# Marks and Spencer Group (MKS.LSE)

Canonical: https://gigainvestors.com/s/MKS.LSE

Analysis as of: 2026-10-16T07:35:41.673Z. Financial observations: FY1997–FY2026.

Listing currency: GBX. Reporting currency: GBP.

## Verdict

Not a wonderful business

Quality tests for Buy: not passed (profit record: fail; earnings resilience is evidence only). Published buy qualification: no.

Share price: GBX 412.30 per share; close as of 2026-10-15.

Estimated value: low GBX 89.62 per share, central GBX 97.55 per share, high GBX 108.10 per share. Buy at or below the central value GBX 97.55 per share. Valuation as of 2026-10-16T07:35:41.673Z; scenarios are not confidence intervals.

Expected annual return: 4.2% at the stated quote. About 4.2% a year at today's price (required return 10.0%). required return 10.0% a year (10% floor; GB 10-year bond 5.4% + 4 points).

## Checklist

### understandable: fail

- 3 revenue declines in the last 10 years (informational)

- operating margin variation exceeds 0.35

- Financial history: 10 years

- Years with declining revenue: 3

- Years with a net loss: 1

- Operating margin variation: 0.59×

Chart: Operating margin; fiscal year observations.

- FY2017: 0.02×

- FY2018: 0.01×

- FY2019: 0.02×

- FY2020: 0.03×

- FY2021: -0.00×

- FY2022: 0.05×

- FY2023: 0.04×

- FY2024: 0.05×

- FY2025: 0.05×

- FY2026: 0.03×

### moat: fail

- ROIC median below threshold

- ROIC worst years below threshold (more than 1 bad year allowed)

- Recent gross margin fell 6.6pp below the typical margin (limit 4pp)

- ROIC, median of available years: 4.9%

- ROIC, second-lowest year: 2.2%

- Typical minus recent gross margin: 6.6 pp

- Typical gross margin (annual median): 34.6%

- Recent gross margin (lower of latest and 3-year median): 28.0%

- Years with nonpositive capital: 0

- Capital spending / revenue: 3.3%

- ROIC including acquisitions, ten-year median: 1.5%

Chart: ROIC excluding acquisitions; fiscal year observations.

- FY2017: 3.4%

- FY2018: 2.3%

- FY2019: 2.7%

- FY2020: 2.2%

- FY2021: -0.4%

- FY2022: 8.2%

- FY2023: 7.4%

- FY2024: 9.5%

- FY2025: 8.6%

- FY2026: 6.3%

### economics: fail

- owner earnings cash conversion below threshold

- incremental invested capital return below threshold

- Owner earnings / net income, 5-yr: 0.01×

- Cash conversion uses consolidated totals: No

- Owner earnings, five-year total: GBP 11M

- Net income, five-year total: GBP 1.7B

- Return on incremental invested capital: 0.0%

- Working capital / revenue, annual change: -0.2 pp

- Working capital / revenue, change between three-year averages: -0.5 pp

- Working capital / revenue, final three-year average: -0.9%

Chart: Annual owner cash / profit; fiscal year observations.

- FY2022: 0.47×

- FY2023: 0.21×

- FY2024: 0.20×

- FY2025: -0.51×

- FY2026: -0.56×

### management: fail

- Historical market-dollar context (not the management verdict): 2017 to 2026 (9 years)

- buybacks leaned toward cheaper years (informational)

- ROIC first 3 years vs last 3 years: 2.7% vs 8.6%

- Per-share earnings: 0.07 to 0.14 (three-year endpoint medians)

- five-year and ten-year diluted share growth both above threshold

- Management verdict uses per-share economic progress: Yes

- Ordinary dilution, 10-year annual growth: 2.0%

- Ordinary dilution, 5-year annual growth: 1.4%

- Market cap gain: GBP 1.6B

- Cumulative retained earnings: GBP -665M

- Diluted shares, 10-year annual growth: 2.0%

- Diluted shares, 5-year annual growth: 1.4%

- $1 test, starting fiscal year: FY2017

- $1 test, ending fiscal year: FY2026

- Per-share value growth: 9.4%

- Per-share value change: GBP 0.07

- Per-share value, starting three-year median: GBP 0.07

- Per-share value, ending three-year median: GBP 0.14

- Buybacks concentrated in cheaper years (correlation): 0.31

- Average buyback yield: 0.4%

- Buyback history: 8 years

- Debt-funded buybacks: No

- Acquisition spending: GBP 591M

- Cumulative net income, 10 years: GBP 1.7B

- ROIC, first three-year median: 2.7%

- ROIC, last three-year median: 8.6%

Chart: Earnings per share; fiscal year observations.

- FY2017: GBP 0.07

- FY2018: GBP 0.01

- FY2019: GBP 0.02

- FY2020: GBP 0.01

- FY2021: GBP -0.10

- FY2022: GBP 0.15

- FY2023: GBP 0.17

- FY2024: GBP 0.21

- FY2025: GBP 0.14

- FY2026: GBP 0.12

### accounting: pass

- latest-year receivables to sales index (DSRI) exceeds 1.465

- Sloan accruals: -7.6%

- Receivables to sales index (DSRI): 2.34×

- Restructuring years, last five: 0

- Stock compensation / operating cash flow: 3.8%

- Earnings backed by cash: Yes

- Operating cash / earnings: 3.96×

- Accounting red flags: 1

- Goodwill and intangibles / equity: 0.25×

Chart: Sloan accruals; fiscal year observations.

- FY2017: -11.5%

- FY2018: -10.9%

- FY2019: -12.4%

- FY2020: -9.3%

- FY2021: -12.4%

- FY2022: -11.3%

- FY2023: -7.3%

- FY2024: -10.0%

- FY2025: -11.5%

- FY2026: -7.6%

## Holders

## Price story

Price needs cash profits to grow 23.5% a year for ten years · sales +25%

Story as of 2026-10-16T10:00:05.843Z; price observation 2026-10-15.

Price needs cash profits to grow 23.5% a year for ten years

### Sales · FY2025–2026

sales +25%; source https://filings.xbrl.org/213800EJP14A79ZG1X44/2026-03-28/ESEF/GB/0/213800EJP14A79ZG1X44-2026-03-28/reports/213800EJP14A79ZG1X44-2026-03-28-T01.xhtml; observed 2026-06-02.

- FY2017: GBP 11B 

- FY2018: GBP 11B 

- FY2019: GBP 10B 

- FY2020: GBP 10B 

- FY2021: GBP 9.2B 

- FY2022: GBP 11B 

- FY2023: GBP 12B 

- FY2024: GBP 13B 

- FY2025: GBP 14B 

- FY2026: GBP 17B 

### Gross margin · FY2026

gross margin 28%; source https://filings.xbrl.org/213800EJP14A79ZG1X44/2026-03-28/ESEF/GB/0/213800EJP14A79ZG1X44-2026-03-28/reports/213800EJP14A79ZG1X44-2026-03-28-T01.xhtml; observed 2026-06-02.

- FY2017: 38.5% 

- FY2018: 37.8% 

- FY2019: 36.9% 

- FY2020: 35.3% 

- FY2021: 31.8% 

- FY2022: 34.5% 

- FY2023: 34.7% 

- FY2024: 34.2% 

- FY2025: 33.3% 

- FY2026: 28.0% 

## Owner memo

Memo as of 2026-10-16T08:06:05.509Z.

### How it makes money

Operates in department stores; annual sales are GBP 17.3 billion.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2026: revenue 17273600000; grossProfit 4832100000; margin = grossProfit / revenue.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MKS.LSE: Marks and Spencer Group plc operates various retail stores. It operates through Fashion, Home & Beauty; Food; International; and Ocado segments. The company offers womenswear, menswear, lingerie, kids wear, beauty, and home products through UK and ROI, retail stores, and online. It also provides meat, fish, protein deli and dairy; produce and floral; meals, frozen, and food on the move; core basket; beers, wines, and spirits; and impulse and events, and hospitality services. In addition, it operates international franchises; and provides banking services. The company also exports its products. The company was founded in 1884 and is based in London, the United Kingdom.

### Why customers stay

Margins ranged from 28% to 34.2% during 2024–26; it earns 4.9% on its capital.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2024: grossProfit / revenue = 34.2%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2025: grossProfit / revenue = 33.3%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2026: grossProfit / revenue = 28%.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); 10-year return on capital observations [[2017,0.034422798034127115],[2018,0.022838508340629983],[2019,0.02659679004258107],[2020,0.02190479969315822],[2021,-0.0042855880689850155],[2022,0.08240367672282858],[2023,0.0740617401336572],[2024,0.0946249490419894],[2025,0.08620180562931493],[2026,0.06308793852840733]]; median 0.048755368281267225. ROIC follows the displayed moat series; financial companies use return on tangible equity.

### Where the cash goes

Paid dividends in 7 of 10 years; bought back GBP 21.1 million of shares.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2017: growth capex 0; upkeep 410200000; owner earnings 296400000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2018: growth capex 0; upkeep 349200000; owner earnings 316800000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2019: growth capex 0; upkeep 312900000; owner earnings 509200000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2022: growth capex 0; upkeep 257400000; owner earnings 145360000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2023: growth capex 0; upkeep 410300000; owner earnings 75180000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2024: growth capex 0; upkeep 429300000; owner earnings 85900000. Growth capex / owner earnings = 0.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); Dividend observations: [[2017,377500000],[2018,303400000],[2019,303500000],[2020,191100000],[2021,0],[2022,0],[2023,0],[2024,19600000],[2025,60500000],[2026,77000000]]. Zero only counted when supported by a complete cash-flow statement.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); FY2026: cash repurchases 21100000 GBP.

### Are managers owners

Insiders own 0.8% of the company.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-10-16); MKS.LSE SharesStats.PercentInsiders = 0.832 percentage points; cache date 2026-10-16.

### What the price says

The price assumes cash profits grow 23.5% yearly over ten years.

- Source: https://eodhd.com/financial-apis/stock-etfs-fundamental-data-feeds/ (filed 2026-06-02); Ten-year compound average after fade. Initial solved rate 0.3299703796101564. Price 412.3; FX 100; discount 0.1; same standard ten-year fade to terminal 0.03. FY2016 owner earnings/share 0.2506703089401716 → FY2026 -0.06887951002416692. Closing-price date 2026-10-15.

## Monthly share-price history (GBX per share)

- 2016-10: GBX 325.66 per share

- 2016-11: GBX 314.38 per share

- 2016-12: GBX 334.75 per share

- 2017-01: GBX 320.88 per share

- 2017-02: GBX 320.21 per share

- 2017-03: GBX 322.31 per share

- 2017-04: GBX 350.62 per share

- 2017-05: GBX 365.83 per share

- 2017-06: GBX 318.78 per share

- 2017-07: GBX 308.16 per share

- 2017-08: GBX 305.67 per share

- 2017-09: GBX 338.00 per share

- 2017-10: GBX 329.10 per share

- 2017-11: GBX 299.55 per share

- 2017-12: GBX 301.08 per share

- 2018-01: GBX 288.17 per share

- 2018-02: GBX 282.72 per share

- 2018-03: GBX 258.43 per share

- 2018-04: GBX 275.16 per share

- 2018-05: GBX 271.62 per share

- 2018-06: GBX 282.24 per share

- 2018-07: GBX 294.58 per share

- 2018-08: GBX 288.46 per share

- 2018-09: GBX 276.21 per share

- 2018-10: GBX 283.10 per share

- 2018-11: GBX 279.94 per share

- 2018-12: GBX 236.43 per share

- 2019-01: GBX 276.21 per share

- 2019-02: GBX 261.10 per share

- 2019-03: GBX 266.75 per share

- 2019-04: GBX 273.44 per share

- 2019-05: GBX 225.20 per share

- 2019-06: GBX 210.70 per share

- 2019-07: GBX 207.90 per share

- 2019-08: GBX 192.25 per share

- 2019-09: GBX 184.45 per share

- 2019-10: GBX 181.50 per share

- 2019-11: GBX 194.35 per share

- 2019-12: GBX 213.50 per share

- 2020-01: GBX 176.00 per share

- 2020-02: GBX 158.40 per share

- 2020-03: GBX 99.24 per share

- 2020-04: GBX 92.10 per share

- 2020-05: GBX 97.76 per share

- 2020-06: GBX 99.00 per share

- 2020-07: GBX 94.98 per share

- 2020-08: GBX 111.10 per share

- 2020-09: GBX 97.52 per share

- 2020-10: GBX 89.14 per share

- 2020-11: GBX 125.75 per share

- 2020-12: GBX 136.30 per share

- 2021-01: GBX 141.55 per share

- 2021-02: GBX 141.90 per share

- 2021-03: GBX 150.85 per share

- 2021-04: GBX 158.00 per share

- 2021-05: GBX 165.40 per share

- 2021-06: GBX 146.45 per share

- 2021-07: GBX 135.50 per share

- 2021-08: GBX 179.50 per share

- 2021-09: GBX 183.50 per share

- 2021-10: GBX 183.60 per share

- 2021-11: GBX 236.20 per share

- 2021-12: GBX 231.40 per share

- 2022-01: GBX 217.80 per share

- 2022-02: GBX 174.80 per share

- 2022-03: GBX 154.70 per share

- 2022-04: GBX 137.75 per share

- 2022-05: GBX 149.85 per share

- 2022-06: GBX 135.50 per share

- 2022-07: GBX 141.45 per share

- 2022-08: GBX 121.90 per share

- 2022-09: GBX 98.68 per share

- 2022-10: GBX 105.50 per share

- 2022-11: GBX 120.55 per share

- 2022-12: GBX 123.30 per share

- 2023-01: GBX 145.80 per share

- 2023-02: GBX 160.00 per share

- 2023-03: GBX 167.00 per share

- 2023-04: GBX 164.35 per share

- 2023-05: GBX 178.60 per share

- 2023-06: GBX 192.70 per share

- 2023-07: GBX 206.30 per share

- 2023-08: GBX 226.80 per share

- 2023-09: GBX 236.60 per share

- 2023-10: GBX 216.80 per share

- 2023-11: GBX 251.50 per share

- 2023-12: GBX 272.40 per share

- 2024-01: GBX 247.30 per share

- 2024-02: GBX 236.80 per share

- 2024-03: GBX 265.10 per share

- 2024-04: GBX 255.80 per share

- 2024-05: GBX 302.00 per share

- 2024-06: GBX 286.50 per share

- 2024-07: GBX 328.30 per share

- 2024-08: GBX 342.20 per share

- 2024-09: GBX 372.60 per share

- 2024-10: GBX 375.80 per share

- 2024-11: GBX 382.70 per share

- 2024-12: GBX 375.50 per share

- 2025-01: GBX 335.80 per share

- 2025-02: GBX 354.80 per share

- 2025-03: GBX 355.50 per share

- 2025-04: GBX 389.00 per share

- 2025-05: GBX 374.40 per share

- 2025-06: GBX 354.40 per share

- 2025-07: GBX 348.00 per share

- 2025-08: GBX 345.40 per share

- 2025-09: GBX 364.50 per share

- 2025-10: GBX 397.80 per share

- 2025-11: GBX 347.70 per share

- 2025-12: GBX 330.00 per share

- 2026-01: GBX 366.10 per share

- 2026-02: GBX 396.50 per share

- 2026-03: GBX 339.20 per share

- 2026-04: GBX 330.10 per share

- 2026-05: GBX 355.90 per share

- 2026-06: GBX 372.00 per share

- 2026-07: GBX 405.10 per share

- 2026-08: GBX 394.80 per share

- 2026-09: GBX 385.70 per share

- 2026-10: GBX 412.30 per share

## Annual estimated value (GBX per share)

- FY2017: low GBX 237.02 per share, central GBX 267.53 per share, high GBX 308.14 per share

- FY2018: low GBX 223.52 per share, central GBX 254.28 per share, high GBX 295.23 per share

- FY2019: low GBX 229.41 per share, central GBX 259.27 per share, high GBX 299.03 per share

- FY2020: low GBX 175.91 per share, central GBX 199.75 per share, high GBX 231.49 per share

- FY2021: low GBX 167.75 per share, central GBX 187.31 per share, high GBX 213.35 per share

- FY2022: low GBX 128.91 per share, central GBX 139.82 per share, high GBX 154.36 per share

- FY2023: low GBX 79.98 per share, central GBX 85.42 per share, high GBX 92.67 per share

- FY2024: low GBX 79.27 per share, central GBX 85.16 per share, high GBX 93.00 per share

- FY2025: low GBX 86.30 per share, central GBX 92.51 per share, high GBX 100.78 per share

- FY2026: low GBX 87.66 per share, central GBX 95.42 per share, high GBX 105.74 per share

Historical values use today's bond yield for every fiscal year

Historical values use today's FX rate into trading currency for every fiscal year

Historical values use current restated fundamentals and current commodity classification; they are not point-in-time estimates

## Sources

[Original ESEF filing](https://filings.xbrl.org/213800EJP14A79ZG1X44/2026-03-28/ESEF/GB/0/213800EJP14A79ZG1X44-2026-03-28/reports/213800EJP14A79ZG1X44-2026-03-28-T01.xhtml); period 2026-03-28, filed 2026-06-02.

Estimates depend on assumptions and are not guarantees or investment advice. Underlying data remains subject to its source licenses; public reading does not grant bulk redistribution rights.

## Reported holder observations