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Marks & Spencer Group PLC MKS

Morningstar Rating
GBX 276.70 −1.70 (0.61%)
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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 at a 140% premium.
Price
GBX 276.70
Fair Value
GBX 387.00
Uncertainty
High
1-Star Price
GBX 283.30
5-Star Price
GBX 216.00
Economic Moat
Dsrj
Capital Allocation
Xzbstfry

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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Trading Information

Previous Close Price
GBX 278.40
Day Range
GBX 275.10279.90
52-Week Range
GBX 159.15293.20
Bid/Ask
GBX 230.00 / GBX 293.00
Market Cap
GBX 566.15 Bil
Volume/Avg
6.6 Mil / 11.9 Mil

Key Statistics

Price/Earnings (Normalized)
Price/Sales
Dividend Yield (Trailing)
0.36%
Dividend Yield (Forward)
0.36%
Total Yield
0.36%

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
66,371
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