Marks and Spencer Group PLC
🇬🇧 MKS.LSE · London · GB0031274896
Consumer
GBX 353.90 price at analysis
Scores
Key Metrics
Powered by EODHDP/E (TTM)
380.5
P/E (Price-to-Earnings)Shows how much investors pay for each $1 of profit. We display the TTM P/E (Trailing Twelve Months) which uses actual earnings from the last 4 quarters. This is more reliable than Forward P/E which uses analyst estimates.
Calculation: 353.90 ÷ 0.93 = 380.5
TTM period through: 2025-09-30
Forward P/E (estimated): 10.6
Based on analyst estimates
Reference: Provider P/E (Trailing): 353.9
Yield (Fwd)
1.13%
Dividend YieldThe Forward yield (Fwd) shows the next announced annual dividend / current price — what you'd earn going forward. The Trailing yield (TTM) in the tooltip shows dividends actually paid in the last 12 months. Forward is shown as primary because it reflects the company's current commitment to shareholders.
Trailing Yield (TTM): 1.09%
Net Debt/EBITDA (TTM)
2.6x
Latest quarter: 6.2x
Net Debt / EBITDAA leverage ratio showing how many years of EBITDA (earnings before interest, taxes, depreciation, and amortization) it would take to repay net debt. EBITDA approximates operating cash generation. Lower ratios (e.g., <3x) are generally safer; higher (e.g., >5x) may indicate more financial risk.
TTM through: 2025-09-30
Latest quarter (2025-09-30): 6.2x
The quarterly value can spike when quarterly EBITDA is very low (e.g., one-time charges).
Quick guide: <2x manageable, >4x can be risky (sector-dependent).
Payout (Fwd)
430.1%
Payout RatioDividends as a percentage of earnings. The Forward payout (Fwd) uses the announced dividend divided by actual past earnings (TTM) — it tells you if the company can afford what it promised. Very high payouts can be risky, especially if profits fall.
Announced dividend / actual earnings (TTM)
Payout (TTM): 367.2%
Cash Flow Payout (TTM): 7.2%
FCF Coverage (TTM): 8.30x
ROE
0.1%
ROE (Return on Equity)A profitability measure: how much profit is generated from shareholders’ equity. Higher isn’t always better if it comes from high debt.
EV/EBITDA
10.5x
EV/EBITDAA valuation ratio that compares total business value (including debt) to EBITDA. Lower can mean cheaper, but context matters.
Summary
Marks and Spencer has successfully improved its debt profile through a strategic turnaround, but remains unsuitable for our conservative dividend strategy. The inadequate 1.1% dividend yield, volatile earnings history, and exposure to cyclical retail trends create a fundamental mismatch with our focus on stable income. Not recommended for new positions, as better opportunities exist in higher-yielding essential services with proven business models.
Sector Context
Marks and Spencer is a major British retailer offering a mix of food, clothing, and home products. While its food division operates in the essential groceries space, significant exposure to cyclical fashion and apparel makes it vulnerable to shifting consumer trends, contrasting with the stable monopolies preferred in conservative dividend investing.
📊 Strategy Analysis
- • Net Debt/EBITDA of 2.63x reflects successful deleveraging from historical highs, sitting comfortably below our 3x maximum threshold
- • Forward P/E of 10.6x suggests potential underlying value if the company can deliver on expected future earnings
⚠ What to Watch
- • The current dividend yield of 1.1% falls severely short of the 3% minimum requirement for income generation
- • Significant exposure to cyclical consumer fashion directly conflicts with the strategy's avoidance of fickle consumer trends
- • A highly distorted TTM P/E ratio of 380.5x and negligible ROE of 0.05% reflect severe recent earnings volatility
- • Dividend reliability is poor, marked by a recent 90.6% strategic cut in 2024 and only a 3-year track record of payments
📊 Historical Trends (10 Years)
Powered by EODHDThese charts show how key metrics have evolved over the past decade, helping you identify if the company is improving or deteriorating.
Debt Evolution (Net Debt / EBITDA)
Lower values are better. A declining trend indicates the company is reducing its debt (deleveraging).
Revenue & Earnings Growth
Consistent growth in revenueRevenue
The money a company brings in from selling its products or services. It’s the top line before costs. (blue) and earningsEarnings (Profit)
What’s left after expenses. Positive earnings mean the business made a profit; negative means a loss. (green) indicates a healthy business. Look for upward trends and recoveries after temporary dips.
Dividend Sustainability (FCF vs Dividends Paid)
Free cash flowFree Cash Flow
Cash left after the company pays for running the business and maintaining it. Often used to fund dividends, pay debt, or buy back shares. (FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., blue) should cover dividends paidDividends Paid
Cash the company paid out to shareholders. It’s not guaranteed and can change over time. (green). If dividends consistently exceed FCFFCF (Free Cash Flow)
Short for Free Cash Flow: cash left after operating needs and maintenance spending., the dividend may be at risk.
Analysis date: 2026-04-05
Disclaimer: This information is for educational purposes only. Not financial advice.