DB:BCY2

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Barclays PLC, through its subsidiaries, provides various financial products and services in the United Kingdom, other European countries, the Americas, Africa, the Middle East, and Asia.


Snowflake Analysis

Very undervalued with moderate growth potential.


Similar Companies

Share Price & News

How has Barclays's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: BCY2's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.3%

BCY2

2.1%

DE Banks

2.0%

DE Market


1 Year Return

-31.7%

BCY2

-30.0%

DE Banks

-2.6%

DE Market

Return vs Industry: BCY2 exceeded the German Banks industry which returned -33.7% over the past year.

Return vs Market: BCY2 underperformed the German Market which returned -4.6% over the past year.


Shareholder returns

BCY2IndustryMarket
7 Day-1.3%2.1%2.0%
30 Day11.3%4.8%8.4%
90 Day-41.8%-25.1%-7.3%
1 Year-30.3%-31.7%-29.5%-30.0%-1.0%-2.6%
3 Year-49.9%-53.4%-46.2%-48.5%-6.6%-13.9%
5 Year-66.0%-69.7%-43.1%-54.1%1.1%-11.7%

Price Volatility Vs. Market

How volatile is Barclays's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Barclays undervalued compared to its fair value and its price relative to the market?

47.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BCY2 (€4.54) is trading below our estimate of fair value (€8.64)

Significantly Below Fair Value: BCY2 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: BCY2 is good value based on its PE Ratio (8.8x) compared to the Banks industry average (18.3x).

PE vs Market: BCY2 is good value based on its PE Ratio (8.8x) compared to the German market (18.6x).


Price to Earnings Growth Ratio

PEG Ratio: BCY2 is good value based on its PEG Ratio (0.2x)


Price to Book Ratio

PB vs Industry: BCY2 is good value based on its PB Ratio (0.3x) compared to the DE Banks industry average (0.8x).


Next Steps

Future Growth

How is Barclays forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

50.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BCY2's forecast earnings growth (50.1% per year) is above the savings rate (0.2%).

Earnings vs Market: BCY2's earnings (50.1% per year) are forecast to grow faster than the German market (21.7% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: BCY2's revenue (1.2% per year) is forecast to grow slower than the German market (5.7% per year).

High Growth Revenue: BCY2's revenue (1.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BCY2's Return on Equity is forecast to be low in 3 years time (6.3%).


Next Steps

Past Performance

How has Barclays performed over the past 5 years?

44.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BCY2 has a large one-off loss of £3.3B impacting its March 31 2020 financial results.

Growing Profit Margin: BCY2's current net profit margins (9.9%) are lower than last year (17.4%).


Past Earnings Growth Analysis

Earnings Trend: BCY2 has become profitable over the past 5 years, growing earnings by 44.9% per year.

Accelerating Growth: BCY2's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: BCY2 had negative earnings growth (-40.3%) over the past year, making it difficult to compare to the Banks industry average (4.1%).


Return on Equity

High ROE: BCY2's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Barclays's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet


Financial Institutions Analysis

Asset Level: BCY2's Assets to Equity ratio (20.8x) is very high.

Allowance for Bad Loans: BCY2 has a low allowance for bad loans (95%).

Low Risk Liabilities: 66% of BCY2's liabilities are made up of primarily higher risk sources of funding.

Loan Level: BCY2 has an appropriate level of Loans to Assets ratio (26%).

Low Risk Deposits: BCY2's Loans to Deposits ratio (79%) is appropriate.

Level of Bad Loans: BCY2 has a high level of bad loans (2.2%).


Next Steps

Dividend

What is Barclays's current dividend yield, its reliability and sustainability?

5.43%

Forecast Dividend Yield


Dividend Yield vs Market

Notable Dividend: Unable to evaluate BCY2's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate BCY2's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if BCY2's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if BCY2's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: BCY2 is not paying a notable dividend for the German market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of BCY2's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.4yrs

Average management tenure


CEO

Jes Staley (63yo)

4.42yrs

Tenure

UK£5,929,000

Compensation

Mr. James Edward Staley, also known as Jes, has been Group Chief Executive Officer of Barclays Plc since December 1, 2015. He serves as a Chief Executive Officer and served as Interim Chief Executive Offic ...


CEO Compensation Analysis

Compensation vs Market: Jes's total compensation ($USD7.23M) is above average for companies of similar size in the German market ($USD5.19M).

Compensation vs Earnings: Jes's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
James Staley
Group CEO & Executive Director4.42yrsUK£5.93m0.032% £6.4m
Tushar Morzaria
Group Finance Director & Executive Director6.58yrsUK£3.97m0.022% £4.5m
Mark Ashton-Rigby
Group COO & CEO of Barclays Execution Services0.83yrno datano data
Arne Hassel
Chief Investment Officer4.67yrsno datano data
Alisdair Gayne
Head of UK Investment Banking3.5yrsno datano data
Adam Kelleher
Chief Data Scientist for Research & Director2yrsno datano data
Kathryn McLeland
Head of Investor Relations & Group Treasurerno datano datano data
Robert Hoyt
Group General Counsel6.75yrsno data0.015% £3.1m
Laura Padovani
Group Chief Compliance Officer3.33yrsno datano data
James Lundie
Managing Director and Head of Corporate Communications5.08yrsno datano data

4.4yrs

Average Tenure

54yo

Average Age

Experienced Management: BCY2's management team is considered experienced (4.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Staley
Group CEO & Executive Director4.42yrsUK£5.93m0.032% £6.4m
Tushar Morzaria
Group Finance Director & Executive Director6.58yrsUK£3.97m0.022% £4.5m
Mark Merson
Non Executive Director of Barlclays Africa Groupno datano datano data
Nigel Higgins
Independent Group Chairman1yrUK£544.00k0.0030% £606.3k
Timothy Breedon
Independent Non-Executive Director7.5yrsUK£238.00k0.00064% £128.1k
Zhi Zhong Qiu
Chairman of Investment Banking Unit - Greater China and Asia-Pacific Vice Chairman10.83yrsno datano data
Diane Schueneman
Independent Non-Executive Director4.92yrsUK£377.00k0.00032% £64.0k
Crawford Gillies
Senior Independent Director2.08yrsUK£231.00k0.0011% £216.1k
Carlos de Campos
Chairman of BB SAUno datano datano data
Michael St Ashley
Independent Non-Executive Director6.67yrsUK£222.00k0.0020% £398.2k

5.8yrs

Average Tenure

63yo

Average Age

Experienced Board: BCY2's board of directors are considered experienced (5.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Insufficient data to determine if shareholders have been diluted in the past year.


Top Shareholders

Company Information

Barclays PLC's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Barclays PLC
  • Ticker: BCY2
  • Exchange: DB
  • Founded: 1690
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£17.876b
  • Listing Market Cap: UK£20.009b
  • Shares outstanding: 17.33b
  • Website: https://www.home.barclays

Number of Employees


Location

  • Barclays PLC
  • 1 Churchill Place
  • London
  • Greater London
  • E14 5HP
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
BCLY.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDJan 1980
BARCLSE (London Stock Exchange)YesOrdinary SharesGBGBPJan 1980
BCYDB (Deutsche Boerse AG)YesOrdinary SharesDEEURJan 1980
BCYXTRA (XETRA Trading Platform)YesOrdinary SharesDEEURJan 1980
BARCLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPJan 1980
BARCSWX (SIX Swiss Exchange)YesOrdinary SharesCHCHFJan 1980
BCSNYSE (New York Stock Exchange)ADR-EACH CV INTO 4 ORD STK GBP0.25(JPM)USUSDSep 1986
BCS NBMV (Bolsa Mexicana de Valores)ADR-EACH CV INTO 4 ORD STK GBP0.25(JPM)MXMXNSep 1986
BCY2DB (Deutsche Boerse AG)ADR-EACH CV INTO 4 ORD STK GBP0.25(JPM)DEEURSep 1986
BCSBASE (Buenos Aires Stock Exchange)CEDEAR EACH 6 REPR 1 ADRARARSDec 2000

Biography

Barclays PLC, through its subsidiaries, provides various financial products and services in the United Kingdom, other European countries, the Americas, Africa, the Middle East, and Asia. The company operates through Barclays UK and Barclays International divisions. It offers financial services, such as retail banking, credit cards, wholesale banking, investment banking, wealth management, and investment management services. The company also engages in securities dealing activities; and issues credit cards. The company was formerly known as Barclays Bank Limited and changed its name to Barclays PLC in January 1985. Barclays PLC was founded in 1690 and is headquartered in London, the United Kingdom. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/25 22:13
End of Day Share Price2020/05/25 00:00
Earnings2020/03/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.