# Marks and Spencer Group plc (MKS.L) fundamentals

Data as of 2026-09-08. LSE, United Kingdom. Sector: Consumer Cyclical / Household Durables. Price 394p, market value 8.1 billionp.

## Valuation
- **P/E (trailing): 32.8×** (5-yr avg 1717.2×, 3-yr avg 2209.1×). Marks and Spencer Group plc trades at 32.8× trailing earnings, well below its own five-year average of 1717.2×: cheap by its own standards. The Consumer Cyclical median in the September 2026 study was 19.5×. Forward P/E is 11.2×, lower than trailing, so analysts expect earnings to grow.
- **Price / sales: 0.3×**. Each dollar of revenue is priced at 0.3×, a low multiple typical of thin-margin businesses or out-of-favour stocks.
- **Price / book: 2.6×**. The shares trade at 2.6× book value; book value is a meaningful part of the valuation.
- **EV / EBITDA: 4.1×**. Enterprise value is 4.1× operating earnings before depreciation, the multiple that ignores how the company is financed; below 8× is inexpensive for most sectors.
- **Free-cash-flow yield: 16.7%** (5-yr avg 0.2%). Free cash flow equals 16.7% of the market value, above its five-year average of 0.2%, so the shares are cheaper on cash than they have usually been. Above 5% is generally attractive.
- **Earnings yield: 3.0%**. The inverse of the P/E: 3.0% of the price is earned each year.

## Profitability
- **Gross margin: 98.9%**. Marks and Spencer Group plc keeps 98.9% of revenue after the direct cost of what it sells, the kind of margin that comes with software, brands or pricing power.
- **Operating margin: 3.7%**. 3.7% of revenue is left after running the business, which leaves little cushion in a downturn.
- **Net margin: 1.5%**. 1.5% of each dollar of sales reaches the bottom line.
- **Return on equity: 8.5%**. 8.5% on shareholders' equity is weak; the business earns little on the capital its owners have in it.
- **Return on invested capital: 12.8%**. Return on all capital, debt included, is 12.8%.
- **Return on assets: 5.5%**. Each dollar of assets produces 5.5% of profit.

## Growth
- **Revenue growth (1 yr): 25.0%** (3-yr 13.1%/yr, 5-yr 13.5%/yr). Revenue grew 25.0% over the last year, against 13.5% a year compounded over five years: growth is accelerating.
- **EPS growth (1 yr): -14.3%** (3-yr -12.6%/yr). Earnings per share fell 14.3%, slower than revenue, so margins compressed.
- **Free-cash-flow growth (3 yr): -9.9%/yr**. Free cash flow has compounded at -9.9% a year over three years, keeping pace with earnings: the growth is real cash.

## Financial health
- **Debt to equity: 1.12**. Debt is 1.12 times equity, a leveraged balance sheet that needs steady cash flow to service.
- **Net debt / EBITDA: 0.9×**. It would take 0.9 years of operating earnings to repay net borrowings, within the comfortable range.
- **Interest coverage: 3.9×**. Operating profit covers interest 3.9× over, a safe margin.
- **Current ratio: 0.86** (quick 0.54). Current liabilities exceed current assets, so the company depends on ongoing cash generation or refinancing to pay the next year's bills.
- **Altman Z-score: 2.95**. A Z-score of 2.95 is in the grey zone; not distressed, not clearly safe.
- **Piotroski F-score: 5/9**. 5 of 9 checks pass: mixed.

## Dividends
- **Dividend yield: 1.08%** (0p per share, trailing). Marks and Spencer Group plc yields 1.08%, a modest yield more typical of a growth-oriented payer.
- **Payout ratio: 30%** (10% of free cash flow). 30% of earnings goes out as dividends, leaving room to keep raising it.
- **Consecutive years of increases: 3**. 3 straight years of increases.
- **Shareholder yield: 2.2%**. Dividends plus net buybacks return 2.2% of the market value a year.

## Analyst view
- **Analyst consensus: buy** (17 analysts). 17 analysts cover Marks and Spencer Group plc; the consensus is buy, with an average price target of 443p (+13% from the current price). Analyst opinion is shown for context; it is not part of the Fundamental Score.

## Price and momentum
- **Total return (1 yr): 14.7%** (YTD 19.0%, 3-mo 10.1%). The shares are up 14.7% over twelve months including dividends.
- **From 52-week high: -5.9%** (30.7% above the low). Trading 6% below its 52-week high.
- **200-day average: above**. The price sits above its 200-day moving average, the usual definition of an uptrend.
- **RSI (14-day): 53**. An RSI of 53 is neutral.
- **Beta (1 yr): 1.33** (volatility 30%). Beta of 1.33 against the FTSE All-Share: the shares move much more than the market.

Live score and charts: https://foliofundamentals.com/analyzer?s=MKS.L · Page: https://foliofundamentals.com/stocks/mks.l

Not investment advice.