Marks and Spencer Group plc
Marks and Spencer Group plc Fundamental Analysis
Marks and Spencer Group plc (MAKSF) shows weak financial fundamentals with a PE ratio of 417.74, profit margin of 0.13%, and ROE of 0.69%. The company generates $15.2B in annual revenue with moderate year-over-year growth of 9.29%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 22.5/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze MAKSF's fundamental strength across five key dimensions:
Efficiency Score
WeakMAKSF struggles to generate sufficient returns from assets.
Valuation Score
ModerateMAKSF shows balanced valuation metrics.
Growth Score
ExcellentMAKSF delivers strong and consistent growth momentum.
Financial Health Score
WeakMAKSF carries high financial risk with limited liquidity.
Profitability Score
ModerateMAKSF maintains healthy but balanced margins.
Key Financial Metrics
Is MAKSF Expensive or Cheap?
P/E Ratio
MAKSF trades at 417.74 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, MAKSF's PEG of -6.02 indicates potential undervaluation.
Price to Book
The market values Marks and Spencer Group plc at 2.96 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 5.60 times EBITDA. This is generally considered low.
How Well Does MAKSF Make Money?
Net Profit Margin
For every $100 in sales, Marks and Spencer Group plc keeps $0.13 as profit after all expenses.
Operating Margin
Core operations generate 1.75 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $0.69 in profit for every $100 of shareholder equity.
ROA
Marks and Spencer Group plc generates $0.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Marks and Spencer Group plc generates limited operating cash flow of $1.00B, signaling weaker underlying cash strength.
Free Cash Flow
Marks and Spencer Group plc produces free cash flow of $598.69M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.30 in free cash annually.
FCF Yield
MAKSF converts 7.38% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
417.74
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-6.02
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.96
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.54
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.21
vs 25 benchmark
Current Ratio
Current assets to current liabilities
0.81
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.007
vs 25 benchmark
ROA
Return on assets percentage
0.002
vs 25 benchmark
ROCE
Return on capital employed
0.04
vs 25 benchmark
How MAKSF Stacks Against Its Sector Peers
| Metric | MAKSF Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 417.74 | 24.26 | Worse (Expensive) |
| ROE | 0.69% | 1131.00% | Weak |
| Net Margin | 0.13% | 639.00% | Weak |
| Debt/Equity | 1.21 | 0.76 | Weak (High Leverage) |
| Current Ratio | 0.81 | 2.56 | Weak Liquidity |
| ROA | 0.20% | -8481.00% (disorted) | Weak |
MAKSF outperforms its industry in 0 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Marks and Spencer Group plc's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
8.94%
Industry Style: Cyclical, Growth, Discretionary
GrowingEPS CAGR
796.49%
Industry Style: Cyclical, Growth, Discretionary
High GrowthFCF CAGR
20.66%
Industry Style: Cyclical, Growth, Discretionary
High Growth