Quick Ratio
MKS
ABF
TSCO

Profitability

Metric
MKS
ABF
TSCO
Return on Assets (Normalized)
5.48%6.91%3.59%
Return on Equity (Normalized)
17.41%11.72%14.01%
Return on Invested Capital (Normalized)
8.84%8.74%7.75%
Return on Assets
MKS
ABF
TSCO
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Department Stores Industry Comparables

1-Day Chart
Name
Price
Morningstar Rating for Stocks
Capital Allocation
Economic Moat
Market Cap
AEON Co Ltd ADR
AONNY
Fkzt$18.1 Bil
AEON Co Ltd
AONNF
Cqbn$18.1 Bil
El Puerto de Liverpool SAB de CV
ELPQF
Klp$10.2 Bil
Shoprite Holdings Ltd
SRHGF
Stdbcj$8.7 Bil
Shoprite Holdings Ltd ADR
SRGHY
Zyhpq$8.7 Bil
Marks & Spencer Group PLC
MAKSF
Hhy$8.3 Bil
Marks & Spencer Group PLC ADR
MAKSY
Wyqfd$8.3 Bil
Macy's Inc
M
BqmxwwymlWvdd$4.6 Bil
Nordstrom Inc
JWN
FhgmnwqqgQjf$3.6 Bil
Kohl's Corp
KSS
KmtltfzfLcjpb$2.3 Bil

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