Marks and Spencer Group plc (MKS.L) stock analysis

In our weekly check, Marks and Spencer Group plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 7, red flags: 4.

About Marks and Spencer Group plc

Marks and Spencer Group plc is a Consumer Cyclical company (Department Stores) based in the United Kingdom, listed on LSE as MKS.L.

What our checks show for MKS.L

Red flags

• The net margin fell by 1.3 points over 5 years, to 1.5%: the company keeps less of each sale as profit.
• The gross margin fell by 6.5 points, to 28%: costs are rising faster than prices.
• The net margin is only 1.5%: little room if costs rise.
• The stock has fallen as much as 88% from a peak. Would you have held through that?

Warning signs

• Net debt is 2x a year of EBITDA (debt/equity 1.12). That limits room in a downturn and raises refinancing risk.
• Operating profit covers interest only 3.4 times: a weak year could make the payments hard.
• Earnings per share fell 11.9% a year over the last 3 years.
• Net profit fell 10.6% a year over the last 3 years.
• Free cash flow is only 2.6% of revenue.
• The stock is still below its previous peak.
• Return on capital (ROCE) is only 7.5%.

Strengths

• Operating cash flow is 3.96x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 44.2% a year over the next years.
• Analysts expect the net margin to improve by 2.3 points from today's 1.5%.
• The dividend takes 22% of profit: there is a cushion.
• A large company: market value $11.52 billion.
• Actively traded: about 8 million shares a day.

Next earnings report: 2026-11-04

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Questions

What grade does Marks and Spencer Group plc (MKS.L) have?

In our weekly check, Marks and Spencer Group plc is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 14 pass, warnings: 7, red flags: 4. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of MKS.L stock?

This week's biggest flags for Marks and Spencer Group plc: Margins falling, Gross margin falling, Thin margins. In total 11 of 25 checks show a warning or a red flag.

What does Marks and Spencer Group plc do?

Marks and Spencer Group plc is a Consumer Cyclical company (Department Stores) based in the United Kingdom, listed on LSE as MKS.L.

When does Marks and Spencer Group plc report earnings next?

The next earnings report is expected on 2026-11-04. We re-run the checks every week, so the grade can change after it.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-24

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