LSE:BARC

Stock Analysis Report

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

Undervalued established dividend payer.


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: BARC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-17.2%

BARC

-8.5%

GB Banks

-8.6%

GB Market


1 Year Return

-8.5%

BARC

-14.3%

GB Banks

-1.3%

GB Market

Return vs Industry: BARC exceeded the UK Banks industry which returned -14.3% over the past year.

Return vs Market: BARC underperformed the UK Market which returned -1.3% over the past year.


Shareholder returns

BARCIndustryMarket
7 Day-17.2%-8.5%-8.6%
30 Day-13.5%-9.4%-8.4%
90 Day-13.3%-11.1%-5.3%
1 Year-3.1%-8.5%-8.5%-14.3%4.0%-1.3%
3 Year-28.3%-35.7%-13.2%-24.5%7.6%-6.1%
5 Year-33.5%-43.9%-10.1%-27.8%23.4%-4.8%

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

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: BARC (£1.54) is trading below our estimate of fair value (£3.27)

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


Price To Earnings Ratio

PE vs Industry: BARC is poor value based on its PE Ratio (10.8x) compared to the Banks industry average (8.6x).

PE vs Market: BARC is good value based on its PE Ratio (10.8x) compared to the UK market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: BARC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: BARC is good value based on its PB Ratio (0.4x) compared to the GB Banks industry average (0.7x).


Next Steps

Future Growth

How is Barclays forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: BARC's forecast earnings growth (14.9% per year) is above the savings rate (0.5%).

Earnings vs Market: BARC's earnings (14.9% per year) are forecast to grow faster than the UK market (13.2% per year).

High Growth Earnings: BARC's earnings are forecast to grow, but not significantly.

Revenue vs Market: BARC's revenue (4.3% per year) is forecast to grow faster than the UK market (3.8% per year).

High Growth Revenue: BARC's revenue (4.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: BARC's Return on Equity is forecast to be low in 3 years time (7.9%).


Next Steps

Past Performance

How has Barclays performed over the past 5 years?

47.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: BARC has a large one-off loss of £2.0B impacting its December 31 2019 financial results.

Growing Profit Margin: BARC's current net profit margins (12.5%) are higher than last year (8.1%).


Past Earnings Growth Analysis

Earnings Trend: BARC has become profitable over the past 5 years, growing earnings by 47.5% per year.

Accelerating Growth: BARC's earnings growth over the past year (54.1%) exceeds its 5-year average (47.5% per year).

Earnings vs Industry: BARC earnings growth over the past year (54.1%) exceeded the Banks industry 29.6%.


Return on Equity

High ROE: BARC's Return on Equity (5.1%) is considered low.


Return on Assets


Return on Capital Employed


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

Inventory Level: BARC has a low level of unsold assets or inventory.

Debt Coverage by Assets: BARC's debt is covered by short term assets (assets are 1.4x debt).


Financial Institutions Analysis

Asset Level: BARC's level of assets compared to its equity is moderate.

Allowance for Bad Loans: BARC has a low allowance for bad loans.

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

Loan Level: BARC has an acceptable proportion of non-loan assets held.

Low Risk Deposits: BARC's loans are broadly funded by customer deposits.

Level of Bad Loans: BARC has a high level of bad loans (2.35%)


Next Steps

Dividend

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

6.05%

Current Dividend Yield


Dividend Yield vs Market

company6.1%marketbottom25%1.9%markettop25%5.4%industryaverage7.1%forecastin3Years7.0%

Current dividend yield vs market & industry

Notable Dividend: BARC's dividend (5.83%) is higher than the bottom 25% of dividend payers in the UK market (1.94%).

High Dividend: BARC's dividend (5.83%) is in the top 25% of dividend payers in the UK market (5.4%)


Stability and Growth of Payments

Stable Dividend: BARC's dividend payments have been volatile in the past 10 years.

Growing Dividend: BARC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.9%), BARC's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: BARC's dividends in 3 years are forecast to be well covered by earnings (45.1% payout ratio).


Next Steps

Management

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

4.2yrs

Average management tenure


CEO

Jes Staley (63yo)

4.2yrs

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 has been Interim Chief Executive Officer of Barclays Bank PLC since March 26, 2 ...


CEO Compensation Analysis

Compensation vs Market: Jes's total compensation ($USD7.63M) is above average for companies of similar size in the UK market ($USD4.65M).

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


Leadership Team

NamePositionTenureCompensationOwnership
James Staley
Group CEO & Executive Director4.2yrsUK£5.93m0.029% £7.7m
Tushar Morzaria
Group Finance Director & Executive Director6.3yrsUK£3.97m0.017% £4.6m
Mark Ashton-Rigby
Group COO & CEO of Barclays Execution Services0.6yrsno datano data
Arne Hassel
Chief Investment Officer4.4yrsno datano data
Alisdair Gayne
Head of UK Investment Banking3.3yrsno datano data
Adam Kelleher
Chief Data Scientist for Research & Director1.8yrsno datano data
Kathryn McLeland
Head of Investor Relations & Group Treasurer0yrsno datano data
Robert Hoyt
Group General Counsel6.5yrsno data0.013% £3.5m
Laura Padovani
Group Chief Compliance Officer3.1yrsno datano data
James Lundie
Managing Director and Head of Corporate Communications4.8yrsno datano data

4.2yrs

Average Tenure

54yo

Average Age

Experienced Management: BARC's management team is considered experienced (4.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
James Staley
Group CEO & Executive Director4.2yrsUK£5.93m0.029% £7.7m
Tushar Morzaria
Group Finance Director & Executive Director6.3yrsUK£3.97m0.017% £4.6m
Mark Merson
Non Executive Director of Barlclays Africa Group0yrsno datano data
Nigel Higgins
Independent Group Chairman0.8yrsUK£544.00k0.00015% £40.1k
Timothy Breedon
Independent Non-Executive Director7.3yrsUK£238.00k0.00064% £171.2k
Zhi Zhong Qiu
Chairman of Investment Banking Unit - Greater China and Asia-Pacific Vice Chairman10.6yrsno datano data
Diane Schueneman
Independent Non-Executive Director4.7yrsUK£377.00k0.00032% £85.6k
Crawford Gillies
Senior Independent Director1.8yrsUK£231.00k0.00073% £195.3k
Carlos de Campos
Chairman of BB SAU0yrsno datano data
Michael St Ashley
Independent Non-Executive Director6.4yrsUK£222.00k0.00074% £198.0k

5.5yrs

Average Tenure

63yo

Average Age

Experienced Board: BARC's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: BARC insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully 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: BARC
  • Exchange: LSE
  • Founded: 1690
  • Industry: Diversified Banks
  • Sector: Banks
  • Market Cap: UK£26.751b
  • Shares outstanding: 17.32b
  • 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 Analysis2020/02/28 21:18
End of Day Share Price2020/02/28 00:00
Earnings2019/12/31
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.