Marks And Spencer Stock Analysis

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Marks And Spencer Stock Analysis

Marks And Spencer (Mks): Is This Stock A Bargain?

We are nearing the end of 2025, with only a few more months left, but Marks and Spencer's stock is still down so far! So, it's safe to say that 2025 was not so impressive for the Marks and Spencer stock.

But, many are now wondering if it's worth buying Marks and Spencer at a discounted price? The short answer is No! You shouldn't buy Marks and Spencer stock for a number of reasons.

Marks And Spencer Is An Overvalued Stock

Some people may not be able to understand what Marks and Spencer truly stands for... But a quick look at their performance shows that they have a loyal customer base, and they actually know what their customers want.

That's why the revenue of Marks and Spencer has gone up by 6% while its profit is also up by 22%. But when we also consider the adjusting items, the profit becomes a little less impressive.

In fact, the profit after tax is down by 31% which shows that not everything is going right for the company.

Another thing which is worth considering is the current share price of Marks and Spencer. There's no doubt that it is in a bearish trend, and Marks and Spencer will need to do something extraordinary to get out of it.

But the key risk is that Marks and Spencer is trading at 25x of its earnings, which is way too high. It could be justified if it were another stock, but not in the case of Marks and Spencer.

Also, the company only pays 1% dividend, but its stock price has gone down a lot during that period. So, even that 1% dividend yield doesn't make Marks and Spencer a good choice.

The bottom line is that Marks and Spencer is an overvalued stock and you should avoid it at all costs. In fact, there are far better stocks in the UK market with a good stock price and a fair dividend yield.

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